<SUBMISSION>
<ACCESSION-NUMBER>0001021635-03-000070
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>1
<PERIOD>20030818
<ITEMS>5
<ITEMS>7
<FILING-DATE>20030820
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>OGE ENERGY CORP
<CIK>0001021635
<ASSIGNED-SIC>4911
<IRS-NUMBER>731481638
<STATE-OF-INCORPORATION>OK
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-12579
<FILM-NUMBER>03858294
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>321 N HARVEY
<STREET2>P O BOX 321
<CITY>OKLAHOMA CITY
<STATE>OK
<ZIP>73101-0321
<PHONE>4055533000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>321 N HARVEY
<STREET2>P O BOX 321
<CITY>OKLAHOMA CITY
<STATE>OK
<ZIP>73101-0321
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>oge8k081803.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>8-K 081803</TITLE>
</HEAD>
<BODY>




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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>FORM 8-K </FONT></H1><BR><BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>SECURITIES AND EXCHANGE COMMISSION</FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>Washington, D.C. 20549</FONT></P><BR><BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5>CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)<BR>
OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></H1><BR><BR><BR><BR><BR>




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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Date of Report (Date of earliest
event reported): August 18, 2003</FONT></P><BR><BR><BR><BR>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Commission file number
1-12579</FONT></P><BR><BR><BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=5><B>OGE ENERGY CORP.</B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Exact name of registrant as specified in its charter)</FONT></P><BR>


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     <TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oklahoma<BR>
(State or other jurisdiction of<BR>
incorporation or organization)</FONT></TD>
     <TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">73-1481638<BR>
(I.R.S. Employer<BR>
Identification No.)</FONT></TD></TR>
</TABLE><BR><BR>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>321 North Harvey<BR>
P.O. Box 321<BR>
Oklahoma City, Oklahoma 73101-0321<BR>
(Address of principal executive offices)<BR>
(Zip Code)</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>405-553-3000<BR>
(Registrant&#146;s telephone number, including area code)</FONT></P><BR>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 5. Other Events </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OGE
Energy Corp. (the &#147;Company&#148;) is the parent company of Oklahoma Gas and Electric
Company (&#147;OG&amp;E&#148;), a regulated electric utility with approximately 720,000
customers in Oklahoma and western Arkansas and Enogex Inc. and its subsidiaries
(&#147;Enogex&#148;), a natural gas pipeline company with principal operations in Oklahoma
and Arkansas. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 18, 2003, OG&amp;E signed an asset purchase agreement to acquire NRG McClain LLC's 77 percent
interest in the 520 megawatt ("MW") NRG McClain Station.  The purchase price for the interest in the
plant is approximately $159.9 million, subject to adjustment for prepaid gas and property taxes. The
plant includes gas-fired combined cycle combustion turbine units and is located near Newcastle,
Oklahoma in McClain County, Oklahoma. The plant began operating in 2001. The owner of the remaining
23 percent in the plant is the Oklahoma Municipal Power Authority (&#147;OMPA&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closing
is subject to customary conditions including receipt of regulatory approval by the FERC.
Because the current owner of the plant has filed for bankruptcy protection, the
acquisition also is subject to approval by the bankruptcy court. The Company expects that
as part of the bankruptcy approval process, NRG McClain LLC&#146;s interest in the plant
will be subject to an auction process to be approved by the bankruptcy court. Although NRG
McClain has reached an agreement with its secured lenders and the creditors&#146;
committee for its parent, NRG Energy, on the sale of the plant, these and other NRG
McClain LLC&#146;s creditors can object to the asset purchase agreement and the auction
under certain conditions. The Company cannot guarantee the terms of the auction process or
that OG&amp;E will be the winning bidder in the auction or that OG&amp;E may not raise the
price it proposes to pay for the power plant. Assuming the bankruptcy court approves the
sale on a timely basis, the Company anticipates that the acquisition will be completed no
later than December 1, 2003. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following
the acquisition, OG&amp;E expects to operate the plant in accordance with a joint
ownership and operating agreement with the OMPA that is in the process of being
negotiated. Under this agreement, OG&amp;E would operate the facility, and OG&amp;E and
the OMPA would be entitled to the net available output of the plant based on their
respective ownership percentage. All fixed and variable costs would be shared in
proportion to the respective ownership interests. OG&amp;E expects to utilize its portion
of the output, 400 MWs, to serve its native load. OG&amp;E will file with the OCC a request
to increase its base rates to recover its investment in, and the operating expenses of,
the plant. As provided in its most recent rate settlement with the OCC, pending approval
of the request to increase base rates to recover the investment in the plant, OG&amp;E
will have the right to accrue a regulatory asset, for a period not to exceed 12 months
subsequent to the acquisition, consisting of the non-fuel operation and maintenance
expenses, depreciation, cost of debt associated with the investment and ad valorem taxes.
Upon approval by the OCC of OG&amp;E&#146;s request, all prudently incurred costs accrued
through the regulatory asset within the 12 month period will be included in
OG&amp;E&#146;s prospective cost of service. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
part of its most recent rate settlement with the OCC, OG&amp;E undertook to acquire
electric generating capacity of not less than 400 MWs. The acquisition of a 77 percent
interest in</FONT></P>


<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2> the NRG McClain Station would constitute an acquisition of such generation
under the recent OCC settlement order. OG&amp;E expects this new generation will provide
savings, over a three-year period, in excess of $75.0 million to its Oklahoma customers.
These savings will be derived from: (i) the avoidance of purchase power contracts
otherwise needed; (ii) replacing an above market cogeneration contract when it can be
terminated at the end of August 2004; and (iii) fuel savings associated with operating
efficiencies of the new plant. These savings, while providing real savings to Oklahoma
customers are not expected to effect the profitability of OG&amp;E because OG&amp;E&#146;s
rates would not need to be reduced to accomplish these savings. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
indicated above, the decision of OG&amp;E with respect to the purchase of this new
generation will be subject to a review by the OCC as a part of a general rate case for the
purpose of determining the level of just and reasonable costs associated with the new
generation to be included in customers&#146; rates. The OCC&#146;s review is expected to
include, but not be limited to, an analysis and review of the alternatives to purchasing
the new generation, the amount paid for such new generation and the level of capacity
purchases. OG&amp;E will provide monthly reports, for a period of 36 months after the
acquisition, to the OCC Staff, documenting and providing proof of savings experienced by
OG&amp;E&#146;s customers. In the event OG&amp;E is unable to demonstrate at least $75.0
million in savings to its customers during this 36-month period, OG&amp;E will have an
obligation to credit its Oklahoma customers any unrealized savings below $75.0 million as
determined at the end of the 36-month period, which shall be no later than December 31,
2006. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event OG&amp;E does not acquire the new generation by December 31, 2003, the
settlement order requires OG&amp;E to credit $25.0 million annually (at a rate of 1/12 of
$25.0 million per month for each month that the new generation is not in place) to its
Oklahoma customers beginning January 1, 2004 and continuing through December 31, 2006.
However, if OG&amp;E purchases the new generation subsequent to January 1, 2004, the
credit to Oklahoma customers will terminate in the first month that the new generation
begins initial operations and any previously-credited amounts to Oklahoma customers will
be deducted in the determination of the $75.0 million targeted savings. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OG&amp;E
expects to fund the acquisition with a combination of a capital contribution from the
Company and the issuance of long-term debt. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
press release announcing the execution of the purchase agreement is attached hereto as
Exhibit 99.01. Also, attached as Exhibit 2.01 is the Asset Purchase Agreement dated August
18, 2003 between OG&amp;E and NRG McClain LLC. </FONT></P>

<PAGE>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 7. (c) Exhibits </FONT></H1>



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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;<u>Exhibit Number</u></FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><u>Description</u></FONT><BR><BR></TH></TR>
<TR VALIGN="TOP">
     <TD ALIGN=CENTER WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">2.01</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="70%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Asset Purchase Agreement, dated as of August 18, 2003
by and between<BR> OG&amp;E and NRG McClain LLC (Certain exhibits and schedules hereto have<BR>
been omitted and the registrant agrees to furnish supplementally a<BR>
copy of such omitted exhibits and schedules to the Commission upon<BR>
request).</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">99.01</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Press release dated August 19, 2003, announcing OG&amp;E to acquire 77%<BR>
Interest in McClain Power Plant.</FONT></TD></TR>
</TABLE>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>SIGNATURE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned thereunto duly authorized. </FONT></P>


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     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="4"><B>OGE ENERGY CORP.</B></FONT><BR>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">(Registrant)</FONT><BR><BR><BR><BR><BR></TD>
</TR>
<TR VALIGN="TOP">
     <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By</FONT></TD>
     <TD WIDTH=55%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ &nbsp;Donald R. Rowlett</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Donald R. Rowlett<BR>
Vice President and Controller<BR>
<BR>
(On behalf of the registrant and in his<BR>
capacity as Chief Accounting Officer)</FONT></TD></TR>
</TABLE>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>August 18, 2003 </FONT></P>


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<H1 ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit 2.01</FONT></H1>
<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSET PURCHASE AGREEMENT<BR>
DATED AS OF AUGUST 18, 2003 </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BY AND BETWEEN </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OKLAHOMA GAS AND
ELECTRIC COMPANY </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NRG McCLAIN LLC </FONT></H1>


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<TR VALIGN=Bottom>
     <TH COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS</FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT>Page</TH></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I</FONT></TD>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTAIN DEFINITIONS</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SALE OF ASSETS; CLOSING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase and Sale</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained Assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consideration</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deliveries by Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deliveries by Buyer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time and Place of Closing</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proration for Certain Prepaids</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Price Allocation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assumed Liabilities</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained Liabilities</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre- and Post-Closing Accounts Receivable</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nonassignable Items</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REPRESENTATIONS AND WARRANTIES OF SELLER</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organization; Authorization; Etc</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Conflict</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consents and Approvals</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership of Purchased Assets</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Labor Matters</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Orders</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller's Contracts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permits and Licenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Owned Real Property</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Applicable Laws and Regulations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee Benefit Plans</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warranty Matters</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax Matters</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
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     <TH COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS</FONT></TH>
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     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(continued)</FONT></TD>
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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT>Page</TH></TR>
<TR>
<TD>&nbsp;</TD>
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     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.17</FONT></TD>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.18</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Workers Compensation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.19</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.20</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokers, Finders, Etc</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.21</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Absence of Changes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.22</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Status</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REPRESENTATIONS AND WARRANTIES OF BUYER</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
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<TD>&nbsp;</TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporation; Authorization; Etc</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Conflict</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Brokers, Finders, Etc</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent, Approvals or Authorizations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financing</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Absence of Regulation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Knowledge of Seller Breach</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due Diligence Investigation and Other Acknowledgments</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COVENANTS OF SELLER AND BUYER</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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<TD>&nbsp;</TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conduct of Business Before the Closing Date</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investigation of Business; Access to Properties and Records</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bankruptcy Actions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bidding Procedures</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulatory Approvals</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignment of Contracts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cure of Defaults</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further Assurances</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adequate Assurances Regarding Executory Contracts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Under Contracts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Public Announcements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NRG Marks</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TH COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS</FONT></TH>
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     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(continued)</FONT></TD>
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     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT>Page</TH></TR>
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<TD>&nbsp;</TD>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Efforts to Close</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.15</FONT></TD>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bulk Sale</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title Insurance</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survey</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.18</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Solicitation of Transactions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
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     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.19</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.20</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contracts Schedule</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VI</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EMPLOYEE BENEFITS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee-Related Matters</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VII</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TAX MATTERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction Taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property Taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cooperation on Tax Matters</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VIII</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDITIONS TO BUYER'S OBLIGATION TO CLOSE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations, Warranties and Covenants of Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filings; Consents; Waiting Periods</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry of Orders By Bankruptcy Court</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assignment of Key Contracts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Material Adverse Effect</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Foreign Person Affidavit</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IX</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONDITIONS TO SELLER'S OBLIGATION TO CLOSE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representations, Warranties and Covenants of Buyer</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Filings; Consents; Waiting Periods</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entry of Orders By Bankruptcy Court</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE X</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DISCLAIMERS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclaimers</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
</TABLE>

<PAGE>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=700>
<TR VALIGN=Bottom>
     <TH COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TABLE OF CONTENTS</FONT></TH>
</TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(continued)</FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT>Page</TH></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specific Performance</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.3</FONT></TD>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survival After Closing</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE XI</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[INTENTIONALLY OMITTED]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE XII</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TERMINATION</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Procedure and Effect of Termination</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE XIII</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>MISCELLANEOUS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR>
<TD>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Governing Law</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severability</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forum Selection and Consent to Jurisdiction</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted]</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement; Third-Party Beneficiaries</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Headings; Definitions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendments and Waivers</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interpretation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electronic Signatures</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Arbitration</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50&nbsp;</FONT></TD></TR>
</TABLE>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>ASSET PURCHASE
AGREEMENT</U></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
ASSET PURCHASE AGREEMENT (this &#147;<U>Agreement</U>&#148;),
dated as of August 18, 2003, is made by and between NRG McClain LLC, a Delaware limited
liability company (&#147;<U>Seller</U>&#148;), and Oklahoma Gas and Electric Company, an
Oklahoma corporation (&#147;<U>Buyer</U>&#148;). </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preliminary Statements </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller owns a 77% undivided
interest as a tenant in common (with the Oklahoma Municipal Power Authority, a
governmental agency and body politic and corporate of the State of Oklahoma
(&#147;<U>OMPA</U>&#148;) owning the remaining 23% undivided interest) in an approximately
520 MW gas-fired combined cycle electric generating facility primarily located in McClain
County, Oklahoma (including all equipment, electrical transformers, pipeline and
electrical interconnection facilities (including water discharge facilities and water
injection facilities) related thereto, the &#147;<U>Power Plant</U>&#148;), and is engaged
in the business of generating and selling electric power therefrom (the
&#147;<U>Business</U>&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller desires to sell
substantially all of its assets, properties, rights and interests, including its interest
in the Power Plant, to Buyer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Buyer desires to purchase
and acquire from Seller, upon the terms and subject to the conditions hereinafter set
forth, substantially all assets, properties, rights and interests of Seller used or useful
in connection with the operation of the Business, but specifically excluding the Retained
Assets and the Retained Liabilities (each as defined below), in consideration of certain
payments by Buyer and the assumption by Buyer of specified liabilities and obligations of
Seller specifically disclosed in this Agreement (such purchase, the &#147;<U>Asset
Purchase</U>&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller has filed, or the
Business Day after the execution and delivery of this Agreement by the parties hereto will
file, a voluntary petition initiating a case under chapter 11 of the Bankruptcy Code in
the Bankruptcy Court (the &#147;<U>Case</U>&#148;) and intends that the transactions
contemplated by this Agreement shall be implemented through the filing of a motion for the
sale of such assets (other than the Retained Assets) pursuant to Sections&nbsp;363 and 365
of the Bankruptcy Code in accordance with the terms of this Agreement, in which case the
consummation of such sale shall be subject to the entry by the Bankruptcy Court of the
Approval Order (as defined below), approving such sale. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until the closing of the
Asset Purchase, Seller intends to continue in the management and possession of its
properties as a debtor in possession in the Case pursuant to Sections&nbsp;1107(a) and
1108 of the Bankruptcy Code and subject to the terms and conditions of this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the premises and
the mutual covenants hereinafter contained and other good and valuable consideration had
and received, Buyer and Seller, on the basis of, and in</FONT></P>


<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>reliance upon, the
representations, warranties, covenants, obligations and agreements set forth in this
Agreement, and upon the terms and subject to the conditions contained herein, hereby agree
as follows: </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I<BR>
Certain Definitions </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this Agreement, the
following terms shall have the following respective meanings: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>AAA</U>&#148; has the meaning
set forth in <U>Section 13.14(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>AAA Rules</U>&#148; has the
meaning set forth in <U>Section 13.14(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Accounts
Receivable</U>&#148; means: (i) all of Seller&#146;s trade and other accounts and notes
receivable; and (ii) subject to <U>Section 5.12</U>, all rights, claims, and benefits
under all performance bonds, surety bonds, and Insurance Policies. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Acquisition
Proposal</U>&#148; means a proposal involving a third party (other than Buyer or any of
its Affiliates) and Seller or any of its Affiliates relating to any merger, consolidation,
business combination, sale of all or substantially all of Seller&#146;s assets, sale of
equity interests or any restructuring, recapitalization, investment, or similar
transaction (whether through a plan of reorganization or otherwise) involving Seller or
any significant portion of the assets or Business to be purchased by Buyer pursuant to
this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; (and,
with a correlative meaning, &#147;Affiliated&#148;) 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 first Person. As used in this
definition, &#147;control&#148; (including, with correlative meanings, &#147;controlled
by&#148; and &#147;under common control with&#148;) mean possession, directly or
indirectly, of power to direct or cause the direction of management or policies (whether
through ownership of securities or partnership or other ownership interests, by contract
or otherwise). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; has the
meaning set forth in the initial paragraph hereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Alternative
Transaction</U>&#148; has the meaning ascribed to it in the Sale Motion and shall include,
without limitation, a Recapitalization. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Approval Order</U>&#148; has
the meaning set forth in <U>Section&nbsp;5.3(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Asset Purchase</U>&#148; has the
meaning set forth in the Preliminary Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assumed
Liabilities</U>&#148; has the meaning set forth in <U>Section&nbsp;2.9</U>. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bankruptcy Code</U>&#148;
means title 11 of the United States Code, 11 U.S.C. &sect;&sect;101-1330, as now in effect
or hereafter amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bankruptcy Court</U>&#148;
means the United States Bankruptcy Court for the Southern District of New York. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bidding Procedures</U>&#148;
has the meaning given such term in <U>Section 5.4</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bidding Procedures
Order</U>&#148; has the meaning given such term in <U>Section&nbsp;5.3(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Books and Records</U>&#148;
means all of Seller&#146;s files and records (or copies of relevant portions thereof)
relating to the Purchased Assets, the Assumed Liabilities, or the operations of the
Business as of or prior to the Closing Date, including without limitation all documents,
drawings, reports, operating data, operating safety and maintenance manuals, inspection
reports, engineering design plans, blueprints, specifications and procedures, and similar
items, but only insofar as the same are not Retained Books and Records or may be disclosed
without (a)&nbsp;violating any legal constraints or obligations regarding the
confidentiality thereof, provided all such materials excluded from the definition of
&#147;Books and Records&#148; pursuant to this clause (a) are described on <U>Schedule
2.2(e)</U>, (b) waiving any attorney/client, work product, or like privilege, (c)
disclosing information about the activities of Seller or its Affiliates that is unrelated
to the Power Plant or the Business, or (d)&nbsp;disclosing confidential proprietary models
or other information of Seller or any of its Affiliates pertaining to energy project
evaluation, energy or natural gas price curves or projections, or other economic
predictive models, which excluded files and records shall be deemed Retained Books and
Records. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business</U>&#148; has the
meaning given such term in the Preliminary Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means
a day, other than a Saturday or a Sunday, on which commercial banks are not required or
authorized to close in New York City, New York. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Employee</U>&#148;
has the meaning given such term in <U>Section 3.5</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Buyer Required Regulatory
Approvals</U>&#148; means those consents, approvals, filings and notices set forth in
<U>Schedule 4.4</U> that the Buyer must obtain from or make with any Governmental
Authority in connection with the transactions contemplated by this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Case</U>&#148; has the
meaning given such term in the Preliminary Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Cash</U>&#148; means all
cash, time deposits, certificates of deposit, marketable securities, short-term
investments and other cash equivalents of Seller, but excluding any Prepaid Items. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>CERCLA</U>&#148; means the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C.
