Document:

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                                                                   EXHIBIT 10.55
                            MASTER NETTING, SETOFF,
                             AND SECURITY AGREEMENT

This Master Netting, Setoff, and Security Agreement (and the Collateral Annex,
collectively this "Agreement") is made and entered into effective as of December
2, 2002 (the Effective Date") by and between Midland Cogeneration Venture
Limited Partnership (hereinafter referred to as "MCV") and El Paso Merchant
Energy, L.P. ("EPME").

                                    RECITALS

         WHEREAS, the Parties have entered into (A) the agreements listed on
Schedule A, (B) may enter into future master agreements (each of (A) and (B)
being an "Underlying Master Agreement"), and (C) have entered into or may enter
into agreements via documents and other confirming evidence establishing the
terms and conditions of a particular transaction to the extent that an
Underlying Master Agreement does not govern any such transaction(s), all of (A),
(B) and (C) being "forward contracts," "commodities contracts," and/or "swap
agreements" as defined in Title 11 of the United States Bankruptcy Code (the
"Code") for the purchase, sale and/or exchange of physical commodities
(including, without limitation, natural gas, crude oil, fuel oil, gasoline,
petroleum-related products, electric power, electric capacity, natural gas
liquids, coal, and emissions), transportation rights, transportation capacity,
transmission rights, transmission capacity, goods (as such term is defined in
the UCC), swaps, options, derivatives, or any other security, contract right,
instrument or item (whether similar or dissimilar to the foregoing) that are
currently bought, sold, and/or exchanged or capable of being bought, sold and/or
exchanged in the future (each a "Transaction", as later defined herein, whether
under (A) (B)or (C)) that shall be governed by this Agreement;

         WHEREAS, each Party desires to provide in this Agreement for, among
other things, (i) its right to accelerate, liquidate, terminate, net, setoff,
recover against, and apply Performance Assurance upon the terms and conditions
set forth in this Agreement, (ii) the determination of the Collateral
Requirements of the other Party under this Agreement, and (iii) to treat this
Agreement, the Underlying Master Agreements, and all Transactions (existing and
hereinafter entered into) as a single agreement for the purposes set forth
herein.

         NOW THEREFORE, for and in consideration of the mutual agreements herein
made and other good and valuable consideration, including, without limitation,
certain amendments to the Underlying Master Agreements and Transactions, the
receipt and sufficiency of which are hereby acknowledged, and in reliance upon
the Parties' agreement and intent that this Agreement, the Underlying Master
Agreements, and all Transactions are one single integrated agreement, each Party
agrees as follows:

                  SECTION 1. DEFINITIONS.

(a) In the event of any conflict or inconsistency between a term defined herein
and in any of the Underlying Master Agreements or Transactions, such term as
used in this Agreement shall govern and have the meaning ascribed to it in this
Agreement for purposes of this Agreement. The Parties will use all reasonable
efforts to construe the definitions used in this Agreement consistent with those
in the Underlying Master Agreements and/or Transactions to

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the extent there are any apparent inconsistencies. All references are to this
Agreement unless otherwise expressly stated.

         (b) The following terms used in this Agreement are defined as follows:

         "Additional Default Events" shall have the meaning set forth in Section
2(b).

         "Additional Termination Rights" shall have the meaning set forth in
Section 2(b).

         "Affiliate" means, with respect to any Person, any other Person that,
directly or indirectly, through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person. For purposes of the
foregoing definition, "control" means the direct or indirect beneficial
ownership of more than fifty percent of the outstanding capital stock, other
equity interests or interests having ordinary voting power, and "Person" as used
in this definition means any entity except an individual.

         "Aggregate Delinquency Amount" means US$1,000,000.

         "Applicable Rate" for any date means the rate per annum equal to that
set forth in the Selected Interest Rates (weekly) designated as H.15, of the
Federal Reserve Statistical Release published by the Board of Governors of the
Federal Reserve System, or any successor publication.

         "Bankruptcy" means, with respect to any Person, (i) the filing by such
Person of a petition seeking to adjudicate such Person a bankrupt or an
insolvent or otherwise commencing, authorizing or acquiescing in the
commencement of a proceeding or cause of action seeking dissolution,
liquidation, winding up, reorganization, arrangement, debt adjustment,
restructuring protection, or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in
effect; (ii) the seeking by such Person of the appointment of a trustee,
receiver, liquidator, custodian or other similar official over it or any
substantial part of its property, or consenting to any such relief or to the
appointment of or taking possession by any such official in an involuntary case
or other proceeding commenced against it, or taking any corporate action to
authorize any of the foregoing; (iii) the commencement of an involuntary case or
other proceeding against such Person seeking dissolution, liquidation, winding
up, reorganization, arrangement, debt adjustment, restructuring protection,
composition or other relief with respect to such Person or its debts under any
bankruptcy, insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official over such Person or any substantial part of its property, and
such involuntary case or other proceeding shall remain undismissed and unstayed
for a period of 15 days; (iv) the making of an assignment or any general
arrangement for the benefit of creditors, (v) such Person otherwise becoming
bankrupt or insolvent (however evidenced), (vi) such Person generally being
unable or admitting its inability to pay its debts as they fall due (or
otherwise generally failing to pay its debts as they fall due), or (vii) such
Person filing an answer or other pleading admitting or failing to contest the
allegations of a petition filed against it in any proceeding of the foregoing
nature, or taking any other action to authorize any of the actions set forth
above.

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         "Business Day" means any day except Saturday, Sunday, a Federal Reserve
Bank holiday, or any other recognized holiday where commercial banks are not
open for general business in New York, New York.

         "Collateral Annex" means the Collateral Annex attached hereto as Annex
A, which is a part of this Agreement.

         "Costs" means, with respect to a Non-defaulting Party, brokerage fees,
commissions and other similar third party transaction costs and expenses
(including reasonable attorneys' fees and expenses) (exclusive of Losses)
expressed as a positive number that such Non-defaulting Party incurs or would
reasonably be expected to incur, or realizes, or would reasonably be expected to
realize either in terminating any arrangement pursuant to which it has hedged
its obligations or entering into new arrangements which replace a terminated
Transaction.

         "Default" has the meaning set forth in Section 2(d).

         "Default Rate" means, for any date, a rate per annum equal to the
lesser of (a) the per annum rate of interest equal to the then effective prime
lending rate as may from time to time be published in The Wall Street Journal
under "Money Rates" on such day (or if not published, on such day on the most
recent preceding day on which published), plus two percent (2%), and (b) the
maximum non-usurious interest rate allowed by law.

         "Defaulting Party" means (i) MCV when a Default has occurred with
respect to MCV and (ii) EPME when a Default has occurred with respect to EPME.

         "Discount Rate" means a rate per annum equal to the lesser of (a) a
rate per annum of interest equal to the then effective one-month London
Interbank Offered Rate (LIBOR) determined daily as provided under the heading
"Money Rates" in The Wall Street Journal plus one percent (1%); and (b) the
maximum non-usurious interest rate allowed by law.

         "Early Termination Date" shall have the meaning set forth in Section
3(c).

         "Eligible Collateral" means Cash or a Letter of Credit eligible to be
provided, pledged, or transferred by a Party, as applicable, (including, without
limitation, any such collateral eligible to be transferred by the Qualified
Institution on behalf of any such Party) to secure payment or performance of any
of its Obligations to the other Party, as applicable, under this Agreement, the
Underlying Master Agreements and/or Transactions.

         "EPME" means El Paso Merchant Energy, L.P., a Delaware limited
partnership.

         "Final Settlement Amount" has the meaning set forth in Section 4(a).

         "Gains" means, with respect to any Party, an amount, expressed as a
negative number, equal to the present value (discounted at the Discount Rate) of
the economic benefit, if any (exclusive of Costs), resulting from the
termination of a Transaction pursuant to Section 3 hereof.

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         "GISB Defaults" shall mean the terms and conditions set forth in
subparagraphs (i)-(v) of Section 10.1 of the Base Contract for Short-Term Sale
and Purchase of Natural Gas copyrighted by the Gas Industry Standards Board,
Inc., or its successor in interest.

         "Guaranty" means the document or agreement pursuant to which a
Guarantor provides credit support for the Obligations of a Party.

         "Guarantor" with respect to any Party means any other Person providing
credit support for the Obligations of such Party, including, without limitation,
any credit support provider under any Underlying Master Agreement or
Transaction.

         "ICE" means Intercontinental Exchange, LLC, or its successor.

         "Kiodex" means Kiodex, Inc., a company headquartered in New York, New
York that provides propriety independent market data integrated with valuation
models, or its successor.

         "Losses" means, with respect to any Party, an amount, expressed as a
positive number, equal to the present value (discounted at the Discount Rate) of
the economic loss, if any (exclusive of Costs), resulting from the termination
of a Transaction pursuant to Section 3 hereof.

         "MCV" means Midland Cogeneration Venture Limited Partnership, a
Michigan limited partnership.

         "Monthly Final Settlement Amount" means, as of the last Business Day of
each applicable calendar month, the amount equal to the sum of (i) the Final
Settlement Amount less the Total Unpaid Amounts divided by the lesser of (a)
thirty-six (36) months and (b) the number of months remaining in the term of the
Transaction with the latest expiration date and (ii) interest accrued (at the
Discount Rate) on the outstanding unpaid portion of the Final Settlement Amount
from the day the Final Settlement Amount would have been due.

         "Non-defaulting Party" means (i) MCV when EPME is the Defaulting Party
and (ii) EPME when MCV is the Defaulting Party.

         "Obligation" or "Obligations" means, with respect to a Party, each and
every obligation or liability for which such Party is bound to the other Party
under an Underlying Master Agreement, a Transaction, or this Agreement and
whether financial or physical, including, without limitation, (i) payment and
delivery obligations, (ii) each and every other obligation or requirement,
including the payment of any debts, damages and/or obligations (without
limitation including payments due with respect to any terminated Transactions),
(iii) each and every obligation or requirement arising under a Guaranty issued
pursuant to any Underlying Master Agreement, Transaction, or this Agreement that
such Party has provided to the other Party, (iv) each and every obligation or
requirement under any Underlying Master Agreement, a Transaction, or this
Agreement to maintain or deliver Eligible Collateral/Performance Assurance with
respect thereto (whether or not performance is due), or in connection with a
Guaranty, or acceleration, termination, or liquidation of a Guaranty, whether
arising under any Underlying Master Agreement, a Transaction, or this Agreement,
heretofore or hereafter, and whether fixed,

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matured, liquidated, or unliquidated; and (v) any indemnity obligations under
this Agreement, the Underlying Master Agreement or Transactions.

         "Party" means MCV and EPME as the context indicates, and "Parties"
means both of the foregoing.

         "Person" means an individual, a corporation, a partnership, a limited
liability company, an association, a joint venture, a trust, an unincorporated
organization, or any other entity or organization, including a government or
political subdivision or an agency or instrumentality thereof.

         "Potential Event of Default" means any event which, but for the giving
of notice and the expiration of any applicable cure period, would constitute a
Default under Sections 2(d)(i) or 2(d)(iii).

         "Settlement Amount" means, with respect to a terminated Transaction and
a Non-defaulting Party, the difference between (i) the sum of (a) Losses or
Gains, (b) Costs and (c) Unpaid Amounts owed by the Defaulting Party to the
Non-defaulting Party with respect to such terminated Transaction with respect to
periods prior to the Early Termination Date and (ii) the Unpaid Amounts owed by
such Non-defaulting Party to the Defaulting Party with respect to such
terminated Transaction with respect to periods prior to the Early Termination
Date; and if such amount is owed to the Non-defaulting Party, that number shall
be expressed as a positive number. In determining Gains/Losses, the
Non-defaulting Party shall not be required to enter into any replacement
transaction in order to determine the respective calculations. Gains and Losses
applicable to each Transaction shall, to the extent practicable, be determined
by reference to information either available to it internally or supplied by one
or more third parties including, without limitation, quotations (either firm or
indicative) of relevant prices, rates, yields, yield curves, spreads,
volatilities or other relevant market data for the relevant markets, and may
include information obtained through NYMEX, ICE, Kiodex or other such
information that may be published in the market place, with adjustments in good
faith as may be necessary to account for sufficient quantities of the
commodities comparable to the subject of such Transaction in the same relative
market, having the same delivery point (or a comparable delivery point for the
subject Transaction, as determined in good faith by the Non-defaulting Party)
with such adjustments for any basis differential that the Non-defaulting Party
reasonably determines is applicable to prices at the alternate pricing point as
compared to the actual delivery point. The Settlement Amount for each terminated
Transaction may be either a positive or a negative amount. For purposes of
determining the Collateral Requirement, the references to Non-Defaulting Party
above shall mean the Calculating Party, and the references to the Defaulting
Party shall mean the non-Calculating Party.

         "Transaction" or "Transactions" means each and every trade,
transaction, and other contractual commitment between MCV and EPME entered into
before, on, or after the Effective Date of this Agreement for which performance
is still pending from any Party, provided that such Transaction is within the
scope of this Agreement and is evidenced by (i) any of the Underlying Master
Agreements, (ii) trade confirmations (iii) a purchase and sale agreement, or
(iv) other documents or writings evidencing the terms of any such trade,
transaction or contractual commitment.

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         "Total Unpaid Amounts" means the greater of: (A) (i) the aggregate of
all Unpaid Amounts owed by the Non-defaulting Party to the Defaulting Party with
respect to all terminated Transactions accrued prior to the Early Termination
Date less (ii) the aggregate of Unpaid Amounts owed by the Defaulting Party to
the Non-defaulting Party with respect to all terminated Transactions accrued
prior to the Early Termination Date, and (B) zero.

         "Underlying Master Agreements" shall have the meaning given in the
first paragraph of this Agreement.

         "Underlying Master Agreements Close-Out" has the meaning set forth in
Section 3(d).

         "Uniform Commercial Code" means the Uniform Commercial Code as enacted
from time to time in the State of New York.

         "Unpaid Amount(s)" means the amount payable by one Party to the other
Party, that has not been paid as of the Early Termination Date with respect to
performance rendered or provided under a Transaction, whether such amount is
then due and owing, such as but not limited to (i) an invoiced amount, (ii) an
uninvoiced amount and/or an amount payable due to physical deliveries or
settlements that occurred prior to the Early Termination Date, and (iii)
liquidated damages, taxes or other such costs and expenses that arose prior to
the Early Termination Date otherwise allowed under the terms of this Agreement,
an Underlying Master Agreement or a Transaction.

         "US$" means lawful currency of the United States of America.

                  SECTION 2. DEFAULT.

         (a) The Defaults set forth in Section 2(d) supercede and replace in
their entirety (i) any and all "defaults" or "events of default" in any
Underlying Master Agreement or Transaction, and (ii) the GISB Defaults. The
Parties agree that any rights or remedies granted to them in the Underlying
Master Agreements or Transactions upon the occurrence of any such "default" or
"event of default" or GISB Defaults set forth therein shall (subject to this
Section and Sections 3, 16 and 23 of this Agreement) be null and void and
without effect. In addition, any provision in any Underlying Master Agreement or
Transaction providing for automatic termination in the event of a Bankruptcy
shall be amended hereby to provide that such termination is not automatic, but
shall instead constitute solely a Default in accordance with Section 2(d)(iv) or
2(d)(vii)(3) below, pursuant to which the Non-defaulting Party may elect, but is
not required, to terminate all Underlying Master Agreements or Transactions in
accordance with Section 3.

         (b) To the extent not otherwise designated as a "Default" under this
Agreement, upon the occurrence of any event that gives rise to a right of a
Party to terminate any Underlying Master Agreement or Transaction, but that is
NOT specifically enumerated as a "default" or "event of default", or GISB
Default (such events, collectively, "Additional Default Events") therein, the
Parties to such Underlying Master Agreement or Transaction shall have the rights
and remedies provided for such Additional Default Event as set forth in such
Underlying Master Agreement or Transaction (collectively referred to as the
"Additional Termination Rights"), but shall not have any independent right under
this Agreement to terminate all Underlying Master Agreements or all Transactions
based on such Additional Default Events. Provided, however, that to the extent
that the Additional Termination Rights allow a Party to ultimately terminate any
or all of the

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Transactions or pursue remedies as a result of such Additional Default Event
(i.e., the termination of only the transactions affected by the illegality, the
tax event, etc.), the Parties' remedies based upon its Additional Termination
Rights shall be governed by this Agreement (including the remedies under
Sections 3,4,5,6, and 7). Without limiting the generality of the foregoing,
Additional Termination Rights (such as but not limited to a contractual right to
terminate Transactions under an Underlying Master Agreement or otherwise
occasioned by an event of force majeure, a change in law or regulation, a tax
event, illegality or any other events that are defined as "Termination Events"
or "Additional Termination Events" under any Underlying Master Agreement or
otherwise) shall not be considered a Default under this Agreement and shall not
cause, as the independent result of this Agreement, an early termination of all
of the Underlying Master Agreements or Transactions.

         (c) Notwithstanding any provision in any Underlying Master Agreement or
Transaction that permits termination of such Underlying Master Agreement or any
Transaction on the occurrence of any credit rating downgrade, loss of
shareholder equity, credit event upon merger, material adverse change, or
material adverse effect, however defined in such Underlying Master Agreement or
Transaction (including whether it would otherwise constitute an Additional
Termination Right), is hereby deleted so that the only consequences of a Credit
Event shall be the remedies set forth in this Agreement.

         (d) For purposes of this Agreement, "Default" shall mean, with respect
to a Party (the "Defaulting Party"), the occurrence of any of the following:

                  (i) the failure by such Party to pay, when due, any amount
         required to be paid pursuant to any Underlying Master Agreement which,
         together with the amount of all such unpaid amounts (excluding any
         portion of any such payment(s) that is the subject of a good faith
         dispute), equals or exceeds the Aggregate Delinquency Amount, and all
         such unpaid amounts shall not be paid in full within two (2) Business
         Days after notice of such failure;

                  (ii) any representation or warranty made by such Party in this
         Agreement or any Underlying Master Agreement or Transaction is false or
         misleading in any material respect when made or when deemed made or
         repeated in accordance with the respective terms of this Agreement, the
         Underlying Master Agreement and/or the Transaction, and such materially
         false or misleading representation or warranty results in a significant
         economic impact to the Non-defaulting Party (as based on the
         Non-defaulting Party's good faith and reasonable opinion) in excess of
         the Aggregate Delinquency Amount, unless such representation or
         warranty is capable of being remedied within five (5) Business Days
         after written notice of such failure;

                  (iii) the failure to timely perform any material covenant or
         obligation set forth in this Agreement (except (i) to the extent that
         such failure already constitutes a separately enumerated Default
         hereunder, or (ii) for such Party's obligations to physically deliver
         or receive a commodity, the sole and exclusive remedy for which is
         provided in the applicable Underlying Master Agreement or Transaction,
         unless the Party otherwise fails to tender payment for such breached
         performance obligation in accordance with the terms of such Underlying
         Master Agreement or Transaction) (e.g., Article Four of the

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         Master Power Agreement, Section 3.2 of the GISB agreement), and such
         failure to perform results in a significant economic impact to the
         Non-defaulting Party (as based on the Non-defaulting Party's good faith
         and reasonable opinion) in excess of the Aggregate Delinquency Amount,
         if such failure is not remedied within three (3) Business Days after
         written notice of such failure;

                  (iv) the Bankruptcy of such Party;

                  (v) such Party, in compliance with this Agreement, properly
         takes any necessary action to consolidate or amalgamate with or merge
         with or into, or transfer all or substantially all of its assets to,
         another Person and, prior to effecting such consolidation,
         amalgamation, merger or transfer, the resulting or surviving Person (A)
         fails to assume all the Obligations of such Party under this Agreement,
         the Underlying Master Agreements and Transactions by operation of law
         or pursuant to a reasonable and customary agreement; (B) fails to
         extend the benefits of any Performance Assurance or Guaranty to the
         payment by such resulting or surviving entity of its Obligations
         pursuant to reasonable and customary documentation; or (C) has
         materially weaker creditworthiness than such Party as compared to the
         creditworthiness of such Party immediately prior to such action, and
         such event under (A), (B) or (C) is not remedied within two (2)
         Business Days after notice by the Party that would otherwise be the
         Non-defaulting Party;

                  (vi) with respect to any required Transfers of Eligible
         Collateral/Performance Assurance under this Agreement, if the failure
         to Transfer is not effected within one (1) Business Day after notice of
         failure has been given to the applicable Party;

                  (vii) with respect to such Party's Guarantor, if any:

                           (1) if any representation or warranty made or deemed
                  to be made or repeated by a Guarantor in connection with this
                  Agreement or any Underlying Master Agreement or Transaction is
                  false or misleading in any material respect when made or when
                  deemed made or repeated;

                           (2) the failure of a Guarantor to make any payment
                  required or to perform any other material covenant or
                  obligation in any Guaranty made in connection with this
                  Agreement or any Underlying Master Agreement or Transaction,
                  if such failure shall not be remedied within three (3)
                  Business Days after written notice thereof;

                           (3) the Bankruptcy of the Guarantor;

                           (4) the failure of a Guarantor's Guaranty to be in
                  full force and effect and enforceable against such Guarantor
                  for purposes of this Agreement or any Underlying Master
                  Agreement or Transaction (other than in accordance with the
                  terms of such Guaranty and the related Underlying Master
                  Agreement or Transaction) prior to the satisfaction of all
                  Obligations of such Party under each

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                  Underlying Master Agreement or Transaction to which such
                  Guaranty shall relate without the written consent of the other
                  Party;

                           (5) a Guarantor shall repudiate, disaffirm, disclaim,
                  or reject, in whole or in part, or challenge the validity of
                  any Guaranty; or

                           (6) such Guarantor consolidates or amalgamates with,
                  or merges with or into, or transfers all or substantially all
                  of its assets to, another Person, and a Party on behalf of its
                  Guarantor, prior to effecting such consolidation,
                  amalgamation, merger or transfer, (A) fails to provide
                  documentation to the other Party, establishing that the
                  resulting or surviving Person has agreed to assume all the
                  Obligations of such Guarantor by operation of law or pursuant
                  to a reasonable and customary agreement; (B) otherwise fails
                  to provide the benefits of any Guaranty to the payment by such
                  Party of its Obligations pursuant to reasonable and customary
                  documentation; or (C) has materially weaker creditworthiness
                  than such Party as compared to the creditworthiness of the
                  Guarantor immediately prior to such action, and such event
                  under (A), (B) or (C) is not remedied within two (2) Business
                  Days after notice by the Party that would otherwise be the
                  Non-defaulting Party.

         (e) Notwithstanding the foregoing, if any Party (i) fails to make a
payment under an Underlying Master Agreement or Transaction that would otherwise
cause a Default under Section 2(d)(i) save and except for the unpaid amounts not
exceeding the Aggregate Delinquency Amount, (ii) makes a materially false or
misleading representation or warranty that would otherwise cause a Default under
Section 2(d)(ii) save and except for the economic impact to the Non-defaulting
Party not exceeding the Aggregate Delinquency Amount; or (iii) fails to timely
perform any material covenant or obligation under this Agreement that would
otherwise cause a Default under Section 2(d)(iii) save and except for the
economic impact to the Non-defaulting Party not exceeding the Aggregate
Delinquency Amount, the other Party may exercise any rights and remedies
provided to such non breaching Party under the applicable Transaction and/or
Underlying Master Agreement (including any Additional Termination Rights, if
applicable). If at any time the Defaulting Party fails to designate how a
payment under this Agreement is to be allocated under the various Master
Underlying Agreements and/or Transactions, the Non-defaulting Party shall
allocate the payment according to its sole discretion to amounts due under the
Underlying Master Agreements and/or Transactions.

         (f) To the extent that any of the Underlying Master Agreements or
Transactions would otherwise allow the termination of any or all Transactions on
terms and conditions pertaining to (i) cross-default events for specified terms,
conditions, events or for defaults under other agreements or instruments,
irrespective of the circumstances involved or the actions of any Persons
whatsoever, or (ii) any specifically identified transactions, agreements,
instruments or contractual arrangements between any Persons for any reason
whatsoever, such terms, conditions or provisions in such Underlying Master
Agreements or Transactions shall be rendered null and void and shall be of no
further effect for so long as this Agreement is in effect.

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                  SECTION 3. REMEDIES.

         (a) The rights and remedies of the Non-defaulting Party which relate to
a Default as defined herein shall supercede the rights and remedies of such
Party relating to such Default under any Underlying Master Agreement or
Transaction other than provisions therein relating to the reimbursement of
expenses or other indemnification provided for thereunder.

         (b) Upon the occurrence and during the continuance of a Potential Event
of Default in respect of any Party, the other Party shall have the right to,
upon one (1) Business Day prior written notice to the other Party, withhold any
payments and/or suspend performance under any or all Underlying Master Agreement
and/or Transactions (subject to Section 2(e), which will allow the exercitation
of such rights for only the affected Transactions as set forth in the applicable
Underlying Master Agreement or Transaction), provided, however, that the right
to suspend performance under such Transactions or Underlying Master Agreement
shall only last for five (5) days from the initiation of the Potential Event of
Default.

         (c) Upon the occurrence and during the continuance of a Default, the
Non-defaulting Party shall have the right to: (i) immediately withhold any
payments and/or suspend performance under any or all Underlying Master Agreement
and./or Transactions, provided, however, that the right to suspend performance
under any or all Underlying Master Agreement and./or Transactions shall only
last for fourteen (14) days from the initial Default, unless an Early
Termination Date has been declared (in which event suspension of performance may
continue until such Early Termination Date); (ii) exercise rights of setoff in
accordance with the terms of this Agreement, (iii) retain any Performance
Assurance pending calculation and payment of the Final Settlement Amount
pursuant to the provisions set forth herein; (iv) give notice to the Defaulting
Party specifying the relevant Default, declaring the Defaulting Party in Default
of all Underlying Master Agreements and all Transactions, and designating a day,
no earlier than the day such notice is effective and no later than 20 days after
such notice is effective, as an early termination date ("Early Termination
Date"); (v) withhold the Transfer of any Eligible Collateral/Performance
Assurance that absent such Default would otherwise be payable under the terms of
this Agreement; and/or (vi) take any other action permitted by law or in equity
or by this Agreement, the Underlying Master Agreements or any Transactions
(provided that such rights and remedies do not pertain to a Default under the
Underlying Master Agreements or Transactions) necessary or appropriate to
protect, preserve, or enforce its rights or to reduce any risk of loss or delay,
including the demand for additional Eligible Collateral (otherwise due under
Section 4) or the return of Performance Assurance (otherwise due to be returned
under Section 5) as applicable (provided that in no event shall a Non-defaulting
Party be permitted to terminate less than all of the Underlying Master
Agreements and all Transactions as a result of a Default hereunder, save and
except with respect to Sections 2 (b) or (e)).

         (d) Upon giving notice to the Defaulting Party of an Early Termination
Date irrespective of whether the Default giving rise to the Default is
continuing, the Non-defaulting Party shall (i) accelerate, terminate, liquidate
and otherwise close-out all Transactions under its Underlying Master Agreements
or otherwise, as of the Early Termination Date; (ii) calculate the Settlement
Amount for each terminated Underlying Master Agreement and Transaction as of
such Early Termination Date (iii) retain and apply any Performance Assurance in
accordance with terms of this Agreement; and/or (iv) take any other action as
permitted or by law. The Non-

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defaulting Party may also exercise rights of set-off, netting and/or recoupment
in accordance with the terms of this Agreement. To the extent that Section 2(e)
or Additional Termination Rights are the basis for such exercitation of the
rights hereunder, the same methodology shall apply but only with respect to the
terminated Transactions affected by such events. The action(s) taken by the
Non-defaulting Party pursuant to this Section 3(d), even if for the limited
purposes with respect to Additional Termination Rights or Section 2(e), shall be
referred to herein as the "Underlying Master Agreements Close-Out.

                  SECTION 4. SETTLEMENT.

         (a) Upon the Non-defaulting Party's exercise of the Underlying Master
Agreements Close-Out, the Non-defaulting Party shall calculate the Settlement
Amount relating to each of the Transactions. The "Final Settlement Amount" shall
be the difference between the aggregate sum of (i) (a) the aggregate sum of such
Settlement Amounts (determined by adding each of the Settlement Amounts that are
expressed as a positive number and subtracting therefrom the sum of the absolute
value of Settlement Amounts that are expressed as a negative number), plus (b)
the total amount of the Cash being held or retained by the Defaulting Party
unless the Defaulting Party returns such Performance Assurance to the
Non-Defaulting Party prior to the time that the Final Settlement Amount is
calculated, plus (c) any amount deducted as a result of any set-off, offset,
combination of accounts, recoupment, deduction retention, or withholding,
collectively hereinafter in this Agreement referred to as "setoff") as allowed
under this Agreement, applicable law or equity less (ii) any amount received by
the Non-defaulting Party as a result of the exercise of the rights to apply
Performance Assurance pursuant to this Agreement, the Underlying Master
Agreements, the Transactions and the Guarantees (as they may be applicable), and
provided further that Cash has been received as of the result of such rights so
as to warrant such reduction. If the Final Settlement Amount is a positive
amount, then such amount shall be owed by the Defaulting Party to the
Non-defaulting Party; and if the Final Settlement Amount is a negative amount,
then the absolute value of such amount shall be owed by the Non-defaulting Party
to the Defaulting Party.

         (b) Upon determination of the Final Settlement Amount by the
Non-defaulting Party, the Non-defaulting Party shall provide Defaulting Party
with a statement showing the calculation of the Final Settlement Amount,
necessarily including the calculation of the Settlement Amount relating to each
Transaction, and the reduction of such amount(s) by the amount(s) (a)
attributable to the receipt of Cash by the Non-Defaulting Party due to the
application of Performance Assurance (b) the Cash held by the Defaulting Party
and not returned to the Non-defaulting Party, and (c) any set-off, all of the
foregoing being done in accordance with Section 4(a) above. Additionally, the
total amount of Cash held as Performance Assurance (including any proceeds from
any draw upon a Letter of Credit) by the Defaulting Party (or its Qualified
Institution under Paragraph 6 of the Collateral Annex) shall be deducted from
any Final Settlement Amount which the Non-Defaulting Party owes to the
Defaulting Party. The Final Settlement Amount (in addition to any other
calculations, such as the Monthly Final Settlement Amounts, etc.) shall be
further adjusted by the proceeds of any subsequent draws by the Secured Party
upon any Letter of Credit and any subsequent setoffs, applications of
Performance Assurance or other reductions allowed by the terms of this
Agreement, as applicable. Subject to the dispute provisions set forth herein,
the Final Settlement Amount, plus an amount equal to interest on the Final
Settlement Amount at the Applicable Rate from (and including) the Early

                                       11
<PAGE>

Termination Date to (but excluding) the date such amount is due pursuant to this
subsection, shall be payable by wire transfer in immediately available funds by
the Party from whom such payment is due on the third Business Day after notice
of the statement of the Final Settlement Amount is provided to the Defaulting
Party by the Non-defaulting Party; provided that if (i) the Final Settlement
Amount is owed by the Non-Defaulting Party to the Defaulting Party and (ii) the
Total Unpaid Amount is less than the Final Settlement Amount, the Non-Defaulting
Party may pay (i) the Total Unpaid Amounts on the earlier of (A) the date such
amounts would ordinarily have become due and payable in the ordinary course of
business and (B) 55 days from the Early Termination Date, and (ii) the Monthly
Final Settlement Amount to the Defaulting Party beginning on the last Business
Day of the month the Final Settlement Amount would be due and continuing on each
last Business Day of each month thereafter for the lesser of (a) thirty-five
months and (b) the number of months remaining in the term of the Transaction
with the latest expiration date; provided, however, that if the Non-defaulting
Party shall fail to make any payment of the Total Unpaid Amounts or Monthly
Final Settlement Amount when due, and such non-payment is not cured within three
(3) Business Days after notice is provided to the Non-defaulting Party, then the
Non-defaulting Party shall (i) immediately pay the entire remaining principal
portion of the Final Settlement Amount which has not otherwise been satisfied
via Monthly Final Settlement Amount payments or otherwise, plus (ii) interest
accruing on the remaining principal portion of the Final Settlement Amount at
the Default Rate from the original due date for such unpaid Monthly Final
Settlement Amount until the date that the entire payment is actually received.
The interest on such delinquent amount shall be in lieu of the interest
otherwise accrued for the Monthly Final Settlement Amount for the same period of
time. In the event the Non-Defaulting Party is prevented from applying or
setting off any Performance Assurance or adequate assurance posted by the
Defaulting Party or any draw by the Non-Defaulting Party upon a Letter of Credit
posted by the Defaulting Party is not timely honored as provided in the Letter
of Credit, the Defaulting Party shall nonetheless pay in full the Final
Settlement Amount.

         (c) Subject to Section 4(e), if all or any portion of the Final
Settlement Amount is not paid when due, then the unpaid amount shall bear
interest from the due date thereof until the final payment date at a rate per
annum equal to the Default Rate, calculated on the basis of daily compounding
and the actual number of days elapsed.

         (d) In the event of a dispute as to the Final Settlement Amount payable
by a Party, such Party shall, within the time prescribed herein, pay the
undisputed amount of the Final Settlement Amount. In the event the
non-calculating Party disputes the calculation of the Final Settlement Amount,
such Party shall notify the other Party of such dispute within the time
prescribed herein for payment of the Final Settlement Amount. If the Parties
have not been able to resolve their dispute within 5 Business Days of receipt of
notice of such dispute, such dispute relating to the calculation of the Final
Settlement Amount shall be resolved by arbitration in accordance with the
American Arbitration Association Commercial Arbitration rules by three
arbitrators, of whom each Party shall designate one and shall mutually decide
the other arbitrator. Each Party shall submit its detailed calculation of the
Final Settlement Amount, and the tribunal shall select either the calculation of
the Non-defaulting Party or the Defaulting Party as the Final Settlement Amount
based upon the calculation that most reflects the intent of the Parties as
expressed in this Agreement. To the extent reasonably practicable under the
circumstances, the decision of the tribunal shall be rendered within ten (10)
Business Days of submission of the

                                       12
<PAGE>

calculations by the Parties and shall be final and binding on all Parties and
shall be non-appealable. The arbitration shall be governed by the Federal
Arbitration Act, 9 U.S.C. ss.ss. 1-16, and judgment upon the award or injunctive
relief rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof. The expenses of arbitration, including reasonable
compensation to the arbitrators, shall be borne equally by the Parties hereto,
except that each Party shall bear the compensation and expenses of its own
counsel and employees. The place of arbitration shall be Chicago, Illinois.
Judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof. If a Party files a complaint in any court with
respect to any matter subject to arbitration hereunder, except the enforcement
of arbitration award, the defendant in such court action shall be entitled to
recover its reasonable attorneys' fees in connection with the court action. Once
the Final Settlement Amount is finally determined in accordance with this
Agreement, and if the Secured Party/Defaulting Party under Paragraph 6(b)(i) of
the Collateral Annex is owed the Final Settlement Amount, the Pledging
Party/Non-defaulting Party shall elect how it intends to provide an amount
equivalent to the undrawn portion of the posted Letter of Credit, if any, (up to
the unpaid Final Settlement Amount) to the Secured Party/Defaulting Party. If
(x) the Pledging Party/Non-defaulting Party elects to substitute Cash for the
undrawn portion of the Letter of Credit (up to the unpaid Final Settlement
Amount), and if it is so paid, the Defaulting Party/Secured Party shall return
the Letter of Credit immediately to Pledging Party/Non-defaulting Party upon the
receipt of the payment, or (y) the Pledging Party/Non-defaulting Party elects to
allow the Secured Party/Defaulting to draw on the remaining portion of the
Letter of Credit, the Secured Party/Defaulting Party may only draw on any Letter
of Credit posted to it in an amount equal to the unpaid Final Settlement Amount
which has been finally determined to be owed to it. Once the Performance
Assurance tendered by the Pledging Party/Non-defaulting Party under the
foregoing election is fully provided for under this section, the Non-defaulting
Party shall recalculate the Final Settlement Amount, and shall make any and all
other necessary adjustments under this Agreement to provide for the application
of such Performance Assurance (e.g., the determination of the Monthly Final
Settlement Amount option). If the Final Settlement Amount is finally determined
in accordance with this Agreement and the Secured Party/Defaulting Party owes
the Final Settlement Amount, it shall immediately return the Letter of Credit to
the Pledging Party/Non-defaulting Party.

         (e) Nothing in this Section 4 shall be construed to restrict or
preclude the Party to whom the Final Settlement Amount is owed from realizing on
Performance Assurance held by such Party at any time after notice of Default,
notwithstanding (and without awaiting the outcome of) any dispute as to the
Final Settlement Amount payable. Notwithstanding Section (b), if the
Non-defaulting Party owes the Final Settlement Amount to the Defaulting Party,
the Non-defaulting Party shall not be required to pay to the Defaulting Party
the Final Settlement Amount, the Monthly Final Settlement Amount, or any potion
of the Total Unpaid Amount, nor shall interest be owed on such amount, until (i)
the Non-defaulting Party receives confirmation satisfactory to it in its
reasonable discretion that all other obligations of any kind whatsoever of the
Defaulting Party to make any payments to the Non-defaulting Party under this
Agreement, any Underlying Master Agreement or Transaction, or otherwise, which
are due and payable as of the Early Termination Date, have been paid (or netted,
set off, recouped, recovered against, etc.) in full; and (ii) the Defaulting
Party executes a release in a form satisfactory to the Non-defaulting Party that
acts as the final resolution of the amounts due and owing as the Final
Settlement Amount under the terms of this Agreement, the Underlying Master
Agreement(s) or Transaction(s)(as applicable under the circumstances). To the
extent that either Party believes

                                       13
<PAGE>

that bankruptcy court approval of the release is required, the Non-defaulting
Party may withhold payment under this subsection until such time as appropriate
court approval has been obtained and is final and non-appealable.

         (f) The Parties agree that if Gains or Losses are determined with
respect to any terminated Transactions as set forth herein, the Final Settlement
Amount is a reasonable pre-estimate of loss and not a penalty. Such amount is
payable for the loss of bargain and the loss of protection against future risks
and except as otherwise provided in this Agreement neither party will be
entitled to recover any additional damages as a consequence of such losses.

                  SECTION 5. OBLIGATIONS AND SETOFF.

         (a) If the Defaulting Party would be owed the Final Settlement Amount,
the Defaulting Party grants to the Non-defaulting Party the right to, from time
to time and at any time, without prior notice, setoff any sum, amount, or
obligation owed by the Defaulting Party to the Non-defaulting Party against any
sums, amounts, or Obligations owed by the Non-defaulting Party or the Defaulting
Party under this Agreement or any other agreements or contracts between the
Non-defaulting Party.

         (b) The foregoing is in addition to, and not in limitation of, any
other right or remedy available to the Non-defaulting Party (including setoff)
whether arising under this Agreement or applicable law, equity, or otherwise.

         (c) For purposes of this Section 5, "owed" means, as of any date of
determination, any amounts owed or otherwise accrued and/or payable (regardless
of whether such amounts have been or could be invoiced) as of such date. If an
obligation is unascertained or unliquidated at the time the Final Settlement
Amount is determined, the Non-defaulting Party may in good faith estimate that
obligation and setoff in respect of the estimate, subject to accounting to the
Defaulting Party when the obligation is ascertained. The Non-defaulting Party
setting off an amount pursuant to this Section 5 shall give notice of such
setoff (i) at the time the Final Settlement Amount is determined and notice of
the same is tendered in the case where the Non-defaulting Party is required to
pay the Final Settlement Amount; or (ii) within a reasonable amount of time
after the statement providing the details of the Final Settlement Amount is
tendered by the Non-defaulting Party in the case where the Defaulting Party is
required to pay the Final Settlement Amount, but in either event prior to the
time that payment in respect of the Final Settlement Amount is finally due to
the other Party.

                  SECTION 6. CURRENCY.

         For purposes of making any calculation of the Settlement Amount with
respect to any terminated Transaction, the Non-defaulting Party shall calculate
such amount in the currency specified for such Transaction in the applicable
Underlying Master Agreement or Transaction. For purposes of calculating the
Final Settlement Amount, the Non-defaulting Party shall convert all of the
Settlement Amounts to the currency comprising the largest portion of the
aggregate Settlement Amounts. All payments required to be made under this
Settlement Agreement shall be made in the currency in which the Final Settlement
Amount is stated. Currency conversions shall be made at the rate of exchange at
which the Non-defaulting Party, acting in a reasonable

                                       14
<PAGE>

manner and in good faith, would be able to purchase the relevant amount of the
currency being converted on the date that the Final Settlement Amount or the
Monthly Final Settlement Amount is due under Section 4(b).

                  SECTION 7. COLLATERAL.

         The provisions set forth in the Collateral Annex, which is incorporated
herein in its entirety by reference, replace the separate exposure thresholds
and determination and application of collateral requirements set forth in each
Underlying Master Agreement or Transaction with the Exposure Thresholds and
aggregate Collateral Requirements set forth in the Collateral Annex, which
requirements and other provisions shall cover and apply to all Underlying Master
Agreements and to all Transactions.

                  SECTION 8. REPRESENTATIONS AND WARRANTIES.

         On the Effective Date of this Agreement and on the date of entering
into each Transaction thereafter, each Party represents and warrants to the
other Party that: (i) it is duly authorized to execute and deliver this
Agreement and to perform its obligations hereunder and has taken all necessary
actions to authorize such execution, delivery, and performance, (ii) the person
signing this Agreement on its behalf was duly authorized to do so on the date
this Agreement was executed by such person, (iii) this Agreement, the Underlying
Master Agreements, and the Transactions to which it is a party constitute its
legal, valid, and binding obligations, enforceable against it in accordance with
its terms, subject to applicable bankruptcy, reorganization, insolvency,
conservatorship, receivership, moratorium, or other similar laws affecting
creditors' rights generally and subject, as to enforceability, to equitable
principles of general application (regardless of whether enforcement is sought
in a proceeding in equity or at law), (iv) its execution and delivery of this
Agreement does not contravene, or constitute a default under, any provision of
applicable law or regulation (including any order, decree, judgment, injunction,
or other judicial or governmental restriction applicable to such Party or any
portion of its assets) or of the articles of incorporation or by-laws of such
Party or of any material agreement, judgment, injunction, order, decree or other
instrument binding upon such Party, or result in the creation or imposition of
any lien on any asset of such Party, (v) the location of its incorporation or
organization and the location of its chief executive office are the locations
set forth under its signature line to this Agreement, (vi) to the best of its
knowledge, the financial statements from time to time provided by its Guarantor
to the other Party are prepared in accordance with generally accepted accounting
principles ("GAAP") (except as expressly set forth therein) and fairly represent
its financial condition as of the date of such statements, and (vii) it has
good, legal, and marketable title to the collateral upon which a lien is granted
pursuant to Paragraph 2 of the Collateral Annex, and upon appropriate filing in
accordance with the Uniform Commercial Code, the other Party shall have a valid
and perfected first priority security interest therein, free of any liens,
claims, encumbrances, except those liens, claims, and encumbrances arising by
operation of law that are given priority over a perfected security interest.

                                       15
<PAGE>

                  SECTION 9. ADDITIONAL COVENANTS.

         Each Party agrees to provide to the other Party its Guarantor's (i)
annual audited financial statements prepared in accordance with GAAP, or (ii)
quarterly unaudited consolidated financial statements prepared in accordance
with GAAP (subject to normal year-end adjustments and the omission of
footnotes), which fairly present such Guarantor's financial condition as of the
date of such financial statements (but with no obligation to provide earlier
than 120 days after the end of each fiscal year or 60 days after the end of each
fiscal quarter); provided, however, in the event such entity is required to make
its annual audited and quarterly unaudited financial statements available to the
public, the requesting Party shall attempt to use public sources to review such
information prior to making any written request.

                  SECTION 10. INTERPRETATION AND INTENTIONS.

         The Parties intend that this Agreement constitutes and should be deemed
to be a "master netting agreement" and that the Parties are and should be deemed
to be "master netting agreement participants" (or any substantially similar
term) within the meaning of and as such terms are used in any law, rule,
regulation, statute, or order applicable to the Parties' rights herein, whether
now or hereafter enacted or made applicable. The Parties further intend that (i)
the Underlying Master Agreements and each Transaction constitute "forward
contracts", "commodities contracts" and/or "swap agreements" and that each Party
thereto constitute "forward contract merchants", "commodities brokers" and/or
"swap participants" within the meaning of and as such terms are used in any law,
rule, regulation, statute, or order applicable to the Parties' rights herein,
whether now or hereafter enacted or made applicable, including but not limited
to the Code at 11 U.S.C. ss.ss. 101(26), 101(6) and 101(53C); and (ii) the Final
Settlement Amount calculated under this Article, as well as all other netting
and setoffs effectuated pursuant to this Agreement be governed by 11 U.S.C.
Section 362(b)(6) and/or (17) in the event of a bankruptcy proceeding involving
either Party. The Parties also agree that such setoffs, netting and liquidation
contemplated hereunder arise under swap agreements, forward contracts, and/or
commodity contracts and constitute "settlement payments" as set forth in
Sections 101 and 741 of the Code. The Parties further agree that each payment or
transfer of Performance Assurance under this Agreement is either a "margin
payment", a "settlement payment" or a "transfer" within the meaning of Sections
362, 546 and 556 of the Code and/or a "payment amount" within the meaning of
Section 560 of the Code.

                  SECTION 11. HEADINGS.

         The use of headings and subheadings in this Agreement, and the division
of this Agreement into sections and sub-sections, are for convenience of
reference only and shall not affect the interpretation or construction of this
Agreement.

                  SECTION 12. GOVERNING LAW.

         This Agreement shall be governed by, and construed in accordance with
the laws of the State of New York (without reference to its choice of law
doctrine other than Section 5-1401 of the New York General Obligations Law).

                                       16
<PAGE>

                  SECTION 13. WAIVER OF IMMUNITIES.

         With respect to any claim under or relating to this Agreement, any
Underlying Master Agreement, and any Transaction, each Party hereby waives, to
the fullest extent permitted by applicable law, with respect to itself and its
revenues and assets (irrespective of their use or intended use), all immunity on
the grounds of sovereignty or other similar grounds from (i) suit, (ii)
jurisdiction of any court, (iii) relief by way of injunction, order for specific
performance, or for recovery of property, (iv) attachment of its assets (whether
before or after judgment), and (v) execution or enforcement of any judgment to
which it or its revenues or assets might otherwise be entitled in any
proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in
any proceedings.

                  SECTION 14. ASSIGNMENT AND AMENDMENT.

         (a) Any purported assignment or other transfer that is not expressly
permitted by this Agreement is void and unenforceable.

         (b) This Agreement, the Underlying Master Agreements, and the
Transactions, and any rights to amounts payable to a Party thereunder, shall not
be assigned or otherwise transferred by either Party without the prior written
consent of the other Party, which consent may not be unreasonably withheld,
except (i) as collateral security or in connection with a monetization of such
amounts payable, but only if the assignment or other transfer is made without
relieving the assigning Party from liability thereunder and under this Agreement
and, (ii) pursuant to a consolidation or amalgamation with, or merger with or
into another Person, or transfer of all or substantially all of its assets to
another Person; provided that, in either case, such transfer or assignment is
expressly subject and subordinate to this Agreement, the security interest
granted herein, and the rights of netting and setoff set forth herein.
Notwithstanding the foregoing, any Party may assign or transfer this Agreement
to an Affiliate, including, without limitation, whether by any consolidation or
amalgamation with, merger with or into, or transfer of substantially all of its
assets to such Affiliate, without the consent of the other Party provided that
(i) the assignment or transfer is made without relieving the assigning Party
from liability thereunder, and (ii) such assignment or transfer of this
Agreement is expressly subject and subordinate to this Agreement. Provided
further that any assignment or transfer that is not in compliance with this
subsection shall be void and of no effect, but shall not otherwise preclude the
affected Party from exercising its rights and remedies as a result of such
action if the attempted transfer or assignment otherwise constitutes a Default
under this Agreement. The assigning Party shall notify the other Party promptly
of any assignment made in accordance with this Section.

         (c) To the extent that any Party intends to make an assignment or
transfer in accordance with this Section, the Parties will not be in breach of
any confidentiality provisions under this Agreement to the extent that they
enter into customary and appropriate non-disclosure agreements preserving the
confidential nature of the documents with the respective party to whom such
information shall be disclosed.

         (d) Notwithstanding any of the foregoing, any Underlying Master
Agreement, any Transaction or this Agreement may be freely transferred or
assigned by the Non-defaulting Party

                                       17
<PAGE>

at any time after an Early Termination Date has been declared under Section 4 of
this Agreement; provided that such assignee or transferee (i) assumes all the
Obligations of such Party under this Agreement, the Underlying Master Agreements
and Transactions by operation of law or pursuant to a reasonable and customary
agreement, unless such Obligations have already been satisfied; (ii) extends the
benefits of any Performance Assurance or Guaranty to the payment by such
resulting or surviving entity of its Obligations pursuant to reasonable and
customary documentation; and (iii) has equal or greater creditworthiness
compared to the creditworthiness of the Guarantor of such assigning/transferring
Party immediately prior to such action.

                  SECTION 15. NOTICES.

         Any and all notices, statements, demands, or other communications under
this Agreement shall be given by mail, facsimile transmission, electronic
message system (for requests for Eligible Collateral/Performance Assurance
only), or messenger, to the individuals and at the facsimile numbers or other
locations set forth below. Any notice, statement, demand, or other communication
under this Agreement to be given by a Party or in respect of the Performance
Assurance may be given by the applicable Qualified Institution.

Address for notices or communications to MCV:
<TABLE>
<S>                         <C>                                               <C>
Address:                   Midland Cogeneration Venture                       Facsimile No.:  (989) 633-7857
Street Address:            100 Progress Place                                 Telephone No.:  (989) 633-7850
(for courier delivery)     Midland  MI  48640

Address for notices or communications to EPME:

Address:                   El Paso Merchant Energy, L.P.                      Facsimile No.:  (713) 420-3942
Street Address:            1001 Louisiana                                     Telephone No.: (713) 420-3330
(for courier delivery)     Houston, Texas 77070
                           Attn: Director of Credit, Trading
                           Attn: Manager, Contract Administrator

With additional Notices of a Default or Potential Event of Default to:

                           El Paso Merchant Energy, L.P.
                           1001 Louisiana St.
                           Houston, Texas 77070
                           Attn:  Deputy General Counsel-Trading
                                  Legal Department
                           Fax: (713) 420-7025
</TABLE>

         Any notice or other communication in respect of this Agreement given in
any manner herein permitted to the address or number or in accordance with the
electronic messaging system

                                       18
<PAGE>

details above provided will be deemed effective as follows: (i) if in writing
and delivered in person or sent by courier, on the Business Day it is delivered
if it is delivered by 5:00 p.m. at the place of delivery (and otherwise the
following Business Day); (ii) if sent by facsimile transmission, on the date
that transmission is sent to the facsimile number set forth for the Party to
receive such notice (with confirmation of transmission received by the sender)
if it is received by 5:00 p.m. at the place of delivery on a Business Day (and
otherwise the following Business Day); (iii) if sent by certified or registered
mail (airmail, if overseas) or the equivalent (return receipt requested), on the
third Business Day following its deposit with the mail service for delivery;
(iv) if sent by electronic messaging system, on the date that electronic message
is received at the place of delivery; in each case unless the date of that
delivery (or attempted delivery) or that receipt, as applicable, is not a
Business Day, or that communication is delivered (or attempted) or received, as
applicable, after the close of business of recipient on a Business Day, in which
case that communication shall be deemed given and effective on the first
following day that is a Business Day. Any Party may by notice to the others
change the address, facsimile number, or electronic messaging system details at
which notices or other communications are to be given.

                  SECTION 16. CONFLICTS AND INCONSISTENCIES.

         Except as expressly set forth herein, in the event of any conflict or
inconsistency between any provision of this Agreement and any provision of any
Underlying Master Agreement or any Transaction concerning the matters set forth
in this Agreement, the provision of this Agreement shall govern and supercede
the provision of the Underlying Master Agreement or any Transaction for purposes
of this Agreement. Except as amended by this Agreement (or as otherwise amended
from time to time by agreement between the Parties thereto), the Underlying
Master Agreements and Transactions shall remain in full force and effect for so
long as any Transaction, whether under any of the Underlying Master Agreements
or not, is outstanding and in effect. It is the express intention of the Parties
that the following provisions replace and supercede the terms and conditions of
the Underlying Master Agreements or Transactions for purposes of this Agreement:

                  (i) The definition of Credit Event in this Agreement shall
supercede and replace any similar definitions in the Underlying Master
Agreements or any Transaction, including but not limited to Downgrade Event
under the EEI Agreement, and Material Adverse Change in the ISDA Agreement, in
addition to any provision in the Underlying Master Agreements and/or
Transactions that permits termination of such Underlying Master Agreement or any
Transaction on the occurrence of any Credit Rating downgrade so that the only
consequences of a Credit Event shall be the remedies set forth in this
Agreement.

                  (ii) The terms and conditions of this Agreement shall
supercede and replace any provision in the Underlying Master Agreements or any
Transactions that (i) establish the requirements for demanding Eligible
Collateral/Performance Assurance (including demands for the return of
Performance Assurance), (ii) tendering Eligible Collateral/Performance
Assurance, (iii) the timing for satisfying the Collateral Requirements (i.e.
margining), (iv) the calculation methodologies for determining the amount of the
Eligible Collateral/Performance Assurance, and (v) disputing the amount of
Eligible Collateral/Performance Assurance demands (e.g., Paragraphs 3, 4, 5 and
6 of the Credit Support Annex to the ISDA Agreement and Sections 8.1(c)

                                       19
<PAGE>

and (d) or 8.2 (c) or (d) of the EEI Agreement). The Parties acknowledge that
the rights and remedies otherwise granted under Section 2(b) with respect to
Additional Termination Rights shall also be subject to the terms and conditions
of this subsection;

                  (iii) The definition of Eligible Collateral/Performance
Assurance provided in this Agreement shall supercede and replace any similar
definitions of acceptable collateral in the Underlying Master Agreements or any
Transactions, such as the definitions of Performance Assurance in the EEI
Agreement and Eligible Collateral and Other Eligible Support and other similar
derivations under the ISDA Agreement;

                  (iv) The Exposure Threshold set forth in this Agreement shall
supercede and replace the separate exposure thresholds (i.e., the Threshold
under the ISDA Agreement and the Collateral Threshold under the EEI Agreement)
provided for under the Underlying Master Agreements or any Transactions;

                  (v) The provisions of any Underlying Master Agreement or any
Transaction relating to the administration and application of any Performance
Assurance shall be, and hereby are, superceded and replaced in their entirety by
the provisions of this Agreement;

                  (vi) The provisions of Section 14 shall supercede and replace
in their entirety all provisions of the Underlying Master Agreements and/or
Transactions relating to the assignment of any Transaction thereunder;

                  (vii) The provisions of Section 19 shall supercede and replace
in their entirety all provisions of the Underlying Master Agreements and/or
Transactions relating to the amendment of any Transaction thereunder;

                  (viii) The provisions of Section 15 shall supercede and
replace in their entirety all provisions of the Underlying Master Agreements
and/or Transactions relating to notices and the delivery of notices thereunder
and the effectiveness thereof, other than notice provisions relating to the
logistics of the scheduling of, and other similar matters relating to, the
physical delivery of commodities and with respect to monthly invoices and
payments applicable to the Underlying Master Agreements;

                  (ix) The provisions of Section 17 shall supercede and replace
in their entirety all provisions of the Underlying Master Agreements and/or
Transactions relating to confidentiality provisions;

                  (x) The rights and remedies of a Non-Defaulting Party which
relate to the termination of Transactions shall supercede the rights and
remedies of such Party under the Underlying Master Agreement or Transactions,
save and except that any right of any Party preserved under Section 2(e) or by
virtue of the Additional Termination Rights shall remain in full force and
effect;

                  (xi) The provisions of Section 21 shall supercede and replace
in their entirety all provisions of the Underlying Master Agreements and/or
Transactions relating to the jurisdiction and venue of any suits, actions or
proceedings arising out of or relating to this Agreement, the Underlying Master
Agreements, and the Transactions; and

                                       20
<PAGE>

                  (xii) The representations and warranties made in Section 8
shall supercede and replace in their entirety all provisions of the
representations set forth in the Underlying Master Agreements and/or
Transactions save and except for any tax representations.

                  SECTION 17. CONFIDENTIALITY.

         The contents of this Agreement, the Underlying Master Agreements and
all Transactions, all other documents relating thereto and any information
pertaining thereto made available by one Party or its Guarantor to the other
Party or its Guarantor is confidential and shall not be disclosed to any third
party (nor shall any public announcement relating to this Agreement be made by
any Party), except for such information (a) as may become generally available to
the public, (b) as may be required or appropriate in response to any summons,
subpoena, or otherwise in connection with any litigation or to comply with any
applicable law, order, regulation, ruling, or accounting disclosure rule or
standard, (c) as may be obtained from a non-confidential source that disclosed
such information in a manner that did not violate its obligations to the
non-disclosing Party or its Guarantor in making such disclosure, or (d) as may
be furnished to the disclosing Party 's Affiliates, and to each of such person's
auditors, attorneys, advisors, lenders, or prospective purchasers which are
required to keep the information that is disclosed in confidence; or that is
protected as set forth Section 14.

                  SECTION 18. CONTINUATION OF MASTER AGREEMENTS; SEVERABILITY.

         (a) Each Party agrees that the Underlying Master Agreements and
Transactions are hereby amended to the extent necessary to give effect to this
Agreement. Except as amended by this Agreement (or as otherwise specifically
amended from time to time by agreement between the Parties), the Underlying
Master Agreements and Transactions shall remain in full force and effect.

         (b) In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal, or unenforceable in any respect under
the law of any applicable jurisdiction, the validity, legality, and
enforceability of the remaining provisions under the law of such jurisdiction,
and the validity, legality, and enforceability of such provisions and any other
provisions under the law of any other jurisdiction, shall not in any way be
affected or impaired thereby; provided, further that to the extent that any
provision under an Underlying Master Agreement and/or Transaction is replaced
and superceded by a provision in this Agreement that is subsequently held to be
invalid, illegal or unenforceable, the original provision under the Underlying
Master Agreement and/or Transaction shall be revived and saved as though such
provision had never been replaced and superceded and shall be construed to the
greatest extent possible as being consistent with the other terms and provisions
of this Agreement. Further, if the netting of Exposures and Settlement Amounts
(if applicable) contemplated herein for terminated physical and financial
Transactions is in any material way deemed or held to be invalid, illegal, or
unenforceable, all other provisions of this Agreement shall survive, except that
(i) the Collateral Requirements expressed herein shall be applied to each of the
Underlying Master Agreements and/or Transactions so that the Exposures under
each Underlying Master Agreement and/or Transaction are separately determined
according to their original terms (if an Underlying Master Agreement or
Transaction has no stated exposure threshold, the exposure

                                       21
<PAGE>

threshold for such Underlying Master Agreement shall be zero and the Collateral
Requirements shall be based on such deemed exposure threshold) and (ii) the
Performance Assurance and Guaranties held by Secured Party shall be continue to
collateralize all Obligations under the respective Underlying Master Agreements
and Transactions and the Performance Assurance shall be allocated to each of the
Underlying Master Agreements and/or Transactions to secure obligations
thereunder as reasonably determined by the Secured Party. The Secured Party
shall be able to exercise its rights and remedies with respect to such
Performance Assurance against obligations owed under the respective Underlying
Master Agreement and/or Transactions in accordance with such Underlying Master
Agreements and/or Transactions and this Agreement. To the extent that
insufficient Performance Assurance is then possessed by either Party to secure
the Obligations, the Parties shall take immediate actions to supply the required
Collateral by no later than the timeframes otherwise provided in this Agreement,
or if such provisions are voided, by the lesser of (i) the timeframes set forth
in the Underlying Master Agreements and/or Transactions, or (ii) two (2)
Business Days. To the extent the entire Agreement is determined to be
unenforceable or illegal, the terms and conditions of Sections 3(b), (c), (d),
4-6, 10,12-15, 17, 19-21, 24-25, of this Agreement and Paragraphs 2- 8 and 9(b)
and (c) of the Collateral Annex shall be added to the Underlying Master
Agreements and Transactions to the extent that corresponding terms and
provisions are not otherwise included therein.

                  SECTION 19. AMENDMENT.

         Notwithstanding any provision in any Underlying Master Agreement or a
Transaction to the contrary, neither this Agreement, nor any Underlying Master
Agreement or Transaction, may be amended with respect to any term or provision
otherwise provided for in this Agreement except by a written amendment to this
Agreement signed by each Party. Confirmations of Transactions under any
Underlying Master Agreement or Transactions that do not otherwise address the
subject matter of this Agreement shall not serve as an amendment to this
Agreement (and thus such amendments are not subject to the requirements of this
Section 19).

                  SECTION 20. NO WAIVER.

         A failure or delay in exercising any right, power, or privilege in
respect of the Underlying Master Agreements, Transactions or this Agreement will
not be presumed to operate as a waiver of that right, power, or privilege, and a
single or partial exercise of any right, power, or privilege will not be
presumed to preclude any subsequent or further exercise of that right, power, or
privilege, or the exercise of any other right, power, or privilege.

                  SECTION 21. JURISDICTION AND VENUE.

         NOTWITHSTANDING ANY PROVISIONS IN ANY OF THE UNDERLYING MASTER
AGREEMENTS, WITH RESPECT TO ANY SUIT, ACTIONS OR PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS AGREEMENT, THE UNDERLYING MASTER AGREEMENTS, AND THE
TRANSACTIONS, OR IN ANY WAY RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING, WITHOUT LIMITATION, INSOFAR AS SAME RELATES TO ANY UNDERLYING MASTER
AGREEMENT OR ANY TRANSACTION, INVOLVING THE PARTIES AND/OR THEIR RESPECTIVE
REPRESENTATIVES BUT EXCLUDING

                                       22
<PAGE>

THE RESOLUTION OF A DISPUTE CONCERNING THE CALCULATION OF THE FINAL SETTLEMENT
AMOUNT OR COLLATERAL REQUIREMENTS, WHICH SHALL BE RESOLVED IN ACCORDANCE WITH
SECTION 4(d) OF THIS AGREEMENT OR PARAGRAPH 8 OF THE COLLATERAL ANNEX, EACH
PARTY AGREES TO SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL DISTRICT COURTS LOCATED IN THE BOUROUGH OF MANHATTAN, NEW YORK, NEW
YORK, AND WAIVES ANY OBJECTION TO THE LAYING OF VENUE IN SUCH JURISDICTION. EACH
PARTY FURTHER WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY SUCH SUIT,
ACTION, OR PROCEEDING.

                  SECTION 22. TERM.

         This Agreement shall continue in effect from its Effective Date until
all Obligations of either Party with respect to any and all outstanding
Transactions until such time as all outstanding Transactions, whether under any
or all of the Underlying Master Agreements or otherwise have been satisfied in
full. Notwithstanding the foregoing, the Parties may agree in writing to
terminate this Agreement upon such terms and conditions as they may mutually
agree.

                  SECTION 23. EXPENSES.

         The Defaulting Party will, on demand, indemnify and hold harmless the
Non-defaulting Party for and against all reasonable out-of-pocket expenses,
including reasonable legal fees and expenses, consulting fees, court costs, and
taxes, incurred by the Non-defaulting Party by reason of its enforcement,
pursuit, and protection of its rights under this Agreement, the Underlying
Master Agreements, the Transactions, and/or the Guarantees including, without
limitation, costs of collection.

                  SECTION 24. ADEQUATE ASSURANCE OF PERFORMANCE.

         Each Party agrees that the provisions of this Agreement supercede and
replace in their entirety, and are intended to be in lieu of any rights and/or
remedies available at law or in equity relating to adequate assurances of future
performance or creditworthiness, including without limitation Article 2-609 (as
codified as of the Effective Date) of the Uniform Commercial Code, in addition
to any other provision in the Underlying Master Agreements or Transactions that
otherwise would have afforded such rights and remedies. Accordingly, each Party
expressly waives any right or ability to assert any such rights, remedies or
arguments.

                  SECTION 25. SOLE REMEDY; WAIVER OF DAMAGES.

         Each Party agrees that the express provisions of this Agreement shall
be the sole and exclusive remedy for any Default under this Agreement.
NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, ANY UNDERLYING
MASTER AGREEMENT, OR ANY TRANSACTION, NO PARTY SHALL BE LIABLE OR HAVE ANY
RESPONSIBILITY TO THE OTHER OR TO THEIR RESPECTIVE AFFILIATES FOR ANY INDIRECT,
SPECIAL, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES INCLUDING,
WITHOUT LIMITATION, LOST EARNINGS OR PROFITS.

                                       23
<PAGE>

                  SECTION 26. REPLACEMENT OF PERFORMANCE ASSURANCE/GUARANTIES.

         Each Party agrees that it will immediately cause any and all
Performance Assurance previously posted for the benefit of the other Party to be
re-issued or posted as necessary to insure that the Performance Assurance covers
any and all rights and remedies granted to the other Party for the Underlying
Master Agreements and Transactions under this Agreement. Until such time as the
Performance Assurance is re-issued or posted in accordance with the foregoing
sentence, no value will be attributed to such Performance Assurance for any
purpose irrespective of any other terms and/or condition of this Agreement.
Additionally, each Party agrees that any and all outstanding Guaranties that
were in place to provide credit support for such Party for any Transactions
under the Underlying Master Agreements or otherwise prior to the Effective Date
of this Agreement, shall be terminated and simultaneously replaced with a new
Guaranty issued for the benefit of such Party by the other Party effective as of
the Effective Date in an amount equivalent to the Exposure Threshold for such
Party on the Effective Date. Until such time as the new Guaranty is Transferred
in accordance with the prior sentence, the Parties agree that they use all
reasonable efforts to cause their respective Guarantors to maintain the
previously issued Guaranties for their full amounts. To the extent that such
Guaranties are not maintained, the Exposure Threshold for such Party failing to
have a Guaranty in place shall be zero until such Guaranties are otherwise
Transferred. Further, to the extent that the Exposure Threshold increases in the
future, the new Guaranty shall be amended and Transferred in an amount
equivalent to the new Exposure Threshold for such Party no later than three (3)
Business Days after the Exposure Threshold is increased.