&sect; 9601 et seq., as amended. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>
<PAGE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Chapter 11
Expenses</U>&#148; means the costs incurred and expenses paid or payable by Seller or any
Affiliate in connection with the administration of the Case, including, without
limitation: (a) fees and expenses related to any debtor-in-possession financing, (b)
obligations to pay professional and other fees and expenses in connection with the Case
(including, without limitation, fees of attorneys, accountants, investment bankers,
financial advisors, noticing agents, and consultants retained by Seller or any Affiliate
thereof, any creditors&#146; or equity holders&#146; committee, or any debtor-in-possession
or pre-petition lender, and any compensation for making a substantial contribution to the
Case), (c) fees and expenses payable to the United States Trustee or the Clerk of the
Bankruptcy Court under Section&nbsp;1930 of title 28, United States Code, and (d) expenses
of members of any creditors&#146; or equity holders&#146; committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing</U>&#148; has the
meaning set forth for such term in <U>Section&nbsp;2.6</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Closing Date</U>&#148; has
the meaning set forth for such term in <U>Section&nbsp;2.6</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; means the
Internal Revenue Code of 1986, as amended, and any successor thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Contracts</U>&#148; means
(a) all existing contracts, agreements and commitments, whether written or oral, of Seller
and (b) all contracts, agreements and commitments, whether written or oral, of Seller that
are entered into between the date of this Agreement and the Closing Date in compliance
with <U>Section 5.1</U> or, if not entered into in compliance with <U>Section 5.1</U>, are
consented to in writing by Buyer after the date of this Agreement. Notwithstanding the
foregoing or the contents of any Schedule to this Agreement, &#147;Contracts&#148; shall
not include any Excluded Contracts. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Debt</U>&#148; of any
specified Person means: (a) any and all liabilities and obligations of any Person
(i)&nbsp;for borrowed money (including the current portion thereof), (ii) under or related
to any reimbursement obligation relating to a letter of credit, bankers&#146; acceptance
or note purchase facility, (iii)&nbsp;evidenced by a bond, note, debenture or similar
instrument (including a purchase money obligation), (iv) for the payment of money relating
to a lease or instrument that is required to be classified as a capitalized/finance lease
obligation in accordance with GAAP, (v)&nbsp;for all or any part of the deferred purchase
price of property or services (other than trade payables), (vi) under or related to any
DIP Arrangement, and (vii) under or related to any agreement that is an interest rate swap
agreement, basis swap, forward rate agreement, commodity swap, commodity option, equity or
equity index swap or option, bond option, interest rate option, forward foreign exchange
agreement, rate cap, collar or floor agreement, currency swap agreement, cross-currency
rate swap agreement, swaption, currency option or other similar agreement (including any
option to enter into any of the foregoing), and (b) any and all liabilities and
obligations of others described in the preceding clause (a) that such Person has
guaranteed or that is recourse to such Person or any of its assets or that is otherwise
its legal liability or that is secured in whole or in part by the assets of such Person.
For purposes of this Agreement, Debt shall include any and all accrued interest, success
fees, prepayment premiums, make-whole premiums or penalties, and fees or expenses
(including, without limitation, attorneys&#146; fees) associated with any Debt. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>DIP Arrangement</U>&#148;
means a debtor-in-possession financing facility or cash collateral arrangement in the Case
for Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Effective Time</U>&#148; has
the meaning given such term in <U>Section 2.1</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Emission
Allowances</U>&#148; means all authorizations to emit specified units of pollutants or
Hazardous Substances from the Power Plant, which units are established by the Governmental
Authority with jurisdiction over the Power Plant under (a)&nbsp;an air pollution control
and emission reduction program designed to mitigate global warming or interstate or
intrastate transport of air pollutants, (b)&nbsp;a program designed to mitigate impairment
of surface waters, watersheds, or groundwater, or (c)&nbsp;any pollution reduction program
with a similar purpose, in each case regardless of whether the Governmental Authority
establishing such authorizations designates such authorizations by a name other than
&#147;allowances.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee Benefit
Plans</U>&#148; has the meaning given such term in <U>Section 3.14(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental
Condition</U>&#148; means any event, circumstance or condition, whether discovered or
undiscovered as of the Closing Date, related in any manner whatsoever to: (i)&nbsp;the
past, continuing, or current presence, Release or threatened Release of material amounts
of any Hazardous Substance into the environment or any building, structure, or workplace,
in violation of any Environmental Law; (ii)&nbsp;the presence of any Hazardous Substance
on or under the Owned Real Property, or any building or structure thereon, which presence
either: (A)&nbsp;is not in material compliance with any Environmental Law; or
(B)&nbsp;causes Buyer to be subject to any material liability or any obligation to
investigate, remediate, or remove such Hazardous Substance under any Environmental Law;
(iii)&nbsp;the past, continuing, or current Release, threatened Release, transportation,
arrangement for transportation, treatment, storage, or disposal of any material amounts of
any Hazardous Substance originating on or from the Owned Real Property to or at any
off-site location; (iv) the placement of structures or materials into waters of the United
States; (v) the presence of friable asbestos; or (vi) any material violation by Seller or
any of its Affiliates of any Environmental Law existing as of the Closing Date or arising
from conditions existing as of or prior to the Closing Date (including, but not limited
to, the revocation of or failure to possess any required permits or licenses). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Law</U>&#148;
means all Laws relating to pollution or protection of the environment, natural resources
or human health and safety, as the same may be amended or adopted, including, without
limitation, laws relating to Releases or threatened Releases or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, transport, disposal or
handling of Hazardous Substances, including: CERCLA; the Resource Conservation and
Recovery Act of 1976, 42 U.S.C. Sections 6901 <U>et</U>&nbsp;<U>seq</U>.; the Federal
Water Pollution Control Act, 33 U.S.C. Sections 1251 <U>et</U> <U>seq</U>.; the Clean Air
Act, 42 U.S.C. Sections 7401 <U>et</U> <U>seq</U>.; the Hazardous Materials Transportation
Act, 49 U.S.C. Sections 1471 <U>et</U> <U>seq</U>.; the Toxic Substances Control Act, 15
U.S.C. Sections 2601 through 2629; the Oil Pollution Act of 1990, 33 U.S.C. Sections 2701
<U>et</U> <U>seq</U>.; the Emergency Planning and Community Right-to-Know Act, 42 U.S.C.
</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sections 11001 <U>et</U> <U>seq</U>.;
the Safe Drinking Water Act, 42 U.S.C. Sections 300f
through 300j; the Occupational Safety and Health Act, 29 U.S.C. Sections 651
<U>et</U>&nbsp;<U>seq</U>.; the Surface Mining Control and Reclamation Act of 1977, 30
U.S.C. Sections 1201 <U>et</U>&nbsp;<U>seq</U>.; any similar laws of the State of Oklahoma
or of any other Governmental Authority having jurisdiction over the site at which the
Power Plant is located or otherwise applicable to the Power Plant, Seller or the
operator(s) thereof; and regulations implementing the foregoing. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental
Reports</U>&#148; means any and all environmental review and assessment reports,
including, but not limited to, Phase I or II environmental site assessments, results of
any environmental sampling and any reports discussing compliance with Environmental Laws,
which Seller has ever caused to be prepared or has ever received within the last five (5)
years with respect to the Power Plant and the Owned Real Property, all of which are
identified on <U>Schedule&nbsp;3.13(c)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; means the
Employee Retirement Income Security Act of 1974, as amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA Affiliate</U>&#148; means
(i) any corporation or other entity included with Seller in a controlled group of
corporations or other entities within the meaning of Section 414(b) of the Code; (ii) any
trade or business (whether or not incorporated) which is under common control with Seller
within the meaning of Section 414(c) of the Code; (iii) any member of an affiliated
service group of which Seller is a member within the meaning of Section 414(m) of the
Code; or (iv) any other person or entity treated as an affiliate of Seller under Section
414(o) of the Code. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Excluded Contracts</U>&#148;
means any and all of the contracts, agreements, and commitments that: are set forth on
<U>Schedule 2.2(j)</U> hereto; evidence Debt (including, without limitation, Debt under or
related to the Prepetition Credit Agreement); relate to any amounts payable to current or
former equityholders or Affiliates of Seller; or are removed by Buyer from <U>Schedule
3.8</U> pursuant to <U>Section 5.6(b)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Executory
Contracts</U>&#148; means all Contracts (including, but not limited to, any Contracts that
are unexpired leases) entered into by or assigned to Seller that are executory (as
provided under the Bankruptcy Code and applicable case law) as of the Petition Date, but
not including the Excluded Contracts. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Existing Survey</U>&#148;
means that certain plat of a survey prepared by Covey Land Surveying, dated October 29,
2001 and last revised on November 29, 2001, covering all or part of the Owned Real
Property. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Existing Title
Policy</U>&#148; means, that certain title policy no. 72004 1602, dated December 3, 2001,
issued by Chicago Title Insurance Company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FERC</U>&#148; means the
Federal Energy Regulatory Commission, or any successor agency thereto. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Final Order</U>&#148; means
an order of the Bankruptcy Court or other court of competent jurisdiction as to which no
stay is in effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>GAAP</U>&#148; means
generally accepted accounting principles in effect in the United States at the time of
application thereof applied on a consistent basis. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Good Utility
Practices</U>&#148; means, with respect to the Business and the Power Plant, any of the
practices, methods and acts generally engaged in or approved by a significant portion of
the independent electric power generation industry during the relevant time period that,
in the exercise of reasonable judgment in light of the applicable manufacturer&#146;s
recommendations and the facts known or that reasonably should have been known at the time
the decision was made, would reasonably have been expected to accomplish the desired
result at a reasonable cost consistent with good business practices, reliability, safety
and expedition. Good Utility Practice is intended to consist of practices, methods or acts
generally accepted in the region where the Power Plant is located, and is not intended to
be limited to optimum practices, methods or acts to the exclusion of all others. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental
Authority</U>&#148; means any federal, state, county, local, municipal or foreign
governmental or administrative agency or political subdivision thereof, any governmental
authority, board, bureau, commission, department or instrumentality, any court or
administrative tribunal, and any Native American tribal council or similar governing
entity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous
Substance</U>&#148; means (a) any petrochemical or petroleum products, radioactive
materials, radon gas, asbestos in any form, urea formaldehyde foam insulation and
transformers or other equipment that contain dielectric fluid that may contain
polychlorinated biphenyls, (b) any chemicals, materials or substances, whether solids,
liquids, semi-liquids or gas, defined as or included in the definition of &#147;hazardous
substances,&#148; &#147;hazardous wastes,&#148; &#147;hazardous materials,&#148;
&#147;hazardous constituents,&#148; &#147;restricted hazardous materials,&#148;
&#147;extremely hazardous substances,&#148; &#147;toxic substances,&#148;
&#147;contaminants,&#148; &#147;pollutants,&#148; &#147;irritants,&#148; &#147;toxic
pollutants&#148; or words of similar meaning and regulatory effect under any applicable
Environmental Law, and (c) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any applicable Environmental Law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>HSR Act</U>&#148; means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Insurance Policies</U>&#148;
has the meaning given such term in <U>Section 3.17</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Intellectual
Property</U>&#148; has the meaning given such term in <U>Section 3.7</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Interconnect Point</U>&#148;
has the meaning given such term in <U>Section 2.1(j)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Inventories</U>&#148; means
all of Seller&#146;s inventory, including fuel, chemical and gas inventories, materials,
supplies, and spare parts, whether on hand or in transit. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IRS</U>&#148; means the
Internal Revenue Service. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Key Contracts</U>&#148; means
those Contracts listed on <U>Schedule 8.4</U> hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Knowledge</U>&#148; means
(a) in the case of Seller, all information that is actually known by any of the following
individuals: George Schaefer, Kurt Reuman, Jim Milkovich, David Lloyd, Michael Manning and
John R. Whiteley, and all individuals who, after the date hereof, replace any such person
in such person&#146;s employment position with Seller or an Affiliate thereof; and (b) in
the case of Buyer, all information that is actually known by any of the following
individuals: Peter Delaney, Jesse Langston and Leon Howell. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Law</U>&#148; means any law
(including common law), statute, regulation, ordinance, rule, order, decree, judgment,
consent decree, settlement agreement or governmental requirement enacted, promulgated,
entered into, agreed or imposed by any Governmental Authority. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Licenses</U>&#148; means all
governmental licenses, permits, franchises and other authorizations of any Governmental
Authority set forth on <U>Schedule 3.10</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lien</U>&#148; means any
security interest, pledge, mortgage, lien, charge, encumbrance, conditional sale
agreement, title retention contract, right of first refusal, option to purchase, proxy,
voting trust or voting agreement or any similar interest. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Loss</U>&#148; and
&#147;<U>Losses</U>&#148; means any and all liabilities, damages, losses, deficiencies,
interest, claims, actions, demands, causes of action, judgments, settlements, fines, costs
and expenses (including, without limitation, reasonable attorney&#146;s fees,
accountants&#146; fees and all other expenses incurred in investigating, preparing or
defending any litigation or proceeding, commenced or threatened, but excluding punitive,
special, incidental and consequential damages). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse
Effect</U>&#148; means any change or effect that is, individually or in the aggregate,
materially adverse to the business, condition, assets, properties or operations of Seller,
the Power Plant or the Business, taken as a whole, other than: (a)&nbsp;the mere filing or
commencement of the Case; (b) any change or effect resulting from the announcement by
Seller of its intention to sell the Purchased Assets to Buyer; (c) any change (or changes
taken together) or effect (i) generally affecting the international, national or regional
or local electric generating, transmission or distribution industry as a whole, (ii)
resulting from changes in the international, national, regional or local wholesale or
retail markets for electric power, (iii) resulting from changes in the international,
national, regional or local fuel markets for the type of fuel used at the Power Plant,
(iv) on the North American, national, regional or local electric transmission or
distribution systems or (v) resulting from changes in the general national or regional
economic or financial conditions; (d)&nbsp;any change in Law, or any judgments, orders or
decrees that apply generally to all similarly situated Persons; or (e) any order or act of
any Governmental Authority applicable to providers of generation, transmission or
distribution of electricity generally. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Contracts</U>&#148;
has the meaning given such term in <U>Section 3.8</U>. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Nonassignable Item</U>&#148; has
the meaning given such term in <U>Section 2.12</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>NRG Marks</U>&#148; means
the names and marks &#147;NRG Energy&#148; and &#147;NRG,&#148; together with all
derivations and variations thereof, and the NRG Energy corporate logo, together with all
derivations or variations thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Objections</U>&#148; has the
meaning given such term in <U>Section 5.2(e)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>OCC</U>&#148; means the
Oklahoma Corporation Commission, or any successor agency thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>O&amp;O Agreement</U>&#148;
means the Ownership and Operating Agreement for the McClain Generating Facility by and
between OMPA and Seller (f/k/a Duke Energy McClain, LLC), dated as of March&nbsp;1, 2001,
as amended by the first amendment thereto dated as of August&nbsp;31, 2001 and the second
amendment thereto dated as of November&nbsp;28, 2001. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>OMPA</U>&#148; has the
meaning given such term in the Preliminary Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Optional
Procedures</U>&#148; has the meaning set forth in <U>Section 13.14(c)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ordinary Course</U>&#148;
means the ordinary and normal course of Seller&#146;s conduct of the Business consistent
with past practice employed by Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Owned Real
Property</U>&#148; means the undivided ownership interest in and to the real property,
including any easements, rights-of-way and servitudes, identified in <U>Schedule 3.11</U>
hereto, together with a like undivided interest in and to all buildings, structures and
improvements thereon (including the Power Plant), but only to the extent such buildings,
structures and improvements constitute fixtures under applicable Law. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Liens</U>&#148;
means all (a) Liens that are set forth on <U>Schedule 3.4<B></B></U><B> </B>hereto, the
terms and provisions of the Contracts listed on <U>Schedule 3.8</U> (without giving effect
to any deletion from such schedule pursuant to <U>Section 5.6(b)</U>) and Licenses listed
on <U>Schedule 3.10</U>, and the other matters specifically described as Liens or
potential Liens referred to in <U>Schedules 3.12 </U>and <U>3.13(b)</U>; (b) Liens for
Taxes and other governmental charges and assessments which are not yet due and payable, or
Taxes the validity of which is being contested in good faith by appropriate proceedings
and listed on <U>Schedule 3.12</U>; (c) exceptions set forth in the Existing Title Policy
and all matters shown on the Existing Survey which are not otherwise a Permitted Lien
under another clause of this definition, together with any exceptions set forth in the
Title Report that become Permitted Liens pursuant to <U>Section 5.2(e)</U>; (d)