                  SECTION 27. EXCULPATION CLAUSE

         Notwithstanding anything to the contrary contained in this Agreement,
the liabilities and obligations of the parties arising out of, or in connection
with, this Agreement shall not be enforced by any action or proceeding wherein
damages or any money judgment or specific performance of any covenant in any
this Agreement and whether based upon contract, warranty, negligence, indemnity,
strict liability or otherwise, shall be sought against the assets of the
partners of the Parties. By entering into this Agreement, the Parties waive any
and all right to sue for, seek or demand any judgment against such respective
partners and their respective affiliates, other than any Guarantors, as the case
may be, by reason of the nonperformance by EPME or MCV, as the case may be, of
their respective Obligations under this Agreement, except to the extent such
partners are legally required to be named in any action to be brought against
EPME or MCV, as the case may be.

                  SECTION 28. MONTHLY PAYMENT NETTING.

         Notwithstanding anything to the contrary in any Underlying Master
Agreement or Transaction, in respect of all Transactions under any such
Underlying Master Agreement and/or all Transactions with respect to the same
type of product, the Parties agree that if on any date amounts, including,
without limitation, payment Obligations, debts, related damages, interest or
credits, are due and payable in the same currency, and in respect of the same
Underlying Master Agreement and/or Transaction with respect to the same type of
product by each Party to the other, then, on such date, each Party's Obligation
to make payment of any such amounts will be automatically satisfied and
discharged by netting the aggregate amount payable by one Party

                                       24
<PAGE>

against the aggregate amount payable by the other Party and replacing those
payment obligations with a single payment obligation of the Party owing the
larger such aggregate amount to pay the net difference between such aggregate
amounts to the other Party on the applicable payment date by wire transfer of
immediately available funds. The Parties shall cooperate to calculate the
aggregate mutual amounts due and payable to or from each Party by examining the
payments due on each applicable payment date and determining which Party is the
net payer and which is the net receiver. The terms and conditions of this
Section shall supercede and replace that certain Net-Out Agreement dated
February 1, 1998 by and between the Parties.

         IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by facsimile or original signature and in multiple counterparts, each
of which is deemed an original and effective as one document, all as of the date
first written above.

"MCV"

MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP

BY: LeRoy W. Smith
    ----------------------------------------------------------
PRINTED NAME:  LeRoy W. Smith
TITLE:  Vice President Energy Supply and Marketing

Location of State of incorporation or organization:  Michigan
Location of chief executive office:  Michigan

"EPME"

EL PASO MERCHANT ENERGY, L.P.

BY:  Amy L. Allison
     ---------------------------------------------------------
PRINTED NAME:  Amy L. Allison
               -----------------------------------------------
TITLE:  Vice President, Managing Director & Controller
        ------------------------------------------------------

Location of State of incorporation or organization:  Delaware
Location of chief executive office:  Texas

                                       25
<PAGE>
                                   SCHEDULE A

                          UNDERLYING MASTER AGREEMENTS

Natural Gas Purchase Agreement dated 9/1/90

Gas Sales Agreement dated 8/18/94

Gas Sales Agreement dated 11/15/98

Gas Sales Agreement dated 9/20/99

Long Term Gas Agreement dated 10/10/00

Long Term Gas Agreement dated 9/1/00

Long Term Gas Agreement dated 10/5/01

GISB Contract for Short Term Sale and Purchase of Natural Gas dated 3/1/97

Including any and all amendments to any of the foregoing.

                                       26
<PAGE>
                                                                   EXHIBIT 10.55
                                     ANNEX A

                                COLLATERAL ANNEX
                TO MASTER NETTING, SETOFF, AND SECURITY AGREEMENT

         This Annex A Collateral Annex to Master Netting, Setoff, and Security
Agreement (this "Collateral Annex"), supplements, forms a part of, and is
subject to, the Master Netting, Setoff, and Security Agreement, dated December
2, 2002 (collectively the "Agreement"), among MCV and EPME. Capitalized terms
used in this Collateral Annex but not defined herein shall have the meanings
given such terms in the Agreement.

PARAGRAPH 1. DEFINITIONS.

         For purposes of this Collateral Annex, the following terms have the
respective definitions set forth below. References to Paragraphs are to this
Collateral Annex unless otherwise expressly stated.

         "Aggregate Exposure" means, on any Calculation Date, the aggregate
Exposure of a Party determined in accordance with Paragraph 3 of this Collateral
Annex.

         "Average Credit Rating Value" or "ACRV" means with respect to:

         (a) MCV:

         The average of the Numerical Values applicable to the Credit Ratings
published (if any) for Midland Funding Corp. II as determined in accordance with
the Credit Rating and Threshold Matrix, provided that if the Midland Funding
Corp. II has ceased to be rated by S&P and Moody's on the Calculation Date, then
the average of the Numerical Values applicable to the Credit Ratings for the
Economic Development Corporation of the County of Midland Subordinated Pollution
Control Limited Obligation Revenue Refunding Bonds (Midland Cogeneration
Project) Series 2000 A as determined in accordance with the Credit Rating and
Threshold Matrix. In determining the Average Credit Rating Value of MCV, the
average of the Numerical Values shall be rounded as follows: if the first
decimal number is five (5) or below, the ACRV shall be rounded to the next lower
integer, and if the first decimal number is six (6) or above, the ACRV shall be
rounded up to the next highest integer.

         (b) EPME:

         The average of the Numerical Values applicable to the Credit Ratings
published (if any) for El Paso Corporation by either S&P and/or Moody's, as
determined in accordance with the Credit Rating and Threshold Matrix. In
determining the Average Credit Rating Value of EPME, the average of the
Numerical Values shall be rounded as follows: if the first decimal number is
five (5) or below, the ACRV shall be rounded to the next lower integer, and if
the first decimal number is six (6) or above, the ACRV shall be rounded up to
the next highest integer.

         "Calculation Date" means any Business Day on which the Calculating
Party chooses or is requested by the other Party to make the determinations
referred to in Paragraphs 3, 4, 5 or 8 of this Collateral Annex.

         "Calculating Party" shall mean EPME, unless EPME is the Defaulting
Party in which case MCV shall be the Calculating Party.

<PAGE>

         "Cash" means U.S. dollars which may be held by or on behalf of the
Secured Party as Performance Assurance hereunder.

         "Collateral Account" shall have the meaning attributed to it in
Paragraph 6(a)(ii).

         "Collateral Requirement" shall have the meaning attributed to it in
Paragraph 3(b), and for purposes of the Collateral Requirement, the Calculating
Party shall determine the resulting Exposure from the Settlement Amount as
though all Transactions are terminated and the Calculating Party is the
Non-Defaulting Party.

         "Credit Event" means, with respect to any Party, a Default or Potential
Event of Default has occurred with respect to such Party.

         "Credit Rating" means with respect to any Person, on any date of
determination, the respective ratings then assigned to such Person's senior
unsecured long-term debt by S&P and/or Moody's, as applicable, and in the case
of MCV, the Credit Ratings for the specific debt issuances referenced under
ACRV; and if no rating is assigned to such Person's senior unsecured long-term
debt by either S&P or Moody's, the long-term issuer rating, as applicable,
assigned by such rating agencies to such Person, or in the case of MCV, if no
ratings are assigned to the specific debt issuances referenced under the ACRV
for MCV, MCV may cause Moody's and/or S&P to issue a "shadow rating" for MCV's
senior unsecured long-term indebtedness as though such indebtedness were
outstanding, and until such ratings are issued, the Credit Ratings shall be
deemed to be B- and B3 respectively.

         "Credit Rating and Threshold Matrix" means the following:

<TABLE>
<CAPTION>
                                                                       Exposure Threshold
                                                                       ------------------
Credit Rating Agency:       S&P    Moody's       Numerical                  US$ (MM)
                            ---    -------       ----------                 --------
                                                Values/ACRV
                                                -----------
<S>                       <C>      <C>          <C>                    <C>
Credit Rating:              AAA      Aaa             1                         40
                            AA+      Aa1             2                         40
                            AA       Aa2             3                         40
                            AA-      Aa3             4                         40
                            A+        A1             5                         40
                             A        A2             6                         40
                            A-        A3             7                         40
                           BBB+      Baa1            8                         40
                            BBB      Baa2            9                         40
                           BBB-      Baa3            10                        40
  Non-Investment Grade      BB+      Ba1             11                        20
  Non-Investment Grade      BB       Ba2             12                        20
  Non-Investment Grade      BB-      Ba3             13                        20
  Non-Investment Grade      B+        B1             14                         0
  Non-Investment Grade       B        B2             15                         0
  Non-Investment Grade      B-        B3             16                         0
</TABLE>

If either S&P or Moody's withdraws a Credit Rating published with respect to a
Person (without substitution of a new Credit Rating), 16 shall be used as the
Numerical Value from such rating agency for purposes of calculating the Average
Credit Rating Value for such Person.

         "Dominion" means Dominion Bond Rating Service Limited or its
successor-in-interest.

                                     - 2 -
<PAGE>

         "Exposure" means, on any Calculation Date, with respect to a Party, the
sum, whether a positive or negative number, of the Settlement Amount for each
Transaction, that would be calculated pursuant to this Agreement as if such date
were the Early Termination Date. Provided further, that for purposes of
determining the Exposure from the Settlement Amount(s), Costs shall be excluded
from the calculation, and provided further that for purposes of determining the
Collateral Requirement, the calculation of Gains/Losses utilized in the
determination of the Settlement Amount(s) and ultimately the Exposure, shall be
determined by using the mid-point between the bid price and the ask price for
the Transaction.

         "Exposure Threshold" means:

         (a) with respect to MCV, the Exposure Threshold shall be the amount set
         forth in the Credit Rating and Threshold Matrix as set forth in the
         Collateral Annex commensurate to the ACRV for MCV; and

         (b) with respect to EPME; the Exposure Threshold shall be the amount
         set forth in the Credit Rating and Threshold Matrix as set forth in the
         Collateral Annex commensurate to the ACRV for EPME.

         provided, the Exposure Threshold for a Party shall be zero (US$0.00)
upon the occurrence and during the continuance of a Credit Event (as defined in
the Collateral Annex) by or in respect of that Party; and further provided that
upon the cure or other removal of such Credit Event, the Exposure Threshold for
such Party shall be calculated as set forth in (a) or (b) above, as applicable.

         "Federal Funds Effective Rate" means the rate for that day opposite the
caption "Federal Funds (Effective)" as set forth in the weekly statistical
release designated as H.15(519), or any successor publication, published by the
Board of Governors of the Federal Reserve System.

         "Letter of Credit" means an irrevocable, transferable, standby letter
of credit, issued by a major U.S. commercial bank or the U.S. branch office of a
foreign bank, in either case, with a Credit Rating of at least (a) "A+" by S&P
and "A1" by Moody's, if such entity is rated by both S&P and Moody's or (b) "
A+" by S&P or " A1" by Moody's, if such entity is rated by either S&P or Moody's
but not both, substantially in the form set forth in Schedule 1 attached hereto,
with such changes to the terms in that form as the issuing bank may require and
as may be acceptable to the beneficiary thereof.

         "Letter of Credit Default" means with respect to an outstanding Letter
of Credit, the occurrence of any of the following events: (a) the issuer of such
Letter of Credit shall fail to maintain a Credit Rating of at least (i) " A+" by
S&P or "A1" by Moody's, if such issuer is rated by both S&P and Moody's, (ii) "
A+" by S&P, if such issuer is rated only by S&P, or (iii) "A1" by Moody's, if
such issuer is rated only by Moody's; (b) the issuer of the Letter of Credit
shall fail to comply with or perform its obligations under such Letter of
Credit; (c) the issuer of such Letter of Credit shall disaffirm, disclaim,
repudiate or reject, in whole or in part, or challenge the validity of, such
Letter of Credit; (d) such Letter of Credit shall expire or terminate, or shall
fail or cease to be in full force and effect at any time during the term of the
Agreement, in any such case without replacement; or (e) the Bankruptcy of the
issuer of such Letter of Credit; provided, no Letter of Credit Default shall
occur in any event with respect to a Letter of Credit after the time such Letter
of Credit is required to be canceled or returned to a Party or the issuer
thereof in accordance with the terms of this Collateral Annex.

         "Minimum Transfer Amount" means, with respect to MCV, US$25,000.00
(Twenty-Five Thousand U.S. Dollars), and with respect to EPME, US$25,000.00
(Twenty-Five Thousand U.S. Dollars).

         "Moody's means Moody's Investors Service, Inc. or its
successor-in-interest.

         "Net Exposure" shall have the meaning attributed to it in Paragraph
3(a).

                                     - 3 -
<PAGE>

         "Notification Time" means 12:00 p.m. Central Clock Time on any Business
Day.

         "Performance Assurance" means all Eligible Collateral (and all proceeds
thereof) that has been Transferred to or received by a Party hereunder to secure
payment or performance of any of the other Party's Obligations and not
subsequently been returned to the other Party in accordance with the Agreement.
Any interest or other amount earned on account of Cash received and held by a
Party as Performance Assurance and any Cash received and held by a Party after
drawing on any Letter of Credit will constitute Performance Assurance in the
form of Cash. Any guaranty agreement executed by a Guarantor of a Party shall
not constitute Performance Assurance under this Agreement.

         "Pledging Party" shall mean either Party, when such Party has an
obligation to Transfer Eligible Collateral to the other Party and/or has
provided Performance Assurance under the terms of this Collateral Annex.

         "Qualified Institution" means a commercial bank or trust company
organized under the laws of the United States or Canada or a political
subdivision thereof, with a Credit Rating of at least (a) "A+" by S&P, "A1" by
Moody's, and "A High" by Dominion if such entity is rated by all of S&P, Moody's
and Dominion or (b) "A+" by S&P, "A1" by Moody's or "A High", if such entity is
rated by less than all of S&P, Moody's or Dominion, and having equity of at
least US$1,000,000,000.

         "Reference Market-Maker" means a leading dealer in the relevant market
selected by a Party determining its Exposure in good faith from among dealers of
the highest credit standing which satisfy all the criteria that such Party
applies generally at the time in deciding whether to offer or to make an
extension of credit.

         "Rounding Amount" means, with respect to MCV, US$250,000.00 (Two
Hundred Fifty Thousand U.S. Dollars) and each multiple thereof, and with respect
to EPME Party, US$250,000.00 (Two Hundred Fifty Thousand U.S. Dollars) and each
multiple thereof.

         "S&P" means the Standard & Poor's Rating Group (a division of
McGraw-Hill, Inc.) or its successor-in-interest.

         "Secured Party" shall mean either Party, when the Party is entitled to
make a demand for Eligible Collateral and/or hold any Performance Assurance
under this Agreement.

         "Transfer" or "Transferred" means (a) in the case of Cash (including
any interest or other amount earned thereon), payment or delivery by wire
transfer of immediately available funds into one or more bank accounts specified
by the receiving Party; (b) in the case of Letters of Credit, delivery of the
Letter of Credit or an amendment thereto to the receiving Party; (c) in the case
of any other type of Eligible Collateral/Performance Assurance, as agreed to in
writing by the Parties; and (d) in the case of a Guaranty, delivery of the
Guaranty thereto to the receiving Party.

         "Valuation Percentage" means, with respect to (i) Cash, 100%, and (ii)
with respect to Letters of Credit, 100% of the stated amount (or the undrawn
portion as applicable) that may be unconditionally withdrawn in accordance with
its terms, unless either (a) a Letter of Credit Default with respect to such
Letter of Credit shall have occurred and be continuing after the applicable
grace period therefore set forth in Paragraph 6(b)(iii), or (b) 20 or fewer
Business Days remain prior to the expiration of such Letter of Credit, in either
of which case the Valuation Percentage with respect to such Letter of Credit
shall be zero (0).

                                     - 4 -
<PAGE>

         "Value" means with respect to Eligible Collateral/Performance
Assurance, the stated amount of the Eligible Collateral/Performance Assurance as
adjusted by the Valuation Percentage of such Eligible Collateral/Performance
Assurance.

     PARAGRAPH 2. GRANT OF SECURITY INTEREST.

         (a) As security for the prompt and complete payment and performance of
     all Obligations of each Party, such Party (the "Pledgor") pledges, assigns,
     conveys, and transfers to other Party (the "Pledgee"), and hereby grants to
     Pledgee a present and continuing first priority security interest in and
     to, and a general first lien upon and right of setoff against, (i) all of
     Pledgor's right, title and interest in, to and under any Performance
     Assurance which has been or may in the future be Transferred to, or
     received by, Pledgee, (ii) all right, title, and interest that the Pledgor
     has in any Obligations of Pledgee to Pledgor, together with all accounts,
     general intangibles, and payment intangibles in respect of payments owed
     with respect to such Obligations, and (iii) all dividends, interest, and
     other proceeds from time to time received, receivable, or otherwise
     distributed in respect of, or in exchange for, any or all of the foregoing.
     To the extent that all or any portion of the grant set forth in this
     Paragraph 2(a) has previously been made by Pledgor to Pledgee, such grant
     shall continue in effect from the date when originally made, and shall be
     deemed amended, renewed, and restated by the above to include the full
     grant made therein.

         (b) Pledgor agrees to take such action as Pledgee reasonably requests
     in order to perfect Pledgee's continuing security interest in, lien on, and
     right of setoff against such Performance Assurance and Obligations of
     Pledgor to Pledgee and grants authority to Pledgee to file financing
     statements or take such other actions necessary to perfect the foregoing
     interests. Pledgor hereby authorizes Pledgee to sign and file one or more
     financing statements without the signature of Pledgor in accordance with
     Section 9-509 of the Uniform Commercial Code. In addition to the foregoing,
     Pledgee shall have all of the rights and remedies of a secured party under
     the Uniform Commercial Code.

         (c) Pledgor hereby represents and warrants to and agrees with Pledgee
     that, with respect to any Obligations of Pledgee to Pledgor, save and
     except any Obligations of Pledgee to Pledgor arising prior to the Effective
     Date:

                  (i) Pledgor has and will retain good title to and sole
         ownership of such Obligations, free and clear of any liens, security
         interests, assignments, claims, or other encumbrances other than those
         in favor of Pledgee (and without limiting the foregoing, Pledgor shall
         not sell or assign or grant any security interest with respect to such
         Obligations under any securitization program or otherwise);

                  (ii) Pledgee has the right to setoff against such Obligations
         without restriction; and

                  (iii) Pledgor has not and will not become a party to or
         otherwise be bound by any agreement, other than the Agreement, which
         restricts in any manner the rights of Pledgor with respect to the
         Obligations.

         (d) To the extent permitted under Paragraph 7 with respect to
     Performance Assurance, Pledgor grants to Pledgee the same rights and
     remedies with respect to such Obligations, if applicable, in the same
     manner and to same extent required of Pledging Party and authorized for
     Secured Party with respect to Performance Assurance under Paragraph 7.

         (e) The provisions of any Underlying Master Agreement and any
     Transactions relating to the administration and application of any
     Performance Assurance shall be, and hereby are, superceded and replaced in
     their entirety by the provisions of this Collateral Annex, except that any
     right of any

                                     - 5 -
<PAGE>

     Party to realize on or apply any collateral pursuant to the terms of any
     Underlying Master Agreement or any Transaction upon any event or occurrence
     that does not constitute a Default (and which has not been superceded or
     replaced by the provisions of Sections 2 and 3 of the Agreement) shall
     remain in full force and effect.

         (f) Notwithstanding any provisions of any of the Underlying Master
     Agreements and any Transactions, each Letter of Credit Transferred as
     Eligible Collateral for the account of EPME shall name MCV as beneficiary
     thereof, and each Letter of Credit Transferred as Eligible Collateral for
     the account of MCV shall name EPME as beneficiary thereof, and in each case
     shall provide for the right of MCV or EPME, respectively, to draw thereon
     upon the terms and conditions in the Letter of Credit. The Parties covenant
     to each other to use reasonable efforts to promptly cause the amendment or
     reestablishment of each Letter of Credit issued for its account under the
     Underlying Master Agreements or Transactions in accordance with the
     Agreement, including this Collateral Annex.

     PARAGRAPH 3. CALCULATIONS OF THE COLLATERAL REQUIREMENT.

         (a) On any Calculation Date, the Calculating Party shall reasonably
     determine the Exposure for each Party by determining the Settlement Amount
     with respect to each Transaction. The Exposures of each Party shall be
     aggregated to determine the "Aggregate Exposure". The Party having a
     positive Aggregate Exposure at any time (i.e., the "Secured Party") shall
     be deemed to have a "Net Exposure" to the other Party (i.e., the "Pledging
     Party") equal to such positive Aggregate Exposure.

         (b) The "Collateral Requirement" for Pledging Party means (i) Secured
     Party's Net Exposure minus (ii) the sum of:

                           (A) Pledging Party's Exposure Threshold; plus

                           (B) the Value of Cash previously Transferred to
                  Secured Party (including any interest or other amount earned
                  thereon that is held by Secured Party), and the Value of Cash
                  held by Secured Party as a result of drawing under any Letter
                  of Credit that has not been applied against (and is not
                  required to be applied against) any Obligations owed by a
                  Defaulting Party; plus

                           (C) the Value of each Letter of Credit issued for the
                  account of Pledging Party for the benefit of Secured Party;

provided that in no event may the Collateral Requirement for Pledging Party be
less than US$0.00; and further provided that such amount shall be rounded up to
the nearest integral multiple of the Rounding Amount.

PARAGRAPH 4. TRANSFER OF ELIGIBLE COLLATERAL/PERFORMANCE ASSURANCE.

         On any Calculation Date on which (a) no Default or Potential Event of
Default has occurred and is continuing with respect to Secured Party, (b) no
Early Termination Date has occurred or been designated as a result of a Default
with respect to the Secured Party; and (c) Pledging Party's Collateral
Requirement equals or exceeds its Minimum Transfer Amount, then Secured Party
may demand that Pledging Party Transfer to Secured Party, and Pledging Party
shall Transfer, or cause to be Transferred to Secured Party (as directed by
Secured Party in such notice), Eligible Collateral for the benefit of Secured
Party, in an amount and with a Value at least equal to Pledging Party's
Collateral Requirement. Unless otherwise agreed in writing by the Parties,
Eligible Collateral demanded of Pledging Party on or before the Notification
Time on a Business Day shall be Transferred by 5:00 p.m. Central Clock Time on
the next following Business Day, and if demanded after the Notification Time on
a Business Day, shall be Transferred on the second Business Day following
Secured Party's demand for Eligible Collateral. Any

                                     - 6 -
<PAGE>

Letter of Credit shall be delivered to such address as Secured Party shall
specify and any such demand made by Secured Party pursuant to this Paragraph 4
shall specify account information for the account to which Eligible Collateral
in the form of Cash shall be Transferred. Notwithstanding anything to the
contrary in this Collateral Annex, if the event giving rise to an obligation to
Transfer Eligible Collateral is cured or otherwise removed prior to the time
that such Eligible Collateral is required to be provided, Pledging Party shall
have no obligation to provide such Eligible Collateral.

PARAGRAPH 5. REDUCTION AND SUBSTITUTION OF PERFORMANCE ASSURANCE.

         (a) On any Calculation Date (but no more frequently than once per day
     with respect to Cash), a Party may request a reduction in the amount of
     Performance Assurance previously Transferred by that Party for the benefit
     of the other Party; provided that in order for such request to be honored,
     the reduction is not less than the Minimum Transfer Amount in respect of
     the requesting Party and after giving effect to the requested reduction in
     Performance Assurance, (i) the requesting Party must then have a Collateral
     Requirement of zero (0) or less; and (ii) no Default or Potential Event of
     Default with respect to the requesting Party shall have occurred and be
     continuing; and (iii) no Early Termination Date has occurred or been
     designated as a result of a Default with respect to the requesting Party.

         (b) If the Party holding such Performance Assurance determines in its
     reasonable discretion that the conditions set forth in Paragraph 5(a) have
     been met with respect to a requested reduction in Performance Assurance,
     such Party shall honor such request for a reduction. A permitted reduction
     in Performance Assurance may be effected by the Transfer of Cash to the
     requesting Party or the termination of or reduction of the amount available
     for drawing under an outstanding Letter of Credit previously issued for the
     benefit of the Secured Party. The Pledging Party shall have the right to
     specify the means of effecting a permitted reduction in Performance
     Assurance. The amount of the Performance Assurance reduction hereunder
     shall be rounded down to the nearest integral multiple of the Rounding
     Amount.

         (c) The cost and expense of reducing Performance Assurance (including,
     without limitation, the reasonable costs, expenses, and attorneys' fees of
     the other Party) shall be borne by the requesting Party.

         (d) Unless otherwise agreed in writing by the Parties, if the
     requesting Party under this Paragraph 5 demands a reduction prior to the
     Notification Time, the other Party shall have until 5:00 p.m. Central Clock
     Time on the second Business Day following a request for reduction to effect
     a permitted reduction in Performance Assurance if such reduction is to be
     effected by the return of Cash to the requesting Party. If the reduction
     demand is made after the Notification Time, the other Party shall have
     until 5:00 p.m. Central Clock Time on the third Business Day following such
     request for reduction to effect a permitted reduction in Performance
     Assurance if such reduction is to be effected by the return of Cash to the
     requesting Party. If a permitted reduction in Performance Assurance is to
     be effected by the termination of or a reduction in the amount available
     for drawing under an outstanding Letter of Credit previously issued for the
     benefit of Secured Party, the other Party shall promptly take such action
     directed by the issuer of such Letter of Credit as is reasonably necessary
     to effectuate such termination or reduction.

         (e) Unless a Default or Potential Event of Default with respect to
     Pledging Party shall have occurred and be continuing, or an Early
     Termination Date shall have been designated by the Secured Party, the
     Pledging Party may substitute Performance Assurance for other existing
     Performance Assurance of equal Value upon two Business Day's written notice
     to the Secured Party. Promptly upon the Transfer to Secured Party of any
     such substitute Performance Assurance, Secured Party shall Transfer the
     relevant replaced Performance Assurance to Pledging Party. Notwithstanding

                                     - 7 -
<PAGE>

     anything herein to the contrary, no such substitution shall be permitted
     unless (i) such substitute Eligible Collateral has been Transferred to
     Secured Party or its agent (as directed by Secured Party) prior to the
     release of the Performance Assurance to be returned to Pledging Party, and
     the security interest in, and general first lien upon, such substituted
     Eligible Collateral granted pursuant hereto in favor of Secured Party shall
     have been perfected as required by applicable law and shall constitute a
     first priority perfected security interest therein and general first lien
     thereon, and (ii) shall be no less than the Pledging Party's Minimum
     Transfer Amount. Each substitution of Performance Assurance shall
     constitute a reaffirmation by Pledging Party that all Performance Assurance
     held by or on behalf of Secured Party shall be subject to and governed by
     the terms and conditions of this Collateral Annex, including, without
     limitation, the security interest in, general first lien on and right of
     offset against, such Performance Assurance granted pursuant hereto in favor
     of Secured Party pursuant to Paragraph 2.

         (f) The Transfer of any Performance Assurance by Secured Party to
     Pledging Party in accordance with this Paragraph 5 shall be deemed a
     release by Secured Party of its security interest, general first lien and
     right of offset granted pursuant to Paragraph 2 hereof only with respect to
     such returned Performance Assurance. In connection with each return of any
     Performance Assurance pursuant to this Paragraph 5, Pledging Party will,
     upon request of Secured Party, execute a receipt showing the Performance
     Assurance received by it.

PARAGRAPH 6. ADMINISTRATION OF PERFORMANCE ASSURANCE.

         (a) Cash. Performance Assurance provided in the form of Cash to Secured
Party shall be held in a jurisdiction of the United States at all times and
shall be subject to the following provisions:

                  (i) The Secured Party shall have the right to commingle or
         otherwise use in its business any Cash that it holds as Performance
         Assurance hereunder; provided, however that such use shall be
         consistent with applicable industry standards.

                  (ii) The Secured Party may allow a Qualified Institution to
         hold all Cash in its possession on its behalf in a segregated,
         safekeeping or custody account (a "Collateral Account") within such
         Qualified Institution (subject to customary custody and control
         provisions) with the title of the account indicating that the property
         contained therein is being held as Cash owned by the Pledging Party,
         subject to the security interest of the Secured Party in accordance
         with this Agreement. Such Qualified Institution shall so long as it
         continues to serve as custodian with respect to the Cash in the
         Collateral Account, hold such Cash in accordance with the terms of this
         Agreement and for the security interest of the Secured Party and,
         subject to such security interest, for the ownership of the Pledging
         Party. The Qualified Institution will hold the Cash in an interest
         bearing account and, the Qualified Institution will not take any other
         actions in an attempt to obtain a return on the Cash in excess of what
         can be expected by maintaining the Cash in the interest bearing
         account, including but not limited to the investment or reinvestment of
         the Cash in any investment vehicles of any nature inconsistent with the
         stated constraint on the retention and use of the Cash in the interest
         bearing account; provided, however, that the Qualified Institution may
         invest and reinvest or procure the investment and reinvestment of the
         Cash in accordance with the written instructions of the Secured Party,
         which instructions shall be in compliance with industry standards.
         Provided, further that the Cash so held by the Qualified Institution
         shall be subject to the Pledging Party's request for the return of the
         Performance Assurance if authorized by this Agreement, and such Cash
         shall be returned in accordance with the timing set forth in this
         Agreement if required. The Secured Party agrees to cooperate as
         necessary to facilitate such return of the Performance Assurance from
         the Qualified Institution.

                  (iii) Interest shall be deemed to accrue on all Cash held by
         Secured Party as Performance Assurance at a rate per annum equal to the
         Federal Funds Effective Rate. Secured

                                     - 8 -
<PAGE>

         Party shall retain such deemed interest, subject to the provisions of
         Paragraph 5(a). Secured Party shall not be responsible to Pledging
         Party for any amounts earned on Cash held as Performance Assurance
         other than the deemed interest as set forth in this Paragraph
         6(a)(iii).

         (b) Letters of Credit. Performance Assurance provided in the form of a
Letter of Credit shall be subject to the following provisions.

                  (i) Unless otherwise agreed to in writing by the Parties, each
         Letter of Credit shall be maintained for the benefit of the Secured
         Party. If required under the terms of this Collateral Annex, the
         Pledging Party shall renew or cause the renewal of each outstanding
         Letter of Credit in order to keep the Valuation Percentage from being
         reduced (or cause the substitution of Eligible Collateral having
         equivalent or greater Value to such Letter of Credit (subject to the
         provisions of Paragraph 5(a)). Upon the occurrence and continuance of a
         Default with respect to Secured Party or the designation of an Early
         Termination Date as a result of any such Default, in lieu of the
         obligation set forth in this subparagraph, the Pledging Party shall
         cause any outstanding Letter of Credit issued on its behalf to be
         maintained, renewed or replaced, or at the election of the Pledging
         Party, Performance Assurance in the form of Cash to be deposited with a
         Qualified Institution on behalf of the Defaulting Party (in which event
         Secured Party shall immediately return the Letter of Credit to Pledging
         Party), as the case may be, for ten (10) Business Days after such time
         as the Final Settlement Amount is finally determined in accordance with
         the Agreement and is otherwise due under the Agreement (including the
         resolution of any dispute pertaining to such Final Settlement Amount);
         provided that the Value of any such outstanding Letter of Credit shall
         be maintained at (or Performance Assurance in the form of Cash
         deposited in) an amount equivalent to the lesser of (x) the undrawn
         portion of such Letter of Credit on the date of the occurrence of any
         such Default (provided it is continuing) with respect to Secured Party
         or (y) if Secured Party draws on any such Letter of Credit for any
         reason whatsoever after the date of such Default (provided such Default
         is continuing), the remaining undrawn portion of the Letter of Credit),
         or (z) the amount which Secured Party has determined, in a commercially
         reasonable manner, is the amount of any unpaid Final Settlement Amount
         which is owed to it using the methodology for such calculation set
         forth in the Agreement. The Pledging Party's failure to post
         Performance Assurance in accordance with the terms of this Paragraph
         may lead to a Default under Section 2(d)(vi) of the Agreement, which,
         if such Default occurs and is continuing, shall entitle Secured Party
         to draw upon any such Letter of Credit in an amount not greater Secured
         Party has determined, in a commercially reasonable manner, is the
         amount of any unpaid Final Settlement Amount owed to it using the
         methodology for such calculation set forth in the Agreement; provided,
         however that if Secured Party has not made any such determination
         because Pledging Party has not tendered the Final Settlement Amount
         calculations to Secured Party so as to allow Secured Party to dispute
         such calculation within the terms of the Agreement, then Secured Party
         may draw upon the entire amount of the Letter of Credit if the Letter
         of Credit will expire within a period of less than ten (10) Business
         Days. Any and all draw proceeds received by the Secured Party under
         this subparagraph shall be held by its Qualified Institution pursuant
         to the terms of this Paragraph 6(b)(iv) until the amount of the Final
         Settlement Amount is finally determined in accordance with this
         Agreement.

                  (ii) As one method of providing Performance Assurance,
         Pledging Party may increase the amount available for drawing under an
         outstanding Letter of Credit.

                  (iii) Upon the occurrence of a Letter of Credit Default,
         Pledging Party agrees to deliver to Secured Party either a substitute
         Letter of Credit or other Eligible Collateral, in each case on or
         before the second Business Day after the occurrence thereof (or the
         fifth Business Day after the occurrence thereof if only clause (a)
         under the definition of Letter of Credit Default applies), having the
         same Value (as applicable only with respect to subsection (ii)(a) of
         the

                                     - 9 -
<PAGE>

         definition of Valuation Percentage, with respect to the amount that may
         be unconditionally withdrawn in the case of a substitute Letter of
         Credit) as the undrawn amount of the Letter of Credit immediately prior
         to such Letter of Credit Default.