exceptions, restrictions, easements, charges, rights-of-way and monetary and nonmonetary
encumbrances which are set forth in any License; (e) mechanics&#146;, carriers&#146;,
workers&#146;, repairers&#146; and other similar Liens arising or incurred in the Ordinary
Course and not yet due and payable, or which are being contested in good faith by
appropriate proceedings and listed in <U>Schedule 3.12</U>; (f) zoning, entitlement,
conservation restriction and other land use and environmental regulations of any
Governmental Authority;</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g)&nbsp;restrictions and regulations imposed by any Governmental
Authority or any local, state, regional, national or international reliability council, or
any independent system operator or regional transmission organization with jurisdiction
over either Seller or the Power Plant; (h)&nbsp;Liens in favor of the Prepetition Lenders
securing obligations under the Prepetition Credit Agreement, and any instruments and
agreements executed in connection therewith, but only to the extent that such Liens are
released from the Purchased Assets at or prior to Closing; (i) the Seller Required
Consents and Seller Required Regulatory Approvals; and (j) such other Liens or
imperfections in or failures of title that would not, individually or in the aggregate,
materially detract from the value or use of the Purchased Assets, taken as a whole. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means any
individual, firm, corporation, partnership, limited liability company, joint venture,
association, estate, trust, Governmental Authority or body or other entity, and shall
include any successor (by merger or otherwise) of such Person. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Personal Property</U>&#148;
means all of the personal property (excluding Inventories) of Seller used or held for use
by Seller, including, without limitation, all machinery, furniture, fixtures, equipment,
computer hardware, vehicles, lubricants, chemicals, filters, fittings, connectors, seals,
gaskets, tools, special tools, dies, construction in progress, and repair and replacement
parts (except to the extent disposed of in the Ordinary Course prior to the Closing Date
or otherwise at the direction of the Bankruptcy Court), and such additional items of
personal property as are acquired prior to the Closing Date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Petition Date</U>&#148;
means the date on which Seller files a voluntary petition initiating a case under chapter
11 of the Bankruptcy Code in the Bankruptcy Court. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Power Act</U>&#148; means
the Federal Power Act of 1935, as amended, and the rules and regulations promulgated
thereunder. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Power Plant</U>&#148; has
the meaning given such term in the Preliminary Statements. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prepaid Estimate</U>&#148;
has the meaning given such term in <U>Section 2.7(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prepaid Items</U>&#148;
means all of the prepaid expenses, advance payments, surety accounts, deposits and other
similar assets of Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prepetition Credit
Agreement</U>&#148; means the credit agreement, dated as of November 28, 2001, among NRG
McClain LLC, WestLB AG, New York Branch (formerly known as Westdeutsche Landesbank
Girozentrale, New York branch), as agent and collateral agent, and the lenders party
thereto, as such credit agreement has been and may be amended, supplemented, restated or
otherwise modified. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Prepetition
Lenders</U>&#148; means the Persons (other than Seller and its Affiliates) from time to
time that are parties to the Prepetition Credit Agreement. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Property Tax</U>&#148; means
any ad valorem, personal property, real property or similar Tax, liability for which
arises from ownership of a Purchased Asset. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchased Assets</U>&#148;
has the meaning set forth in <U>Section&nbsp;2.1</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Purchase Price</U>&#148; has
the meaning given such term in <U>Section&nbsp;2.3</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Recapitalization</U>&#148;
means a transaction pursuant to which the holders of the Debt of Seller obtain a majority
of the equity interests of Seller or all or substantially all of the assets of Seller in
exchange for such Debt. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148; means any
release, spill, leak, discharge, abandonment, disposal, pumping, pouring, emitting,
emptying, injecting, leaching, dumping, depositing, dispersing, allowing to escape or
migrate into or through the environment (including ambient air, surface water, ground
water, wetlands, land surface and subsurface strata or within any building, structure,
facility or fixture) of any Hazardous Substance, including the abandonment or discarding
of Hazardous Substances in barrels, drums, or other containers. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remediation</U>&#148; means
any action of any kind to address an Environmental Condition or Release or threatened
Release or the presence of Hazardous Substances on or in the air, soil or groundwater,
including the following: (i)&nbsp;monitoring, investigation, assessment, treatment,
cleanup, containment, remediation, removal, mitigation, response or restoration work;
(ii)&nbsp;obtaining any permits, consents, approvals or authorizations of any Governmental
Authority necessary to conduct any such work; (iii)&nbsp;preparing and implementing any
plans or studies for such work; (iv)&nbsp;obtaining a written notice from a Governmental
Authority with jurisdiction under applicable Environmental Laws that no material
additional work is required by such Governmental Authority; (v) any response to, or
preparation for, any inquiry, order, hearing or other proceeding by or before any
Governmental Authority with respect to any such Environmental Condition, Release or
threatened Release or presence of Hazardous Substances; (vi)&nbsp;any other activities
required under Environmental Laws to address an Environmental Condition or the presence of
or Release of Hazardous Substances in the air, soil or groundwater; and (vii) attorney,
consultant and other expert fees associated with any activity listed above. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Representatives</U>&#148;
means, collectively, such Person&#146;s Affiliates and his, her or its and their
respective directors, officers, partners, members, employees, representatives, agents,
advisors (including accountants, legal counsel, environmental consultants, engineering
consultants and financial advisors), parent entities and other controlling Persons. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Retained Assets</U>&#148;
has the meaning set forth in <U>Section&nbsp;2.2</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Retained Books and
Records</U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(e)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Retained
Liabilities</U>&#148; has the meaning set forth in <U>Section&nbsp;2.10</U>. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Retained Name</U>&#148; has
the meaning set forth in <U>Section 2.2(f)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale Motion</U>&#148; has
the meaning given such term in <U>Section&nbsp;5.3(a)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Required
Consents</U>&#148; means those consents, approvals and authorizations set forth on
<U>Schedule 3.3(c)</U> that Seller must obtain from, or make with, any third party (other
than a Governmental Authority) in connection with the transactions contemplated by this
Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Seller Required Regulatory
Approvals</U>&#148; means those consents, approvals, filings and notices set forth on
<U>Schedule 3.3(b)</U> that Seller must obtain from, or make with, any Governmental
Authority in connection with the transactions contemplated by this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Survey</U>&#148; has the
meaning given such term in <U>Section&nbsp;5.17</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; means all
taxes, charges, fees, levies or like other assessments (whether U.S. federal, state, local
or foreign) based upon or measured by income and any other tax, including, without
limitation, gross receipts, profits, premium, sales, use, occupation, value added, ad
valorem, transfer, franchise, withholding, payroll, employment, unemployment, excise,
windfall profits, transfer, license, occupation or property taxes, together with any
interest, penalties or additions to tax resulting from, attributable to, or incurred in
connection with any such taxes or any contest or dispute thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxing Authority</U>&#148;
means a taxing authority of the United States of America, any state thereof or the
District of Columbia, any local governmental subdivision thereof or any foreign
government. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tax Returns</U>&#148; means
returns, reports, statements, notices, forms or other documents or information required to
be filed with any Taxing Authority in connection with the determination, assessment,
collection or payment of any Taxes or in connection with the administration,
implementation or enforcement of or compliance with any legal requirement relating to any
Taxes. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Title Insurer</U>&#148; has
the meaning given such term in <U>Section&nbsp;5.2(e)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Title Policy</U>&#148; has
the meaning given such term in <U>Section&nbsp;5.16</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Title Report</U>&#148; has the
meaning given such term in <U>Section&nbsp;5.2(e)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction
Documents</U>&#148; means this Agreement, together with all Exhibits and Schedules hereto,
and any and all related agreements and instruments (including, without limitation, the
Bidding Procedures Order and the Approval Order). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transaction Taxes</U>&#148;
has the meaning given such term in <U>Section 7.1</U>. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>WARN</U>&#148; has the
meaning given such term in <U>Section 2.10(g)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other initially capitalized terms
will have the meaning ascribed to them elsewhere in this Agreement. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II<BR>
Sale of Assets; Closing </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section
2.1</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Purchase and Sale</U>.</B>&nbsp;&nbsp;On the basis of the representations,
warranties, covenants and agreements and subject to the satisfaction or waiver of the
conditions set forth herein, at the Closing, Seller shall sell, convey and transfer to
Buyer and Buyer shall purchase from Seller as of and with effect from 12:01 a.m. central
standard time on the Closing Date (the &#147;<U>Effective Time</U>&#148;), all of
Seller&#146;s right, title and interest in and to all assets owned by or leased or
licensed to Seller and used or held for use by Seller whether real, personal or mixed,
tangible or intangible, with such changes to such assets as may occur from the date hereof
to the day immediately preceding the Closing Date consistent with the terms and conditions
of this Agreement, excepting only the Retained Assets (Seller&#146;s right, title and
interest in and to all such assets other than the Retained Assets being, collectively, the
&#147;<U>Purchased Assets</U>&#148;). Without limiting the generality of the foregoing,
except as set forth in <U>Section&nbsp;2.2</U> below or otherwise constituting Retained
Assets, the Purchased Assets shall include all of Seller&#146;s right, title and interest
in: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Personal Property; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Inventories; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Contracts; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the intellectual property owned by or licensed to Seller; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Books and Records (subject to the provisions of
<U>Section&nbsp;5.2(c)</U> below); </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Owned Real Property; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[intentionally omitted]; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Prepaid Items; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Licenses; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the electrical<B> </B>connection equipment and ancillary support facilities
          located on the Power Plant side of any distribution or transmission
          interconnection point used in the Business (the &#147;<U>Interconnect
          Point</U>&#148;); </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;unexpired, transferable warranties and guarantees from third parties to the
          extent relating to or of Purchased Assets; and </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all Emission Allowances with respect to the Power Plant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Retained Assets</U>.</B>&nbsp;&nbsp;Notwithstanding anything herein to the
contrary, Seller shall retain and the Purchased Assets shall not include the following
assets of Seller (collectively, the &#147;<U>Retained Assets</U>&#148;): </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subject to <U>Section 5.12</U>, all performance bonds, surety bonds, and
          insurance policies and other similar assets with respect to the Business or
          Power Plant, including all rights, claims and benefits thereunder, and including
          Prepaid Items in respect thereof; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all Accounts Receivable; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all rights to the refund or credit of any Taxes for taxable periods or portions
          thereof ending on or prior to the Closing Date, but only to the extent such
          Taxes are Retained Liabilities or are not otherwise paid by Buyer; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;corporate seals, minute books, charter documents, corporate equity registers,
          Tax and financial records, and such other books and records (i)&nbsp;pertaining
          to the organization, existence, equity capitalization or debt financing of
          Seller, (ii)&nbsp;to the extent subject to attorney/client, work product or like
          privilege, (iii)&nbsp;to the extent relating to activities of Seller or its
          Affiliates unrelated to the operation of the Power Plant or the Business or
          (iv)&nbsp;subject to legal constraints or obligations regarding confidentiality
          and listed on <U>Schedule&nbsp;2.2(e)</U> (the &#147;<U>Retained Books and
          Records</U>&#148;); </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all rights to or goodwill represented by or pertaining to all names, marks,
          trade names, trademarks and service marks incorporating the name &#147;NRG&#148;
          (the &#147;<U>Retained Name</U>&#148;) either alone or in combination with any
          other name, including without limitation, the corporate design logo associated
          with the Retained Name or variant of the Retained Name; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subject to <U>Section&nbsp;2.1(k)</U> and <U>5.12</U>, all rights, claims,
          credits, allowances, rebates, and causes of action of Seller to the extent
          relating to or arising from any of the Retained Assets or the Retained
          Liabilities (including, without limitation, rights of indemnification or
          contribution from third parties and insurance claims related thereto) and all
          claims and causes of action existing on the Closing Date or arising with respect
          to events or occurrences prior to the Closing Date other than claims and causes
          of action that relate to the condition of the Power Plant (or affect the
          post-closing operation thereof) or other tangible Purchased Assets; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any and all avoidance or other causes of action arising under Sections&nbsp;510,
          544 through 550 and 553 of the Bankruptcy Code or under similar state laws; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any and all rights that accrue or will accrue to Seller under this Agreement and
          the Transaction Documents; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Excluded Contracts and Nonassignable Items; </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the rights of Seller under, and any funds and property held in trust or any
          other funding vehicle pursuant to, any Employee Benefit Plan; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the specific items identified on <U>Schedule 2.2(l)</U> hereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Consideration</U>.</B>&nbsp;&nbsp;Subject to adjustment as provided in
<U>Sections&nbsp;2.7</U>, <U>5.12</U> and <U>7.2</U>, in full consideration for the
Purchased Assets, at the Closing Buyer shall pay by wire transfer in immediately available
funds $159,950,000 (the &#147;<U>Purchase Price</U>&#148;) to the Seller, unless otherwise
directed by the Bankruptcy Court pursuant to the Sale Motion and Approval Order, in which
case Buyer shall pay the Purchase Price as so directed by the Bankruptcy Court. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Deliveries by Seller</U>.</B>&nbsp;&nbsp;At the Closing, Seller shall deliver (or
cause to be delivered) the following to Buyer: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;special warranty deeds (with respect to real property owned wholly or
          partially in fee), bills of sale and assignments in substantially the forms attached as
          <U>Exhibit A</U> hereto; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assignments as to that portion of the Owned Real Property that constitutes
          easements; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the certificate contemplated by <U>Section&nbsp;8.1</U> below; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a certificate, in form and substance reasonably satisfactory to Buyer, of a
          Secretary, Assistant Secretary, or other officer or manager, as appropriate, (i)
          of NRG Energy Inc., as the sole member of Seller, certifying as to its
          resolutions approving and authorizing this Agreement and the transactions
          contemplated by this Agreement and (ii) of Seller certifying as to (A) the
          resolutions of the manager of Seller approving and authorizing this Agreement
          and the transactions contemplated by this Agreement and (B) the amended and
          restated limited liability company agreement of Seller. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;good standing certificates of Seller issued by the Secretary of State of the
          State of Delaware and the Secretary of State of the State of Oklahoma; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the certificate of formation of Seller, certified by the Secretary of State of
          Delaware; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a certified copy of the Approval Order; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a certified copy of the docket as of the most recent practicable date showing
          that the Approval Order is a Final Order; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[intentionally omitted]; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[intentionally omitted]; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the non-foreign affidavit contemplated by <U>Section 8.8</U> below; </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;evidence of all Seller Required Regulatory Approvals, in form and substance
          reasonably satisfactory to Buyer; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other documents and instruments required by this Agreement to be delivered
          by Seller or reasonably requested by Buyer, including certificates of title, to
          effect or evidence the transactions contemplated by the Transaction Documents. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Deliveries by Buyer</U>.</B>&nbsp;&nbsp;At the Closing, Buyer shall
deliver the following to Seller (or, with respect to clause (a) below, as directed by the
Bankruptcy Court pursuant to the Sale Motion and Approval Order if otherwise so directed): </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subject to <U>Sections 2.7, 5.12</U> and <U>7.2</U>, cash in the amount of the
          Purchase Price by wire transfer of immediately available funds to an account