                  (iv) At any time during the continuance of a Default with
         respect to Pledging Party, then Secured Party may draw up to the entire
         undrawn portion of any outstanding Letter of Credit. Cash proceeds
         received from drawing upon a Letter of Credit shall be deemed
         Performance Assurance as security for Pledging Party's Obligations to
         Secured Party and Secured Party shall have the rights and remedies set
         forth herein with respect to such Cash. Notwithstanding anything to the
         contrary contained in the Agreement, if Secured Party shall draw upon
         any Letter of Credit while a Default shall have occurred and be
         continuing with respect to Secured Party, any portion of the proceeds
         of such Letter of Credit which is the subject of a bona fide dispute
         shall be held only at a Qualified Institution pursuant to the
         provisions of Paragraph 6(a)(ii) (without the necessity of any request
         from Pledging Party and without the benefit of any grace period) until
         such time as the dispute has been finally resolved pursuant to the
         terms hereof.

                  (v) In all cases, notwithstanding Secured Party's receipt of
         Cash on account of any Letter of Credit, Pledging Party shall remain
         liable for any failure to Transfer sufficient Eligible Collateral or
         for any amounts owing to Secured Party and remaining unpaid after the
         application of the amounts so drawn by Secured Party. In all cases, the
         costs and expenses (including, without limitation, the reasonable
         costs, expenses, and attorneys' fees of Secured Party) of establishing,
         renewing, substituting, canceling, and increasing the amount of a
         Letter of Credit shall be borne by Pledging Party.

         (c) Care of Performance Assurance. Beyond the exercise of reasonable
care in the custody thereof, Secured Party shall have no duty as to any
Performance Assurance in its possession or control or any income thereon or as
to the preservation of rights against prior parties or any other rights
pertaining thereto. Secured Party shall be deemed to have exercised reasonable
care in the custody and preservation of the Performance Assurance in its
possession if the Performance Assurance is accorded treatment substantially
equal to that which it accords its own property. Except as otherwise authorized
under Paragraph 6(a)(i)(ii) or (d), the Secured Party shall retain possession or
control of any Performance Assurance delivered to it; provided, however that the
Secured Party may, invest, commingle or otherwise use in its business the
Performance Assurance it holds.

         (d) Qualified Institution. The Qualified Institution for each Party, if
applicable, shall act on behalf of the Party in connection with the performance
of all duties and the exercise of all rights in respect of Performance Assurance
under the Agreement.

PARAGRAPH 7. EXERCISE OF RIGHTS AGAINST PERFORMANCE ASSURANCE.

         (a) In the event that (i) a Default with respect to Pledging Party has
occurred and is continuing or (ii) an Early Termination Date has occurred or has
been designated as a result of a Default with respect to the Pledging Party, the
Secured Party may exercise any one or more of the rights and remedies provided
under the Agreement, including, without limitation, this Collateral Annex, or as
otherwise available under applicable law. Without limiting the foregoing, if at
any time a Default with respect to Pledging Party has occurred and is
continuing, then Secured Party may, in its sole discretion, exercise any one or
more of the following rights and remedies:

                           (A) all rights and remedies available to a secured
                  party under Article 9 of the Uniform Commercial Code of the
                  jurisdiction in which the Performance Assurance is being held
                  and any other applicable jurisdiction and other applicable
                  laws with respect to the Performance Assurance held by or for
                  the benefit of Secured Party;

                                     - 10 -
<PAGE>

                           (B) the right to set off any Performance Assurance
                  held by or for the benefit of Secured Party against and in
                  satisfaction of any amount payable by Pledging Party in
                  respect of any of its Obligations;

                           (C) the right to draw on any outstanding Letter of
                  Credit issued for its benefit and apply the proceeds therefrom
                  as set forth herein;

                           (D) the right to liquidate and realize upon any
                  Performance Assurance held by or for the benefit of Secured
                  Party through one or more public or private sales or other
                  dispositions with such notice, if any, as may be required by
                  applicable law (it being agreed in such case that 10 days'
                  notice of any such sale is reasonable), free from any claim or
                  right of any nature whatsoever of Pledging Party, including
                  any right of equity or redemption by Pledging Party (with
                  Secured Party having the right to purchase any or all of the
                  Performance Assurance to be sold) and to apply the proceeds
                  from the liquidation of such Performance Assurance to and in
                  satisfaction of any amount payable by Pledging Party in
                  respect of any of its Obligations in such order as Secured
                  Party may elect; and/or

                           (E) any and all other rights and remedies set forth
                  herein.

         (b) In the event that an Additional Default Event with respect to the
Pledging Party has occurred and is continuing, the Secured Party may, in its
sole discretion, exercise any one or more remedies with respect to Performance
Assurance as provided in the Agreement.

         (c) For the avoidance of doubt, it is hereby acknowledged that Secured
Party shall be under no obligation to prioritize the order with respect to which
it exercises any one or more of its rights and remedies provided under the
Agreement, including, without limitation, this Collateral Annex, or as otherwise
available under applicable law. Pledging Party shall in all events remain liable
to Secured Party for any amount payable by Pledging Party in respect of any of
its Obligations remaining unpaid after any realization or liquidation of the
Performance Assurance (including the reasonable costs and expenses relating to
any disposition of any Performance Assurance), application of the same and set
off, offset, combination of accounts, retention, withholding, and/or liquidation
rights and remedies.

PARAGRAPH 8. DISPUTED CALCULATIONS

         (a) If any Party disputes the amount of Performance Assurance requested
(and/or the amount of Performance Assurance to be returned) and such dispute
relates to the amount of the Collateral Requirements, such objecting Party shall
(i) notify the Party that made such calculation of the existence and nature of
the dispute not later than the 5:00 p.m. at the place of delivery on the second
Business Day following the date that notice of such calculation has been made by
the Calculating Party, (ii) provide the Calculating Party with the disputing
Party's own calculation, made in good faith and in a commercially reasonable
manner, of such amount; and (iii) if any payment, provision of Performance
Assurance, or other action is required to be taken with respect to such amount,
the disputing Party or the Calculating Party, as applicable shall take such
action with respect to the undisputed portion of such amount. Notwithstanding
the foregoing sentence, in no event shall a disputing Party be entitled to
forestall a Secured Party from holding and realizing against Performance
Assurance held by it or on its behalf in the event of a Default by the Pledging
Party, in which event, Secured Party shall be entitled to act with respect to
the entire Final Settlement Amount reasonably calculated by it in good faith,
and such dispute shall be subject to resolution as set forth below.

         (b) The Parties thereafter shall promptly consult with each other in
order to reconcile the two conflicting amounts. If the Parties have not been
able to resolve their dispute on or before the second Business Day following the
date that notice of such dispute was made, then the Secured Party's Collateral

                                     - 11 -
<PAGE>

Requirements shall be recalculated by each Party requesting quotations from one
(1) Reference Market-Maker (or Kiodex at the option of such Party) within two
(2) Business Days (taking the arithmetic average of the two quotes obtained to
obtain the average Settlement Amount; provided, that, if only one (1) quotation
can be obtained by the Parties, then that quotation shall be used) for the
purpose of recalculating the Settlement Amount of each Transaction in respect of
which the Parties disagree as to the Settlement Amount for purposes of
determining the Collateral Requirements in accordance with Paragraph 3(b), and
the Secured Party shall inform the Pledging Party of the results of such
recalculation (in reasonable detail). Eligible Collateral/Performance Assurance
shall thereupon be provided, returned, or reduced, if necessary, on the next
Business Day in accordance with the results of such recalculation.

PARAGRAPH 9. COVENANTS; REPRESENTATIONS AND WARRANTIES; MISCELLANEOUS.

         (a) Pledging Party will execute and deliver to Secured Party (and to
     the extent permitted by applicable law, Pledging Party hereby authorizes
     Secured Party to execute and deliver, in the name of Pledging Party or
     otherwise) such financing statements, assignments and other documents and
     do such other things relating to the Performance Assurance and the security
     interest granted under this Collateral Annex as Secured Party may
     reasonably deem necessary or appropriate to perfect or maintain perfection
     of its security interest in the Performance Assurance or otherwise as
     required hereunder, and Pledging Party shall pay all costs relating to its
     delivery of Performance Assurance and the maintenance and perfection of the
     security interest granted in this Collateral Annex.

         (b) On each day on which Performance Assurance is held by or on behalf
     of Secured Party under the Agreement, including, without limitation, this
     Collateral Annex, Pledging Party hereby represents and warrants to Secured
     Party that:

                  (i) Pledging Party has good title to and is the sole owner of
         such Performance Assurance, and the execution, delivery and performance
         of the covenants and agreements of the Agreement, including, without
         limitation, this Collateral Annex, do not result in the creation or
         imposition of any lien or security interest upon any of its assets or
         properties, including, without limitation, the Performance Assurance,
         other than the security interests and liens created under the Agreement
         unless otherwise stated herein;

                  (ii) upon the Transfer of Performance Assurance by Pledging
         Party to Secured Party, Secured Party shall have a valid and perfected
         first priority continuing security interest therein, free of any liens,
         claims or encumbrances, except those liens, security interests, claims
         or encumbrances arising by operation of law that are given priority
         over a perfected security interest;

                  (iii) Secured Party has a valid and perfected first priority
         continuing security interest in the Performance Assurance, free of any
         liens, claims or encumbrances, except those liens, claims or
         encumbrances arising by operation of law that are given priority over a
         perfected security interest; and

                  (iv) it is not and will not become a party to or otherwise be
         bound by any agreement, other than the Agreement, which restricts in
         any manner the rights of any present or future holder of any of the
         Performance Assurance with respect hereto.

         (c) The Agreement, including, without limitation, this Collateral
     Annex, has been and is made solely for the benefit of the Parties and their
     permitted successors and assigns, and no other person, partnership,
     association, corporation or other entity shall acquire or have any right
     under or by virtue hereof.

         (d) Pledging Party shall pay on request and indemnify Secured Party
     against any taxes (including, without limitation, any applicable transfer
     taxes and stamp, registration or other

                                     - 12 -
<PAGE>

     documentary taxes), assessments, or charges that may become payable by
     reason of the security interests, general first lien and right of offset
     granted under, or the execution, delivery, performance or enforcement of,
     the Agreement, including, without limitation, this Collateral Annex, as
     well as any penalties with respect thereto (including, without limitation
     costs and reasonable fees and disbursements of counsel). Pledging Party
     agrees to pay Secured Party for all reasonable expenses (including without
     limitation, court costs and reasonable fees and disbursements of counsel)
     incurred by it in connection with the enforcement of, or suing for or
     collecting any amounts payable by it under, the Agreement, including,
     without limitation, this Collateral Annex.

         (e) No failure or delay by either Party hereto in exercising any right,
     power, privilege, or remedy hereunder shall operate as a waiver thereof.

         (f) The headings in the Collateral Annex are for convenience of
     reference only, and shall not affect the meaning or construction of any
     provision thereof.

                                     - 13 -
<PAGE>

                         SCHEDULE 1 TO COLLATERAL ANNEX

                   IRREVOCABLE STANDBY LETTER OF CREDIT FORMAT
                                DATE OF ISSUANCE:

[Address]

         Re:  Credit No. _______________

         We hereby establish our Irrevocable Transferable Standby Letter of
Credit in favor of __________ (the "Beneficiary") for the account of
_______________________ (the "Account Party"), for the aggregate amount not
exceeding ______________________ United States Dollars ($___________), available
to you at sight upon demand at our counters at (Location) on or before the
expiration hereof against presentation to us of one of the following statements,
dated and signed by [_______________________]:

         "A Default (as defined in the Master Netting, Setoff, and Security
Agreement dated as of November ___, 2002, between MCV and El Paso Merchant
Energy, L.P., as the same may be amended (the "Master Agreement")) has occurred
and is continuing with respect to the Account Party under the Master Agreement.
Wherefore, the undersigned does hereby demand payment in the amount of
[US$___________]"; or

         "An Additional Default Event (as defined in the Master Netting, Setoff,
and Security Agreement dated as of November ___, 2002, between MCV and El Paso
Merchant Energy, L.P., as the same may be amended (the "Master Agreement")) has
occurred and is continuing with respect to the Account Party under the Master
Agreement. Wherefore, the undersigned does hereby demand payment in the amount
of [US$___________]"; or

         "An Early Termination Date (as defined in the Master Netting, Setoff,
and Security Agreement dated as of November ___, 2002, between MCV and El Paso
Merchant Energy, L.P., as the same may be amended (the "Master Agreement")) has
been designated with respect to the Account Party under the Master Agreement.
Wherefore, the undersigned does hereby demand payment in the amount of
[US$___________]."

         "To the extent the Master Agreement is terminated or otherwise fails to
be in full force and effect so as to revive the "default" and "event of default"
terms and conditions under the Underlying Master Agreements and Transactions (as
defined in the Master Netting, Setoff, and Security Agreement dated as of
November ___, 2002, between MCV and El Paso Merchant Energy, L.P., as the same
may be amended (the "Master Agreement")), a "default", "event of default",
"additional termination event", "early termination date" has occurred under the
Underlying Master Agreements and/or Transactions (and with respect to a
"default", "event of default" or "additional termination event" is continuing)
with respect to the Account Party. Wherefore, the undersigned does hereby demand
payment in the amount of [US$___________]"; or

         "The Beneficiary has requested alternate security from the Account
Party and the Account Party has not provided alternate security acceptable to
Beneficiary and this Letter of Credit has less than ten (10) business days until
expiry. Wherefore, the undersigned does hereby demand payment in the amount of
[US$___________]"; or

         "The Account Party has determined the Final Settlement Amount owed to
the Beneficiary under the Master Netting, Setoff, and Security Agreement dated
as of November___, 2002, between MCV and El Paso Merchant Energy, L.P., and has
authorized the Beneficiary in writing, as evidenced by the signed

                                     - 14 -
<PAGE>

authorization from the Account Party attached hereto, to draw down on the Letter
of Credit in the amount of $_________."

         The amount which may be drawn by you under this Letter of Credit shall
be automatically reduced by the amount of any drawings paid through the issuer
of this Letter of Credit referencing this Letter of Credit No. ____. Partial
drawings are permitted hereunder.

         We hereby agree with you that documents drawn under and in compliance
with the terms of this Letter of Credit shall be duly honored upon presentation
as specified.

         This Letter of Credit shall be governed by the Uniform Customs and
Practice for Documentary Credits, 1993 Revision, International Chamber of
Commerce Publication No. 500 (the "UCP"), except to the extent that the terms
hereof are inconsistent with the provisions of the UCP, including but not
limited to Articles 13(b) and 17 of the UCP, in which case the terms of this
Letter of Credit shall govern.

         With respect to Article 13(b) of the UCP, the issuer of this Letter of
Credit shall have a reasonable amount of time, not to exceed three (3) banking
days following the date of its receipt of documents from the beneficiary, to
examine the documents and determine whether to take up or refuse the documents
and to inform the beneficiary accordingly.

         In the event of an act of God, riot, civil commotion, insurrection, war
or any other cause beyond our control that interrupts our business
(collectively, an "Interruption Event") and causes the place for presentation of
this Letter of Credit to be closed for business on the last day for
presentation, the expiry date of this Letter of Credit will be automatically
extended without amendment to a date thirty (30) calendar days after the place
for presentation reopens for business.

         This Letter of Credit is transferable, and we hereby consent to such
transfer, but otherwise may not be amended, changed or modified without the
express written consent of the Beneficiary, the issuer of this Letter of Credit
and the Account Party.

                                [BANK SIGNATURE]

                                     - 15 -<PAGE>
                                                                   EXHIBIT 10.56

                               [REDACTED VERSION]
              PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND FILED
             SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
              PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT

                    MAINTENANCE SERVICES AND PARTS AGREEMENT

                                       FOR

                              MCV 11NM GAS TURBINES

                                     BETWEEN

                MIDLAND COGENERATION VENTURE, LIMITED PARTNERSHIP

                                       and

                      GENERAL ELECTRIC INTERNATIONAL, INC.

                            Dated: 31, December 2002

<PAGE>

                                                 TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                           Article       Page
<S>                                                                        <C>           <C>
Preamble

Recitals

Definitions                                                                   1           6

Obligations of GEII                                                           2           11

Obligations of MCV                                                            3           16

Term and Termination of Agreement                                             4           19

Fee and Payment                                                               5           21

Delivery, Title Transfer, Repair Services Logistics & Inventory               6           28

Indemnity                                                                     7           31

Warranty                                                                      8           32

Insurance                                                                     9           33

Limitation of Liability                                                       10          34

Force Majeure                                                                 11          36

Inspection and Quality Surveillance                                           12          36

Assignment                                                                    13          37

Applicable Law                                                                14          37

Severability                                                                  15          38

NOT USED                                                                      16          38
</TABLE>

<PAGE>

<TABLE>
<S>                                                                        <C>           <C>
Entire Agreement                                                              17          38

NOT USED                                                                      18          38

Notices                                                                       19          38

Disputes                                                                      20          39

Independent Entities                                                          21          40

Confidential Information                                                      22          40

Consent and Agreement                                                         23          41

Plant Security and Safety                                                     24          41

Supplemental Payment Terms                                                    25          42

Hazardous Chemicals                                                           26          42

Exculpation                                                                   27          44

Patents                                                                       28          44

Tax & Duties                                                                  29          45

No Nuclear Use                                                                30          46

General Clauses                                                               31          46

Signatures                                                                                47

EXHIBITS                                                                   Exhibit

Covered Units                                                                 1           48

Technical Scope                                                               2           49

Spare Parts Lists                                                             3           63
</TABLE>
<PAGE>

<TABLE>
<S>                                                                        <C>           <C>
Water Specification                                                           4           65

De-NOx Steam Specification                                                    5           66

Fuel Specification                                                            6           67

Air Specification                                                             7           68

Assumptions                                                                   8           69

Covered Parts Price List                                                      9           70

Mobilization Services                                                         10          72

Form of Assignment                                                            11          74

NOT USED                                                                      12          77

Consent and Agreement                                                         13          78

GEII Standard Rate Sheets                                                     14          86
</TABLE>
<PAGE>
                                    PREAMBLE

This maintenance services and parts agreement, including all exhibits, (the
"Agreement") is made effective this 31 day of December, 2002 (the "Effective
Date") by and between General Electric International, Inc. ("GEII"), a
corporation organized under the laws of Delaware, with offices located at 4200
Wildwood Parkway, Atlanta, GA 30339 and MIDLAND COGENERATION VENTURE LIMITED
PARTNERSHIP ("MCV"), a limited partnership organized under the laws of Michigan,
with offices located at 100 Progress Place, Midland, MI 48640.

                                    RECITALS

         WHEREAS, GEII, is among other things, engaged in the business of
         providing, either directly or through its affiliates and subsidiaries,
         certain maintenance services and parts with respect to power plant
         equipment;

         WHEREAS, MCV operates a power plant located at Midland, Michigan;

         WHEREAS, MCV made a verbal request for a proposal from GEII and as a
         result MCV and GEII have negotiated this Agreement whereby GEII will
         provide certain maintenance services and parts to MCV;

         WHEREAS, MCV and GEII independently and collectively acknowledge that
         this Agreement is being entered into for the mutual benefit of both
         parties and that GEII's obligations contained herein represent its
         initial engagement in the provision of certain maintenance services and
         parts for non-GE manufactured power plant equipment;

         WHEREAS, GEII is willing to provide parts and services in accordance
         with the terms of this Agreement,

         NOW, THEREFORE, in consideration of the mutual promises and agreements
         contained herein, GEII and MCV hereby agree as follows:
<PAGE>
ARTICLE I  DEFINITIONS

Unless the context clearly requires otherwise, the following terms used in this
Agreement have the meaning set forth below:

         1.1      "AFFILIATE" with respect to a Party means an entity (including
                  without limitation any individual, corporation, partnership,
                  limited liability company, association or trust) controlling,
                  controlled by or under common control with that Party.

         1.2      "ASSUMPTION VIOLATIONS" means a violation of one or more of
                  the Assumptions as specified in Exhibit 8.

         1.3      "AGREEMENT PRICE" means the total price to be paid by MCV to
                  GEII under this Agreement as described in Article 5, but does
                  not include the amounts paid for Unplanned Maintenance and
                  Extra Work.

         1.4      "ASSUMPTIONS" means the operating conditions as specified in
                  Exhibit 8.

         1.5      "CHANGE OF LAW COSTS" shall have the meaning set forth in
                  Article 5.

         1.6      "COMMENCEMENT DATE" shall be January 1, 2004; provided,
                  however that the Commencement Date may be extended if GEII
                  provides notification to MCV as soon as the need for an
                  extension is apparent, but in no case shall notification occur
                  later than December 1, 2003; provided, further, that in no
                  event shall the Commencement Date occur later than January 1,
                  2005.

         1.7      "COMPETITOR OF GEII" means any person or entity, and its
                  parent or affiliates, engaged in the manufacture or
                  distribution of components, parts or equipment similar to
                  components, parts or equipment manufactured or distributed by
                  GE Power Systems, a business division of General Electric
                  Company and/or the provisions of major maintenance services
                  similar to the Services supplied under this Agreement for the
                  power generation industry.

         1.8      "COVERED UNIT" shall mean the Gas Turbine Covered Unit and
                  Generator Covered Unit as described in Exhibit 1.

         1.9      "COVERED PARTS" shall mean those new or refurbished parts
                  provided by GEII for performance under this Agreement as
                  further defined in Exhibit 2.

         1.10     "EFFECTIVE DATE" shall mean the date specified in the Preamble
                  to this Agreement.

         1.11     "EQUIVALENT OPERATING HOURS (EOH)" for a gas turbine, shall
                  mean, for such gas turbine, the actual measured hours of
                  operation plus an additional twenty (20) hours for each Start
                  of such gas turbine.

         1.12     "EXCLUDED COMPONENTS" means those components of the Covered
                  Units other than the Covered Parts.
<PAGE>
         1.13     "EXCLUDED EVENTS" shall mean maintenance events where Parts,
                  Services or Repairs for the Covered Units are required to be
                  provided or performed due to the following circumstances:

                  i.       Caused by an Unplanned Maintenance event,

                  ii.      Caused by an Assumption Violation,

                  iii.     Caused by errors or negligent acts by MCV,

                  iv.      Caused by defective parts provided or services
                           performed by parties other than GEII or its
                           subcontractors installed or performed after the
                           Commencement Date.

                  v.       Caused by a Force Majeure event as defined in Article
                           11.

                  vi.      the presence of contaminants including, but not
                           necessarily limited to, chemicals, salt air and
                           harmful gases in the ambient physical environment
                           affecting the Covered Unit(s),

         1.14     "EXTRA WORK" means parts or services which GEII provides
                  pursuant to Article 2.4.

         1.15     "FACILITY" shall mean the Midland Cogeneration Plant operated
                  by MCV and located at 100 Progress Place, Midland, Michigan.

         1.16     "FORCE MAJEURE EVENT" shall have the meaning set forth in
                  Article 11 hereof.

         1.17     "GEII" shall mean General Electric International, Inc. and its
                  successors and assigns.

         1.18     "GEII STANDARD RATE" shall mean (i) GEII's published standard
                  rates for field service personnel which are applicable at the
                  time of providing any services under this Agreement, plus
                  reasonable expenses pre-approved by MCV including living
                  expenses, travel expenses, and the rental of cars; (ii) the
                  price of Parts as described in Exhibit 9, escalated pursuant
                  to Article 5.2.3, at the time the Parts are ordered; (iii) the
                  price of Parts, materials and services, purchased by GEII, as
                  shown by invoices for the same, together with a markup of
                  twenty-five (25%) percent of such invoices; (iv) the price of
                  craft labor provided by GEII, as shown by invoices for the
                  same, together with a markup of fifteen (15%) percent of such
                  invoices; (v) the then-applicable price for any Repairs.

         1.19     "GOVERNMENT REQUIREMENTS" means, to the extent of each Party's
                  obligations under this Agreement, any statute, law, directive,
                  regulation, rule, order or legislation of any governmental
                  authority applicable to the Facility and to the Parties.

         1.20     "INITIAL SPARE PARTS" shall mean an initial supply of
                  components for the Covered Units, as more specifically
                  identified in Exhibit 3 and owned and maintained by MCV for
                  use as described in Article 6. Upon delivery to the Site the
                  Initial Spare Parts shall be redesignated Mandatory Spare
                  Parts.

         1.21     "INITIAL SPARE PARTS PAYMENT" shall have the meaning set forth
                  in Article 5 .

         1.22     "INSOLVENT" means that:
<PAGE>
                  (i)      a Party makes an assignment for the benefit of
                           creditors, or petitions or applies for or arranges
                           for the appointment of a trustee, liquidator or
                           receiver, or commences any proceeding relating to
                           itself under any bankruptcy, reorganization,
                           arrangement, insolvency, readjustment of debt,
                           dissolution or liquidation or similar law of the
                           country under which the insolvent Party is organized
                           or a country in which the insolvent Party conducts
                           business, now or hereafter in effect (collectively
                           "Bankruptcy Laws"), or shall be adjudicated bankrupt
                           or insolvent in such a country; or

                  (ii)     a Party gives its approval of, consent to, or
                           acquiesces in, any of the following: the filing of a
                           petition or application for the appointment of a
                           trustee, liquidator or receiver against that Party;
                           the commencement of any proceeding under any
                           Bankruptcy Laws against that Party; or the entry of
                           an order appointing any trustee, liquidator or
                           receiver.

         1.23     "MAINTENANCE END DATE" shall mean for each Covered Unit the
                  later of 96,000 EOH or the completion of the fourth (4th)"C"
                  Inspection to occur as Planned Maintenance under this
                  Agreement.

         1.24     "MANDATORY SPARE PARTS" shall mean the components for the
                  Covered Units, as more specifically identified in Exhibit 3
                  and owned and maintained by MCV for use as described by
                  Article 2.

         1.25     "MCV" shall mean Midland Cogeneration Venture Limited
                  Partnership and its successors and assigns.

         1.26     "MOBILIZATION PERIOD" shall mean the period commencing on the
                  Effective Date and ending on the Commencement Date.

         1.27     "MOBILIZATION SERVICES" shall mean those goods and services
                  provided under Exhibit 10.

         1.28     "OUTAGE" means removal of a Covered Unit from electric or
                  power generation service.

         1.29     "PARTIES" shall mean MCV and GEII collectively, and "PARTY"
                  shall mean MCV or GEII individually.

         1.30     "PARTS" means new, repaired, or refurbished parts, materials,
                  components and other goods furnished by GEII, or its
                  subcontractors or suppliers, under this Agreement for the
                  Covered Units.

         1.31     "PLANNED MAINTENANCE" means, with respect to the Covered
                  Units, the following:

                  a)       with respect to the Gas Turbine Covered Units
                           described in Exhibit 1, periodic inspection, testing,
                           repair, and/or replacement of the Covered Parts, as
                           specified in Exhibit 2, as reasonably necessary in
                           light of deterioration from wear and tear due to
                           normal operation of the Covered Units and in
                           accordance with GEII's recommendations under this
                           Agreement and Prudent Industry Practices; and
<PAGE>
                  b)       with respect to the Generator Covered Units described
                           in Exhibit 1, periodic inspection as specified in
                           Exhibit 2 (Parts and Repairs excluded), to be
                           performed concurrently with an Outage on the Gas
                           Turbine Covered Unit and in accordance with GEII's
                           recommendations under this Agreement and Prudent
                           Industry Practices; and

                  c)       the repair and/or replacement of Covered Parts
                           subject to the work set out in paragraph a) above,
                           (1) the need for which is found during any Planned
                           Maintenance Outage and (2) which is reasonably
                           determined to be necessary prior to the next
                           scheduled Planned Maintenance Outage to continue safe
                           operation in each case in accordance with Prudent
                           Industry Practices, except in the event that the need
                           or requirement for such repair or replacement is an
                           Excluded Event;

                  d)       provided that paragraphs a), b), and c) above shall
                           not include testing, repair or replacement of
                           components and parts of a Covered Unit comprising
                           Excluded Components or the performance of Unplanned
                           Maintenance, Routine Maintenance or Extra Work.

         1.32     "PRE-EXISTING CONDITIONS" shall mean the condition of the
                  Covered Units, including but not limited to any condition
                  resulting from the design, manufacture, operation, wear and
                  tear (normal or otherwise), maintenance or failure to
                  maintain, or repair or failure to repair, of the Covered
                  Units, on or before the Commencement Date.

         1.33     "PRUDENT INDUSTRY PRACTICES" means the exercise of that degree
                  of skill and diligence, and of such practices, methods and
                  acts, at a minimum as would ordinarily be expected in the
                  power generation industry from a prudent owner and/or operator
                  and/or a services and/or parts provider acting lawfully,
                  reliably and safely in connection with the operation, repair,
                  and servicing of power generation facilities and equipment
                  similar to the Facility and Covered Units.

         1.34     "REPAIR" means work, which can be performed in a repair
                  service shop or at the Site, including, but not limited to,
                  machining; welding; grinding; polishing; cleaning; inspection;
                  disassembly or re-assembly and machine tool work such as lathe
                  work or vertical bore mill work.

         1.35     "REPAIR FACILITIES" means GEII's repair facilities where
                  Repair services are performed.

         1.36     "ROUTINE MAINTENANCE" means maintenance of a regular,
                  preventive or minor nature that is performed periodically,
                  during Covered Unit shutdown or during operation, to maintain
                  equipment in working order on a day-to-day basis without the
                  need for an Outage, including, but not limited to, inspection,
                  lubrication, calibration, adjustment, minor leak repair,
                  provision of fluids, greases, and resins, cleaning and
                  replacement of operational spares, filters (including inlet
                  air filters), strainers and cartridges, maintenance or
                  replacement of sensors, fuses, thermocouples, gauges,
                  switches, and light bulbs, and other similar preventive,
                  routine or minor work.
<PAGE>
         1.37     "SERVICES" means the work, services and labor required to be
                  provided by GEII in accordance with this Agreement, including
                  Mobilization Services, Planned Maintenance, Unplanned
                  Maintenance and Extra Work.

         1.38     "SITE" means the real property upon which the Facility is
                  located.

         1.39     "START" for the purposes of calculating EOH, shall mean an
                  event in which an ignition takes place and the rotational
                  speed is reached at which the starting aides switch off, which
                  is currently approximately 2400 RPM.

         1.40     "TECHNICAL SCOPE" shall mean the description of inspection
                  schedules and procedures and the equipment included in GEII's
                  inspection obligations set forth in Exhibit 2.

         1.41     "TERM" means the time period beginning on the Commencement
                  Date and ending upon termination or expiration of this
                  Agreement as more fully described in Article 4.

         1.42     "UNPLANNED MAINTENANCE" means maintenance of the Covered Units
                  that is neither Routine Maintenance nor Extra Work, required
                  to remedy an in-service failure or abnormality of a component,
                  whether discovered during an Outage or inspection, or
                  discovered from the monitoring of the Covered Units, which
                  occurs as a result of a problem or failure of a Covered Unit.
<PAGE>
ARTICLE 2 OBLIGATIONS OF GEII

         GEII shall provide the following under this Agreement:

              -   Mobilization Services in accordance with the terms of Article
                  2.1

              -   Planned Maintenance in accordance with the terms of Article
                  2.2

              -   Unplanned Maintenance in accordance with the terms of Article
                  2.3

              -   Extra Work in accordance with the terms of Article 2.4

              -   Initial Spare Parts in accordance with Article 2.5

              -   Site Support Team in accordance with Article 2.6

              -   Mandatory Spare Parts in accordance with Article 2.7

              -   Maintenance services guidelines in accordance with Article
                  2.8.

              -   Maintenance schedule in accordance with Article 2.9

              -   New or refurbished parts in accordance with Article 2.10

              -   New technology parts in accordance with Article 2.11

2.1      MOBILIZATION PERIOD

         During the Mobilization Period, GEII shall carryout the Mobilization
         Services as detailed in Exhibit 10. In addition, on or before the
         Commencement Date, GEII shall deliver to the Facility those Initial
         Spare Parts for the Covered Units (not in the MCV inventory) listed in
         Exhibit 3.

2.2      PLANNED MAINTENANCE

         For each Covered Unit, from the Commencement Date to the Maintenance
         End Date applicable to such Covered Unit, GEII shall provide Covered
         Parts and Services necessary for the Planned Maintenance of that
         Covered Unit. The scope of Planned Maintenance for the Covered Units is
         set forth in Exhibit 2. Planned Maintenance on the Covered Units shall
         include the provision of all craft labor, labor supervision, technical
         advisors, and specialists (e.g., bladers) to perform these normal
         scheduled inspections on the Covered Units with exceptions as noted
         under MCV scope on the Covered Units as more particularly described in
         Exhibit 2. Such Planned Maintenance shall be performed in accordance
         with Prudent Industry Practices.

         GEII shall provide parts planning support to MCV to facilitate
         maintenance planning. During the Term of the Agreement, at a mutually
         agreed date in the middle of each calendar year, GEII's representatives
         and MCV's representatives shall meet to discuss maintenance planning
         and related Outages for the following calendar year.

         At said meeting a tentative schedule of Planned Maintenance events for
         the following calendar year will be set by mutual agreement provided
         however that should the Parties fail to mutually agree MCV shall set
         the tentative schedule. MCV and GEII will keep each other apprised of
         any need to modify the tentative schedule, and mutually agree upon a
         final schedule as far in advance as reasonably possible. By mutual
         agreement of the Parties, the exact start date of the Planned
         Maintenance event may be advanced or delayed. A mutually agreed upon
         reimbursement will be made by the Party making the change if additional
         manpower and material costs related to the preparation for the outage
         are incurred due to the change in outage date.
<PAGE>
         Where MCV and GEII have agreed that a Planned Maintenance event has
         been scheduled, tentative or final, during a given time period, more
         detailed scheduling of the work scope will be presented by GEII at a
         pre-outage meeting approximately six (6) months prior to the
         anticipated start of that Planned Maintenance event and at such other
         times as the Parties deem necessary. A post-outage meeting will be
         scheduled after completion of each such Planned Maintenance event for
         presentation and discussion of GEII's outage report(s).

         The Planned Maintenance schedule used by GEII to develop the Agreement
         Price is premised on the Assumptions specified in Exhibit 8. Overfired
         operation, use of fuel or steam which does not comply with the attached
         applicable specifications or other deviations from the Assumptions may
         necessitate a reduced interval for Planned Maintenance. Any Parts or
         Services GEII must provide or perform resulting from Assumption
         Violations shall be provided as Extra Work.

         2.2.1    MAINTENANCE SERVICES REPORTS

                  GEII shall submit a monthly report of its work hereunder
                  performed during the previous month indicating all
                  inspections, Maintenance and Repairs performed, condition of
                  Covered Units, and Parts used. Promptly after completing each
                  scheduled inspection, GEII shall submit a detailed report of
                  the work performed, condition of inspected Covered Units,
                  revised settings and clearances of inspected Covered Units,
                  and GEII's recommendations for future Maintenance or Repair of
                  the Covered Units or purchases of spare parts.

         2.2.2    SITE RELATIONS

                  2.2.2.1  GEII recognizes that MCV, other contractors, and
                           subcontractors may be working concurrently at the
                           Facility. GEII shall cooperate with MCV and other
                           contractors so that all work will progress with a
                           minimum of delays and interference. Subject to
                           Article 11 ("Force Majeure") hereof, MCV reserves the
                           right to require GEII to schedule the performance of
                           its work hereunder in such manner as not to
                           unreasonably interfere with the performance of others
                           or with MCV's operation of the Facility.

                  2.2.2.2  GEII shall maintain workable and harmonious relations
                           with its employees and between GEII's employees, the
                           employees of other contractors and subcontractors,
                           and the employees of MCV. Whenever GEII has knowledge
                           that any actual or potential labor dispute is
                           delaying or threatens to delay the timely performance
                           of GEII's work hereunder, GEII shall immediately give
                           notice thereof to MCV, including all relevant
                           information.

2.3      UNPLANNED MAINTENANCE

         For all Covered Units, from the Commencement Date to the expiration or
         termination of this Agreement, GEII shall provide Covered Parts and
         Services for Unplanned Maintenance.

         MCV shall pay GEII for Parts and Services required for Unplanned
         Maintenance at the GEII Standard Rates in effect at the time the work
         is performed or the Parts are ordered.
<PAGE>
         If the Covered Units require(s) Unplanned Maintenance, during the Term
         of this Agreement, MCV shall notify GEII in writing and make the
         Covered Units available for correction.

2.4      EXTRA WORK

         Extra Work shall mean Parts provided and Services performed by GEII
         under the following circumstances:

         a)   To remedy damage to the Covered Units arising from an Excluded
              Event;

         b)   Repair or replacement of generator parts;

         c)   To remedy damage to the Covered Units arising from Pre-existing
              Conditions;

         d)   To provide Parts, Services, or Repairs in connection with changes
              in original equipment manufacturer recommendations as described in
              Article 3.4;

         e)   To provide Parts, Services, or Repairs in connection with changes
              as described in Article 3.5;

         f)   To repair or replace Excluded Components;

         g)   Which are provided or performed, pursuant to mutual agreement of
              the Parties.

         Extra Work shall be provided as requested by MCV from time to time in
         writing, for the Covered Units; provided, however, that: (i) MCV shall
         have the obligation to request such services of GEII and shall not have
         the right to use other contractors to perform such services if GEII
         agrees to perform such services; and, (ii) GEII shall have no
         obligation to perform any such service if it gives MCV written notice
         of its election not to perform such service within seven (7) days after
         receipt of MCV's written request to perform such service.

         Extra Work shall be provided at GEII Standard Rates in effect at the
         time the work is performed. Payment for Extra Work shall be made in
         accordance with Article 5.4 of this Agreement.

2.5      INITIAL SPARE PARTS

         GEII shall provide the Initial Spare Parts as detailed in Exhibit 3.
         The Initial Spare Parts will be shipped within thirty (30) days of the
         Commencement Date and will become part of the Mandatory Spare Parts
         inventory upon transfer of title to MCV.

2.6      SITE SUPPORT TEAM

         GEII shall, commencing on or before the Commencement Date and
         continuing through the Term of the Agreement, designate individuals who
         will be denoted the "Site Support Team" as required to fulfill GEII's
         obligations under this Agreement.

         As a minimum, GEII will designate an individual as the Site Manager who
         will be a member of the Site Support Team. The Site Manager will serve
         as a contact point with MCV for GEII for matters respecting this
         Agreement. Other GEII personnel and performance support methods may
         also be utilized by GEII in connection with performance of this
         Agreement. The individuals and the titles may change from time to time
         during the Term of this Agreement provided that GEII will have
         representatives at
<PAGE>
         all times required under this Agreement serving such a role regardless
         of the specific individual or job title used.

         The Site Support Team personnel, assigned on a full-time basis to the
         facility, shall:

                  (i)      assist MCV in trouble shooting, as requested by MCV,
                           and in accordance with Article 3.4;

                  (ii)     consult with MCV to schedule inspections and
                           maintenance;

                  (iii)    recommend to MCV the purchase of spare parts to
                           maintain inventory;

                  (iv)     organize the scheduled inspections identified in the
                           Exhibit 2;

                  (v)      coordinate with MCV the receipt and inspection of
                           Parts to confirm condition upon delivery.

2.7      MANDATORY SPARE PARTS

         In the event GEII uses any of the Mandatory Spare Parts maintained by
         MCV for the performance of Planned Maintenance, GEII shall replace such
         Parts such that there is at all times one set of Mandatory Spare Parts
         in MCV's inventory as detailed in Exhibit 3.

2.8      MAINTENANCE SERVICES GUIDELINES

         In connection with the performance of any Services to be performed by
         GEII pursuant to this Agreement:

         2.8.1    GEII shall comply with Government Requirements applicable to
                  GEII's performance of its obligations under this Agreement.

         2.8.2    GEII shall notify MCV of any lack of, or requirement for,
                  materials, supplies, equipment, and other items required to be
                  supplied by MCV reasonably in advance of GEII's need. In the
                  event of misfit of or defect in MCV-furnished materials,
                  supplies, equipment, or other items, GEII shall promptly
                  notify MCV of same. GEII shall take all reasonable steps to
                  avoid standby time due to such misfit, defect, or lack of
                  MCV-furnished materials, supplies, equipment, or other items
                  and to continue progress of other portions of GEII's work
                  hereunder pending correction of such misfit or defect and/or
                  the furnishing of such materials, supplies, equipment, or
                  other items.

         2.8.3    GEII shall, at all times, in accordance with the Prudent
                  Industry Practices and at no additional cost to MCV, protect
                  from damage due to GEII's operations, equipment, and materials
                  (whether stored or installed), paving, structures, and any and
                  all other items on the Facility belonging to MCV or others.

                  GEII's scope of supply under this Agreement includes the
                  provision of construction equipment such as cranes, heavy lift
                  equipment, fork lifts, etc., except for the installed crane as
                  describe in Article 3.2. If GEII provides such equipment as
                  Extra Work, such equipment shall comply with Article 24.

         2.8.4    In connection with the performance of its obligations
                  hereunder, GEII shall not be bound by any agreement(s) or any
                  amendments thereto for the sale of electricity produced by the
                  Facility, any agreement(s) or amendments thereto for the sale
                  of steam produced by the Facility, any agreement(s) or
                  amendments thereto for the purchase of fuel necessary to
                  operate the Facility, or to any other
<PAGE>
                  agreement unless GEII has consented in writing to be legally
                  bound in whole or in part by any obligation contained in such
                  agreement.

         2.8.5    Notwithstanding anything in this Agreement to the contrary,
                  GEII shall not be responsible for making any payments required
                  to be made by MCV pursuant to, or the compliance by MCV with
                  any other obligation of MCV under, any other agreement to
                  which MCV is or may be a Party including, but not limited to,
                  any agreement relating to supply of any consumables for the
                  Facility, the sale of electricity or steam produced by the
                  Facility, or the purchase of fuel necessary to operate the
                  Facility, or any agreement relating to the construction
                  financing or permanent financing of the Facility.

         2.8.6    GEII shall not, in connection with this Agreement, under any
                  circumstances, apply to or enter into negotiations with any
                  governmental authority or agency for acceptance of variations
                  from or revisions to safety or health, or air, water, or noise
                  pollution laws, or regulations relating to this Agreement, or
                  to the performance of its obligations hereunder without MCV's
                  prior written approval, which approval may not be unreasonably
                  withheld or delayed.

2.9      MAINTENANCE SCHEDULE

         All work to be performed by GEII during an Outage hereunder shall be
         performed in accordance with the following work schedule:

                   Scheduled "Camera", "Visual",         Two ten hour shifts,
                   and "C" Inspections                   six days per week
                   Unplanned  Maintenance and            Two ten hour shifts,
                   Extra Work                            six days per week

                  provided, however, that MCV shall have the right to require
                  overtime work and shall bear all additional costs incurred by
                  GEII in connection with such overtime work. Overtime for
                  GEII's personnel shall be charged at GEII Standard Rates in
                  effect at such time.

                  The term "week" as used in this Article 2.9 is defined as
                  Monday through Saturday, except holidays. If MCV requires GEII
                  to work on a holiday or schedules a six day work week which
                  includes Sunday, then MCV shall pay for the differential
                  incurred due to premium time.

2.10     USE OF NEW OR REFURBISHED PARTS

         GEII, at its discretion, may supply either new or reconditioned Covered
         Parts, provided that reconditioned parts meet prevailing GEII quality
         standards and are reasonably acceptable to MCV.

2.11     NEW TECHNOLOGY PARTS

         GEII may, from time to time in the performance of its scope of work
         under this Agreement, develop and/or utilize improved Parts which are
         not commercially available on the Effective Date. It is anticipated
         that GEII may do so in an effort to extend parts'
<PAGE>
         lives and/or increase the interval between certain Planned Maintenance
         Outages and/or improve Covered Unit performance.

         If GEII has available new part designs, MCV may request such new part
         designs from GEII for Covered Parts. If the original part design is
         also made available to MCV by GEII, MCV shall pay for the new part
         design at the then current price differential between the new and
         original part design. If the original part is no longer available, the
         new part shall be supplied at no additional cost to MCV.

         If MCV makes available to GE an upgraded design for a Covered Part and
         requests that GEII make use of this part in the fulfillment of GEII's
         obligations under this Agreement, GEII and MCV shall mutually agree to
         appropriate modifications to this Agreement.

ARTICLE 3 OBLIGATIONS OF MCV

         MCV shall provide the following under this Agreement:

              -   Mobilization Services in accordance with the terms of Article
                  3.1

              -   Maintenance services support in accordance with the terms of
                  Article 3.2

              -   General support in accordance with the terms of Article 3.3.

              -   Product support service in accordance with the terms of
                  Article 3.4.

              -   Notices associated with the modification of the Covered Units
                  in accordance with the terms of Article 3.5

3.1      MOBILIZATION PERIOD

         During the Mobilization Period, MCV shall carryout the Mobilization
         Services as detailed in Exhibit 10.

3.2      MAINTENANCE SERVICES SUPPORT

         MCV shall provide to GEII, at no cost to GEII, the following during
         Outages in sufficient quantities, at the times necessary, for the
         performance of GEII's obligations under this Agreement.:

              -   Materials, and consumables (other than those provided by
                  GEII).

              -   Fuel, water, electric power, chemicals, and fuel additives.

              -   Waste disposal.

              -   On-site lockable storage to be under the control of GEII for
                  consumables, tools, and instruments supplied by GEII.

              -   Use of permanently installed cranes (GEII to supply crane
                  operator(s) for "C" inspections).

              -   Use of on-site facilities including, but not limited to,
                  parking, restrooms, drinking water, vending machines, office
                  space, welding machines, and fire fighting equipment. On
                  occasion, when the need for machine shop, instrument shop or
                  other services are required, GEII may request the use of MCV
                  services subject to availability and type of work.

              -   Use of special tools for the maintenance of equipment,
                  supplied with such equipment by the manufacturers thereof.
<PAGE>
              -   Labor and material for all inspection, maintenance, and repair
                  of Covered Units auxiliaries, burner removal, and
                  reinstallation, in-situ welding, balancing, and
                  recommissioning, as listed in Exhibit 2.

              -   MCV shall provide GEII full access to the Facility during the
                  Term of the Agreement to the extent reasonably necessary for
                  GEII to perform its obligations hereunder. MCV shall maintain
                  all the permits and licenses necessary to own and operate the
                  Facility.

              -   MCV shall use its best efforts in planning Covered Unit
                  outages and developing inspection and maintenance schedules to
                  ensure that only one unit of the Covered Units is shut down
                  for Covered Parts replacement or maintenance at a time (except
                  in the case of an emergency failure or Excluded Events).

              -   MCV shall also be responsible for in-situ weld repairs on the
                  Covered Units performed between "C" inspections with the
                  understanding that the Agreement has provisions that would
                  allow GEII to supply services as Extra Work.

              -   Access to any medical facilities at the Site for use by GEII.

3.3      GENERAL SUPPORT

         Except as determined by the mutual agreement of GEII and MCV, the
         Covered Units shall be operated and maintained in accordance with OEM's
         recommendations supported by the OEM operating instruction manuals and
         instructions.

         MCV shall comply with Government Requirements applicable to MCV's
         performance of its obligations under this Agreement.

         Except for such services as GEII shall provide pursuant to this
         Agreement, MCV shall perform Routine Maintenance upon, and operate, the
         Covered Units and the Facility using the proper lubricants and fuel and
         steam which comply with the OEM specifications, all in accordance with
         Prudent Industry Practices. MCV shall perform Planned Maintenance and
         Unplanned Maintenance on those portions of the Facility which are not
         included in the Covered Units. MCV shall inform GEII, in writing, of
         all Assumption Violations.

         Parts furnished by GEII under this Agreement shall not be installed,
         used, or made available for use in any equipment other than the Covered
         Units; provided, however, that MCV may provide Parts to other
         facilities to support an unplanned event and such Parts shall be
         replaced by MCV as Extra Work.

         MCV bears the risk of loss for all Covered Parts while stored at the
         MCV Facility. MCV shall provide, at no cost to GEII, the necessary
         equipment to properly store and handle the Covered Parts, including
         existing warehouse space and security measures required to safely store
         and properly maintain the Covered Parts. Any Covered Parts that need
         replacement due to improper storage shall be replaced as Extra Work.

         MCV will make the Covered Units available to GEII for (i) technical
         evaluation of the Covered Parts during routine scheduled inspections;
         (ii) the review of TAT spread measurements and calibration methods and
         measurements performed by MCV; (iii) providing day-to-day surveillance
         and operating recommendations; and, (iv) witnessing, to the extent
         possible, turbine restarts for the purpose of enhancing starting
         reliability.
<PAGE>
3.4      PRODUCT SERVICE SUPPORT AND ORIGINAL EQUIPMENT MANUFACTURER
         RECOMMENDATIONS

         MCV shall be responsible for communicating and resolving all inquiries
         GEII has related to the Covered Units to the original equipment
         manufacturer. Any incremental costs incurred by GEII, including delays,
         associated with its performance during Outages resulting from said
         communication, shall be borne by MCV. MCV shall immediately notify GEII
         in writing of all communications to MCV, written or otherwise, which is
         applicable to the Covered Units, mandating an inspection, or repair or
         replacement of components or parts of the Covered Units which is issued
         by the original equipment manufacturer or any of its Affiliates,
         including, but not limited to, one (1) time maintenance events, part
         lives, and repair intervals. Any costs incurred by GEII as a result of
         such communication shall be borne by MCV as Extra Work.

         GEII will provide technical and engineering support related to Covered
         Parts and Services provided under this Agreement to the extent GEII or
         its Affiliates has reengineered and manufactured the Part or performed
         the Services.

         GEII will make reasonable commercial efforts to troubleshoot, advise,
         and recommend solutions to OEM related product service issues. If MCV
         requests GEII and GEII agrees to provide engineering or technical
         support related to the design or operation of Covered Units, these
         services will be provided as Extra Work.

3.5      NOTICE OF PREEXISTING CONDITION OF AND ANY MODIFICATIONS TO THE COVERED
         EQUIPMENT

         MCV shall promptly provide to the Site Manager all of the information
         in its possession, including, but not limited to, all
         operating/maintenance records, logs or data (written or otherwise)
         regarding the Covered Units prior to the Commencement Date.
         Additionally, MCV represents that the provision of such information
         shall be complete and accurate to the best of MCV's knowledge. Any
         incremental cost incurred by GEII as a result of MCV's breach of the
         foregoing shall be excluded from Planned Maintenance and borne by MCV
         as Extra Work.

         MCV shall also promptly notify GEII in writing regarding any changes or
         modifications to the Covered Units made by parties other than GEII
         occurring after the Effective Date. Any changes to the maintenance
         program necessitated by such changes, including but not limited to,
         reduced part life or inspection interval time, shall be excluded from
         Planned Maintenance and borne by MCV as Extra Work.

3.6      OWNER PROVISION OF PARTS

         3.6.1    PATENTED PARTS

         If GEII, in its sole determination, determines in good faith that it is
         not able to provide a part to MCV during the Term of this Agreement,
         due to intellectual property restrictions , then GEII shall promptly
         provide written notice to MCV advising of its determination. Prior to
         giving such notice, GEII shall make reasonable commercial efforts to
         manufacture or procure a non-infringing part or other alternative
         replacement capable of satisfying GEII's obligations under this
         Agreement. In the event GEII is unable to manufacture or procure a
         non-infringing part, MCV agrees that MCV may procure such part for
         GEII's performance, and an adjustment to the Agreement shall be made in
<PAGE>
         accordance with Article 3.6.2. The Parties agree that GEII's inability
         to provide such part shall not be considered a material breach of this
         Agreement.

         If GEII's inability to supply a part due to intellectual property
         restrictions is expected to delay a scheduled outage, GEII shall notify
         MCV no later than nine (9) months prior to the scheduled date of the
         affected outage, and MCV shall have the right to obtain a replacement
         part, and an adjustment to the Agreement will be made in accordance
         with Article 3.6.2.

         If GEII cannot supply three or more different Covered Parts due to
         intellectual property restrictions, MCV shall have the right to
         terminate this Agreement without penalty thirty (30) days after
         providing notice of MCV's intent to terminate; provided, however, that
         MCV shall take title to all Covered Parts being manufactured by GEII
         for use in this Agreement on the notice date, and pay for such Parts
         upon delivery to the site as Extra Work.

         3.6.2    ADJUSTMENT TO PERIODIC PAYMENT

         If GEII is not able to provide a part pursuant to 3.6.1, and MCV
         procures a part for GEII's performance, then the Parties agree to make
         an adjustment to the Periodic Payments. Such adjustment shall be made
         on Periodic Payment due following MCV's provision of such part(s),
         whereby GEII shall reduce that Periodic Payment by a value equal to
         GEII Standard Rate for such part(s).

ARTICLE 4  TERM AND TERMINATION OF AGREEMENT

4.1      TERM OF AGREEMENT

         This Agreement shall become effective on the Effective Date and shall
         expire; unless sooner terminated in accordance with the provisions of
         this Agreement, upon the first to occur of the following:

                  a)       The date upon which all Covered Units have reached
                           their Maintenance End Date, or;

                  b)       Fifteen (15) years from the Commencement Date.

         4.1.1    For the purposes of the Term of this Agreement and EOH based
                  payments hereunder, the EOH of each Covered Unit shall be
                  considered to be zero (0) as of the Commencement Date.

4.2      TERMINATION

         4.2.1    TERMINATION FOR DEFAULT AND/OR INSOLVENCY

                  4.2.1.1  Either Party (the "Non-Defaulting Party") may
                           terminate this Agreement if the other Party (the
                           "Defaulting Party") (i) becomes Insolvent or (ii) the
                           Defaulting Party commits a material breach of this
                           Agreement and fails to cure the breach within thirty
                           (30) days of notice from the Non-Defaulting Party, or
                           if it is not possible to cure such breach within
                           thirty (30) days of such notice, fails to commence to
                           cure the breach within thirty (30) days or fails to
                           thereafter continue diligent efforts to complete
<PAGE>
                           the cure as soon as reasonably possible. This
                           provision for Termination for Default may only be
                           exercised by notice in writing within ninety (90)
                           days of the event(s) giving rise to the default and
                           effective thirty (30) days from such written notice.

                  4.2.1.2  In the case of Termination for Default and/or
                           Insolvency pursuant to Article 4.2.1.1, the
                           Defaulting Party shall pay the Non-Defaulting Party
                           (i) the Buy Out Amount specified in Article 4.2.4. In
                           addition, all Parts required to be supplied and all
                           payments required under this Agreement for
                           performance prior to the effective date of such
                           termination shall be provided/paid in accordance with
                           this Agreement. The foregoing specified in this
                           Article 4.2.1.2, shall be the sole and exclusive
                           rights and liabilities of the Non-Defaulting Party
                           and Defaulting Party respectively, on account of
                           Termination for Default and/or Insolvency and the
                           breach giving rise to such termination.

         4.2.2    TERMINATION FOR CONVENIENCE

                  After the Commencement Date either Party may terminate this
                  Agreement for convenience effective at the end of a calendar
                  year by, (i) giving written notice at least one hundred twenty
                  (120) days in advance, and (ii) making payment ninety (90)
                  days prior to the effective date of such termination for
                  convenience to the other Party (the "Non-terminating Party")
                  of (a) the Buy Out Amount specified in Article 4.2.4.
                  Additionally, the Terminating Party shall pay to the
                  Non-terminating Party, not later than thirty (30) days after
                  the effective date of such termination, all payments due and
                  all payments required and supply all parts required under this
                  Agreement for performance prior to the effective date of such
                  termination. Prior to terminating for convenience, the Parties
                  agree to hold a meeting of executives to discuss mutually
                  agreeable alternatives to termination. The foregoing payments
                  specified in this Article 4.2.2 shall be the sole and
                  exclusive rights and liabilities of the Non-terminating Party
                  and Terminating Party, respectively, on account of termination
                  for convenience.

         4.2.3    OTHER TERMINATION EVENTS

                  4.2.3.1  Either Party may terminate on account of a Force
                           Majeure Event as provided in Article 11, MCV shall
                           pay to GEII all payments required, and GEII shall
                           provide all Parts required under this Agreement for
                           performance prior to the Force Majeure Event.

         4.2.4    BUY OUT AMOUNT

                  In the case of Termination for Default and/or Insolvency as
                  described in Article 4.2.1, the Buy Out Amount as specified in
                  the table below shall be paid by the Defaulting Party to the
                  Non-defaulting Party. The Parties agree that the damages
                  likely to be incurred by a Non-Defaulting Party or
                  Non-Terminating Party in the event of termination will be
                  difficult to measure, that the Buy Out Amount is reasonable,
                  and that the Buy Out Amount shall be paid as liquidated
                  damages in lieu of all such actual damages and not as a
                  penalty.

                  In the case of Termination for Convenience as described in
                  Article 4.2.2, the "Buy Out Amount" is specified in the table
                  included in this Article 4.2.4. The table below specifies the
                  Buy Out Amount applicable to a termination effective
<PAGE>
                  during each "EOH Time Period." For purposes of this Article
                  4.2.4, the "EOH Time Period" shall be determined by reference
                  to the total number of EOH accumulated under this Agreement
                  for the Facility.

                  [TABLE DELETED]

                  "OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
                  COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL
                  TREATMENT."

         4.2.5    OBLIGATIONS PRIOR TO TERMINATION

                  Termination or expiration of this Agreement shall not relieve
                  either Party of any obligation arising out of work performed
                  prior to termination.

ARTICLE 5 FEE AND PAYMENT

The price to be paid by MCV to GEII is set forth in Articles 5.1, 5.2, 5.3, 5.4,
and 5.5.

[INFORMATION DELETED]

"OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT."

ARTICLE 6 DELIVERY, TITLE TRANSFER, REPAIR SERVICES LOGISTICS & INVENTORY

6.1      DELIVERY

         6.1.1    GENERAL DELIVERY TERMS

         GEII shall be responsible for delivery of all Parts necessary to timely
         perform GEII's obligations under this Agreement, pursuant to the work
         schedule set in accordance with this Agreement.

         6.1.2    SHIPMENT TO STORAGE

         If any of the Parts cannot be delivered to MCV when ready due to any
         cause not attributable to GEII, GEII may ship such Parts to storage. If
         such Parts are placed in storage, including storage at the facility
         where manufactured, the following conditions shall apply: (a) any
         amounts otherwise payable to GEII upon delivery or shipment shall be
         payable upon presentation of GEII's invoices and certification of cause
         for storage; (b) all expenses incurred by GEII, such as for preparation
         for and placement into storage, handling, inspection, preservation,
         insurance, storage, removal charges and any taxes shall be payable by
         MCV upon submission of GEII's invoices; and (c) when conditions permit
         and upon payment of all amounts due hereunder, GEII shall resume
         delivery of the Parts to the originally agreed point of delivery.
<PAGE>
         6.1.3    DELIVERY OF PARTS

         GEII will deliver Parts FCA (INCOTERMS 2000) carrier at the point of
         shipment to the Facility Site. GEII shall bear transportation costs
         associated with delivery of Parts.

6.2      PASSAGE OF TITLE

         6.2.1    PASSAGE OF TITLE TO MCV

         Title to Parts to be shipped from within the United States shall pass
         to MCV when such Parts are made available for shipment from the
         manufacturer's factory or other point of shipment to MCV. Title to
         Parts to be shipped from a country other than the United States shall
         pass to MCV at the port of export immediately after the Parts have been
         cleared for export. Title to service work in progress at the Site shall
         pass as such services are performed. Notwithstanding the foregoing,
         GEII shall have the option to declare, from time to time, alternate
         title passage points for some or all of the Parts provided that (i)
         title shall pass to MCV no later than the time of installation in a
         Covered Unit, and (ii) the GEII's delivery and risk of loss
         responsibilities shall remain as specified in Articles 6.1.3 and 6.3.

         6.2.2    PASSAGE OF TITLE TO GEII

         GEII shall have the right, at its option, to take title to and
         possession of, and remove from the Site, any parts or components
         existing as of the Commencement Date of the Covered Units which have
         been replaced with Parts supplied by GEII under this Agreement. Title
         to such parts and components shall pass from MCV to GEII at the Site
         upon completion of the Outage during which the replacement Part is
         installed. MCV warrants to GEII good title to such parts and
         components, free and clear of all liens, encumbrances and claims. GEII
         shall be responsible for packing such parts and components at the Site.
         Notwithstanding the foregoing, GEII shall notify MCV in the event GEII
         intends to declare alternate title passage points for some or all of
         such parts and components. MCV may reasonably deny GEII's right to
         declare alternate title passage points in the event it has an adverse
         effect on MCV from an inventory or tax exposure standpoint.

         GEII warrants that, at the time of sale to MCV, it will have good and
         clear title to all Parts, materials, and equipment to be sold by GEII
         under this Agreement.

6.3      RISK OF LOSS

Notwithstanding the limit of liability per calendar year as set by Article 10.1,
risk of loss or damage to Parts supplied by GEII to MCV shall be borne by GEII
prior to the time of delivery to the Facility and by MCV upon and after the time
of delivery to the Facility.

6.4      REPAIR SERVICES LOGISTICS

         6.4.1    REPAIR SERVICES CONDUCTED AT THE REPAIR FACILITIES.

         If MCV retains title to parts and components of a Covered Unit that are
         removed from a Covered Unit and which are to be repaired or refurbished
         at Repair Facilities and returned to MCV, the following provisions
         shall apply:
<PAGE>
                  6.4.1.1 MCV shall be responsible for all actions and costs
                  related to packing and transporting the parts and components
                  of the Covered Unit to and from the Site and the Repair
                  Facilities. Notwithstanding any other provisions in this
                  Agreement, including any reference to INCOTERMS, MCV shall
                  bear risk of loss and related insurance costs for the parts
                  and components of the Covered Unit while in transit to the
                  Repair Facilities.

                  6.4.1.2 All scrap and used Covered Parts and components which
                  have been replaced during Repair Services made at the Repair
                  Facilities shall be the property of GEII.

         6.4.2    REPAIR SERVICES CONDUCTED AT THE SITE

         GEII shall retain title to any GEII equipment utilized by GEII, or
         loaned or made available to MCV, at the Site. GEII shall be responsible
         for transit costs and risk of loss and insurance costs for such
         equipment to and from the Site. MCV shall be responsible for risk of
         loss or insurance costs for such equipment loaned or made available
         while on the Site.

6.5      INVENTORY UTILIZATION

         MCV shall own and maintain in inventory one (1) set of Mandatory Spare
         Parts at the Facility as described in Exhibit 3. Title to the Mandatory
         Spare Parts shall be held by MCV. GEII may use the Mandatory Spare
         Parts in the Covered Unit. If so used, GEII shall replace the Mandatory
         Spare Parts with new or reconditioned parts such that MCV shall have
         one (1) set of Mandatory Spare Parts in inventory at all times. If
         such part is utilized by GEII in the performance of Planned
         Maintenance, it shall be replaced at no additional cost to MCV. If such
         part is utilized by GEII for a purpose other than Planned Maintenance,
         it shall be replaced by GEII as Extra Work, and invoiced to MCV
         accordingly.

         MCV shall have the right to use any of the Mandatory Spare Parts for
         testing or other purposes, provided, however, that the Parts are not
         needed for the performance of Planned Maintenance within nine months
         and that MCV shall not transfer such Parts to another generating
         Facility without the consent of GEII, such consent shall not be
         unreasonably withheld. GEII shall provide replacement parts and MCV
         shall pay for those Parts as Extra Work.

         Subject to the warranty provisions of Article 8, upon completion of the
         Term, or termination of the Agreement whichever is the earliest, GEII
         will ensure that any of the Mandatory Spare Parts utilized by GEII have
         remaining EOH life capable of operating 24,000 EOH (based on the
         operating conditions of the Covered Units at the Effective Date, known
         repair history of the Mandatory Spare Parts, and the predicted total
         life of the Part at the time the Parts were installed). For the
         avoidance of doubt, GEII shall be able to use any Parts supplied by
         GEII, in a Covered Unit, or in MCV inventory on the Commencement Date
         for the performance of GEII obligations under this Agreement in any
         Covered Unit.
<PAGE>
ARTICLE 7  INDEMNITY

         GEII agrees to indemnify and hold harmless MCV from and against any
         loss or expense by reason of physical damage to the property of third
         parties or bodily injury, including death, of persons to the extent
         such damage or injury results directly from the negligence of GEII or
         its subcontractors while engaged in the performance of this Agreement.
         MCV shall likewise indemnify and hold harmless GEII from and against
         any loss or expense by reason of physical damage to the property of
         third parties or bodily injury, including death, of persons to the
         extent such damage or injury results directly from the negligence of
         MCV or its other contractors. In the event such damage or injury is
         caused by the joint or concurrent negligence of MCV (or its other
         contractors) and GEII (or its subcontractors), the loss or expense
         shall be borne by each Party in proportion to its degree of negligence
         or the degree of negligence of its contractors/subcontractors. For
         purposes of GEII's indemnity responsibility under this Article 7, no
         portion of the Covered Units, Facility or the Site is considered third
         party property.

         Additionally, MCV shall indemnify and hold harmless GEII from and
         against any and all claims, losses, costs, and expenses (including
         without limitation attorney's fees), based on or arising out of any
         condition, duty, or obligation, or breach of any of the foregoing, at
         the Site or Facility, which condition, duty, obligation, or breach was
         in existence on or before the Effective Date, whether such claim is
         based on contract, warranty, indemnity, tort (including without
         limitation negligence), strict liability, environmental,
         confidentiality, latent defects in design, manufacturing, or
         installation, payment, equity, or any other theory of recovery.

         MCV represents that the ownership of the Covered Units, Facility, and
         Site is as described by Article 23, Consent and Agreement. In the event
         that there is an additional or different owner of all or any portion of
         the Covered Units, Facility, or Site, in addition to any other rights
         of GEII, MCV shall indemnify and hold harmless GEII from any and all
         claims, suits, losses and expenses (including attorney's fees) brought
         against or incurred by GEII by, or on account of, any such additional
         or different owner.

ARTICLE 8  WARRANTY

         GEII warrants to MCV that the Parts delivered during the Term of this
         Agreement shall be free from defects in material, workmanship and title
         and that Services performed during the Term of this Agreement shall be
         performed in a competent, diligent manner and in accordance with
         Prudent Industry Practices.

         [INFORMATION DELETED]

         "OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT."
<PAGE>
         If any failure of Parts or Services to meet the above warranties is
         discovered during the warranty period, MCV shall promptly notify GEII
         in writing and promptly make the affected Parts or components of the
         Covered Units available for correction. GEII shall thereupon correct
         any defect by, at its option, re-performing the defective Services;
         repairing and re-installing the defective Parts; or delivering
         necessary replacement Parts in accordance with Article 6.1.3 and
         installing such Parts.