          designated by the recipient of such funds at least three Business Days prior to
          the Closing Date; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;only if the Long Term Service Agreement, dated as of December 29, 1999, as
          amended, between Seller (f/k/a Duke Energy McClain LLC) and General Electric
          International, Inc. (&#147;<U>GE</U>&#148;) is not deleted from <U>Schedule 3.8
          </U>as permitted by <U>Section 5.6</U> and such agreement is at Closing a
          Contract, a release or other agreement from GE terminating, as of Closing, all
          obligations of NRG Energy, Inc. under the NRG Energy, Inc. Corporate Guaranty to
          the Benefit of GE dated August 30, 2001; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an assumption agreement and other appropriate instruments of assumption as shall
          be necessary for Buyer to assume the Assumed Liabilities as of the Closing Date,
          in such form as is reasonably acceptable to Seller; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the certificate contemplated by <U>Section&nbsp;9.1</U> below; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a certificate of the Secretary of Buyer in form and substance reasonably
          satisfactory to Seller, certifying as to (i) the resolutions of the directors of
          Buyer approving and authorizing this Agreement and the transactions contemplated
          by this Agreement and (ii) the bylaws of Buyer; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a good standing certificate of Buyer issued by the Secretary of State of
          Oklahoma; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the certificate of incorporation of Buyer, certified by the Secretary of State
          of Oklahoma; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;evidence of all consents and approvals referenced in <U>Schedule 4.4</U>; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any other documents and instruments required by this Agreement to be delivered
          by Buyer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Time and Place of Closing</U>.</B>&nbsp;&nbsp;The consummation of the Asset Purchase pursuant to
this Agreement (the &#147;<U>Closing</U>&#148;) shall take place as soon as reasonably
practicable, and</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in any event within 10 days after the later to occur of: (a)&nbsp;the
date of entry on the docket of the Bankruptcy Court of the Approval Order; (b) the date of
termination or expiration of the waiting period under the HSR Act; (c) the obtaining of
all Buyer Required Regulatory Approvals and Seller Required Regulatory Approvals; and
(d)&nbsp;satisfaction of all conditions to Closing set forth in Articles VIII and IX
(other than conditions which by their nature are to be satisfied at the Closing, but
subject to the satisfaction or waiver of those conditions) or waiver thereof by the
applicable party (the &#147;<U>Closing Date</U>&#148;). The Closing shall be held at 9:00
A.M., local time, at the Chicago, Illinois offices of Jones Day. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.7
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Proration for Certain Prepaids</U>.</FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No less than 10 days prior to Closing Seller shall provide to Buyer (i) a list
          identifying all then existing Prepaid Items for the purchase of natural gas,
          (ii)&nbsp;its reasonable good faith estimate, as of the Closing Date, of the
          value of that portion of each such Prepaid Item attributable to natural gas to
          be delivered to Buyer from and after the Closing determined based upon the price
          (or a reasonable good faith estimate thereof if not fixed in the applicable
          agreement) of such gas, and the estimated quantity to be supplied after (as
          compared to before) Closing (the &#147;<U>Prepaid Estimate</U>&#148;), and (iii)
          such data, information and calculations as are reasonably necessary or Buyer
          otherwise reasonably requests to audit and verify such Prepaid Estimates. No
          more than five days following its receipt of the Prepaid Estimate, Buyer shall
          notify Seller of any amounts specified therein that it disputes. Any Prepaid
          Estimate that Buyer fails to dispute within such five-day period shall be deemed
          accepted by Buyer. If Buyer shall timely dispute any Prepaid Estimate, the
          parties shall, acting reasonably and in good faith, endeavor to resolve such
          dispute on or before two days prior to Closing. If the parties are unable to
          resolve any dispute within such time period, the Prepaid Item(s) (and the
          concomitant natural gas) then in dispute shall constitute and be deemed Retained
          Assets. If Seller shall fail to so list any Prepaid Item, or fail to provide to
          Buyer a Prepaid Estimate with respect to any listed Prepaid Item, Seller shall
          be deemed to have waived any right to a Purchase Price adjustment with respect
          to such Prepaid Item, and such Prepaid Item shall be conveyed to Buyer. At
          Closing, the Purchase Price shall be increased by the sum of all Prepaid
          Estimates not timely disputed by Buyer, and the amounts, if any, agreed by the
          parties with respect to any Prepaid Estimates timely disputed by Buyer and
          resolved by Buyer and Seller prior to Closing (and the concomitant Prepaid
          Item(s) and natural gas shall be deemed Purchased Assets and not Retained
          Assets). Such Purchase Price Adjustment shall, as to the applicable Prepaid
          Items, be final and binding upon the parties. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          With respect to the Prepaid Item, if any, that is a &#147;Quarterly
          Payment&#148; (as such term is defined in Exhibit A to the Long Term Service
          Agreement between Seller and General Electric International, Inc. dated as of
          December 29, 1999, as amended by amendment number 1 thereto dated as of December
          29, 1999, and amendment number 2 thereto dated as of February 6, 2001), the
          Purchase Price shall be further increased by an amount equal to the product
          of<B> </B>$290,840.55 and a ratio, the numerator of which is the number of days
          in the portion of the calendar quarter to which such payment applies that begins
          on the day after the Closing Date, and the denominator of which is the number of
          days in that entire calendar quarter. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Purchase Price Allocation</U>.</B>&nbsp;&nbsp;The Purchase Price
represents the amount agreed upon by the parties for Tax purposes to be the aggregate
value of the Purchased Assets, and shall be allocated among the Purchased Assets as set
forth on <U>Schedule 2.8<B></B></U><B>, </B>which schedule shall be prepared in accordance
with Section 1060 of the Code and the related regulations. The parties shall report the
transactions contemplated in this Agreement in a manner consistent with such agreed upon
allocation, and neither of them will take any position inconsistent therewith in any Tax
Returns, in any refund claim, in any litigation, or otherwise. Each of the parties agrees
to notify the other if any Taxing Authority proposes to reallocate the Purchase Price.
Seller and Buyer shall cooperate in good faith in the joint preparation of IRS Form 8594
on a basis consistent with such allocation of the Purchase Price. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.9</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Assumed Liabilities</U>.</B>&nbsp;&nbsp;At the Closing, Buyer shall
execute an assumption agreement whereby Buyer shall, as of the Closing Date, assume and
agree to pay, perform, and discharge the liabilities and obligations of Seller (a) arising
under the Contracts that are transferred to Buyer at Closing, except liabilities or
obligations arising out of any breach or default (including for this purpose any event
which, with notice or lapse of time would constitute such a breach or default) by Seller
or its Affiliates of any provision of any Contract, including liabilities or obligations
arising out of Seller&#146;s or its Affiliates&#146; failure to perform any agreement,
contract, commitment or lease in accordance with its terms prior to the Closing or (b) in
respect of unpaid Property Taxes for taxable periods beginning before and ending after the
Closing Date (collectively, the <U>&#147;Assumed Liabilities</U>&#148;). For the avoidance
of doubt, liabilities or obligations to the extent arising in connection with or relating
to Buyer&#146;s ownership and operation of the Purchased Assets after the Closing (as
opposed to Seller&#146;s ownership and operation thereof prior to the Closing) shall be
liabilities and obligations of Buyer and not of Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.10</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Retained Liabilities</U>.</B>&nbsp;&nbsp;Except for the Assumed
Liabilities, Seller (or its Affiliates) shall retain all liabilities and obligations of
Seller (or its Affiliates), whether known or unknown, asserted or unasserted, absolute or
contingent, accrued or unaccrued, liquidated or unliquidated and whether due or to become
due (the &#147;<U>Retained Liabilities</U>&#148;), including, without limitation, the
following: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all Accounts Payable; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all Debt of Seller; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any and all liabilities and obligations of Seller arising under or relating to
          the Excluded Contracts; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any Taxes (other than Transaction Taxes) imposed on Seller or, if Seller is
          disregarded for Tax purposes, any Person owning an interest in Seller; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all liabilities and obligations of Seller for costs and expenses (including
          legal, investment banking, and publication fees and expenses) Seller has
          incurred in connection with this Agreement and the transactions contemplated
          hereby; </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other than those liabilities and obligations contained in Contracts that are
          Assumed Liabilities, all liabilities and obligations of Seller or any Affiliate
          of Seller relating to any employment, stay, retention, severance, change of
          control, deferred compensation, or other similar arrangement or agreement
          entered into by Seller or any Affiliate of Seller with any current or former
          employee (including, without limitation, any termination and severance benefits,
          costs, charges and liabilities of any nature incurred with respect to the
          termination of an employee of the Business on, before or after the Closing
          Date); </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all liabilities and obligations of Seller or any Affiliate of Seller arising
          under or related to the Worker Adjustment Retraining and Notification Act of
          1988, 29 U.S.C. Section&nbsp;2101, et seq., as amended
          (&#147;<U>WARN</U>&#148;), and any applicable state or local notification law
          with respect to a layoff or plant closing relating to the Business that occurred
          on or before the Closing Date; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all liabilities and obligations relating to any matters set forth on
          <U>Schedule&nbsp;3.12</U> and for any other liabilities and obligations relating
          to any claims, litigation, actions, suits, investigations, or proceedings
          relating to circumstances or events relating to the Business, the Purchased
          Assets, or the Assumed Liabilities arising or occurring prior to Closing; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all Chapter 11 Expenses; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all liabilities and obligations relating to matters disclosed on
          <U>Schedule&nbsp;3.13(b)</U> or any other Environmental Condition existing or
          occurring prior to the Closing Date that relates to the Power Plant, Owned Real
          Property or any of the other Purchased Assets, including, but not limited to,
          all liabilities or obligations of Seller or any of its Affiliates arising under
          or relating to the following: (i)&nbsp;the costs for Remediation or other
          corrective actions associated with any violation or alleged violation of
          Environmental Laws with respect to the ownership, lease, maintenance or
          operation of any of the Purchased Assets, prior to the Closing Date,
          (ii)&nbsp;any fines or penalties arising in connection with any violation or
          alleged violation of Environmental Laws with respect to the ownership, lease,
          maintenance or operation of any of the Purchased Assets prior to the Closing
          Date, (iii)&nbsp;loss of life, injury to Persons or property or damage to
          natural resources (whether or not such loss, injury or damage arose or was made
          manifest before the Closing Date or arises or becomes manifest on or after the
          Closing Date), in each case caused (or allegedly caused) by any Environmental
          Condition or the presence or Release of Hazardous Substances at, on, in, under,
          or migrating from or to any of the Purchased Assets prior to the Closing Date,
          including any Environmental Condition or Hazardous Substances contained in
          building materials at or adjacent to any of the Purchased Assets or in the soil,
          surface water, sediments, groundwater, landfill cells, or in other environmental
          media at or near to any of the Purchased Assets, and (iv)&nbsp;the investigation
          or Remediation (whether or not such investigation or Remediation commenced
          before the Closing Date or commences on or after the Closing Date) of any
          Environmental Condition or Hazardous Substances that are present or have been
          Released prior to the Closing Date at, on, in, under or migrating from or to any
          of the Purchased Assets or in the soil, surface water, sediments, groundwater,
          landfill cells or in other environmental media at or adjacent to any of the
          Purchased Assets; and </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all and any other liabilities and obligations of Seller and its Affiliates and
          ERISA Affiliates, including, without limitation, those under or relating to the
          Employee Benefit Plans or to employees or former employees of Seller or any
          Affiliate of Seller, that are not expressly Assumed Liabilities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.11</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Pre-&nbsp;and Post-Closing Accounts Receivable</U>.</B>&nbsp;&nbsp;As between Seller (and its Affiliates
and creditors) and Buyer, subject to <U>Section 5.12</U>, Seller shall be entitled to
receive and be paid any and all payments and revenues to the extent resulting from the
operation of the Power Plant prior to the Effective Time (and any other payments that are
Retained Assets), and Buyer shall be entitled to receive and be paid any and all payments
and revenues to the extent resulting from the operation of the Power Plant from and after
the Effective Time. If after Closing either party (or Affiliate or creditor thereof) shall
receive any payment or revenue that, as set forth in this <U>Section 2.11</U>, belongs to
the other party, the party receiving such amounts (or whose Affiliate or creditor received
such amounts) shall promptly remit or cause to be remitted the same to the other party,
without set-off or deduction of any kind or nature. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 2.12</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Nonassignable Items</U>.</B>&nbsp;&nbsp;On the Closing Date and to the
extent permitted by Law and the terms of Contracts, Licenses and licenses for the use of
intellectual property sought to be transferred as part of the Purchased Assets, Seller
shall transfer and assign to Buyer, and Buyer shall assume, the Contracts, Licenses and
licenses for the use of intellectual property which are to be transferred to Buyer as
provided in this Agreement. Notwithstanding anything in this Agreement to the contrary, to
the extent that the assignment of all or any portion of any Contract, License or license
for the use of intellectual property shall be prohibited by Law or the terms thereof or
require the consent of the other party thereto (if any) or any other third party and such
prohibition or requirement is not overridden by an order of the Bankruptcy Court (which
order Seller hereby agrees to use commercially reasonable efforts to promptly obtain), (a)
this Agreement shall not constitute an agreement to assign any such Contract, License or
license for the use of intellectual property included in the Purchased Assets (each, a
&#147;<U>Nonassignable Item</U>&#148;), and (b) no breach of this Agreement shall have
occurred by virtue of such nonassignment. Seller agrees that on and after the Closing, it
will, at the request of Buyer but without any obligation to incur any material cost,
expense or liability, use its commercially reasonable efforts (a) to provide Buyer with
the benefits of and to preserve for the benefit of Buyer the rights of Seller under such
Nonassignable Items and (b) to facilitate receipt of any consideration which may be
received by Seller in and under every such Nonassignable Item, which consideration, to the
extent received, shall be held for the benefit of, and shall be delivered to, Buyer;
provided, however, that nothing in this <U>Section 2.12</U> shall (i) require Seller to
make any material expenditure or incur any material obligation on its own or on
Buyer&#146;s behalf, or (ii) prohibit Seller from ceasing all operations and business
activities and winding up its affairs subsequent to the Closing. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III<BR>
Representations and Warranties of Seller </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller represents and warrants to
Buyer as follows: </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization; Authorization; Etc</U>.</FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller is a limited liability
company, duly formed, validly existing, and in good standing under the laws of the State
of Delaware. Seller is duly authorized to conduct business and is in good standing under
the laws of each jurisdiction where such qualification is required, including the State of
Oklahoma. Subject to any necessary authorization from and the jurisdiction of the
Bankruptcy Court, Seller has all requisite limited liability company power and authority
to own its properties and assets and to carry on its business as it is now being conducted
and, upon entry of the Approval Order, shall have all limited liability company power and
authority to perform its obligations hereunder and to take all actions necessary or
appropriate to consummate, and to consummate, the transactions contemplated by this
Agreement. Seller has full limited liability company power to execute and deliver this
Agreement and, subject to entry of the Approval Order, the other Transaction Documents to
be executed and delivered by Seller. The execution and delivery of this Agreement and the
other Transaction Documents to be executed and delivered by Seller, the performance of
Seller&#146;s obligations hereunder and thereunder and the consummation of the
transactions contemplated hereby have been duly and validly authorized by all necessary
limited liability company proceedings on the part of Seller. This Agreement has been duly
executed and delivered by Seller, and, assuming the due execution hereof by Buyer, this
Agreement constitutes the legal, valid and binding obligation of Seller, enforceable
against Seller in accordance with its terms, except as the same may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors&#146; rights generally and general equitable principles
regardless of whether such enforceability is considered in a proceeding at law or in
equity. Seller has no subsidiaries. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Conflict</U>.</B>&nbsp;&nbsp;Subject to the entry of the Approval Order and to obtaining or
making all Seller Required Consents, Seller Required Regulatory Approvals, and notices and
filings with respect to Licenses listed on <U>Schedule 3.10</U> under the heading
&#147;Environmental Permits, Approvals and Authorizations&#148; and marked with an
asterisk (&#147;*&#148;) or double-asterisk (&#147;**&#148;), and approval of the Federal
Communications Commission to assignment of Seller&#146;s radio license (FCC Reg. No.