         It shall be MCV's cost to make the affected Parts or components of the
         Covered Unit available to GEII at the Site if capable of being repaired
         at the Site or at the Repair Facilities in accordance with Article 6.4
         if GEII determines that such warranty repair cannot be made at the
         Site.

         GEII shall not be responsible for the cost of opening and closing of
         the Covered Unit or for removal or replacement of systems, structures
         or parts of the Facility. The condition of any tests shall be mutually
         agreed upon and GEII shall be notified of and may be represented at all
         tests that may be made.

         Except where separate warranty terms are set forth in a proposal for
         Extra Work from GEII to MCV (in which case the separate warranty terms
         apply), the provisions of this Article 8 shall apply to Extra Work
         which GEII agrees to undertake pursuant to this Agreement.

         GEII shall have no responsibility for Unplanned Maintenance or other
         failures, which are otherwise covered under a warranty provided by a
         party other than GEII or other contract under which the failed or
         defective goods or services were provided. Any Parts or Services
         provided by GEII to correct defects which are covered under a warranty
         provided by a party other than GEII or other contract shall be treated
         as Extra Work.

         GEII shall not be responsible for any warranty claim arising out of or
         necessitated by a Pre-Existing Condition.

         The preceding paragraphs of this Article 8 set forth the exclusive
         remedies for all claims based on failure of or defect in the Parts and
         Services provided under the Agreement or GEII's performance, whether
         the failure or defect arises, from a Pre-Existing Condition or, before
         or during the applicable warranty period and whether a claim, however
         instituted, is based on contract, indemnity, warranty, tort (including
         negligence), strict liability or otherwise. The foregoing warranties
         and guarantees are exclusive and are in lieu of all other warranties
         and guarantees whether written, oral, implied or statutory. NO IMPLIED
         STATUTORY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
         PURPOSE SHALL APPLY.

8.1      MCV WARRANTY

         MCV warrants that all parts, materials and services provided or made
         available to GEII by MCV in connection with this Agreement shall be
         free from defects in materials, design, title, and workmanship and
         performed in a competent, diligent manner; provided, however, that this
         Article 8.1 shall not apply in the case of parts provided under the
         Parts Supply Agreement effective September 20, 2002 between GEII and
         MCV. In the event of a breach of this warranty, MCV shall correct the
         breach and such correction shall be GEII's exclusive remedy for all
         claims whatsoever. NO IMPLIED STATUTORY
<PAGE>
         WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL
         APPLY.

ARTICLE 9  INSURANCE

9.1      GEII'S INSURANCE

         9.1.1    During the Term of this Agreement, GEII shall maintain the
                  following insurance coverage:

                  9.1.1.1           Workers' Compensation and any other
                                    statutory insurance required by law with
                                    respect to work related injuries or disease
                                    of employees of GEII applicable to GEII's
                                    employees in such form(s) and amount(s) as
                                    required by all applicable laws.

                  9.1.1.2           Commercial General Liability ("CGL")
                                    insurance for GEII's protection, in broad
                                    form including coverage for liability
                                    assumed under contract, providing coverage
                                    for bodily injury and property damage with a
                                    combined single limit of not less than five
                                    million dollars ($5,000,000) cumulative
                                    total of underlying and excess coverages.

         9.1.2    The foregoing insurance policies shall provide that the policy
                  shall not be canceled or changed without thirty (30) days'
                  advance written notice to MCV of such cancellation or change.

         9.1.3    Prior to commencement of any work under this Agreement, and
                  not less than annually thereafter during the Term of this
                  Agreement, GEII shall deliver to MCV certificate(s) of
                  insurance showing that the foregoing insurance is in full
                  force and effect.

9.2      MCV'S INSURANCE

         9.2.1    During the Term of this Agreement, MCV shall maintain the
                  following insurance coverage:

                  9.2.1.1  Workers' Compensation and any other statutory
                           insurance required by law with respect to
                           work-related injuries or disease of employees of MCV
                           applicable to MCV's employees in such form(s) and
                           amount(s) as required by all applicable laws.

                  9.2.1.2  Commercial General Liability ("CGL") insurance for
                           MCV's protection, in broad form including coverage
                           for liability assumed under contract, providing
                           coverage for bodily injury and property damage with a
                           combined single limit of not less than five million
                           dollars ($5,000,000) cumulative total of underlying
                           and excess coverages.

                  9.2.1.3  All Risk Property and Boiler and Machinery Breakdown
                           insurance covering the full value of the Covered
                           Units and Facility, together with business
                           interruption coverage.
<PAGE>
         9.2.2    The foregoing insurance policies shall provide that the policy
                  shall not be canceled or changed without thirty (30) days'
                  advance written notice to GEII of such cancellation or change.

         9.2.3    Prior to commencement of any work under this Agreement, and
                  not less than annually thereafter during the term of this
                  Agreement, MCV shall deliver to GEII a certificate(s) of
                  insurance showing that the foregoing insurance is in full
                  force and effect.

9.3      FAILURE TO MAINTAIN INSURANCE

         Failure of either of the Parties to maintain any insurance required
         under this Article 9 shall constitute an event of material breach for
         the purposes of Article 4 and, in addition to termination rights,
         either Party shall have the right to immediately suspend performance
         and delivery until such breach is cured. The suspending Party shall
         give notice of said suspension within twenty-four (24) hours of
         suspension.

ARTICLE 10  LIMITATION OF LIABILITY

FOR PURPOSES OF THIS AGREEMENT:

10.1     [INFORMATION DELETED]

         "OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
         COMMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT."

         SUBJECT TO THE FOREGOING, GEII'S MAXIMUM LIABILITY FOR ANY WARRANTY
         CLAIM UNDER ARTICLE 8 SHALL NOT EXCEED THE PRICE OF THE PARTS,
         INCLUDING INSTALLATION, AND/OR SERVICES WHICH ARE THE SUBJECT OF THE
         WARRANTY CLAIM. THE MONETARY LIMITATION OF LIABILITY ON ALL CLAIMS OF
         ANY KIND ARISING OUT OF OR RELATED TO ANY EXTRA WORK SHALL NOT EXCEED
         THE PRICE PAID FOR PERFORMING SUCH EXTRA WORK.

         NOTWITHSTANDING ANYTHING TO THE CONTRARY, ALL GEII LIABILITY SHALL END
         UPON EXPIRATION OF THE APPLICABLE WARRANTY PERIOD AND, IN NO EVENT,
         LATER THAN TWO (2) YEARS FOLLOWING TERMINATION OR EXPIRATION OF THIS
         AGREEMENT, WHICHEVER IS EARLIER.

10.2     IN NO EVENT, WHETHER AS A RESULT OF BREACH OF CONTRACT, WARRANTY,
         INDEMNITY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE,
         SHALL EITHER PARTY OR THEIR RESPECTIVE SUBCONTRACTORS OR SUPPLIERS BE
         LIABLE FOR LOSS OF PROFIT OR REVENUES, LOSS OF USE OF THE FACILITY OR
         THE EQUIPMENT OR ANY ASSOCIATED EQUIPMENT, COST OF CAPITAL, COST OF
         SUBSTITUTE
<PAGE>
         EQUIPMENT, FACILITIES, SERVICES OR REPLACEMENT POWER, DOWNTIME COSTS,
         CLAIMS OF CUSTOMERS FOR SUCH DAMAGES, OR FOR ANY SPECIAL,
         CONSEQUENTIAL, INCIDENTAL, INDIRECT, PUNITIVE OR EXEMPLARY DAMAGES;
         PROVIDED, HOWEVER, NOTHING CONTAINED IN THIS PROVISION SHALL ELIMINATE,
         DECREASE, OR OTHERWISE ALTER MCV'S PAYMENT OBLIGATIONS TO GEII, HEREIN.

10.3     IF GEII FURNISHES MCV WITH ADVICE OR ASSISTANCE CONCERNING ANY
         PRODUCTS, SYSTEMS OR WORK WHICH IS NOT REQUIRED PURSUANT TO THIS
         AGREEMENT, THE FURNISHING OF SUCH ADVICE OR ASSISTANCE WILL NOT SUBJECT
         GEII TO ANY LIABILITY, WHETHER IN CONTRACT, WARRANTY, INDEMNITY, TORT
         (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

10.4     EXCEPT TO THE EXTENT GEII HAS RESPONSIBILITY UNDER ARTICLE 8,
         "WARRANTY", MCV WAIVES RIGHTS OF RECOVERY AGAINST GEII, WHETHER MCV'S
         CLAIM IS BROUGHT UNDER BREACH OF CONTRACT, WARRANTY, INDEMNITY, TORT
         (INCLUDING NEGLIGENCE), STRICT LIABILITY OR OTHERWISE, FOR LOSS OR
         DAMAGE TO PROPERTY OF MCV.

10.5     FOR THE PURPOSES OF THIS ARTICLE 10, THE TERM "GEII" SHALL MEAN GEII,
         ITS PARENT, AFFILIATES, SUBCONTRACTORS AND SUPPLIERS OF ANY TIER, AND
         THEIR RESPECTIVE AGENTS AND EMPLOYEES, WHETHER INDIVIDUALLY OR
         COLLECTIVELY. THE PROVISIONS OF THIS ARTICLE 10 SHALL PREVAIL OVER ANY
         CONFLICTING OR INCONSISTENT PROVISIONS CONTAINED IN ANY OF THE
         DOCUMENTS COMPRISING THIS AGREEMENT, EXCEPT TO THE EXTENT THAT SUCH
         PROVISIONS FURTHER RESTRICT GEII'S LIABILITY.

10.6     GEII SHALL HAVE NO LIABILITY WHATSOEVER FOR ANY DAMAGES RESULTING FROM
         "PRE-EXSITING CONDITIONS."

ARTICLE 11 FORCE MAJEURE

         As used herein, the term "FORCE MAJEURE EVENT" shall mean any event or
         occurrence, which is beyond the reasonable control of the affected
         Party and which prevents the Party affected thereby from performing
         hereunder except where such Party could have reasonably foreseen and
         avoided the occurrence without undue expense, including, but not
         limited to, the following: (a) acts of God; (b) governmental
         priorities; (c) acts or failures to act on the part of any governmental
         authority including, without limitation, changes after the Effective
         Date in Government Requirements (including the enactment of new
         Government Requirements); (d) acts of war or public disorders, civil
         violence or disobedience, blockages, strikes, lockouts, sabotage,
         insurrection, terrorism (whether government sponsored or otherwise) or
         rebellion; (e) floods, hurricanes, earthquakes, lightning, hail, or
         other natural calamities; (f) explosions or fires; (g) accidents in
         transportation or unavailability of commercially practicable
         transportation; (h) delays in obtaining goods or services from any
         subcontractor or supplier by reason of a Force Majeure Event as defined
         herein; (i) any act or omission of the other Party to this Agreement,
         its employees, subcontractors or agents, or other persons acting on
         such
<PAGE>
         Party's behalf; or (j) the act of any third party which is beyond the
         reasonable control of the affected Party.

         The affected Party shall take all reasonable actions necessary and in
         good faith to mitigate and eliminate the effect of the Force Majeure
         Event. The affected Party shall give prompt written notice to the other
         Party, with full particulars of the circumstances constituting the
         Force Majeure Event and of the obligation or performance which is or
         which is expected to be thereby delayed or prevented. So long as the
         affected Party has complied with its obligations under this Article 11,
         any delay in or total or partial failure of performance by the affected
         Party hereto caused by a Force Majeure Event shall not constitute a
         default hereunder. Except as otherwise provided herein, all of the
         provisions of this Agreement shall remain in full force and effect in
         the event of the occurrence of a Force Majeure Event. Except as
         provided in Article 4, no occurrence of a Force Majeure Event shall
         suspend, alter, or affect MCV's obligation to make, or GEII's right to
         receive, the payments required herein for work performed by GEII.

         If delay excused by this Article 11 extends for more than one hundred
         twenty (120) days and the Parties have not agreed upon a revised basis
         for continuing the work at the end of the delay, including the
         equitable price adjustment, then either Party (except where delay is
         caused by MCV, in which event only GEII), upon thirty (30) days written
         notice, may terminate this Agreement in accordance with Article 4.2.3.1
         of this Agreement.

ARTICLE 12 INSPECTION AND QUALITY SURVEILLANCE

         MCV's designated employees shall be provided access to GEII's
         facilities for purposes of obtaining information on production
         progress, determining status and observing tests and inspections
         concerning Parts to be provided to MCV under this Agreement. Such
         access shall be limited to areas concerned with the Parts and shall not
         include restricted areas or areas where work of a proprietary nature is
         being conducted. MCV shall be advised as to any schedule for testing
         which the Parties have mutually agreed upon. MCV's designated employees
         shall be given such access and be provided with an opportunity to
         observe those tests during regular working hours. Neither completion of
         production work nor shipment of any of the Parts, however, shall be
         delayed to accommodate such inspectors.

ARTICLE 13 ASSIGNMENT

13.1     GEII AFFILIATES

         GEII shall have the right to transfer, in whole or in part, by way of
         assignment or novation to any Affiliate its rights and/or obligations
         under this Agreement. Provided GEII and its Affiliate agrees to execute
         such subsequent documentation, including in the case of an assignment,
         the Form of Assignment Agreement attached hereto as Exhibit 11. Any
         such assignment shall not relieve GEII from any of its obligations
         hereunder.

13.2     NO ASSIGNMENT

         Except as set forth in this Agreement, neither Party may transfer or
         assign, in whole or in part, any of its rights or obligations under
         this Agreement without the express written consent of the other Party,
         such consent not to be unreasonably withheld. Such consent
<PAGE>
         shall not be deemed to be unreasonably withheld if conditions,
         including but not limited to, the following exist: (i) the purported
         transferee or assignee does not have the legal capacity, powers or
         authorization to become a party to and perform the obligations under
         the Agreement including any necessary governmental approvals, or (ii)
         the technical competence or financial standing of the purported
         transferee or assignee is insufficient to meet the obligations under
         the Agreement, or (iii) the purported transferee or assignee is a
         Competitor of GEII. Furthermore, any such assignment shall not relieve
         the transferor/assignor of its obligations hereunder, which arose prior
         to such transfer or assignment. Any transfer or assignment, or
         attempted transfer or assignment, in contravention of this Article
         13.2, whether by operation of law or otherwise, shall be null and void.
         A sale or transfer of all or a controlling interest in a Party, in
         whatever form such interest may be held, sold or transferred, shall be
         deemed to be a transfer and assignment subject to this Article 13.2.
         For the purposes of this Article 13.2, controlling interest shall mean
         greater than 50% equity ownership. In the event of a sale or transfer
         of less than a controlling interest to a Competitor of GEII, MCV may
         not transfer or assign, in whole or in part, any of its rights or
         obligations under this Agreement without the express written consent of
         GEII.

         Nothing in this Article 13.2 shall restrict GEII from subcontracting
         portions of its work, provided that GEII shall remain responsible to
         MCV for performance of subcontracted work.

ARTICLE 14  APPLICABLE LAW

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Michigan, without regard to its choice of law,
         rules, provided that any provision of such law invalidating any
         provision of this Agreement or modifying the intent of the Parties as
         expressed in the terms of this Agreement shall not apply (the
         "Applicable Law").

         All transactions under this Agreement shall at all times be subject to
         the export control laws and regulations of the United States ("US") and
         any changes or amendments thereto. MCV agrees not to re-export US
         origin goods supplied by GEII other than in and to the country of the
         Site, except as may be permitted by such United States export laws and
         regulations. Without limiting the generality of the foregoing, MCV
         agrees that it will not re-export to the countries designated in Export
         Administration Regulations Article TR.4 (F) any technical data or
         software (or the direct product thereof) provided to MCV by GEII in
         connection with this Agreement, unless prior written authorization is
         obtained from the United States Export Administration.

ARTICLE 15  SEVERABILITY

         The invalidity in whole or in part of any part of this Agreement shall
         not affect the validity of the remainder of this Agreement. The rights
         and remedies set forth in this Agreement are the exclusive rights and
         remedies of each Party with respect to this Agreement, its performance
         or breach.

ARTICLE 16  NOT USED
<PAGE>
ARTICLE 17  ENTIRE AGREEMENT

         This Agreement represents the entire agreement between the Parties and
         no modification, amendment, rescission, waiver or other change shall be
         binding on either Party unless assented to in writing by the Parties'
         authorized representatives. Any oral or written representation,
         warranty, course of dealing or trade usage not contained or referenced
         herein shall not be binding on either Party. Each Party agrees that it
         has not relied on, or been induced by, any representations of the other
         Party not contained in this Agreement.

ARTICLE 18  NOT USED

ARTICLE 19  NOTICES

         All notices required or desired to be given pursuant to this Agreement,
         including updates to the Consent and Agreement document, shall be in
         writing and shall be delivered by personal in-hand delivery, sent by
         facsimile transmission, or sent prepaid by recognized delivery service
         (such as Federal Express), addressed as follows:

IF TO MCV                                     WITH A COPY TO

Robert E. McCue                               James Mooney

100 Progress Place                            100 Progress Place

Midland, MI 48640                             Midland, MI 48640

Facsimile No.: (989) 633-7935                 Facsimile No.: (989) 633-7965

Telephone No.: (989) 633-7930                 Telephone No.: (989) 633-7960

IF TO GEII                                    WITH A COPY TO

-------------------------                     --------------------------
4200 Wildwood Parkway                         4200 Wildwood Parkway
Atlanta, Georgia  30339                       Atlanta, Georgia  30339
U.S.A.                                        U.S.A.

ATTENTION:                                    ATTENTION:
General Manager-                              Counsel-GE Contractual Services
GE Contractual Services

Facsimile No.: 678-844-5312                   Facsimile No.:  678-844-5312

Telephone No.: 770-859-7793                   Telephone No.:  770-859-7383
<PAGE>
Such notices shall be deemed to have been given when delivered in the case of
in-hand delivery, on the date shown by a facsimile transmission report or
confirmation in the case of successfully completed facsimile transmission, and
on the date of delivery in the case of delivery service. Either Party may modify
its address for notices by advance written notice to the other Party delivered
in conformance with this Article 19.

MCV shall provide a current list of Owner Participants, the related Owner
Trustees, the related Indenture Trustees, the Funding Corporations, and the MDC.
to GEII and notify GEII of any updates to such list in the event of a change in
its composition.

ARTICLE 20  DISPUTES

20.1     All disputes arising in connection with this Agreement shall be
         settled, if possible, by negotiation of the Parties. If the matter is
         not resolved by such negotiations, either Party may, by the giving of
         written notice to the other Party, cause the matter to be referred to a
         meeting of appropriate higher management representatives of the
         Parties. Such meeting shall be held within ten (10) business days
         following the giving of the written notice.

20.2     If the matter is not resolved within twenty (20) business days after
         the date of the notice referring the matter to appropriate higher
         management, or such later date as may be mutually agreed upon, the
         dispute may be submitted to non-binding mediation at the mutual
         agreement of the Parties. In the event of mediation, mediator fees
         shall be shared equally by the Parties.

20.3     If the matter is not resolved through such mediation, the Parties may
         then, subject to the terms of this Agreement, commence legal action in
         a court of competent jurisdiction in order to resolve the dispute.

20.4     Notwithstanding the foregoing, each Party shall have the right at any
         time, at its option and where legally available, to commence an action
         or proceeding in a court of competent jurisdiction, subject to the
         terms of this Agreement, in order to seek and obtain a restraining
         order or injunction, but not monetary damages, to enforce the
         confidentiality provisions set forth in Article 22.

ARTICLE 21  INDEPENDENT ENTITIES

MCV and GEII are each independent of the other and nothing in this Agreement is
intended, or shall be deemed, to create a partnership or joint venture of the
Parties.

ARTICLE 22  CONFIDENTIAL INFORMATION

22.1     Any information disclosed by either Party in connection with this
         Agreement and designated in writing, by label, stamp or other written
         communication by the disclosing Party as "confidential" or
         "proprietary" at the time of disclosure shall be treated as
         "Confidential Information" subject to this Article 22. It is agreed
         that this Agreement and all drafts hereof, shall be considered GEII's
         Confidential Information at all times. The recipient Party agrees (i)
         to treat such Confidential Information as confidential and not disclose
         it to third parties other than GEII Affiliate entities as necessary for
         performance of this Agreement, (ii) to restrict the use of such
         Confidential Information to
<PAGE>
         matters relating to the recipient Party's performance of this
         Agreement, and (iii) to restrict access to such information to
         employees of the recipient Party and GEII's Affiliate entities whose
         access is necessary in the implementation of this Agreement. All copies
         of written Confidential Information will be returned to the disclosing
         Party upon request (i) except to the extent that an item of such
         information is designated to be retained by the recipient Party
         pursuant to a specific provision of this Agreement, and (ii) either
         Party may retain one copy of the other Party's Confidential Information
         until such time as all its liability under this Agreement terminates.

         The foregoing restrictions do not apply to Confidential Information
         which: (i) is, or becomes, publicly known other than through a breach
         of this Article 22 or other illegal or wrongful act; (ii) is in
         possession of the recipient Party prior to receipt from the disclosing
         Party or (iii) is independently developed by the recipient Party,
         provided that the person or persons developing the same have not had
         access to such Confidential Information from the disclosing Party under
         this Agreement; (iv) is furnished to others by the disclosing Party
         without restrictions similar to those herein on the right of the
         receiving Party to use or disclose, or (v) must be disclosed pursuant
         to requirements of law or valid legal process, provided that the Party
         intending to make disclosure in response to such requirements or
         process shall promptly notify the disclosing Party in advance of any
         such disclosure and reasonably cooperate in attempts to maintain the
         confidentiality of the Confidential Information.

22.2     Neither Party shall discuss employment with or hire any employee of the
         other Party or of the other Party's contractors or subcontractors
         working at the Facility without a letter of "non-objection" from the
         affected Party.

ARTICLE 23  CONSENT AND AGREEMENT

GEII and MCV shall execute the Consent and Agreement attached as Exhibit 13.

ARTICLE 24  PLANT SECURITY AND SAFETY

24.1     The Parties shall take necessary safety and other precautions to
         protect all property and persons from damage, injury, or illness
         arising out of the performance of the Agreement hereunder. The Parties
         shall comply and require its subcontractors to comply strictly with
         Government Requirements pertaining to health or safety which are
         applicable to the Parties work hereunder. On an ongoing basis prior to
         performing any aspect of its work hereunder, GEII shall inspect the
         places where its employees, agents, or subcontractors are, or may be
         present, at the Facility. If any unsafe conditions are discovered which
         are wholly within the jurisdiction and control of GEII and unrelated to
         any concurrent activities or actions of others including, but not by
         way of limitation, MCV, then GEII shall promptly take action to correct
         any such conditions prior to initiating or continuing any further work
         in potentially affected areas. With respect to any unsafe conditions
         which GEII discovers or of which GEII is made aware, and which
         conditions are attributable in whole or in part to MCV's ongoing
         operations, GEII shall immediately suspend performance of the affected
         work, secure the area of concern, and notify MCV both verbally and in
         writing of said unsafe condition. All further work in the affected
<PAGE>
         area shall remain suspended until said condition is corrected. GEII,
         its employees and subcontractors shall comply with all security and
         safety rules of MCV while at the Site.

24.2     GEII shall orally report to MCV at the time of the incident all
         accidents, injuries, or illnesses requiring medical attention (other
         than first aid), damage to property of MCV or GEII, and fires. Written
         reports, satisfactory in form and content to MCV, shall be submitted by
         GEII promptly after each incident.

24.3     GEII shall maintain, in form and content approved by MCV, accident,
         injury, and illness statistics which shall be available for inspection
         by MCV and submitted to MCV upon MCV's written request.

24.4     GEII shall, at all times, keep its work area in a neat, clean, and safe
         condition. Upon completion of each task, GEII shall promptly return
         unused materials furnished by MCV and either remove from GEII's work
         area or place in designated storage all of GEII's equipment, material,
         scaffolding, and like items, leaving GEII's work area clean, safe, and
         ready for use. In the event GEII shall fail to maintain its work area
         as described above and in a manner satisfactory to MCV, or to effect
         such cleanup or removal within two (2) working days after written
         notice to do so, MCV shall have the right without further notice to
         GEII to perform such cleanup and remove such items on behalf or at the
         risk and expense of GEII. MCV may store items so removed at a place of
         MCV's choosing on behalf of GEII and at GEII's risk and expense. MCV
         shall promptly notify GEII of such place of storage. GEII shall
         reimburse MCV within fifteen (15) days of receipt of invoice from MCV
         for the costs of such cleanup, removal, and storage .

24.5     MCV shall allow for review by GEII of, and instruction by MCV on, MCV's
         security and safety practices, proper and safe handling and disposal of
         hazardous substances and protection of GEII's personnel from exposure
         thereto, energization/de-energization of all power systems (electrical,
         mechanical and hydraulic) using a safe and effective lock-out tag
         procedure, and conducting periodic safety meetings.

24.6     GEII may, from time to time, conduct safety audits to ensure safe
         conditions exist and make recommendations to MCV concerning the same.
         Neither the conduct nor non-conduct of safety audits, nor the making of
         any recommendation by GEII, shall relieve MCV of the responsibility for
         providing a safe working environment. If GEII's personnel require
         medical attention, local MCV facilities will be made available to
         GEII's personnel for the duration of such needs.

24.7     GEII personnel shall not be required to work in excess of maximum time
         periods, if any, prescribed by applicable law.

24.8     MCV's operation of equipment at the Site, including the Covered Units,
         is the responsibility of MCV. If MCV requires or permits GEII's
         personnel to operate equipment at the Site, MCV shall indemnify and
         save GEII, its employees and agents, harmless from expense and
         liability (including reasonable attorneys' fees) incurred by or imposed
         upon GEII, its employees and agents, based upon injury to persons
         (including death) or damage to property resulting from operation of
         equipment at the Site by GEII personnel.

24.9     GEII shall comply with health and safety requirements established from
         time to time by MCV at the Facility, provided, however, that if MCV
         imposes unusual or new
<PAGE>
         requirements, or requirements that materially impact GEII's costs or
         performance, the Parties will negotiate appropriate amendments to this
         Agreement to address such impact, including an equitable adjustment in
         price and/or payment terms.

24.10    MCV shall provide site security, including but not limited to
         safeguarding the Site, the Parts and GEII's tools and consumables and
         personnel by whatever means MCV deems necessary, including guards,
         fencing, and lighting. GEII's personnel will take all reasonable
         precautions to protect their tools and equipment on Site against petty
         theft.

ARTICLE 25  SUPPLEMENTAL PAYMENT TERMS

25.1    NONFULFILLMENT

In addition to its other rights, if MCV fails to fulfill any of the payment
conditions in this Agreement, GEII may suspend performance and delivery and/or
thereafter require full or partial payment in advance. Any cost incurred by GEII
in accordance with such suspension (including storage costs) shall be payable by
MCV upon submission of GEII's invoices.

25.2    REPAIR SERVICES LIEN

If Repair Services are performed at the Repair Facility, MCV agrees that, in
addition to any right of lien which GEII may be entitled to as a matter of law,
GEII shall be entitled to a general lien on MCV's equipment in GEII's
possession, including any MCV's equipment which has already been paid for by
MCV, to the extent of the unpaid amounts due to GEII under this Agreement. If
MCV fails to fulfill any condition of its payment obligations, GEII may suspend
or terminate further performance and may retain possession of MCV's equipment
until MCV fulfills its payment obligations. If MCV's payment obligations are not
fulfilled within ninety (90) days after receipt of GEII's invoice, GEII may,
upon not less than seven (7) days written notice to MCV, sell MCV's equipment at
a public or private sale and apply the net proceeds to offset MCV's payment
obligations.

ARTICLE 26  HAZARDOUS CHEMICALS

         26.1     MCV will be responsible for transportation and disposal of all
                  waste and debris in accordance with state and federal laws.
                  All waste and debris resulting from GEII's work at the
                  Facility shall be turned over to MCV for disposal. GEII shall
                  collect all such waste and debris and place it in containers
                  provided and designated by MCV at the Facility. GEII will use
                  reasonable efforts to avoid unnecessary mixing of any
                  hazardous or toxic wastes with each other or with other
                  substances. GEII shall use reasonable and prudent
                  cost-effective means to minimize both the volume and the
                  toxicity of any hazardous or toxic wastes which may be
                  produced by GEII in connection with this Agreement. GEII will
                  not bring Amines or Mercury on the Facility. All waste and
                  debris which requires special marking, labeling, handling, or
                  disposal pursuant to applicable Government Requirements shall
                  be kept separate from all other waste and debris to the extent
                  reasonably practicable. In the event GEII spills or otherwise
                  releases at the Facility any toxic or hazardous waste or
                  hazardous substance as defined in the Michigan Hazardous Waste
                  Management Act, MCLAss.299.504, the federal Resource
                  Conservation and Recovery Act, the federal Comprehensive
                  Environmental Response, Compensation and Liability Act, the
                  federal
<PAGE>
                  Emergency Planning and Community Right to Know Act of 1986, or
                  any substance regulated by the Toxic Substances Control Act,
                  15 U.S.C.ss.2601 et seq., as such statutes may be amended from
                  time to time and any new or applicable successor statutes
                  thereto, GEII shall immediately notify MCV and shall provide
                  for the cleanup of such spill or release. GEII shall be
                  compensated for such cleanup on a cost plus basis pursuant to
                  Article 5 hereof as Extra Work except to the extent such spill
                  or release is caused by the negligence or willful misconduct
                  of GEII.

         26.2     Prior to GEII commencing any work at the Site, MCV shall (i)
                  provide documentation that identifies any existing
                  contamination of Site property and the presence of any
                  Hazardous Materials in or about the Facility, and (ii) allow
                  GEII, at its option, access to the Site and Facility to
                  perform a Site evaluation, including without limitation, a
                  review of applicable documents and visual examination of the
                  Site and Facility and Covered Units, provided, however, the
                  conduct or non-conduct of any such evaluation shall not give
                  GEII any responsibility or liability respecting Site
                  conditions. Responsibilities and liability respecting Site
                  conditions shall be in accordance with the other provisions of
                  this Agreement.

         26.3     GEII shall notify MCV if the following conditions are
                  encountered in the course of GEII's work: (i) subsurface or
                  latent physical conditions at the Site differing materially
                  from those disclosed by MCV pursuant to Article 26 (i) or
                  those otherwise described to GEII by MCV; or (ii) previously
                  unknown physical conditions at the Site differing from those
                  ordinarily encountered and generally recognized as inherent in
                  the work of the character provided in this Agreement. MCV
                  shall promptly investigate the conditions described above. If
                  it is determined that any such condition causes an increase in
                  GEII's cost of, or the time required for, performance of any
                  part of the work under this Agreement, an equitable adjustment
                  in price and time of performance shall be made and this
                  Agreement shall be modified in writing accordingly.

         26.4     If, at the Site, GEII encounters toxic substances, hazardous
                  substances or hazardous wastes (as such terms may be defined
                  in any statute or ordinance or regulations promulgated by any
                  federal, state provincial, or local governmental authority of
                  the United States or the country of the Site) (collectively,
                  the "Hazardous Materials") which require special handling
                  and/or disposal, MCV shall immediately take whatever
                  precautions are required to legally eliminate such hazardous
                  conditions so that the work under this Agreement may safely
                  proceed. If any such Hazardous Materials cause an increase in
                  GEII's work, or cost of, or the time required for, performance
                  of any work under this Agreement, additional work and cost
                  shall be charged as Extra Work and an equitable adjustment
                  shall be made in any schedule. MCV agrees to properly dispose
                  of all Hazardous Materials produced or generated in the course
                  of GEII's work at the Site. MCV shall indemnify and hold GEII
                  harmless for any and all claims, damages, losses, causes of
                  action, demands, judgments and expenses arising out of or
                  relating to the presence of any Hazardous Materials which are:
                  (i) present on the Site prior to the commencement of GEII's
                  work; or (ii) improperly handled or disposed of by MCV; or
                  (iii) brought onto the Site or produced thereon by parties
                  other than GEII or its subcontractors under this Agreement.
<PAGE>
ARTICLE 27  EXCULPATION

         Notwithstanding anything to the contrary contained in this Agreement
         except as stated in this Article 27, the liabilities and obligations of
         MCV arising out of, or in connection with, this Agreement or any other
         agreements entered into pursuant hereto shall not be enforced by any
         action or proceeding wherein damages or any judgment or specific
         performance of any covenant in any such document and whether based upon
         contract, warranty, negligence, indemnity, strict liability or
         otherwise, shall be sought against the assets of the partners of MCV.
         GEII waives any and all rights to sue for, seek or demand any judgment
         against such partners and their affiliates, other than MCV, by reason
         of the liabilities and obligations of MCV arising out of, or in
         connection with, this Agreement or any other agreements entered into
         pursuant hereto, except to the extent such partners breach any
         obligations regarding Confidential Information as more fully defined
         herein in Article 22 or are legally required to be named in any action
         to be brought against MCV.