0005035852), the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby will not: (a)&nbsp;violate any
provision of the organizational instruments of Seller; (b)&nbsp;except as result solely
from the Case, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify or cancel,
or require any notice under any agreement, contract, lease, license, permit, instrument,
or other arrangement to which Seller is a party or by which it is bound or to which any of
its assets is subject (or result in the imposition of any Lien (other than a Permitted
Lien) upon any of the Purchased Assets), except where the violation, breach, default,
acceleration, termination, modification, cancellation, failure to give notice or Lien
would not be materially adverse to the Business, Purchased Assets or the ability of Seller
to consummate the</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Asset Purchase; or (c)&nbsp;violate any Law applicable to Seller, the
Business or any Purchased Asset (including the Power Plant). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Consents and Approvals</U>.</B>&nbsp;&nbsp;Subject to the entry of the
Approval Order, no consent, approval or authorization of, or declaration, filing, or
registration with, any Person is required to be made or obtained by Seller in connection
with the performance of this Agreement and the consummation of the transactions
contemplated hereby, except for: (a)&nbsp;consents, approvals or authorizations of, or
declarations or filings with, the Bankruptcy Court; (b) Seller Required Regulatory
Approvals; (c)&nbsp;Seller Required Consents; (d) notices and filings with respect to
Licenses listed on <U>Schedule 3.10</U> under the heading &#147;Environmental Permits,
Approvals and Authorizations&#148; and marked with an asterisk (&#147;*&#148;) or
double-asterisk (&#147;**&#148;); and (e) approval of the Federal Communications
Commission to assignment of Seller&#146;s radio license (FCC Reg. No. 0005035852), except
to the extent the failure to obtain such consent, approval or authorization would not
reasonably be expected to materially and adversely affect the operation of the Business or
Power Plant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Ownership of Purchased Assets</U>.</B>&nbsp;&nbsp;Subject to Permitted
Liens and any additional disclosure set forth on <U>Schedule 3.4</U> hereto, Seller owns:
(i) good and valid title in and to the Purchased Assets, except the Purchased Assets that
are not owned by Seller; and (ii) valid and existing leasehold or license interests in the
Purchased Assets that are not owned by Seller. <U>Schedule 3.4</U> lists all material
assets and properties owned by or leased or licensed to Seller&#146;s Affiliates that are
necessary for the generation of electric power at the Power Plant and transmission thereof
to the Interconnect Point. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Labor Matters</U>.</B>&nbsp;&nbsp;Seller does not have, and since August 31, 2001 (and to its
Knowledge prior to such date) has never had, any employees. No Affiliate of Seller is a
party to any labor agreement, solely with respect to employees thereof employed primarily
in connection with the Power Plant (&#147;<U>Business Employees</U>&#148;), with any labor
organization, union, group or association, and there are no Business Employee employee
unions (or any other similar labor or employee organizations) under local statutes, custom
or practice. No Affiliate of Seller has experienced any attempt within the past five years
by organized labor or its representatives to make it conform to demands of organized labor
relating to Business Employees or to enter into a binding agreement with organized labor
that would cover Business Employees. There is no labor strike or labor disturbance pending
or, to the Knowledge of Seller and its Affiliates, threatened with respect to Business
Employees, nor is any grievance currently being asserted with respect to Business
Employees, and Seller&#146;s Affiliates have not experienced a work stoppage or other
labor difficulty in the past five years with respect to Business Employees, and are not
and have not engaged in any unfair labor practice with respect to Business Employees.
Without limiting the foregoing, Seller&#146;s Affiliates, solely with respect to Business
Employees, are in compliance with the Immigration Reform and Control Act of 1986 and
maintain a current Form&nbsp;I-9 as required by such Act, in the personnel file of each
Business Employee hired after November 9, 1986. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Compliance with Orders</U>.</B>&nbsp;&nbsp;Except as set forth in
<U>Schedule 3.6</U> hereto, Seller has not received written notice of, and has no
Knowledge of, any default in any material respect under any material order, writ,
judgment, award, injunction or decree of any</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Governmental Authority applicable to the
Business, the Purchased Assets, or the Owned Real Property. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.7</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Intellectual Property</U>.</B>&nbsp;&nbsp;<U>Schedule 3.7</U> sets forth
all material intellectual property owned by Seller, and all material licenses and other
rights to use intellectual property of others used by Seller, in the operation of the
Power Plant (the &#147;<U>Intellectual Property</U>&#148;). Seller owns, or owns an
undivided 77% interest in, or possesses licenses or other valid rights to use all of the
Intellectual Property. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Seller&#146;s Contracts</U>.</B>&nbsp;&nbsp;<U>Schedules 3.7</U> and
<U>3.8</U> hereto set forth lists, as of the date hereof, of each existing contract or
agreement to which Seller is a party or by which its properties and assets are bound
(true, correct, and complete copies, subject to redaction only to the extent by third
parties prior to Seller&#146;s receipt or control of any such redacted contract or
agreement (in the case of written contracts), and summaries (in the case of oral
contracts) of which have been provided or made available to Buyer), except for Excluded
Contracts and contracts entered into by Seller in the Ordinary Course containing
obligations of less than $50,000 (such Contracts as required to be listed, subject to
<U>Section 5.20</U>, being the &#147;<U>Material Contracts</U>&#148;). Except as set forth
on <U>Schedules 3.7</U> and <U>3.8</U> hereto, each Material Contract is a legal, valid
and binding obligation of Seller and, to the Knowledge of Seller, the other parties
thereto, enforceable against Seller and, to the Knowledge of Seller, the other parties
thereto in all material respects in accordance with their respective terms, except as the
same may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors&#146; rights generally and general
equitable principles regardless of whether such enforceability is considered in a
proceeding at law or in equity. The copy of each written Contract or summary of each oral
Contract furnished or made available to Buyer is a true and complete copy of the document
it purports to represent or summarize, as the case may be, and reflects all material
amendments thereto made through the date of this Agreement, subject to redaction only to
the extent by third parties prior to Seller&#146;s receipt or control of any such redacted
contract or agreement. Except as set forth on <U>Schedules 3.7</U> and <U>3.8</U> hereto
and for the filing of or which result from the Case, no event has occurred which
constitutes, or after notice or the passage of time, or both, would constitute, a material
default by Seller under any Material Contract, and to the Knowledge of Seller no such
event has occurred which constitutes or would constitute a material default by any other
party to any Material Contract. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.9</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted.] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.10</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Permits and Licenses</U>.</B>&nbsp;&nbsp;The attached <U>Schedule 3.10</U>
identifies the material Licenses, if any, from all Governmental Authorities which relate
to the Business, the Power Plant or any of the other Purchased Assets and which are used
or held by Seller or any of its Affiliates in connection with operation of the Power
Plant, and the holder thereof. Except as described on <U>Schedule 3.10</U>, Seller or its
Affiliates currently own, or own an undivided 77% interest in, or have the right to use
and will use commercially reasonable efforts to maintain in effect until the Closing Date
its ownership or right to use such Licenses. Except as set forth on
<U>Schedule&nbsp;3.12</U>, no governmental proceeding is pending nor does Seller have
Knowledge of any threat by any</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Governmental Authority to cancel, modify, or fail to renew
any such License, which cancellation, modification or failure to renew would reasonably be
expected to have a Material Adverse Effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.11</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Owned Real Property</U>.</B>&nbsp;&nbsp;<U>Schedule 3.11</U> hereto describes all real property
owned in whole or in part (and states the ownership percentage of any partially owned real
property) by Seller or its Affiliates and used in connection with the operation of the
Power Plant<B>, </B>other than lands owned or leased by Seller&#146;s Affiliates and used
for remote operation of the Power Plant. Except as described on <U>Schedule 3.11</U>,
there is no real property other than the Owned Real Property owned, leased, used or
occupied by Seller in connection with the Power Plant. Seller has made available to Buyer,
to the extent within Seller&#146;s possession or control, a copy of all certificates of
occupancy for the Owned Real Property and a copy of any variance granted with respect to
the Owned Real Property pursuant to applicable zoning laws or ordinances, all of which
documents are true and complete copies thereof. Other than Permitted Liens, to
Seller&#146;s Knowledge there is no unrecorded Lien, easement, right-of-way agreement,
license, sublease, occupancy agreement, or like instrument burdening the Owned Real
Property.  Seller has not received any written condemnation notice from any Governmental
Agency with respect to the Owned Real Property. The Owned Real Property complies in all
material respects with all applicable easements, covenants and similar restrictions.