ARTICLE 28  PATENTS

MCV agrees to indemnify and hold harmless GEII from any rightful claim of any
third party that any part or parts manufactured by MCV or furnished hereunder by
MCV infringes any patent of the United States and European Union. If GEII
notifies MCV promptly of the receipt of any claim, does not take any position
adverse to MCV regarding such claim and gives MCV information, assistance and
exclusive authority to settle and defend the claim, MCV shall, at its own
expense and option, either (i) settle or defend the claim or any suit or
proceeding and pay all damages and costs awarded in it against GEII, (ii)
procure for GEII the right to continue to make or use the part, (iii) modify the
part so that it becomes non-infringing, or (iv) replace the part with
non-infringing parts. If, in any suit arising from such a claim, the continued
use of the part for the purpose intended is forbidden by any court of competent
jurisdiction, MCV shall at its option take one or more of the actions under
(ii), (iii); or (iv) above. The foregoing states the entire liability of MCV for
patent infringement of any parts furnished by MCV hereunder.

GEII agrees to indemnify and hold harmless MCV from any rightful claim of any
third party that any Part or Parts manufactured by GEII or furnished hereunder
by GEII infringes any patent of the United States and European Union. If MCV
notifies GEII promptly of the receipt of any claim, does not take any position
adverse to GEII regarding such claim and gives GEII information, assistance and
exclusive authority to settle and defend the claim, GEII shall, at its own
expense and option, either (i) settle or defend the claim or any suit or
proceeding and pay all damages and costs awarded in it against MCV, (ii) procure
for MCV the right to continue using the Part, (iii) modify the Part so that it
becomes non-infringing, (iv) replace the Part with non-infringing Parts; or (v)
remove the infringing Part and refund and/or reduce the price allocable to such
Part. If, in any suit arising from such a claim, the continued use of the Part
for the purpose intended is forbidden by any court of competent jurisdiction,
GEII shall at its option take one or more of the actions under (ii), (iii), (iv)
or (v) above. The foregoing states the entire liability of GEII for patent
infringement of any Parts furnished by GEII hereunder.
<PAGE>
GEII assumes no liability to MCV for patent infringement claims by third parties
arising out of performance of Repair Services, provided, however, GEII shall
make available to MCV any patent indemnity rights GEII may have against third
party suppliers of materials used in the Repair Services.

ARTICLE 29  TAXES AND DUTIES

29.1     GEII shall be responsible for, and shall pay directly, any and all
         corporate and individual taxes that are measured by net income or
         profit imposed by any Governmental Authority of any country on GEII,
         its employees or subcontractors due to the execution of any agreement
         or the performance of or payment for work hereunder (the "GEII Taxes").
         If MCV deducts or withholds GEII Taxes, MCV shall furnish within one
         (1) month to GEII accurate official receipts from the appropriate
         governmental authority for each deducted or withheld amount of GEII
         Taxes. MCV shall be responsible for, and shall pay directly when due
         and payable, any and all MCV Taxes, as defined below, and all payments
         due and payable by MCV to GEII hereunder shall be made in the full
         amount of the price specified in this Agreement, free and clear of all
         deductions and withholding for MCV Taxes.

         If MCV deducts or withholds MCV Taxes, MCV shall pay additional amounts
         to GEII to cause the amounts actually received by GEII, net of deducted
         or withheld MCV Taxes, to equal the full amount of the specified
         prices, and shall provide to GEII within one (1) month, along with such
         payments, accurate official receipts from the appropriate governmental
         authority for deducted or withheld MCV Taxes. If GEII is required to
         pay MCV Taxes, MCV shall, promptly upon presentation of GEII's invoice
         and accurate official receipts from the appropriate governmental
         authority for such MCV Taxes, pay to GEII in U.S. dollars an amount
         equal to the U.S. dollar equivalent of such MCV Taxes (calculated at
         the exchange rate in effect at the time payment of such MCV Taxes was
         made).

29.2     "MCV Taxes" means all taxes, duties, fees, or other charges of any
         nature (including, but not limited to, ad valorem consumption, excise,
         franchise, gross receipts, import, export, license, property, sales,
         stamp, storage, transfer, turnover, use, or value-added taxes, and any
         and all items of withholding, deficiency, penalty, addition to tax,
         interest, or assessment related thereto), other than GEII Taxes,
         imposed by any Governmental Authority of any country on MCV or its
         employees or subcontractors due to the execution of any agreement or
         the performance of or payment for work hereunder. Products exported
         from the United States are presumed to be exempt from taxes levied
         within the United States. When requested by GEII, MCV agrees to furnish
         without charge evidence of tax or duty exemption acceptable to the
         taxing or customs authorities. Furthermore, if MCV arranges for export
         shipment, MCV agrees to provide GEII, without charge, an export bill of
         lading.
<PAGE>
ARTICLE 30  NO NUCLEAR USE

30.1     THE PARTS AND SERVICES PROVIDED AND PERFORMED HEREUNDER ARE NOT
         INTENDED FOR APPLICATION (AND SHALL NOT BE USED) IN CONNECTION WITH ANY
         NUCLEAR INSTALLATION OR ACTIVITY AND MCV WARRANTS THAT IT SHALL NOT USE
         THE PARTS AND SERVICES FOR SUCH PURPOSES, OR PERMIT OTHERS TO USE THE
         PARTS OR SERVICES FOR ANY SUCH PURPOSES.

30.2     IF, IN BREACH OF THE FOREGOING, ANY SUCH USE OCCURS, GEII, ITS PARENT
         AND AFFILIATES, SUPPLIERS AND SUBCONTRACTORS, SHALL HAVE NO LIABILITY
         FOR ANY NUCLEAR OR OTHER DAMAGE, INJURY OR CONTAMINATION, AND MCV SHALL
         INDEMNIFY GEII, ITS PARENT AFFILIATES, SUPPLIERS AND SUBCONTRACTORS OF
         EVERY TYPE AND TIER AGAINST ANY SUCH LIABILITY, WHETHER ARISING AS A
         RESULT OF BREACH OF CONTRACT, WARRANTY, INDEMNITY, TORT (INCLUDING
         NEGLIGENCE), STRICT LIABILITY OR OTHERWISE.

ARTICLE 31  GENERAL CLAUSES

31.1     Any information, suggestions or ideas transmitted by MCV to GEII in
         connection with performance hereunder are not to be regarded as secret
         or submitted in confidence except in accordance with Article 22,
         "Confidential Information".

31.2     Except as provided in the articles entitled "Limitations of Liability"
         and "No Nuclear Use", the provisions of this Agreement are for the
         benefit of the Parties hereto and not for any other or third party.

31.3     Notwithstanding anything to the contrary, GEII shall have the right, in
         its discretion, to gather data and information concerning Parts and
         Covered Units performance and disclose any such data to any GEII
         Affiliate. In the event that GEII deems it necessary to disclose any
         such information to other than a GEII Affiliate which may reasonably be
         considered to be Site specific, it shall first obtain approval from MCV
         to do so, such approval not to be unreasonably withheld.

31.4     The language of this Agreement, and all documents, materials and
         training, if any, to be supplied by GEII under this Agreement shall be
         English.

31.5     Article headings are for convenience and shall not be given effect in
         interpretation of this Agreement.

31.6     Subject to liability time limitations contained herein, the following
         Articles shall survive termination of the Agreement: Article 4.2
         (Termination), Article 9.2.1.3 (Insurance, to the extent of the waiver
         of subrogation), Article 8 (Warranty), Article 10 (Limitation of
         Liability), Article 20 (Disputes), Article 22 (Confidential
         Information), Article 24.8, Article 13 (Assignment), Article 24 (Plant
         Security and Safety), Article 26(Hazardous Chemicals), Article 28
         (Patents), Article 19 (Notices), Article 5.10 (Change in Law Costs),
         Article 14 (Applicable Law), Article 29 (Taxes and Duties), Article 30
         (No Nuclear Use), and Article 31 (General Clauses), provided, however,
         that in the event of a termination by GEII on account of MCV's Default
         or Insolvency, MCV's warranty and guarantee rights under Article 8 and
         MCV's rights under Article 28 shall also terminate.
<PAGE>
31.7     This Agreement may be signed in counterparts with the same effect as if
         all signing Parties had signed the same document. All counterparts
         shall be construed together and constitute one and the same contract.

----------------------------------------  --------------------------------------
      "GE INTERNATIONAL INC."                  "MIDLAND COGENERATION VENTURE
                                                   LIMITED PARTNERSHIP"
By:  /s/  James N. Suciu
     ----------------------------         By:  /s/ James Kevra
                                               ----------------------------
Printed Name:    James N. Suciu
              -------------------         Printed Name:    James Kevra
                                                         ------------------
Title:     VP - Energy Services
       --------------------------          Title:      President and CEO
                                                    -----------------------
<PAGE>
                                    EXHIBIT 1
                                  COVERED UNITS

THE COVERED UNIT SHALL CONSIST OF THE FOLLOWING:

GAS TURBINE COVERED UNIT:

Twelve (12) ABB GT11NM gas turbines (flange to flange) up to the following
terminal points described below:

Gas turbine terminal points:

    -    Flanged connection at inlet bellmouth

    -    Flanged connection at exhaust

    -    Closest air inlet and outlet connections to turbine casing(s)

    -    Closest water inlet and outlet connections to turbine casing(s)

    -    Closest electrical connections to turbine casing(s)

    -    Closest fuel inlet connection to combustion chamber

Excluded from the scope are the following components:

    -    Auxiliary systems

    -    Control systems

    -    Inlet system (except as required to perform "C" inspection scope)

    -    Exhaust system downstream of exhaust housing

GENERATOR COVERED UNIT:
Twelve (12) Alstom generator an exciter(excluding auxiliary systems) up to the
following terminal points described below:

    -    Coupling connection on turbine side

    -    End connection point of generator flex leads

    -    Closest air inlet and outlet connections to generator casing

    -    Closest water inlet and outlet connections to generator casing

    -    Closest electrical connections to generator casing
<PAGE>
                                    EXHIBIT 2
                                 TECHNICAL SCOPE

"COVERED PARTS "shall be:

    -    Turbine Blades
              -   Stage 1
              -   Stage 2
              -   Stage 3
              -   Stage 4
              -   Stage 5

    -    Turbine Vanes

              -   Stage 1
              -   Stage 2
              -   Stage 3
              -   Stage 4
              -   Stage 5

    -    Vane Carriers

    -    Tile Carriers Rings

    -    Tiles

    -    C Segment

    -    Combustion Chamber Lower Insert

    -    Turbine Entry Segments

    -    Stator Heat Shields A-F

    -    Rotor Heat Shields A-L

    -    Hot Gas Casing

    -    Exhaust housing

    -    Swirler

    -    Single Burner assemblies

    -    EV Burners (per terms of Article 3.6.1)

    -    Hardware necessary for installation of above parts

    -    Consumables for a standard "C" Inspection.
<PAGE>
The Planned Maintenance work of GEII will consist of the following work,
including provision of Covered Parts, as GEII determines to be necessary in
accordance with this Agreement: (i) Camera (ii) visual, (III) "C" Inspection.
Recognizing that the precise scope of such maintenance events may vary over the
Term of this Agreement, such as by extension of the intervals between the need
to repair or replace parts, the following outlines a current example scope of
said Planned Maintenance events but not necessarily the exact scope of work of
GEII under this Agreement.

This Agreement assumes that the nominal maintenance interval for these
inspection events is as follows:

        (a)      Camera inspection:  Approximately every 3000 EOH
        (b)      Visual inspection:  Approximately every 8000 EOH
        (c)      "C" Inspection:  Approximately every 24,000 EOH

Maintenance inspections as defined in "PLANNED MAINTENANCE" shall be the
following inspections:

1.        CAMERA INSPECTION

<TABLE>
<CAPTION>
                                          ACTIVITY                                               MCV            GE
                                          --------                                               ---            --
<S>                                                                                             <C>           <C>
Remove GT ignition torch assembly                                                                 x
Complete visual inspection of the GT using MCV camera assembly                                                   x
Provide a technical report of the condition of the GT parts seen through the ignition                            x
assembly
Install the GT ignition torch assembly                                                            x
Return the unit to commercial operation                                                           x
</TABLE>

2.        VISUAL INSPECTION

<TABLE>
<CAPTION>
                                          ACTIVITY                                               MCV            GE
<S>                                                                                             <C>           <C>
Remove insulation                                                                                 x
Disconnect piping flanges, remove burner bolts, and remove burner assembly                        x
Complete visual inspection of the GT                                                                             x
Provide a technical report of the condition of the GT parts                                                      x
Complete a final inspection of the hot gas path                                                                  x
Reinstall the burner and reconnect all piping flanges                                             x
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                          ACTIVITY                                               MCV            GE
                                          --------                                               ---            --
<S>                                                                                             <C>           <C>
Reinstall insulation                                                                              x
Return the unit to commercial operation                                                           x
</TABLE>

3.       "C" INSPECTION

NOTE: If no activities/comments are mentioned in the column "Cost Plus Basis",
      the following is applicable.

                  The listed items here are cost plus:

                      >>   Attend repairs outside of hot gas path

                      >>   Spare parts supply not included as Covered Parts

                      >>   Special tools, if required

                      >>   Manpower outside normal "C" inspection scope

                      >>   Other materials not included

<TABLE>
<CAPTION>
                                                                                    COST PLUS            LUMP SUM
  STEP                        DESCRIPTION                             MCV             BASIS               BASIS
  ----                        -----------                             ---             -----               -----
<S>        <C>                                                     <C>             <C>                <C>

--  PRE-SHUT DOWN
   10      Data Recording                                                                                 Record
   20      Check for leaks and observe combustion                                                         Check
           characteristics
--  ENCLOSURES
   30      Exterior paneling                                                                          Remove/Install
   40      Air intake duct and silencer hood (for blow-off                                            Remove/Install
           valves)
   50      Man hole exhaust cover                                                                     Remove/Install
--  THERMAL BLOCK
   60      1st Shaft/blading reference measurement                                                       Measure

                               COMBUSTION CHAMBER

   70      Disconnect fuel pipes from burner                                                              Remove
   71      Loosen screws to burner                                                                        Remove
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                                                                    COST PLUS            LUMP SUM
  STEP                        DESCRIPTION                             MCV             BASIS               BASIS
  ----                        -----------                             ---             -----               -----
<S>        <C>                                                     <C>             <C>                <C>
   72      Flame monitor units                                      Remove
   73      Burner unit                                                                                    Remove

                                   BURNER UNIT

   80      Deformation or cracks in the swirler                                                           Check
   90      Blockage of measuring pipe                                                                     Check
   120     Gas rings for damage (if fitted)                                                               Check
   130     Make all adjustments according to final settings,                         Adjustments      Check/Measure
           HTCZ24

                               IGNITION GAS SYSTEM

   140     Filter GT 5280                                                                              Clean/Check
   150     Gas pipe                                                                                    Clean/Check
   160     Igniter Insulation                                                                          Clean/Check
   170     Ignition Plug                                                                               Clean/Check
   180     Reassembly of burner unit complete                                                             Re-fit

                                  THERMAL BLOCK

   189     Combustion chamber screws to upper cylinder casing                                         Remove/Install
   190     Combustion chamber from gas turbine cylinder                                               Remove/Install
           casing

                               COMBUSTION CHAMBER

   200     Loosen screws on external cover                                                                Remove *
   210     Swirler guide, inner and outer internal covers                                                 Remove
   220     Loosen screws to sight glass/flame monitors and                                                Remove
           tubes
   230     Finned segments and supp. cylinder assy. Complete                                              Lift Out *
   260     Support Pins for finned segment carrier                                                        Remove *
           supporting structure
   270     Finned segments carrier support structure                                                      Lift Out *
   280     Support Pins for double shell assembly                                                         Remove *
   290     Double shell assembly (inner and outer liner and                                               Lift Out *
           mixing nozzle)
   300     Finned segments for cracks wear and sealing                                                    Check
   310     Inner liner and mixing nozzles for cracks                                                      Check
           overheating and wear
</TABLE>

----------------------
*    Only to be removed if cracks are visible at the inner liner/finned segments
     carrier, and if repair welds cannot be performed due to lack of access.

*    Only to be removed if cracks are visible at the inner liner/finned segments
     carrier, and if repair welds cannot be performed due to lack of access.
<PAGE>
<TABLE>
<CAPTION>
                                                                                    COST PLUS            LUMP SUM
  STEP                        DESCRIPTION                             MCV             BASIS               BASIS
  ----                        -----------                             ---             -----               -----
<S>        <C>                                                     <C>             <C>                <C>
   320     Inner liner/finned segments carrier overlapping                                                Check
           for wear and sealing
   330     Support pins and bushes for wear                                                               Check
   340     Sight glass condition                                                                          Check
   350     Reassembly of combustion chamber steps 200 to 290                                             Re-Fit *
           in reverse order

                                  THERMAL BLOCK

   360     2nd shaft/blading reference measurement                                                       Measure
   370     Compressor blow-off valves                                                                 Remove/Re-Fit/Test
   380     Upper cylinder insulation pads                                                             Remove/Re-Fit
   390     Exhaust gas splitter to/from the cylinder casing                                           Withdraw/Insert
   400     Loosen/tighten screws to cylinder upper and lower                                          Remove/Re-Fit
           halves
   410     Screws between upper and lower halves of gland                                             Remove/Re-Fit
           seal on exhaust side
   420     Sight glass in lower cylinder casing                                                       Remove/Install
   430     Upper cylinder casing                                                                      Remove/Install
   440     Attend to welds between hot gas casing upper and          WELD                                 GRIND
           lower halves
   450     Loosen/tighten screws, safety forks between HGG                                            Remove/Re-Fit
           upper and lower halves
   460     Upper portion of hot gas casing                                                            Remove/Re-Fit
   470     3rd blading reference measurement                                                             Measure
   480     Loosen/tighten screws between upper and lower                                              Remove/Re-Fit
           blade carrier
   490     Upper Part of blade carrier                                                                Remove/Re-Fit
   500     4th blading reference measurement                                                             Measure
   510     Loosen/tighten upper and lower compressor                                                  Remove/Re-Fit
           diffusor screws
   520     Upper part of compressor diffusor                                                          Remove/Re-Fit
   530     Rotor shaft                                                                                Remove/Re-Fit
   540     Compressor diffusor lower half                                                             Remove/Re-Fit
   550     Blade carrier lower half                                                                   Remove/Re-Fit
   560     Hot gas casing lower half                                                                  Remove/Re-Fit
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                    COST PLUS            LUMP SUM
  STEP                        DESCRIPTION                             MCV             BASIS               BASIS
  ----                        -----------                             ---             -----               -----
<S>        <C>                                                     <C>             <C>                <C>
                                     BLADING
   570     Visual inspection of all blades and heat shields                            Repair*       Check *
   610     Visually inspect blade profile and roots for                                Repair*       Check **
           cracks
   680     Rotor labyrinth seals                                                                     Check/Replace**
   700     New rotor labyrinth sealing rings                                           Repair*

                               HOT PATH COMPONENTS

   730     Grooves in compressor-diffusor for heat shield                                            Check and Repair
           inlet segments
   740     Groove in upper and lower blade carrier for                                                  Check and
           locating hot gas casing                                                                        Repair
   750     Hot gas casing                                                                            Check and Repair
   770     Overlapping assembly between hot gas casing and                                               Rectify
           inner liner                                                                                  andInstall
   790     Sealing between exhaust gas diffusor and gas                                                   Check
           turbine cylinder

                       GEARS, DRIVES, COUPLINGS AND SHAFTS

   800     All coupling bolts                                                                         Remove/Re-Fit
   810     Shaft position indicator and vibration pick-ups       Remove/Re-Fit
   820     Loosen/tighten exhaust and air inlet main bearing                                          Remove/Re-Fit
           cover screws
   830     Both main bearing covers                                                                   Remove/Replace
   840     Thrust bearing axial clearance                                                                 Check
   850     Journal and thrust bearing cap screws                                                      Loosen/Tighten
   860     Journal and thrust bearing caps                                                            Remove/Re-Fit
   870     Gearbox cover                                                                              Remove/Re-Fit
   880     Turbine/compressor/gearbox journal bearing radial                                              Check
           clearances
   890     Gearwheel backlash and contact pattern                                                     Measure/Check
</TABLE>
--------------
*   If blade removal/reassembly is required it will be performed under the cost
    plus basis. [Applicable to compressor blades only]

**  Only to be removed as deemed necessary by the GEII's service engineer.
    Compressor Blade removal/reassembly under cost plus basis.

<PAGE>
<TABLE>
<CAPTION>
                                                                                    COST PLUS            LUMP SUM
  STEP                        DESCRIPTION                             MCV             BASIS               BASIS
  ----                        -----------                             ---             -----               -----
<S>        <C>                                                     <C>             <C>                <C>
   900     Main oil pump                                                                                  Check
   910     Governor assembly                                                                              Check
   920     Barring gear                                                                                   Check
   930     Oil injectors and nozzles                                                                   Remove/Clean
   940     Gearbox components, Steps 870-930, in reverse                                                  Re-Fit
           order
   950     GT/Compressor/Gearbox and Generator Shafts                                                  Check/Align
   960     Coupling Bolts                                                                             Check/Install

                          REGULATING AND CONTROL SYSTEM
                          -----------------------------

   970     Safety oil pressure supervision R1587                     Check
   980     Lube oil pressure supervision R5502 and GT4010            Check
   990     Temperature supervision of bearing oil return             Check
           flow GT 7325/7329
  1000     Differential pressure supervision for Gland               Check
           Sealing Boxes GT3288/3289
  1010     Sealing on Shaft Position Indicator GT 7515              Adjust
  1020     Flame Supervision R2590                                   Check
  1030     Control Oil Pressure Supervision R1588                    Check
  1040     Gas Pressure Supervision (Gas R1584)                      Check
  1050     Differential Pressure Supervision, Air Intake             Check
           Filter GT 7590
  1060     Exciter Warm Air Supervision W2244                        Check
  1070     Generator Cooling Air, Inlet and Outlet W2150,            Check
           W2151
  1080     Safety Oil Pressure Switch R1587                     Adjust/Measure
  1090     Emergency Oil Pressure Switch R4591                  Adjust/Measure
  1100     Lube Oil Pressure Switch R5502                       Adjust/Measure
  1110     Lube Oil Pressure Switch GT4010                      Adjust/Measure
  1120     Control Oil Pressure Switch R1588                    Adjust/Measure
  1130     Set Point Oil Pressure Switch                        Adjust/Measure
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>    <C>
    1140      Adjust/measure compressor discharge pressure switch R2585                             x
    1150      Adjust/measure rotor gland pressure switch GT3288                                     x
    1160      Adjust/measure rotor cooling air pressure switch GT3289                               x
    1170      Adjust/measure inlet filter pressure switch GT7590                                    x
    1180      Adjust/measure fuel gas pressure switch R1583                                         x
    1190      Adjust/measure fuel gas pressure switch                                               x
    1200
    1210
    1220      Adjust/measure cooling water pressure switch GT2079                                   x
    1230      Adjust/measure turbine bearing temperature switch GT7325 A                            x
    1240      Adjust/measure compressor bearing temperature switch GT7325 B                         x
    1250      Adjust/measure gearbox DS left temperature switch GT7325 C                            x
    1260      Adjust/measure gearbox left temperature switch GT7325 D                               x
    1270      Adjust/measure gearbox DS right temperature switch GT7325 E                           x
    1280      Adjust/measure gearbox NDS left temperature switch GT7325                             x
    1290      Adjust/measure generator bearing DS temperature switch W7325 A                        x
    1300      Adjust/measure generator bearing NDS temperature switch W7325 A                       x
    1310      Adjust/measure thrust bearing temperature switch GT7329 A                             x
    1320      Adjust/measure thrust bearing temperature switch GT7329 B                             x
    1330      Adjust/measure lube oil temperature switch GT7330                                     x
    1340      Adjust/measure rotor cooling air temperature switch GT7342                            x
    1350      Adjust/measure gen. warm air DS temperature switch W2151 A                            x
    1360      Adjust/measure gen. cold air DS temperature switch W2151 A                            x
    1370      Adjust/measure gen. warm air NDS temperature switch W2150 B                           x
    1380      Adjust/measure gen. cold air NDS temperature switch W2151 B                           x
    1390      Adjust/measure exciter temperature switch W2244                                       x
    1400      Check/clean hydraulic air safety relay R2284                                          x
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>         <C>

    1410      Check/clean fine dryer, Rifox TG5501, R5781                                           x
    1420      Check/clean air filter Wilkerson 1137-CZM85744                                        x
    1430      Clean/tighten terminals in TR76 temperature regulation panel                          x
    1440      Check alarm and trip GT inlet temperature protection of TR76 temperature              x
              regulation
    1450      Check alarm and trip GT outlet temperature protection of TR76 temperature             x
              regulator
    1460      Check electrical over-speed trip protection of TR76 temperature regulation            x
    1470      Check speed signal of TR76 temperature regulation to static starting device           x
    1480      Check vibration measurement of TR76 temperature regulation                            x
    1500      Check electronic cards of secontic system                                             x
    1510      Check stimulation of secontic orders                                                  x
    1520      Check terminals in secontic panel                                                     x
    1530      Check operating device R1205                                                          x
    1540      Check pulsator R1207                                                                  x
    1550      Check starting valve R1269                                                            x
    1560      Check temperature controller R65, R1284                                               x
    1570      Check fuel oil control valve R1382                                                    x
    1580      Check over-speed governor R2201                                                       x
    1590      Check emergency trip R2213                                                            x
    1610      Check blow off valves R1392-93                                                        x
    1620      Check pilot valve for blow off valves R1184                                           x
    1640      Check air pressure reducing valve R5698                                               x
    1650      Check speed pick-up R1213                                                             x
OIL SYSTEM
    1660      Check oil system pipeline for leaks                                                                 x
    1670      Clean twin lube oil filter elements GT4029                                            x
    1680      Clean twin power oil filter elements GT4110                                           x
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>    <C>
    1700      Check lube oil for contamination                                                      x
    1710      Check/clean suction air filter for lube oil tank ventilation GT4005A/B/C              x
    1840      Lubricate auxiliary power oil pump and drive motor R5715                              x
    1860      Lubricate cooling oil pump and drive motor R5717                                      x
    1870      Lubricate jacking oil pump and drive motor GT4008/4009                                x
    1880      Lubricate shaft turning hydraulic pump and motor GT1605/1606                          x
    1890      Lubricate oil tank venting fan and motor GT 4002/4003                                 x
    2030      Recalibrate bearing vibration recorder                                                x
    2040      Recalibrate turbine temperature/load recorder                                         x
    2080      Check 125V and 24V battery chargers                                                   x
    2110      Check/adjust auxiliary switch contacts and linkage mechanism (209A1)                  x
    2120      Check/adjust auxiliary switch contacts and linkage mechanism (4A2)                    x
    2150      Check oil level in expansion vessel of main step-up transformer                       x
    2160      Check Drycol Breather of main step-up transformer                                     x
    2170      Clean/inspect bushing of main step-up transformer                                     x
    2180      Inspect/retighten gaskets on main step-up transformer                                 x
    2190      Check valve and earth connection on main step-up transformer                          x
    2200      Sample dielectric strength of main step-up transformers                               x
    2210      Clean air side of cooling radiators of main step-up transformers                      x
    2220      Test alarm and trip signals on main step-up transformer                               x
    2230      Check oil level in expansion vessel of aux. and starting transformer                  x
    2240      Check silicagel of auxiliary and starting transformers                                x
    2250      Clean/inspect bushings on auxiliary and starting transformers                         x
    2260      Inspect/retighten gaskets on auxiliary and starting transformers                      x
    2270      Check earth connection on auxiliary and starting transformers                         x
    2280      Test dielectric strength of aux. and starting transformers                            x
    2290      Clean air side of cooling radiators aux. and starting transformers                    x
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                             <C>          <C>
    2300      Test alarm and trip signals on aux. and starting transformers                         x
    2310      Test static starting system as per HIER 93 132 E                                      x
    2320      Check machine hall ventilation                                                        x
    2340      Test fire fighting system                                                            I&C        Air Leakage
                                                                                                 Portion     of Enclosure
    2350      Check/clean contactors and aux. contacts                                              x
    2360      Check/clean auxiliary relays and contacts                                             x
    2380      Clean panels in local control room                                                    x
    2390      Terminals in local control panels                                                     x
    2400      Clean remote control panels                                                           x
    2410      Clean terminals in remote control panels                                              x
    2420      Clean turbine hall terminal boxes                                                     x
    2440      Clean/tighten 480 vac bus bar bolts and nuts                                          x             x
                                                                                                              TECH. DIR.
    2450      Check 480 vac breaker's contacts and breaker mechanism                                x             x
                                                                                                              TECH. DIR.
    2460      Check annunciation circuits on panel alarm                                            x
    2470      Check tripping circuits                                                               x
    2490      Measure insulation of auxiliary lube oil pump drive motor (R5711)                     x
    2500      Measure insulation of auxiliary power oil pump drive motor (R5272)                    x
    2540      Check brushes on jacking oil pump DC-Motor (GT4009)                                   x
    2550      Check emergency oil pump                                                              x
    2570      Check brushes on speed device drive DC-Motor (R1205)                                  x
    2580      Check brushes on shaft turning gear pump drive DC-Motor (GT1606)                      x
    2600      Check/compare generator protection relay settings                                     x
    2610      Check/compare generator protection diodes according to matrix                         x
    2620      Test generator protection relay's function                                            x
    2630      Check generator protection blocking print                                             x
    2640      Check fuse of minimum frequency relay 103B                                            x
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>    <C>
    2650      Test generator differential protection relay DIX111                                   x
    2660      Test transformer differential protection relay DIX111                                 x
    2670      Test overcurrent protection relay IUX159                                              x
    2680      Test negative phase sequence                                                          x
    2690      Test overvoltage protection relay USX115                                              x
    2700      Test under voltage protection relay USX116                                            x
    2710      Test stator earth fault protection relay UBX117                                       x
    2720      Test bus bar earth fault protection relay UBX117                                      x

DUCTING AND ACCESSORIES
    2730      Check air inlet area before air filters                                                             x
    2740      Check air filter elements                                                             x
    2750      Check air inlet filter system compressor                                              x
    2760      Check air inlet filter control system                                                 x
    2770      Check air intake duct and silencer hood                                                             x
    2780      Check exhaust gas diffuser                                                                          x
    2790      Check exhaust gas thermocouples                                                       x
    2800      Check exhaust gas line                                                                x
    2830      Check expansion joints                                                                              x

GENERATOR PROGRAM***
    2870      Remove endshields covers exciter unit, bearing caps + rotor                                         x*
    2880      Inspect/test stator condition and diagnosis                                                         x
    2890      Check/measure rotor condition and insulation                                                        x
    2910      Remove/clean H2O side/test air water cooler leakage                                                 x
    2920      Re-fit new sealing for air-water coolers after cleaning                                             x
    2930      Check air filters                                                                                   x
    2940      Inspect exciter components                                                                          x
</TABLE>
-------------------
***  Partial Discharge monitoring by Alstom may be maintained by MCV
*    Exciter removal, rotor removal, retaining ring removal and NDE at GEII
     discretion
<PAGE>
<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>    <C>
    2950      Check instrumentation                                                                 x
    2960      Inspect bearings                                                                                    x
    2970      Inspect rotor bearing caps, exciter unit, covers A, Shields, A. Coupl. bolts                       x***
    2980      Check crack detection of rotor retaining rings                                                      x*

COMMISSIONING

    3020      Inspect/remove foreign or loose objects in the air intake system                                    x
    3030      Inspect combustion chamber without burner fitted                                                    x
    3040      Run machine with starting equipment only (3 step) [Blowout]                           x
    3050      Reinspect combustion chamber without burner                                                         x
    3060      Function test ignition gas system                                                     x
    3070      Re-assemble burner                                                                    x
    3090      Check characteristics of servomotor                                                   x
    3110      Start-up machine from cold                                                            x
    3120      After 2 hours without load, stop with real over-speed trip (R1205)                    x
    3130      Measure hot start-up time                                                             x
    3140      Test over-voltage protection USX115 at full speed                                     x
    3150      Test under-voltage protection USX116 at full speed                                    x
    3160      Test stator earth fault protection UBX117 (6R) at full speed                          x
    3170      Test bus bar earth fault protection UBX117 (3L) at full speed                         x
    3180      Test under-frequency protection FCX103B at full speed (trip of unit)                  x
    3190      Check/adjust synchronizing equipment                                                  x
    3200      Check/adjust hydraulic system at full speed                                           x
    3220      Test/record normal and fast loadings                                                  x
    3230      Test rotor earth fault protection IWX161A, on-load                                    x
    3240      Check/measure generator differential protection DIX111                                x
    3250      Check/measure transformer differential protection                                     x
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                                                                                                                ------
    STEP                                          ACTIVITY                                         MCV         LUMP SUM
    ----                                          --------                                         ---          ------
<S>           <C>                                                                                  <C>    <C>

    3260      Check reverse power protection                                                        x
    3270      Check/measure minimal reactants protection ZPX103/5                                   x
    3280      Check/measure negative phase sequence protection IPX 132-B                            x
    3290      Measure/adjust full load readings and observations                                    x
    3300      Record operational data and inspection findings                                       x
    3310      Balance unit, end planes only.                                                        x
                                                                                                    x             x
                                                                                                                WEIGHT
    3320      Balance unit, mid-plane                                                                        INSTALLATION
                                                                                                                 ONLY
</TABLE>
<PAGE>
                                                                       EXHIBIT 3
                                SPARE PARTS LISTS

MCV HAS THE FOLLOWING PARTS AND SHALL ALLOW USE OF PARTS BY GEII FOR THE
PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT:

Two hot gas casings
One Combustion inner liner
One set Swirlers
One burner for standard(non-EV) silo
One set finned segments
One expansion joint

GE WILL PROVIDE THE FOLLOWING AS INITIAL SPARE PARTS UNDER THE TERMS DESCRIBED
BY ARTICLE 6.5 THE QUANTITIES LISTED MAY BE CHANGED AT MCV'S OPTION PRIOR TO
COMMENCEMENT IF REQUIRED ACCORDING TO THE TERMS OF ARTICLE 5.1.1:
2 sets each Rows 1-5 blades
2 sets each Rows 1-5 vanes
2 sets each Rows A-F stator and A-L rotor heat shields
Blade and vane installation hardware

THE TABLE BELOW DESCRIBES THE PARTS REQUIRED TO BE KEPT IN INVENTORY PER ARTICLE
2.7.