Seller has provided or made available to Buyer all material existing surveys or
topographic maps for the Owned Real Property, title policies, engineering reports,
Environmental Reports, soil tests, and such other similar information in Seller&#146;s
possession or control. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.12</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Litigation</U>.</B>&nbsp;&nbsp;Except (a) as set forth on the attached
<U>Schedule 3.12</U> and (b), upon filing, the Case, there are no actions, suits or
proceedings pending or, to Seller&#146;s Knowledge, threatened, against or involving
Seller, the Power Plant, or the Business. Except as set forth on <U>Schedule<B>
</B>3.12</U>, and for such as may be entered in connection with the Case, there are no
outstanding judicial orders or judgments to which Seller is subject or by which Seller,
the Business, the Power Plant or any of the other Purchased Assets are bound. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.13</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Compliance with Applicable Laws and Regulations</U>.</B></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>General</U>. Except as set forth on <U>Schedule&nbsp;3.13(a)</U>, Seller and
          its Affiliates have complied in all respects with all Laws (other than
          Environmental Laws) applicable to the operation of the Power Plant, and the
          operation of the Power Plant has been and is in compliance with all applicable
          Laws, in each case except to the extent such failure to comply would not,
          individually or in the aggregate, reasonably be expected to have a Material
          Adverse Effect. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental Matters</U>. Except as set forth on
          <U>Schedule&nbsp;3.13(b)</U>, to Seller&#146;s Knowledge: (i)&nbsp;there have
          been and are no past or present actions, activities, circumstances, conditions,
          events or incidents, including, without limitation, the Release of any Hazardous
          Substance on the Owned Real Property or any other property that could reasonably
          form the basis of any environmental claim against Buyer, Seller or against any
          Person whose liability for any material environmental claim Buyer or Seller has
          or may have retained or assumed either contractually or by operation of law; and
          (ii)&nbsp;there has been no material violation of any Environmental Law with
          respect to the Business, the Power Plant, or any other Purchased</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>or Retained
          Assets. Except as set forth on <U>Schedule&nbsp;3.13(b)</U>, Seller has not
          received, and has no Knowledge of, any actual or threatened order, notice or
          other written communication from any Governmental Authority with respect to the
          Business, the Power Plant or any other Purchased Assets of any actual or
          potential violation or failure to comply with any Environmental Law. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.14
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee Benefit Plans</U>. </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Schedule 3.14</U> lists all employee welfare benefit plans and employee
          pension benefit plans as such terms are defined, respectively in Sections 3(1)
          and 3(2) of ERISA (including any multiemployer plan, as defined in Section 3(37)
          of ERISA), bonus, incentive, profit sharing, stock option, stock appreciation,
          pension, deferred compensation, excess benefit, change in control, retention,
          stay-pay, supplemental unemployment, vacation, sick-pay, employment or
          consulting agreements, severance, retirement, stock purchase, hospitalization,
          group or individual life, disability or health insurance, workers&#146;
          compensation, or employee welfare benefit or similar plan, program or agreement
          whether written or unwritten, qualified or nonqualified, funded or unfunded,
          maintained or contributed to by Seller or any of its Affiliates in respect of
          current or former Business Employees, or with respect to which Seller or any of
          its Affiliates has any liability in respect of each current or former Business
          Employee (all collectively referred to as the &#147;<U>Employee Benefit
          Plans</U>&#148;). Seller has provided or made available to Buyer complete and
          correct copies of all Employee Benefit Plans, and, as applicable, all related
          summary plan descriptions with all amendments, and summaries of material
          modifications. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Schedule 3.14</U> describes all material employment practices, policies,
          contracts, programs or arrangements which are applicable to the Business
          Employees. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth on <U>Schedule 3.14</U>: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Each of the Employee Benefit Plans that is intended to be qualified under
          Section 401(a) of the Code and which provides for payment of eligible rollover
          distributions described in Section 402(f)(2)(A) of the Code has been operated,
          maintained and administered in compliance in all material respects with its
          terms and with all provisions of all applicable Laws, including, without
          limitation, ERISA, the Code (and the rule and regulations promulgated
          thereunder). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          With respect to each Employee Benefit Plan subject to Section&nbsp;302 of ERISA
          or Section&nbsp;412 of the Code and any other employee benefit plan subject to
          Section&nbsp;302 of ERISA or Section&nbsp;412 of the Code maintained or
          contributed to by any ERISA Affiliate, there was no, and as of the Closing Date
          there will be no accumulated funding deficiency within the meaning of
          Section&nbsp;412 of the Code, whether or not waived. All contributions or
          payments required to be made by Seller or any ERISA Affiliate with respect to
          any Employee Benefit Plan have been timely made. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Except for the transactions contemplated hereby, no reportable event within the
          meaning of ERISA Section 4043 has occurred with respect to any Employee Benefit
          Plan or any other employee benefit plan maintained or contributed to by Seller
          or any</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ERISA Affiliate that is subject to Title IV of ERISA, which would subject
          Buyer or any of its Affiliates or any of the Purchased Assets to any liability,
          and neither Seller nor any ERISA Affiliate has incurred any liability (other
          than for premium payments to the Pension Benefit Guaranty Corporation not yet
          due) under Title IV of ERISA that could become an obligation or liability of
          Buyer or any of its Affiliates. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Neither Seller nor any ERISA Affiliate and, to the Knowledge of Seller, no other
          Person, has taken any action, failed to take any action or otherwise incurred
          any liability with respect to any Employee Benefit Plan or any other employee
          benefit plan subject to ERISA that is maintained or contributed to by any ERISA
          Affiliate that may subject Buyer or its Affiliates to any liability, including,
          without limitation, to any Tax or penalty under ERISA or the Code. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No Purchased Asset is subject to a Lien (other than a Permitted Lien) under
          ERISA or under Section 412 of the Code. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.15</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Warranty Matters</U>.</B>&nbsp;&nbsp;Except as set forth on <U>Schedule 3.15</U>,
as of the date hereof neither Seller nor any Affiliate of Seller has made any material
warranty (or similar) claim, or has Knowledge of any matter, defect or condition that
would serve as the basis for any material warranty (or similar) claim, with respect to any
material Purchased Asset. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.16</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Tax Matters</U>.</B>&nbsp;&nbsp;Except as set forth in <U>Schedule 3.16:</U></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller has filed all Tax Returns that it was required to file, all such Tax
          Returns are correct and complete in all respects, and all Taxes owed by Seller,
          whether or not shown on a Tax Return, have been timely paid. Seller is not
          currently the beneficiary of any extension of time within which to file a Tax
          Return, has not waived any statute of limitations in respect of Taxes or agreed
          to any extension of time with respect to a Tax assessment or deficiency. No
          Taxing Authority has assessed any additional Taxes against Seller for any
          taxable period or otherwise claimed in writing that Seller owes or may owe
          additional Taxes. The Oklahoma Tax Commission has approved Seller&#146;s
          Application for Five-Year Ad Valorem Tax Exemption with respect to 2002, and no
          other Property Taxes are being contested by Seller or any of its Affiliates. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller has at all times since its organization been treated as a disregarded
          entity for United States federal and Oklahoma state income tax purposes. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No Purchased Asset secures any Debt the interest on which is tax exempt under
          Section 103 of the Code, is &#147;tax exempt use property&#148; within the
          meaning of Section 168(g)(5) of the Code, or will be treated as owned by another
          Person pursuant to former Section 168(f)(8) of the Code. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No Lien other than a Permitted Lien has been filed on or against any Purchased
          Asset with respect to Taxes. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller has withheld and timely paid over to the appropriate Governmental
          Authority all Taxes required to have been paid in connection with amounts
          remitted to any employee, independent contractor, creditor or other third party. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.17</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Insurance</U>.</B>&nbsp;&nbsp;Seller is covered by valid, outstanding and
enforceable policies of insurance covering the Owned Real Property and all other material
Purchased Assets against risks of the natures normally insured against, and in coverage
amounts consistent with, Good Utility Practices (the &#147;<U>Insurance
Policies</U>&#148;). Such Insurance Policies are in full force and effect, and all
premiums due thereon have been paid. To Seller&#146;s Knowledge, Seller has complied with
the provisions of such Insurance Policies in all material respects. <U>Schedule 3.17</U>
hereto contains a complete and correct list of all Insurance Policies and all amendments
and riders thereto, and identifies the insurer, type of coverage and policy period for
each policy. From June 30, 2002 to the date hereof, Seller has not made any claim under
any of the Insurance Policies, or to its Knowledge suffered any losses that could give
rise to any such claims, for an amount in excess of $100,000 except as set forth on
<U>Schedule 3.17</U> hereto. To Seller&#146;s Knowledge, neither Seller nor its Affiliates
has failed to give, in a timely manner, any material notice required under any of the
Insurance Policies to preserve its rights thereunder with respect to the Owned Real
Property and all other material Purchased Assets. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.18</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Workers Compensation</U>.</B>&nbsp;&nbsp;There are no compensation liabilities
and obligations with respect to Business Employees that could become liabilities or
obligations of Buyer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.19</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted.] </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.20</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Brokers, Finders, Etc</U>.</B>&nbsp;&nbsp;Seller has not employed, and is not
subject to any valid claim of, any broker, finder, consultant or other intermediary in
connection with the transactions contemplated by this Agreement who might be entitled to a
fee or commission in connection with such transactions from Buyer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.21</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Absence of Changes</U>.</B>&nbsp;&nbsp;Except as disclosed on <U>Schedule
3.21</U>, from April&nbsp;30, 2003<B> </B>to the date hereof Seller has not (i)&nbsp;sold,
transferred or otherwise disposed of any properties or assets other than in the Ordinary
Course; (ii)&nbsp;sustained any material damage, loss or destruction of or to any of the
Purchased Assets (whether or not covered by insurance); (iii)&nbsp;entered into any
transaction or otherwise conducted the Business other than in the Ordinary Course
consistent with Good Utility Practices; (iv)&nbsp;suffered a Material Adverse Effect; or
(v)&nbsp;agreed to, or obligated itself to, do anything identified in (i) through (iii)
above (other than, with respect to (i), the sale contemplated by this Agreement). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 3.22</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Regulatory Status</U>.</B>&nbsp;&nbsp;Seller is an &#147;exempt wholesale
generator&#148; within the meaning of Section&nbsp;32(a) of the Public Utility Holding
Company Act of 1935, as amended. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IV<BR>
Representations and Warranties of Buyer </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer hereby represents and warrants
to Seller as follows: </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Incorporation; Authorization; Etc</U>.</B>&nbsp;&nbsp;Buyer is a
corporation duly incorporated, validly existing and in good standing under the laws of the
State of Oklahoma. Buyer is duly authorized to conduct business in each jurisdiction where
such qualification is required, including the State of Oklahoma. Buyer has full corporate
power to execute and deliver this Agreement and the other Transaction Documents to be
executed and delivered by Buyer, to perform its obligations hereunder and thereunder, and
to consummate the transactions contemplated hereby. The execution and delivery of this
Agreement and the other Transaction Documents to be executed and delivered by Buyer, the
performance of Buyer&#146;s obligations hereunder and thereunder and the consummation of
the transactions contemplated hereby have been duly and validly authorized by all
necessary corporate proceedings on the part of Buyer. This Agreement has been, and the
Transaction Documents to be delivered by it at Closing pursuant to <U>Section 2.5</U>,
will be duly executed and delivered by Buyer, and, assuming the due execution hereof by
Seller, this Agreement constitutes the legal, valid and binding obligation of Buyer,
enforceable against Buyer in accordance with its terms, except as the same may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors&#146; rights generally and general equitable principles
regardless of whether such enforceability is considered in a proceeding at law or in
equity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Conflict</U>.</B>&nbsp;&nbsp;Subject to the entry of the Approval Order and subject to
obtaining or making all Buyer Required Regulatory Approvals, the execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated hereby
will not: (a) violate any provision of the certificate of incorporation or bylaws of
Buyer; or (b) result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify or cancel,
or require any notice under any agreement, contract, lease, license, permit, instrument,
or other arrangement to which Buyer is a party or by which it is bound or to which any of
its assets is subject (or result in the imposition of any Lien upon any of its assets),
except where the violation, breach, default, acceleration, termination, modification,
cancellation, failure to give notice or Lien would not have a material adverse effect on
the ability of Buyer to consummate the Asset Purchase; or (c)&nbsp;violate any Law
applicable to Buyer. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Brokers, Finders, Etc</U>.</B>&nbsp;&nbsp;Buyer has not employed, and is
not subject to any valid claim of, any broker, finder, consultant or other intermediary in
connection with the transactions contemplated by this Agreement who might be entitled to a
fee or commission in connection with such transactions from Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Consent, Approvals or Authorizations</U>.</B>&nbsp;&nbsp;Subject to the
entry of the Approval Order, except with respect to the Buyer Required Regulatory
Approvals and Federal Communications Commission approval of assignment of Seller&#146;s
radio license (FCC Reg. No. 0005035852), no consent, approval or authorization of, filing
or registration with, or notification to, any Person is required in connection with the
execution and delivery of this Agreement by Buyer or the consummation of the transactions
contemplated hereby, other than any consent, approval or authorization, filing or
registration with, or notification to, which if not obtained or</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>made would not materially
and adversely affect Buyer&#146;s ability to consummate the transactions contemplated
hereby, including the Asset Purchase. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Financing</U>.</B>&nbsp;&nbsp;Buyer has sufficient cash, available lines
of credit or other sources of funds to enable it to make payment of the Purchase Price and
all other amounts payable pursuant to this Agreement and to perform all of its other
obligations under this Agreement and the documents executed by it in connection herewith. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Absence of Regulation</U>.</B>&nbsp;&nbsp;Buyer is not an &#147;investment
company,&#148; a company &#147;controlled&#148; by an &#147;investment company&#148; or an
&#147;investment advisor&#148; within the meaning of the Investment Company Act of 1940. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.7</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Litigation</U>.</B>&nbsp;&nbsp;As of the date hereof, other than with
respect to the Buyer Required Regulatory Approvals, there is no claim, action or
proceeding pending or, to Buyer&#146;s Knowledge, threatened, against Buyer before any
Governmental Authority that would, individually or in the aggregate, reasonably be
expected to materially delay or prevent the consummation of the transactions contemplated
by this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 4.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Knowledge of Seller Breach</U>.</B>&nbsp;&nbsp;Buyer has no Knowledge of any condition or
event of which Seller does not have Knowledge that constitutes a material breach of any
representation, warranty or covenant made by Seller in this Agreement, and will promptly
notify Seller if it acquires Knowledge of any such breach. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.9
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Due Diligence Investigation and Other Acknowledgments</U>.</FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer acknowledges and agrees that it is relying exclusively upon (i)&nbsp;the
          representations and warranties made by Seller in this Agreement and
          (ii)&nbsp;its own and its Representatives&#146; inspections and investigation to
          satisfy itself as to the condition and suitability of the Business, assets, real
          and personal properties, liabilities, results of operations, condition and
          prospects of the Purchased Assets. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer acknowledges and agrees that, except as set forth herein, Seller makes no
          representations or warranties (express, implied, at common law, statutory or
          otherwise) with respect to the accuracy or completeness of the Books and Records
          and other data, information and materials previously or hereafter made available
          to the Buyer in connection with this Agreement. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer acknowledges and agrees that it has reviewed and accepted the disclaimers
          set forth in <U>Article X </U>of this Agreement. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE V<BR>
Covenants of Seller and Buyer </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Conduct of Business Before the Closing Date</U>.</B>&nbsp;&nbsp;Unless
otherwise ordered by the Bankruptcy Court sua sponte or on motion by a third party, or as
otherwise required by applicable Law or this Agreement, from the date hereof through the
Closing or earlier</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>termination of this Agreement pursuant to <U>Section 12.1</U>, Seller
will conduct the Business, and will operate and maintain (or cause to be operated and
maintained) the Power Plant, only in the Ordinary Course consistent with Good Utility
Practices and in material compliance with all applicable Laws; <U>provided</U>,
<U>however</U>, that unless otherwise ordered by the Bankruptcy Court, no provision of
this <U>Section&nbsp;5.1 </U>shall require Seller to make any payment to any of its
creditors with respect to any amount owed to such creditors on the Petition Date or
otherwise violate the Bankruptcy Code. Except as disclosed in <U>Schedule 5.1 </U>hereto
or otherwise provided for in, or contemplated by, this Agreement, and except as consented
to or approved by Buyer in writing (such consent and approval not to be unreasonably
withheld or delayed), Seller covenants and agrees with respect to the Business that unless
otherwise ordered by the Bankruptcy Court sua sponte or on motion by a third party or
required by applicable Law, from the date hereof through the Closing: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller shall not: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          voluntarily incur any obligation or liability or enter into any material
          transaction, contract or commitment for which Buyer may have responsibility or
          liability after Closing in any single instance in excess of $50,000 and, in any
          event, in an aggregate principal amount for all such incurrences exceeding
          $500,000 in any month; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          enter into any joint venture, partnership, or other similar arrangement, form
          any other similar new material arrangement for the conduct of the Business, or
          permit any amendment, modification or termination of any such arrangement,
          including without limitation, the O&amp;O Agreement and any other agreement to
          which it and OMPA are party; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          sell, transfer or otherwise dispose of any Purchased Asset other than as sold,
          used or consumed in the Ordinary Course; or </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          make any material change in the levels of Inventory maintained at the Power
          Plant for the applicable time of year, except for such changes as are consistent
          with Good Utility Practices; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall not enter into binding commitments to make capital expenditures in
          an aggregate amount exceeding $500,000; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall not materially amend, terminate, or modify any of the Material
          Contracts (including the O&amp;O Agreement and any other agreement to which it
          and OMPA are parties) outside the Ordinary Course; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall not voluntarily incur any Lien upon any Purchased Asset, except for
          Permitted Liens, Liens incurred in the Ordinary Course, and Liens incurred in
          connection with the DIP Arrangement; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall not agree to take any action to do any of the foregoing; </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          with respect to any Licenses for which the date for filing a renewal application
          will have passed by the Closing Date, Seller will file by the Closing Date all
          applications necessary to renew such Licenses in a timely fashion without any
          material modifications to the terms of such Licenses; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall (or shall cause its Affiliates to) maintain to and including the
          Closing Date all Insurance Policies in the Ordinary Course consistent with Good
          Utility Practices; and </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall, or shall cause its Affiliates to, (i) notify Buyer in writing at
          least three Business Days prior to relocating, terminating the employment of, or
          materially changing the terms and conditions of employment of, any Business
          Employee and (ii) notify Buyer in writing within three Business Days after the
          cessation of employment of any Business Employee for any reason other than
          termination by the employer thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the provisions of
this <U>Section&nbsp;5.1</U>, nothing in this Agreement shall be construed or interpreted
to prevent Seller from taking actions and entering into transactions reasonably necessary
to file the Case or to effect the sale of the Purchased Assets pursuant to provisions of
the Bankruptcy Code and the Bidding Procedures Order. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Investigation of Business; Access to Properties and Records</U>.</B></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall afford, or cause to be afforded, to Buyer such access as is
          requested by Buyer to the offices, personnel, plants (including the Owned Real
          Property), properties, books and records (other than books and records that are
          subject to confidentiality agreements in favor of third parties that are not
          Affiliates of Seller (and which books and records are identified to Buyer) or
          attorney/client, work product or like privilege, or to the extent disclosing
          information about the activities of Seller or its Affiliates unrelated to the
          Power Plant or the Business or confidential proprietary models or other
          information of Seller or any of its Affiliates pertaining to energy project
          evaluation, energy or natural gas price curves or projections, or other economic
          predictive models) of Seller and its Affiliates relating to the Business and
          Business Employees so that Buyer may have full opportunity to make such
          investigations as it reasonably desires of the affairs of the Business
          (including, but not limited to, title to the Owned Real Property, zoning
          matters, land use designation, soil conditions, sewer, water and other
          utilities, and availability of building permits related to the Purchased
          Assets); <U>provided</U>, <U>however</U>, that (i) such investigation shall not
          unreasonably disrupt the personnel and operations of Seller, its Affiliates or
          OMPA or the conduct of the Business, (ii)&nbsp;all such investigations shall be
          at Buyer&#146;s sole cost and expense, (iii)&nbsp;Buyer shall restore and repair
          promptly any physical damage caused by its investigations and testing, (iv)
          Buyer shall keep the Owned Real Property free and clear of Liens caused by
          Buyer&#146;s access to and investigation thereof, and (v) Buyer shall indemnify
          and hold Seller harmless from all liabilities, claims, damages, losses, costs
          and expenses actually incurred by Seller (but not consequential, incidental,
          special or punitive damages) to the extent resulting from any personal injury or
          property damage caused by Buyer (or its Representatives) in the conduct of any
          such access and investigation. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31</FONT></P>
<PAGE>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Any information provided to, or obtained from Seller or any of its Affiliates
          by, Buyer or its Representatives pursuant to this Agreement shall be held by
          Buyer and its Representatives in accordance with, and shall be subject to the
          terms of, the Confidentiality Agreement dated April 30, 2003 by and between
          Buyer and Seller, which is hereby incorporated in this Agreement as though fully
          set forth herein. At the Closing, such Confidentiality Agreement and the
          confidentiality requirements of this clause (b) shall terminate and be of no
          further force or effect. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer agrees to: (i) hold all of the Books and Records included in the Purchased
          Assets and transferred to Buyer at the Closing and not to destroy or dispose of
          any thereof for a period of five years from the Closing Date and (ii) following
          the Closing Date to afford Seller and its Representatives during normal business
          hours, upon reasonable request, at any time during such period, reasonable
          access to such Books and Records to the extent that such access may be requested
          for any legitimate purpose. Seller will bear all reasonable out-of-pocket costs
          and expenses incurred by Buyer (excluding salaries or wages of its employees) in
          connection with Seller&#146;s requests for access. Seller may retain copies of
          all Books and Records. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer will provide Seller notice prior to communicating with any other party to
          any Material Contract prior to the Closing Date with respect to such contract or
          the subject matter of this Agreement and will subsequently inform Seller of the
          general substance and results of such communications to the extent relating to
          such contracts or the subject matter of this Agreement. Prior to the Closing
          Date, without Seller&#146;s consent (not to be unreasonably withheld or delayed)
          Buyer will not communicate with any party (other than Seller) to any Excluded
          Contract with respect to such contract. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer may obtain (and Seller shall promptly provide Buyer with all reasonable
          assistance requested by Buyer in connection with obtaining) a title commitment,
          issued by the issuer of the Existing Title Policy or such other title insurance
          company as is reasonably satisfactory to Buyer and Seller (the &#147;<U>Title
          Insurer</U>&#148;), indicating the condition of title to the Owned Real Property
          (the &#147;<U>Title Report</U>&#148;), accompanied by copies of all recorded
          documents listed as exceptions to coverage in the Title Report. Buyer shall
          promptly deliver to Seller copies of all such materials after receipt thereof by
          Buyer. After receiving the Title Report, all of the recorded documents listed as
          exceptions therein, and the Survey, Buyer will have fifteen days in which to
          notify Seller in writing of any objection Buyer may have to any exceptions
          reported in such Title Report or matters shown on such Survey (the
          &#147;<U>Objections</U>&#148;); <U>provided</U>, <U>however</U>, that Buyer
          shall be limited to making Objections that relate to any exceptions appearing on
          the Title Report or in the Survey that are not Permitted Liens. Seller shall
          have no obligation to bring any action or proceeding or otherwise incur any
          expense whatsoever to eliminate or modify any Objections.  Within ten days
          after Buyer&#146;s notification (if any) to Seller of the Objections, Seller
          shall notify Buyer whether it intends to cure or otherwise</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>eliminate all
          Objections. If Buyer has notified Seller of Objections within the fifteen-day
          time period set forth above, Buyer may terminate this Agreement by notice in
          writing to Seller (i) given within ten days after written notification by Seller
          to Buyer that Seller does not intend to cure or otherwise eliminate all
          Objections, (ii) given within ten days after Seller&#146;s failure (if any) to
          notify Buyer within the ten-day period referenced in the prior sentence that
          Seller intends to cure or otherwise eliminate all Objections, or (iii) if Seller
          has notified Buyer that Seller intends to cure or otherwise eliminate all
          Objections, given after the expiration of such period as would be sufficient for
          a reasonable Person to have cured or otherwise eliminated all Objections,
          provided such period shall not be deemed to exceed 50 days from the date of
          Buyer&#146;s timely notification to Seller of the Objections or extend to (or
          beyond) the Closing Date for any reason and provided further such notice, if
          any, shall be given within 60 days after the date of Buyer&#146;s timely
          notification to Seller of the Objections. If Buyer does not terminate this
          Agreement pursuant to this <U>Section 5.2(e)</U> (or <U>Section 12.1</U>) at the
          Closing it will accept such title to the Owned Real Property as Seller can
          deliver without any reduction in the Purchase Price, in which event such uncured
          Objections shall be included in the term &#147;Permitted Liens&#148; as used
          herein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.3
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Bankruptcy Actions</U>.</B></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          No later than the Business Day immediately subsequent to the execution of this
          Agreement, Seller shall file a voluntary petition under chapter 11 of the
          Bankruptcy Code with the Bankruptcy Court, and, within three Business Days after
          the execution of this Agreement, shall file with the Bankruptcy Court a motion
          in the form of <U>Exhibit&nbsp;B</U> hereto (the &#147;<U>Sale Motion</U>&#148;)
          seeking, among other things, entry of (i) an order approving (A) the terms of
          this Agreement, (B) the bidding protections described and/or set forth in
          <U>Section&nbsp;5.4</U> of this Agreement or otherwise set forth in the Sale
          Motion, and (C) certain procedures relating to alternative offers for the
          Purchased Assets, which order shall be in the form of Exhibit&nbsp;C hereto (the
          &#147;<U>Bidding Procedures Order</U>&#148;), and (ii) an order approving
          the sale of the Purchased Assets to Buyer free and clear of all Liens and
          claims (as defined under the Bankruptcy Code) pursuant to Section 363(f) of the
          Bankruptcy Code, which order shall be in substantially the form of
          Exhibit&nbsp;D hereto (the &#147;<U>Approval Order</U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall use commercially reasonable efforts to have the Bankruptcy Court
          (i) schedule an expedited hearing on the Sale Motion, (ii) enter the Bidding
          Procedures Order as soon as practicable following the Petition Date, but in any
          case no later than September 11, 2003, (iii) enter the Approval Order as and
          when contemplated by the Bidding Procedures Order, but in any case no later than
          November 14, 2003, and (iv) not vacate, stay, amend, reverse, supplement, or
          modify the Bidding Procedures Order or the Approval Order. Seller shall use its
          commercially reasonable efforts to cause the Bidding Procedures Order and the
          Approval Order to become Final Orders as soon as possible after their entry and
          shall not withdraw the Sale Motion or seek to revoke, modify, or supplement the
          Sale Motion, the Bidding Procedures Order, or the Approval Order without the
          prior written consent of Buyer. Furthermore, Seller shall use commercially
          reasonable efforts to obtain any other approvals or consents from the Bankruptcy
          Court that may be reasonably necessary to consummate the transactions
          contemplated in this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer shall use its commercially reasonable efforts to assist Seller in
          obtaining the Bidding Procedures Order and the Approval Order, including
          providing testimony as required at any hearing before the Bankruptcy Court. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall promptly provide Buyer with drafts of all documents, motions,
          orders, filings, or pleadings that Seller or any Affiliate thereof proposes to
          file with the Bankruptcy Court or any other court or tribunal which relate in
          any manner, directly or indirectly, to (i) this Agreement or the transactions
          contemplated thereby; (ii) the Sale Motion; (iii) entry of the Bidding
          Procedures Order or the Approval Order; or (iv) the Business (including all
          &#147;first-day papers&#148; to be filed in the Case), and, if practicable, will
          provide Buyer with a reasonable opportunity to review such documents in advance
          of their service and filing. To the extent practicable, Seller shall consult and
          cooperate with Buyer, and consider in good faith the views of Buyer, with
          respect to all such filings. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall comply with all requirements of the Bankruptcy Code and Federal
          Rules of Bankruptcy Procedure in connection with obtaining approval of the sale
          of the Purchased Assets (including the assumption and assignment to Buyer of any
          Executory Contracts) to Buyer pursuant to this Agreement. Notice of the hearings
          on the request for entry of the Bidding Procedures Order and the Approval Order
          pursuant to the Sale Motion, notice of any hearings at which objections to
          proposed cure amounts or other issues regarding the proposed assumption and
          assignment of the Executory Contracts pursuant to the Sale Motion, and notice of
          the deadline for all objections to entry of the Bidding Procedures Order, the
          Approval Order, or any other order related thereto or to the Sale Motion shall
          be properly served by Seller in accordance with all applicable Federal Rules of
          Bankruptcy Procedure and all applicable local rules and standing orders of the
          Bankruptcy Court on all parties required to receive such notices, including,
          without limitation, all parties who have asserted Liens in the Purchased Assets,
          all parties to Executory Contracts, counsel to any statutory committee appointed
          in the Case, the Office of the United States Trustee for the Southern District
          of New York, all financial institutions that have provided loans to Seller, all
          parties filing notices of appearance or requests for papers in the Case, the
          Internal Revenue Service, the U.S. Environmental Protection Agency and any
          applicable Oklahoma environmental agency, the Pension Benefit Guaranty
          Corporation, and, to the extent required, each of Seller&#146;s other creditors.
          In addition, notice of the Sale Motion and the hearing on the request for entry
          of the Approval Order and the objection deadline for such hearing shall be given
          by Seller, in a form reasonably satisfactory to Buyer, by publication of a
          notice in the Wall Street Journal National Edition and the Daily Oklahoman at a
          time reasonably in advance of such objection deadline and hearing. Upon entry of
          the Bidding Procedures Order by the Bankruptcy Court, Seller (and its
          Affiliates) will strictly comply with such Bidding Procedures Order. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Bidding Procedures</U>.</B>&nbsp;&nbsp;Seller acknowledges
that this Agreement is the culmination of an extensive
process undertaken by Seller to identify and negotiate a transaction with a bidder who was
prepared to pay the highest or otherwise best purchase price to date for the Purchased
Assets while assuming or otherwise satisfying certain liabilities in order to maximize
value for Seller&#146;s constituents. Seller agrees that the bidding procedures (the
&#147;<U>Bidding Procedures</U>&#148;) to be employed with respect to this Agreement
concerning the sale of the Purchased Assets to Buyer shall be employed pursuant to the
terms of the Bidding Procedures Order and the terms and conditions of that order are
incorporated by reference and made an integral part of this Agreement as if fully set
forth herein. The Bidding Procedures and related bid protections are designed to
compensate Buyer for its efforts and agreements to date and to facilitate a full and</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>fair
process designed to maximize the value of the Purchased Assets for the benefit of
Seller&#146;s bankruptcy estate. In particular, Seller acknowledges and agrees that (i) no
other party to date has been willing to enter into a definitive agreement for the purchase
of the Purchased Assets on terms acceptable to Seller and its creditor constituencies,
(ii) the execution of this Agreement by Buyer is a necessary prerequisite to determining
whether any party other than Buyer is willing to enter into a definitive agreement for the
purchase of the Purchased Assets on terms acceptable to Seller and its creditor
constituencies, (iii) Buyer would not be willing to enter into this Agreement without the
protections afforded to it pursuant to the Bidding Procedures, and (iv) as a result, such
protections are expenses necessary to maximize the value of Seller&#146;s bankruptcy
estate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Regulatory Approvals</U>.</B></FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer and Seller will give any notices to, make any filings with, and use their
          commercially reasonable efforts to obtain as promptly as is reasonably
          practicable, any authorizations, consents and approvals of any Person necessary
          in connection with the transactions contemplated by this Agreement, including
          the Seller Required Consents, Seller Required Regulatory Approvals and Buyer
          Required Regulatory Approvals. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          As promptly as reasonably practicable after the entry of the Bidding Procedures
          Order, each of the parties will file any notification and report forms and
          related material that it may be required to file with the Federal Trade
          Commission and the Antitrust Division of the United States Department of Justice
          under the HSR Act, will use its commercially reasonable efforts to obtain an
          early termination of the applicable waiting period and will make any further
          filings that may be necessary, proper or advisable relating to the HSR Act. Each
          party will cooperate and coordinate with the other party in connection with such
          filings and actions. Each party will bear its own costs of the preparation of
          any such filings, except that Buyer will pay the entire amount of the filing fee
          with respect to all HSR Act filings made pursuant to this <U>Section 5.5</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          As promptly as reasonably practicable after the entry of the Bidding Procedures
          Order, Seller will give any notices to, make any filings with, and use its
          commercially reasonable efforts to obtain any consents, approvals and
          authorizations from the FERC that may be required to be obtained by Seller under
          Section 203 of the Power Act. Each party will cooperate and coordinate with the
          other in connection with seeking to obtain the Seller Required Regulatory
          Approvals and the Buyer Required Regulatory Approvals. The parties will respond
          promptly to any requests for additional information made by any Governmental
          Authority and will use their respective commercially reasonable efforts to cause
          all such consents and approvals to be obtained or waived at the earliest
          possible date after the date of filing. Each party will bear its own costs of
          the preparation of any such filing or notice, except that Buyer will bear all
          filing fees and fees of third party experts and consultants reasonably required
          (but excluding fees of legal counsel and internal time charges, wages or salary
          of employees of Seller or any of its Affiliates) with respect to Power Act
          filings made pursuant to this <U>Section 5.5</U>. If any filing is rejected by
          the FERC, Seller will so inform Buyer and at Buyer&#146;s request, Seller will
          petition the FERC for rehearing or permission to resubmit an application with
          the FERC. Buyer will bear all</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>out-of-pocket costs with respect to any such
          requested petition, rehearing or resubmission incurred by Seller (not including
          internal time charges, wages or salary of employees of Seller or any of its
          Affiliates) prior to the earlier of (i) termination of this Agreement pursuant
          to <U>Section 12.1</U> and (ii) Buyer&#146;s request, if any, that Seller cease
          seeking FERC approval of the transaction contemplated by this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Assignment of Contracts</U>.</B></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Approval Order shall include an authorization for Seller to assume