                              MANDATORY SPARE PARTS

<TABLE>
<CAPTION>
      ITEM                QTY.                      DESCRIPTION
      ----                ----                      -----------
<S>                   <C>              <C>
      P100              One Set         Turbine Blades 1
      P200              One Set         Turbine Blades Row 2
      P300              One Set         Turbine Blades Row 3
      P400              One Set         Turbine Blades Row 4
      P500              One Set         Turbine Blades Row 5
      P600              One Set         Turbine Vanes Row 1
      P700              One Set         Turbine Vanes Row 2
      P800              One Set         Turbine Vanes Row 3
      P900              One Set         Turbine Vanes Row 4
     P1000              One Set         Turbine Vanes Row 5
     P1800              One Set         Combustor Inner Chamber with Mechanical Seal
     P1900              One Set         Finned Segments
     P2000                One           Standard Combustor Burner Spares
     P2300              One Set         Heat Shield Segments, Row A-L for Rotor
     P2400              One Set         Heat Shield Segments, Row A-F for Vane Carrier
     P2500              One Set         Heat Shield Segments, Inlet
     P2600              One Set         Heat Shield Segments with Nozzle for Compressor, Diffusor
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
      ITEM                QTY.                      DESCRIPTION
      ----                ----                      -----------
<S>                   <C>              <C>
     P2700              One Set         Heat Shield Segments for Compressor Diffusor
</TABLE>
<PAGE>
                                                                       EXHIBIT 4
                               WATER SPECIFICATION

                                    NOT USED
<PAGE>
                                                                       EXHIBIT 5
                           DE-NOX STEAM SPECIFICATION

Main Steam Limits *

<TABLE>
<CAPTION>
                              Items            Limit      Unit
                              -----            -----      ----
<S>                                            <C>       <C>
                        Conductivity, Max        1       U-MHO
                          Chloride, Max          6        PPB
                           Sodium, Max          10        PPB
                          Sulfate, Max          100       PPB
                          Silicate, Max         20        PPB
</TABLE>

*Steady state operating parameters, Doesn't include start-up transients or
carryover due to mechanical failures.
<PAGE>
                                                                       EXHIBIT 6

                               FUEL SPECIFICATION

1.0      Heat Content

         Heat content shall mean the gross heating value per cubic foot of gas
         delivered at the point of receipt and point of delivery. The gas at the
         point of receipt shall not have a heat content less than 950 Btu/scf or
         greater than 1,100 Btu /scf when determined on a saturated basis. The
         total heating value per cubic foot of gas at the points of receipt or
         delivery shall be determined by one of the following methods:

         a.   By means of an instrument of standard manufacture installed to
              measure the heating value of the gas being delivered at the points
              of receipt or delivery.

         b.   At intervals of not more than six (6) months, by means of an
              instrument of standard manufacture and a sample of gas from the
              gas stream from which gas is being delivered

         c.   Other methods mutually agreed upon by both Parties

         For the purposes of calculating receipts and deliveries, the heat
         content of the gas so determined at each such point shall be deemed to
         remain constant at such point until the next determination.

         The unit of quantity for the purpose of determining total heating value
         shall be one (1) cubic foot of gas saturated with water vapor at a
         temperature of sixty (60) Fahrenheit and an absolute pressure of 14.73
         psia saturated.

2.0      Freedom from Objectionable Matter

         The gas received and delivered:

         (a)  Shall be commercially free from dust or other solid or liquid
              matter.

         (b)  Shall not contain more than one (1) grain of hydrogen sulfide per
              one hundred (100) cubic feet of gas, as determined by methods
              prescribed in Standards of Gas Service, Circular of the National
              Bureau of Standards, No. 05, page 134 (1934 edition).
<PAGE>
                                                                       EXHIBIT 7
                                AIR SPECIFICATION

                                    NOT USED
<PAGE>
                                                                       EXHIBIT 8
                                   ASSUMPTIONS

"Assumptions" shall mean the following operating conditions:

    a)   Base load operation: At least 6000 hours/year per Covered Unit

    b)   Overfired Operation: 0 hours per year per gas turbine.

    c)   Load regulation for any Covered Unit not more than 2.66 MW/minute.

    d)   Firing Temperature: Gas turbine Covered Unit operated at a firing
         temperature at or below 1881 degrees Fahrenheit ("Assumed Firing
         Temperature")

    e)   Steam for NOx and pulsation control at MDEQ and/or OEM specified rates.

    f)   Natural gas fuel only.

    g)   Steam: Per the steam specification contained in Exhibit 5

    h)   Fuel: Natural Gas per the fuel specification contained in Exhibit 6

    i)   Proper operation and maintenance of filtration system.

    j)   MCV's performance of its obligations under Article 3.

    k)   No more than three planned "C" inspections between January and June or
         between June and December in any calendar year

    l)   As of the Effective Date, there shall be no modifications to the
         Covered Units including, but not limited to, firing temperature changes
         and upgrades not addressed per Sec. 3.5.

"Assumption Violations" means one (1) or more of the Assumptions has been
violated pursuant to the following criteria:

    a)   Load regulation for any Covered Unit greater than 2.66 MW/minute

    b)   Overfired Operation in excess of 0 hours per year.

    c)   Firing Temperature: Operation at a firing temperature above the Assumed
         Firing Temperature boundaries.

    d)   Steam for NOx control above MDEQ specified rates

    e)   Operation on fuel other than natural gas.

    f)   Using fuel or steam , which is not in conformance with the relevant
         specifications.

    g)   MCV's material failure to perform its obligations in Article 3.

    h)   More than three planned "C" inspections between January and June or
         between June and December in any calendar year

    i)   Any modifications to the Covered Units including, but not limited to,
         firing temperature changes and upgrades following the Effective Date
         not addressed per Article 3.5.
<PAGE>
                                                                       EXHIBIT 9
                        COVERED PARTS PRICE LIST ( 2002 )

                              [INFORMATION DELETED]

              "OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
               EXCHANGE COMMISSION PURSUANT TO AN APPLICATION FOR
                            CONFIDENTIAL TREATMENT."

<PAGE>
                                                                      EXHIBIT 10
                              MOBILIZATION SERVICES

PHASE I:  MOBILIZATION AFTER EFFECTIVE DATE AND BEFORE THE COMMENCEMENT DATE

         A. GEII RESPONSIBILITIES

              1.  Design and manufacture all of the parts covered under this
                  Agreement called the Covered Parts including all hardware and
                  consumables.

              2.  Transport the Covered Parts to the Facility as required to
                  support the Commencement Date.

              3.  Supply Initial Spare Parts as requested by MCV.

PHASE II:  MOBILIZATION AT COMMENCEMENT DATE

         A. GE RESPONSIBILITIES

         All costs associated with the mobilization of tools, equipment and
         personnel to perform the scope of the Agreement including but not
         limited to the following:

              1.  Provide a Site Manager to coordinate all GEII activities.

              2.  Hiring of trouble shooting crew for Maintenance and Repair
                  activities.

              3.  Cleaning equipment for turbine components

              4.  Tool cabinets

              5.  Hand Tools (mechanical and electrical)

              6.  Safety equipment

              7.  Crane operator(s)

              8.  All costs associated with the mobilizing of the site
                  organization at the Commencement Date.

              9.  The items supplied under Mobilization will be maintained by
                  GEII throughout the Agreement.

              10. Costs of changing personnel during the Agreement and the
                  demobilization costs at the end of the Agreement.

              11. On-site first aid

              12. Cribbing and floor protection

              13. Transportation from repair facilities

         B. MCV RESPONSIBILITIES

         All costs associated the supply of office and warehouse space (to the
         extent currently provided) including work and laydown space. Other
         tools, equipment and personnel will be provided per the scope of the
         Agreement including, but not limited to the following:

              1.  All fixtures, currently available, for performing turbine
                  inspections. If fixtures are not available to GEII, a
                  replacement cost of $100,000 will be required or they can be
                  replaced at GEII Standard Rates.

              2.  Welders and welding equipment for in situ welding.

              3.  Special tools (originally supplied with the turbine-generator)

              4.  Station air (for air tools)

              5.  Electric power, fuel, water
<PAGE>

              6.  Insulation blankets , installation, and repair

              7.  Telephone service

              8.  Hazardous waste disposal

              9.  Sanitary facilities

              10. Transportation to repair facilities

              11. Erected scaffolding, as required

              12. Forklifts with operator for materials movement
<PAGE>
                                                                      EXHIBIT 11
                               FORM OF ASSIGNMENT
                          FORM OF ASSIGNMENT AGREEMENT

                              ASSIGNMENT AGREEMENT

This Assignment Agreement (the "Assignment") is made effective as of the ______,
day of __________, _____, by and between _____________________, a corporation
existing under the laws of ____________ with a place of business at
___________________________________________ (herein called "Assignor"), and
___________________________, a corporation existing under the laws of
__________________ with a place of business at_______________________ (herein
called "Assignee").

         WHEREAS, Assignor entered in that certain Contractual Service
Agreement, dated ________ (herein called "Agreement") with _____________ (herein
called "MCV") for the supply of certain Parts and Services in connection with
the Covered Unit(s) at the Facility;

WHEREAS, Assignor entered into the Agreement with the desire and full
expectation that work, including without limitation, the supply of material and
equipment from within the country where the Facility is located and services to
be performed by Assignor within such country (the "Country") pursuant to the
Agreement (such work collectively called the "Assigned Scope of Work"), would be
performed by Assignee on its own behalf;

WHEREAS, the Agreement authorizes Assignor to assign to Assignee its rights and
obligations regarding the Assigned Scope of Work; and

WHEREAS, Assignee having received and examined a copy of the Agreement, is
willing to perform the Assigned Scope of Work in accordance with the terms and
conditions set forth in the Agreement.

NOW, THEREFORE, Assignor, in consideration of good and valuable consideration
paid by Assignee, the receipt and sufficiency of which consideration are hereby
acknowledged, does hereby GRANT, CONVEY, ASSIGN and SELL unto Assignee, without
reservation, all of Assignor's right, title and interest under the Agreement
attributable to the Assigned Scope of Work, together with all of Assignor's
right, title and interest in and to consideration to be paid by MCV for the
Assigned Scope of Work and all other benefits or privileges in any way
pertaining thereto.

This Assignment shall be on the following terms and conditions;

         1.       Definitions
<PAGE>
Unless otherwise defined herein, all capitalized terms used in this Assignment
shall have the meanings given to them in the Agreement.

         2.       Assumption

Assignee hereby assumes all obligations under the Agreement to perform the
Assigned Scope of Work arising after the effective date of this Assignment, and
agrees to perform faithfully such obligations and to be bound by all of the
terms and conditions of the Agreement attributable to the Assigned Scope of Work
as fully and completely as if Assignee had been an original party to the
Agreement.

         3.       Contract/Payments

Assignor hereby represents that the copy of the Agreement delivered to Assignee
reflects Assignor's entire understanding and agreement with MCV in respect of
the subject matter therein, and further agrees to deliver to Assignee true
copies of all related correspondence to which Assignor was a party prior to the
effective date of this Assignment. Without limitation of the foregoing, Assignor
represents that, pursuant to the Agreement, MCV is obligated to make
[MONTHLY/QUARTERLY] payments for the Assigned Scope of Work calculated as
follows:

(A)  Fixed Monthly Fee payment of [$______]

(B) Variable Monthly Fee payment of [$________] per Equivalent Operating Hour
per gas turbine

In addition, pursuant to the Agreement, MCV is obligated to make certain other
payments in connection with the Assigned Scope of Work, including without
limitation payments for Unplanned Extra Work.

         4.       Indemnification

Assignor agrees to indemnify and hold harmless Assignee from and against any and
all claims made against Assignee arising out of or in any way related to the
failure of Assignor to perform and observe the provisions of the Agreement, to
the extent not required to be performed or observed by Assignee as a result of
this Assignment. Assignee agrees to indemnify and hold harmless Assignor from
and against any and all claims made against Assignor arising out of or any way
related to the failure of Assignee to perform, and observe the provisions of the
Agreement, to the extent required to be performed or observed by Assignee as a
result of this Assignment.

         5.       Effectuation of Assignment

Assignor and Assignee desire to effectuate this Assignment so as to evidence
Assignor's assignment to Assignee as herein set forth. Assignor and Assignee
<PAGE>
agree to take all actions necessary to effectuate this Assignment of record and
to execute, deliver and acknowledge as appropriate all further instruments and
documents to accomplish the same. Without limitation of the foregoing, Assignor
hereby agrees to pay over to Assignee any and all consideration paid by MCV for
the Assigned Scope of Work within three (3) business days of Assignor's receipt
as same from MCV.

         6.       Successors

This Assignment shall be binding upon and inure to the benefit of Assignor and
Assignee and their respective successors, representatives and assigns.

         7.       Governing Law

The laws of the State of New York, U.S.A. shall govern the validity,
construction, enforcement, and interpretation of this Assignment.

IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment,
effective as of the date first above written.

_________________________________             _________________________________

By:   _________________________               By:   _________________________

Name:  ________________________               Name:  ________________________

Title:  _______________________               Title:  _______________________

<PAGE>
                                   EXHIBIT 12
                                    NOT USED
<PAGE>
                                                                      EXHIBIT 13

                              CONSENT AND AGREEMENT

         CONSENT AND AGREEMENT, dated as of ____________ ___, 200__, made by
___________________________, a ___________ corporation, (the "undersigned") to
the parties whose names appear on Schedule A attached hereto (the "Transaction
Parties"), provides as follows:

         1. Midland Cogeneration Venture Limited Partnership ("MCV"), and the
undersigned entered into the ____________________________________, dated
___________, 200__, as the same may be amended, modified or supplemented from
time to time in accordance with the provisions thereof and of this Consent and
Agreement (the "Contract"). MCV was the owner of an approximately 1370 MW
gas-fired cogeneration facility in Midland, Michigan (the "Facility"). Pursuant
to several separate Participation Agreements, each dated as of June 1, 1990, MCV
sold and leased-back several separate Undivided Interests in the Facility under
several separate Leases each having a basic term of 25 years. The general
structure of the sale and lease-back transactions is described in more detail in
Schedule B attached hereto.

         2. The undersigned hereby acknowledges notice of the sale and
lease-back transactions described in Schedule B and receipt of a photocopy of
each Participation Agreement (including Appendix A thereto but excluding other
Appendices, Exhibits and Schedules referenced therein unless specifically
requested). Photocopies of the related Transaction Documents will be made
available by MCV to the undersigned at its request for inspection. The
undersigned further acknowledges and consents to the assignments of and Liens on
the Contract pursuant to the Transaction Documents related to each sale and
lease-back transaction, and hereby agrees with each of the Transaction Parties
(provided, however, that each of the Indenture Trustees will have the rights set
forth herein only until the undersigned receives written notice from such
Indenture Trustee that the related Undivided Interest in the Facility is no
longer subject to the Lien of the Indenture to which such Indenture Trustee is a
party and the Secured Notes issued pursuant to such Indenture have been paid in
full) that:

                  (a) Each Owner Trustee and each related Indenture Trustee
shall be entitled, after a Lease Event of Default or an Indenture Event of
Default under the Lease or the Indenture, as the case may be, to which such
Person is a party, to exercise any and all rights of MCV under the Contract in
accordance with the terms of the related Lease, the related Lessee Security
Agreement, the related Indentures and this Consent and Agreement, and the
undersigned will comply in all respects with such exercise by any of such
Persons.
<PAGE>
                  (b) The undersigned will give each owner Trustee and Indenture
Trustee prompt written notice of any default of which it has knowledge under the
Contract which, if not cured, would give the undersigned the right to suspend
its performance under, or to terminate, the Contract. Each Owner Trustee and
Indenture Trustee (and their respective designee(s)) shall have the right,
within 30 days (or such longer period, not to exceed 90 days, as may reasonably
be required to cure defaults other than defaults in respect to the nonpayment of
money by MCV) of receipt by each such Person of such written notice, to cure
such default.

                  (c) In the event any Owner Trustee or Indenture Trustee
succeeds to MCV's rights or interests under the Contract after a Lease Event of
Default or an Indenture Event of Default under the Lease or the Indenture, as
the case may be, to which such Person is a party, whether by foreclosure or
otherwise, such Person shall have the right to exercise all rights of MCV under
such Contract, and the undersigned will comply in all respects with such
exercise by such Person.

                  (d) The exercise of remedies under any Lease or foreclosure of
any Indenture, whether by judicial proceedings or under power of sale contained
in such Indenture or otherwise or any conveyance from MCV or any Owner Trustee
to either related Indenture Trustee in lieu thereof, following a Lease Event of
Default or Indenture Event of Default under the Lease or the Indenture, as the
case may be, to which such Person is a party, shall not require the further
consent of the undersigned.

         3. It is understood and agreed that the Contract and this Consent and
Agreement are subject to all tariffs and all Applicable Laws relating to such
services. Except as required, in the undersigned's reasonable opinion or by any
Applicable Law, the undersigned will not, without the prior written consent of
each Owner Trustee and Indenture Trustee (unless MCV delivers to the undersigned
a certificate stating that such consent is not required by the terms of the
related Transaction Documents), cancel, amend, modify or terminate or accept any
cancellation, amendment, modification or termination thereof, except if such
cancellation or termination is in accordance with the express terms of the
Contract, but subject to the rights of each Owner Trustee and Indenture Trustee
to cure any defaults and to keep the Contract in full force and effect as
provided in Section 2(b) above.

         4. In the event that any Owner Trustee or Indenture Trustee (or their
respective designee(s)) assumes the Contract or otherwise elects to perform the
duties of MCV under the Contract, such Person shall not have any personal
liability to the undersigned for the performance of MCV's obligations under the
Contract, it being understood that the sole recourse of the undersigned seeking
enforcement of such obligations shall be to such Person's interest in the
Facility and the related rights and Revenues therefrom.
<PAGE>
         5. If the Contract is rejected by a trustee or debtor-in-possession in
any bankruptcy, insolvency or similar proceeding involving any Persons other
than the undersigned, or is terminated for any other reason (except as a result
of a default which was not appropriately cured as provided herein and in the
Contract), and if, (i) within 30 days thereafter, MCV (in the case of a
bankruptcy, insolvency or similar proceeding involving any Owner Trustee or
Owner Participant), any Owner Trustee, Indenture Trustee or their respective
successors or assigns so request and (ii) all payment defaults under the
Contract have been cured, the undersigned will execute and deliver to the Person
or Persons making such request in proportion to their respective interests in
the Contract a new Contract for the services remaining to be performed under the
original Contract and containing the same terms and conditions as the original
Contract (except for any requirements which have been fulfilled prior to such
termination). Such new Contract also shall be subject to the terms of this
Consent and Agreement.

         6. The undersigned acknowledges that after the end of the respective
Lease Terms and during the respective Residual Terms, each Owner Trustee, as the
assignee of an Undivided Interest in the Contract pursuant to the related
Facility Agreements Assignment, shall have all of the rights and shall be liable
for all of the obligations (to the extent of its respective Undivided Interest
Percentage) on a non-recourse basis of MCV under the Contract. The undersigned
further acknowledges that MCV shall be the initial Operator of the Facility
under the Operating Agreement and further agree that the Owner Trustees may
appoint any Person to serve as a successor Operator thereunder so long as such
Person satisfies the requirements set forth in the Operating Agreement.

         7. No termination, amendment or waiver of any provision of this Consent
and Agreement or consent to any departure by the undersigned from any provision
of this Consent and Agreement shall be effective unless the same shall be in
writing and signed by the Owner Trustees, the Indenture Trustees and MCV and
then such waiver or consent shall be effective only in a specified instance for
the specific purpose for which it was given.

         8. This Consent and Agreement shall be governed by, and construed in
accordance with, the laws of the State of Michigan, and shall be binding on the
parties hereto and their respective successors and assigns.

         IN WITNESS WHEREOF, the undersigned by its officers thereunto duly
authorized, have duly executed this Agreement as of the day and year first above
written.

                                                   _____________________________
<PAGE>
                                                  By:     James N. Suciu
                                                     --------------------------

                                                  Title: VP -- Energy Services
                                                         ----------------------

Seen and Agreed to this 31 day of December, 2002.
                        --        --------------

MIDLAND COGENERATION VENTURE
    LIMITED PARTNERSHIP, as
    Lessee

By:    James M. Kevra
    --------------------------------
Title:   President & CEO
      ------------------------------
<PAGE>
                                   SCHEDULE A

MIDLAND COGENERATION VENTURE LIMITED PARTNERSHIP,
as Lessee,

FIRST MIDLAND LIMITED PARTNERSHIP,
IEA-MCV, LLC (formerly, DCC Project Finance One, Inc.),
EDISON CAPITAL (formerly, Mission Funding Epsilon),
VERIZON CAPITAL CORPORATION (formerly, NYNEX Credit Company, and Bell Atlantic
Credit Corporation),
RESOURCES CAPITAL MANAGEMENT CORPORATION,
as the several Owner Participants,

STATE STREET BANK AND TRUST COMPANY
(formerly, Fleet National Bank, Shawmut Bank Connecticut, National Association,
and The Connecticut National Bank),
not in its individual capacity but solely as Owner Trustee
under several separate Trust Agreements,

WACHOVIA BANK, NATIONAL ASSOCIATION
(formerly, First Union National Bank, and Meridian Trust Company),
not in its individual capacity but solely as Subordinated Indenture Trustee
under several separate Subordinated Trust Indenture,
Leasehold Mortgage and Security Agreements
for the benefit of the Subordinated Secured Notes, and

MIDLAND FUNDING CORPORATION II,
as purchasers of the Secured Notes.
<PAGE>
                                   SCHEDULE B

                  A. As described below, the Owner Participants named in
Schedule A acquired separate Undivided Interests in the Facility and leased such
Undivided Interests back to MCV through separate Owner Trustees acting on behalf
of separate Owner Trusts. The beneficial interest in each Owner Trust is held by
Owner Participant.

                  B. For purposes of this Schedule B and the Consent and
Agreement, capitalized terms used herein and not otherwise defined herein shall
have the meanings assigned to such terms in Appendix A to the several separate
Amended and Restated Participation Agreements (the "Participation Agreements"),
each dated as of June 1, 1990, to which MCV, an Owner Participant, the related
Owner Trustee, the related Indenture Trustees, the Funding Corporations, MDC and
the Institutional Senior Bond Purchasers named therein are parties. The rules of
usage set forth in such Appendices also shall apply hereto; provided, that when
the terms defined in Appendix A to a particular Participation Agreement as
relating only to the transaction contemplated therein are used in the plural
herein, such terms are intended to apply to the terms applicable to the
transactions contemplated by all Participation Agreements collectively. In
addition, the word "related", when used with respect to any Person, interest,
instrument, agreement or document, shall denote a Person which is a party to, or
an interest, instrument, agreement or document which is a part of, the
transaction contemplated in a particular Participation Agreement and the
Transaction Documents referred to in such Participation Agreement.

                  C. Pursuant to a related Participation Agreement, MCV sold and
transferred to each Owner Trustee, and each Owner Trustee acquired, subject to
Dow's Prior Rights and Consumers' Prior Rights, an Undivided Interest in the
Facility equal to the respective Undivided Interest Percentage of such Owner
Trustee (with the Undivided Interests in the Initial Assets having been sold and
transferred on the First Closing Date and the Undivided Interests in the Second
Closing Assets being sold and transferred on the Second Closing Date). Each
Owner Trustee leased its Undivided Interest in the Facility back to the Lessee
pursuant to a related Lease, under which MCV has the use, possession and control
of the Undivided Interest in the Facility for the related Lease Term (with the
Undivided Interests in the Initial Assets having been leased on the First
Closing Date and the Undivided Interests in the Second Closing Assets being so
leased on the Second Closing Date).

                  D. On the Second Closing Date, (i) MCV assigned to each Owner
Trustee a separate Undivided Interest in the Facility Agreements and the
Cogeneration Agreements pursuant to a related Facility Agreements Assignment and
a related Cogeneration Agreements Assignment, respectively, (ii) each Owner
Trustee assumed the obligations of MCV under the PPA and the SEPA,
<PAGE>
to the extent of its respective Undivided Interest Percentage, pursuant to a
related Cogeneration Agreements Assignment, (iii) pursuant to the related Lease,
each Owner Trustee subassigned its Undivided Interests in the Cogeneration
Agreements and Facility Agreements back to MCV for the respective Lease Term,
subject to the Lien of the related Indentures, and MCV, as lessee, accepted such
subassignment, and (iv) MCV granted to each Owner Trustee a Lien on, without
limitation, MCV's right, title and interest in the related Undivided Interests
in the Cogeneration Agreements and the Facility Agreements (and the Revenues
therefrom) as collateral security for the related Secured Obligations pursuant
to a related Lessee Security Agreement.

                  E. Each Owner Trustee, as provided in the related
Participation Agreement, financed a portion of the Purchase Price for its
Undivided Interest in the Facility with the proceeds of Senior Secured Notes
issued by it to Midland Funding Corporation I pursuant to a related Senior Trust
Indenture and related Subordinated Secured Notes issued by it to Midland Funding
Corporation II pursuant to a related Subordinated Trust Indenture, and Midland
Funding Corporation I and Midland Funding Corporation II purchased such Secured
Notes.

                  F. Each Owner Trustee granted to the related Indenture
Trustees Liens on, among other things, the Owner Trustee's Undivided Interests
in the Facility, the Cogeneration Agreements and the Facility Agreements, the
Site Interest and its interest in certain of the related Transaction Documents
as collateral security for the Owner Trustee's obligations under the related
Secured Notes.

                  G. On the Second Closing Date, the Funding Corporations issued
Bonds pursuant to a Senior Collateral Trust Indenture and a Subordinated
Collateral Trust Indenture, respectively, for the purpose of participating in
the payment of the Purchase Price for each Undivided Interest in the Facility
and acquiring the funds necessary to purchase the Senior Secured Notes and the
Subordinated Secured Notes pursuant to a related Participation Agreement. The
Funding Corporations secured their obligations under the Bonds by a pledge to
the related Collateral Trust Trustees of the related Secured Notes (and the
collateral security therefor) held by the Funding Corporations.

                  H. MCV, each Owner Trustee and Indenture Trustee and the
Working Capital Lender, on the Second Closing Date, entered into an
Intercreditor Agreement with the Collateral Agent providing for the deposit with
and disbursement of all Revenues from the Undivided Interests in the Project by
the Collateral Agent.

                  I. MCV and each Owner Trustee also entered into an Operating
Agreement appointing MCV as the initial operator of the Project during
<PAGE>
the respective Residual Terms, commencing on the Operation Commencement Date (as
such term is defined in the Operating Agreement).

                  J. On the Second Closing Date, in order to obtain necessary
working capital for the operation of the Facility, MCV obtained the Working
Capital Line from the Working Capital Lender and granted to the Working Capital
Lender first priority Liens on MCV's right, title and interest (as subassignee
of the separate Undivided Interests in the Cogeneration Agreements and the
Facility Agreements during the respective Lease Terms) in and to (i) all Earned
Receivables, (ii) its Natural Gas Inventory and (iii) the Gas Brokering
Contract.

                  K. Each Owner Trustee has agreed to reassign its Undivided
Interest in the Project (including the Undivided Interest in the Facility
Agreements) and the Site Interest back to MCV at the expiration of the related
Support Term.

                  L. On July 23, 2002, MCV paid in full the Senior Secured Notes
that were issued pursuant to the Senior Trust Indenture, consequently, the
Senior Indenture Trustee no longer has an Undivided Interest in the Facility
which, in turn, is no longer subject to the Lien of the Senior Trust Indenture.
<PAGE>
                                                                      EXHIBIT 14
                            GEII STANDARD RATE SHEETS

These rates below are attached as an example of the format of the rate sheet to
be used in the calculation of the cost of Services. Actual costs will be
according to the terms of Article 1.17 and Article 5.4.

                   GENERAL ELECTRIC INTERNATIONAL INC. (GEII)
                          INSTALLATION & FIELD SERVICES
                            EXTERNAL COMMERCIAL RATES
                            EFFECTIVE JANUARY 1, 2002

<TABLE>
<CAPTION>
                               Advanced Commitment*   Advanced Peak *,**   Published Rate      Published Peak Rate**
Service Description                  ST        OT       ST        OT        ST        OT          ST        OT
-------------------

<S>                               <C>       <C>       <C>       <C>       <C>       <C>         <C>       <C>
Field Engineering Service         $190.00   $285.00   $220.00   $330.00   $210.00   $315.00     $240.00   $360.00
Lead Field Eng. Service           $216.00   $324.00   $250.00   $375.00   $242.00   $363.00     $280.00   $420.00
Specialty Field Eng. Service      $226.00   $339.00   $260.00   $390.00   $258.00   $387.00     $300.00   $450.00
Site Management Service           $262.00   $393.00   $302.00   $453.00
Consulting Analyst Service        $262.00   $393.00   $302.00   $453.00
</TABLE>

Note 1 *: Advanced Commitment Rates apply for purchase orders received at least
          90 days prior to start of service

Note 2**: Peak Rates are for T&M work during peak period (3/1 to 5/31).

                      INSTALLATION AND MAINTENANCE SERVICES

FIELD ENGINEERING: This service is defined as technical advice and counsel from
field personnel based on good engineering, manufacturing, installation and
operation practices as applicable to the equipment. To the extent specified
during performance of work, such services may also include testing, adjustment,
programming and other similar services. Field Engineering Service does not
include supervision or management of Purchaser's employees, agents, or other
contractors.

LEAD FIELD ENGINEERING: This service includes responsibility for the direction
of the activities of one or more field engineers during the erection, assembly,
check-out, start-up, maintenance, inspection, or repair of equipment and
systems.

SITE MANAGEMENT: This service includes all management responsibilities including
planning, organizing, integrating and monitoring of resources such as labor,
supervisors, tools and technical assistants as required to complete the
workscope.

                               SPECIALITY SERVICES

GENERATOR: Specialists experienced in the inspection, test and repair of
generator equipment.

LASER ALIGNMENT: Specialists utilizing GE proprietary digital laser alignment
equipment, technology, and GE fleet data, to optimize internal component
alignment and potentially provide significant reductions in outage duration over
conventional alignment methods.

GAS/STEAM PATH AUDIT: Specialists skilled at inspecting and determining the
thermodynamic losses on a stage by stage basis of the turbine steam/gas path.
Results of the inspection give the financial benefits of repairs or replacement
parts that allow an operating plant to make repair/replacement decisions during
the outage.

START-UP/CONTROLS: Specialists skilled at performing start-up and
troubleshooting of gas and steam turbine control systems.

GAS TURBINE DLN: Specialists skilled in the proper methods required for tuning
Dry Low NOx (DLN) systems to optimize reductions in gas turbine emissions and
extension of combustion system components life expectancy.

EXCITATION: Specialists skilled in the start-up and troubleshooting of
excitation systems interfacing circuits, breakers, and power systems.

VIBRATION: Specialists experienced in the areas of vibration data acquisition,
analysis, and having the skills required to perform a diagnostic balance
program, make recommendations and install balance weights.

STATIC STARTER (LCI): Specialists skilled in start-up and troubleshooting of
static start, load commutating inverter (LCI) equipment.

EMERGENT TECHNOLOGY: Specialists skilled in an area involving new technology
that is not specifically covered by the Specialist categories listed above.

CONSULTING ANALYST: Technical assistance of personnel not normally classified as
field personnel for the solution of problems that require highly specialized
background and experience.
<PAGE>
DIAGNOSTICS: Specialists skilled in performance of diagnostic tests and
diagnostic data analysis, such as plant evaluations and general consulting for
plant performance issues.

PROFESSIONAL WITNESS: Technical direction and coordination of performance tests
not conducted by GE

NOTES:

2.   The normal workweek is five consecutive eight-hour days. Time in excess of
     the normal workweek and GEII holidays will be billed at the overtime rate.

2.   Travel time will be charged at the applicable hourly rate from the Field
     Engineer's point of origin to the job site and return.

3.   Travel and Living (T&L) for the Continental U.S.A. will be billed, as
     follows, for any portion of a day worked and based on the distance traveled
     by the GEII field representative responsible for providing the service,:

<TABLE>
<S>               <C>                       <C>
                  40 miles or less:         $90.00 per day per employee
                  Greater than 40 miles:    $180.00 per day per employee
                  Air Travel                Cost plus 15% administrative adder
</TABLE>

4.   T&L for Alaska, Hawaii and international locations, including air travel,
     will be billed at cost plus 15% administration fee.

5.   Purchased Craft Labor & Materials (PL&M) will be billed at cost plus 15%.

6.   Consult with the local GEII office to determine any taxes, fees, or VAT
     that may be in addition to the above rates.

7.   Consult with local GEII office to determine applicable charges for special
     tooling and/or test equipment.

Minimum of 4 hours of billing for all services provided.

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