and assign to Buyer all Executory Contracts, with Seller responsible for the cure of all
monetary defaults with respect to those Executory Contracts in accordance with
<U>Section&nbsp;5.7</U> below. Without limiting the foregoing, the Approval Order shall
provide that (i) all right, title, and interest of Seller under each of the Executory
Contracts shall, upon Closing, be transferred and assigned to and fully and irrevocably
vest in the Buyer; (ii) Seller may assume each Executory Contract pursuant to
Section&nbsp;365 of the Bankruptcy Code; (iii) Seller may assign each Executory Contract
to Buyer pursuant to Section&nbsp;365 of the Bankruptcy Code free and clear of all Liens
and any provisions in any such Executory Contract which purport to prohibit or condition
the assignment of such contract constitute unenforceable anti-assignment provisions which
are void and of no force or effect; (iv) Seller shall be required to cure any and all
monetary defaults with respect to the Executory Contracts in the respective amounts set
forth in the Approval Order; (v) all other requirements and conditions of Section&nbsp;365
of the Bankruptcy Code for the assumption by Seller and assignment to the Buyer of each
Executory Contract have been satisfied; (vi) the assignments of each Executory Contract to
Buyer is in good faith under Sections&nbsp;363(b) and 363(m) of the Bankruptcy Code; and
(vii) Seller gave due and proper notice of such assumption and assignment to each party to
a Executory Contract. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Notwithstanding anything to the contrary in this Agreement or otherwise Buyer
          shall have the right through Closing to amend <U>Schedule 3.8</U> hereto to (i)
          delete from <U>Schedule 3.8</U> any Executory Contract; and (ii) add any
          contract or agreement to which Seller is a party to <U>Schedule 3.8</U> (other
          than the Excluded Contracts). Seller shall use reasonable commercial efforts to
          assist Buyer in making its determination as to whether to delete Executory
          Contracts from <U>Schedule 3.8</U>, including, without limitation, providing
          Buyer with, or making available to Buyer, copies of all such Executory Contracts
          and all amendments or supplements thereto and providing Buyer with access to,
          and contact and other information it possesses, with respect to all third
          parties to such Executory Contracts. Buyer agrees and acknowledges that its
          right to take assignment of Executory Contracts added to <U>Schedule 3.8</U>
          shall be subject to the obligation of Seller to give reasonable notice to
          parties to such additional Executory Contracts of Seller&#146;s intent to assume
          such contracts and assign such contracts to Buyer and any other applicable
          procedures established by the Bankruptcy Court or required by the Bankruptcy
          Code. No representation, warranty or covenant of Seller made herein shall be
          deemed breached as a result of the removal by Buyer of any Executory Contract
          from <U>Schedule 3.8</U> pursuant to this <U>Section 5.6(b)</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.7</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Cure of Defaults</U>.</B>&nbsp;&nbsp;Subject to entry
of the Approval Order with the requirement referred to in
<U>Section&nbsp;5.6</U> and the occurrence of the Closing, Seller shall at its</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>expense
cure any and all defaults with respect to the Executory Contracts that will be transferred
to Buyer at Closing as and in the amount required by the Bankruptcy Court. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Further Assurances</U>.</B>&nbsp;&nbsp;Seller and Buyer agree that, from
time to time for a reasonable period after the Closing Date, each of them will execute and
deliver such further instruments of conveyance and transfer and take such other action as
may be reasonably requested by the other party to carry out the purposes and intents of
this Agreement and the transactions contemplated hereby, including without limitation,
assistance in transferring (or reissuing, if necessary) Licenses and providing Buyer the
rights to all Emissions Allowances to be transferred pursuant to this Agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.9</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Adequate Assurances Regarding Executory Contracts</U>.</B>&nbsp;&nbsp;With
respect to each Executory Contract, Buyer will provide adequate assurance to the extent
required under the Bankruptcy Code of the future performance of such Executory Contract by
Buyer. Buyer and Seller agree that they will promptly take all actions reasonably required
to assist in obtaining a Bankruptcy Court finding that there has been an adequate
demonstration of adequate assurance of future performance under the Executory Contracts,
such as furnishing affidavits, non-confidential financial information or other documents
or information for filing with the Bankruptcy Court and making Buyer&#146;s and
Seller&#146;s Representatives available to testify before the Bankruptcy Court. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.10</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Performance Under Contracts</U>.</B>&nbsp;&nbsp;Subject to the terms and
conditions of this Agreement, Buyer shall, from and after the Closing Date, (a) assume all
obligations and liabilities of Seller that constitute Assumed Liabilities under the
Contracts that are transferred to Buyer at Closing; and (b) take all actions reasonably
necessary to satisfy the Assumed Liabilities. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.11</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Public Announcements</U>.</B>&nbsp;&nbsp;Prior to the filing of the Case, except as may otherwise be
required by applicable Law, this Agreement, or as may be required for Buyer&#146;s,
Seller&#146;s, and each of their Affiliates&#146; professional advisors, accountants,
lawyers, consultants, and lenders to advise Buyer, Seller, and each of their Affiliates
regarding the transactions contemplated by this Agreement,<B> </B>the parties hereto agree
to keep in strict confidence the fact and the content of the negotiations and the
agreements concerning the Asset Purchase. Except as otherwise required by applicable law,
this Agreement, or required or permitted by the Bidding Procedures Order, prior to the
Petition Date, Seller and Buyer will obtain the written consent of the other (such consent
not to be unreasonably withheld or delayed) before issuing, or permitting any agent or
Affiliate to issue, any press releases or otherwise making, or permitting any agent or
Affiliate to make, any public statements with respect to the negotiations and the
agreements concerning the Asset Purchase. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.12</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Insurance</U>.</B>&nbsp;&nbsp;If before the Closing Date any damage or casualty
loss shall occur with respect to the Power Plant or any other Purchased Assets, and claims
associated with such losses have or may be made against insurance policies maintained by
Seller or its Affiliates prior to the Closing or under policies otherwise retained by
Seller or its Affiliates after the Closing, in each case to recover amounts necessary to
repair or replace the affected asset(s), then Seller shall use commercially reasonable
efforts so that Buyer can file, notice, and otherwise pursue such claims and recover
proceeds under the terms of such policies. Seller, its Affiliates</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and WestLB AG, New York
Branch (in its capacity as collateral agent for the Prepetition Lenders) shall be
reimbursed by Buyer (or otherwise indemnified and held harmless) for any Losses or other
costs incurred by Seller, its Affiliates or WestLB AG, New York Branch (in its capacity as
collateral agent for the Prepetition Lenders) (including by way of any reduction in, or
loss of, available insurance to cover other insurable losses or associated expenses of
Seller, its Affiliates or WestLB AG, New York Branch (in its capacity as collateral agent
for the Prepetition Lenders)) arising out of Buyer pursuing such claims under any such
insurance policies. If Seller or WestLB AG, New York Branch (in its capacity as collateral
agent for the Prepetition Lenders) shall receive any such proceeds prior to Closing,
Seller or WestLB AG, New York Branch (in its capacity as collateral agent for the
Prepetition Lenders) shall, to the extent such proceeds are not, prior to Closing, applied
to pay the costs associated with affecting the necessary repairs on replacements, pay such
unused amounts to Buyer or deduct such amounts from the Purchase Price. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.13</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>NRG Marks</U>.</B>&nbsp;&nbsp;The NRG Marks appear on some of the Purchased Assets, including on
signage. Buyer acknowledges and agrees that it does not have and, upon consummation of the
transactions contemplated by this Agreement, will not have, any right, title, interest,
license or other right to use the NRG Marks. Buyer will promptly after the Closing Date
use commercially reasonable efforts, but at no undue or unreasonable expense to Buyer, to
remove the NRG Marks from, or cover or conceal the NRG Marks on, the Purchased Assets, or
to otherwise refrain from the use or display of Purchased Assets on which the NRG Marks
are affixed. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.14</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Efforts to Close</U>.</B>&nbsp;&nbsp;Buyer and Seller will use
commercially reasonable efforts to satisfy the conditions set forth in, respectively,
Article VIII and Article IX. Neither party will, without the prior written consent of the
other party, take or fail to take any action (unless (a) the taking or failure to take
such action is commercially reasonable or (b) the other party is in material breach of
this Agreement) that would reasonably be expected to prevent or materially impede,
interfere with or delay the Closing of the transactions contemplated by this Agreement;
provided, however, that this <U>Section 5.14</U> shall not limit either party&#146;s right
to terminate this Agreement pursuant to <U>Section 12.1</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.15</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Bulk Sale</U>.</B>&nbsp;&nbsp;Each of the parties to this Agreement hereby waives compliance with
the bulk sales or bulk transfer laws that may be applicable to the sale of the Purchased
Assets. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.16</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Title Insurance</U>.</B>&nbsp;&nbsp;Buyer may obtain, at Buyer&#146;s cost,<B> </B>on or before the
Closing, from the Title Insurer an owner&#146;s title insurance policy insuring title to a
fee simple interest in the Owned Real Property (in amounts reasonably satisfactory to
Buyer) and with extended coverage over the general exceptions contained therein, free of
all Liens except Permitted Liens (the &#147;<U>Title Policy</U>&#148;). Subject to Section
5.2(e), Seller will deliver to the Title Insurer all affidavits, undertakings and other
title clearance documents reasonably necessary to issue the Title Policy and endorsements
thereto. The Title Policy will be dated as of the Closing Date and insure title to the
Owned Real Property and all recorded easements benefiting such</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>parcels and contain such
other endorsements as Buyer may reasonably request, in each such circumstance where the
endorsement is available. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.17</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Survey</U>.</B>&nbsp;&nbsp;Buyer, at Buyer&#146;s cost, may obtain a
current ALTA/ACSM survey of the Owned Real Property prepared by the preparer of the
Existing Survey or another licensed surveyor reasonably satisfactory to Buyer and Seller
(the &#147;<U>Survey</U>&#148;), and conforming to such standards as the Title Insurer may
reasonably require as a condition to the removal of any survey exception from the Title
Policies, and certified to Buyer, and the Title Insurer, in a form reasonably satisfactory
to such parties. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.18</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Solicitation of Transactions</U>.</B>&nbsp;&nbsp;Seller shall not, and shall cause its
Affiliates not to, directly or indirectly, through any officer, director, employee, agent,
representative, shareholder, or otherwise, solicit or initiate Acquisition Proposals until
the entry of the Bidding Procedures Order by the Bankruptcy Court and, thereafter, any
such solicitation and initiation may only be in accordance with the Bidding Procedures
Order. Seller shall not provide any non-public information with respect to Seller or its
Affiliates or the transactions contemplated by the Transaction Documents to any Person
that expresses a bona fide interest in making a bid in accordance with the terms of the
Bidding Procedures Order unless: (i) such non-public information is provided pursuant to a
customary confidentiality agreement (with terms regarding the protection of the
confidential information at least as restrictive as the terms of the Confidentiality
Agreement described in <U>Section&nbsp;5.2(b)</U> hereof); and (ii) such non-public
information has been delivered or is then also made available to the Buyer. Seller may not
release any Person from, or waive any provisions
of, any such confidentiality agreement to which Seller is a party. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 5.19</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Inventory</U>.</B>&nbsp;&nbsp;After the date of this Agreement and prior
to the Closing Date, Seller will: (i) conduct a physical audit of all of the Inventories
in a manner reasonably satisfactory to Buyer and its accountants; and (ii) provide Buyer
with an inventory audit report in form and substance reasonably satisfactory to Buyer,
which report will, among other things, set forth the results of such physical audit. Buyer
and its accountants shall be entitled to be present during such physical audit. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.20
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Contracts Schedule</U>.</FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller will use commercially reasonable efforts to, within 15 Business Days of
          the date hereof, supplement <U>Schedule 3.8</U> to add to such schedule (if not
          already listed thereon) all contracts and agreements (other than Excluded
          Contracts) existing as of the date hereof to which Seller is a party or by which
          its properties and assets are bound containing obligations greater than $10,000,
          and will by such time provide or make available to Buyer true, correct and
          complete copies, subject to redaction only to the extent by third parties prior
          to Seller&#146;s receipt or control of such redacted contract or agreement (in
          the case of written contracts) and summaries (in the case of oral contracts) of
          such contracts and agreements. As of the date of such supplement, &#147;Material
          Contracts&#148; shall be deemed to include all such additionally scheduled
          contracts. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller will use commercially reasonable efforts to, at least two weeks prior and
          again immediately prior to the Closing Date, update <U>Schedule 3.8</U> to
          reflect all additional contracts and agreements entered into by Seller after the
          date hereof or otherwise binding Seller&#146;s assets, other than Excluded
          Contracts and contracts entered into by Seller in the Ordinary Course containing
          obligations of less than $10,000 (true, correct and complete copies (in the case
          of written contracts) and summaries (in the case of oral contracts) of which
          will have been provided or made available to Buyer) and as of the Closing Date
          &#147;Material Contracts&#148; shall be deemed to include all such additionally
          scheduled contracts. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VI<BR>
Employee Benefits </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Employee-Related Matters</U>. </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Nothing herein is intended to confer upon any employee of Seller or of any
          Affiliate of Seller any rights of any kind whatsoever under or by reason of this
          Agreement, including, without limitation, any rights to or of employment for a
          specified period or any other form of employment security. Buyer shall not
          assume any obligation or liability for employment practices or policies
          maintained by Seller or any Affiliate of Seller with respect to employees
          thereof. Buyer shall have no obligation or liability nor incur any cost or
          expense with respect to any claims, whether arising before or after the Closing,
          by any employee or former employee of Seller or any Affiliate of Seller arising
          by reason of the sale or purchase of the Purchased Assets pursuant to this
          Agreement or by reason of such employee or former employee&#146;s employment, or
          the termination of his or her employment, by Seller or any Affiliate of Seller. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer shall be responsible for providing any notice required, pursuant to WARN
          and any other state or local applicable plant closing notification law with
          respect to a mass layoff or plant closing relating to the Business that occurs
          after the Closing Date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VII<BR>
Tax Matters </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 7.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Transaction Taxes</U>.</B>&nbsp;&nbsp;Seller shall use its commercially
reasonable efforts to obtain an exemption, under Section 1146(c) of the Bankruptcy Code,
from all state and local transfer, recording, stamp and other transfer or transaction
Taxes that may be imposed by reason of the transactions contemplated by this Agreement
(collectively &#147;<U>Transaction Taxes</U>&#148;). To the extent an exemption is not
available under Section 1146(c) of the Bankruptcy Code, Buyer and Seller shall cooperate
in the preparation and timely delivery of any resale exemption or similar certificate or
instrument that would entitle either party to claim an exemption from a Transaction Tax.
To the extent a Transaction Tax is still payable after giving effect to Section 1146(c) of
the Bankruptcy Code and any available resale or other exemption, Buyer shall pay the
Transaction Tax. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 7.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Property Taxes</U>.</B>&nbsp;&nbsp;Responsibility for Property Taxes shall be
allocated as follows:</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller shall be responsible for Property Taxes that are payable with respect to
          any taxable period that ends before the Closing Date, regardless of when such
          Property Taxes are due. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Property Taxes that are payable with respect to any taxable period that begins
          before and ends after the Closing Date shall be apportioned, as of the Closing
          Date, between Seller and Buyer. Seller shall be allocated an amount equal to the
          product of each such Property Tax and a ratio, the numerator of which is the
          number of days in the portion of the taxable period that ends on and includes
          the Closing Date and the denominator of which is the number of days in the
          entire taxable period. Buyer shall be allocated an amount equal to the product
          of such Property Tax and a ratio, the numerator of which is the number of days
          in the portion of the taxable period that begins on the day after the Closing
          Date and the denominator of which is the number of days in the entire taxable
          period. To the extent a Property Tax for a taxable period that includes the
          Closing Date cannot be determined because current tax rates, assessed values or
          other information is not yet available, such Property Tax shall be deemed to be
          110% of the amount of such Property Tax for the most recent taxable period for
          which such information is known. Buyer shall be responsible for the payment of
          all unpaid Property Taxes for taxable periods that begin before and end after
          the Closing Date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer shall be responsible for all Property Taxes that are payable with respect
          to any taxable period that begins after the Closing Date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Purchase Price shall be reduced by an amount equal to the Property Taxes not
          otherwise paid by Seller prior to the Closing Date which are allocated to Seller
          under clause (b) of this <U>Section 7.2</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 7.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Cooperation on Tax Matters</U>.</B>&nbsp;&nbsp;Buyer and Seller shall
furnish to each other, as promptly as practicable, such information and assistance
relating to the Business and the Purchased Assets as is reasonably necessary for the
preparation and filing of a Tax Return or the conduct of a contest with respect to Taxes. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE VIII<BR>
Conditions to Buyer&#146;s Obligation to Close </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer&#146;s obligation to consummate
the Asset Purchase and to assume the Assumed Liabilities shall be subject to the
satisfaction or written waiver on or prior to the Closing Date of all of the following
conditions: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Representations, Warranties and Covenants of Seller</U>.</B>&nbsp;&nbsp;
The representations and warranties of Seller contained in this Agreement shall be true and
correct in all material respects (except that any representation or warranty which by its
terms is expressly qualified by materiality shall be true and correct in all respects) on
and as of the Closing Date with the same effect as though such representations and
warranties had been made on and as of such date except for representations and warranties
that speak as of a specific date or time other than the Closing Date (which need only be
true and correct in all material respects or in all</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>respects, as applicable, as of such
date or time), and the covenants and agreements of Seller to be performed on or before the
Closing Date in accordance with this Agreement shall have been duly performed in all
material respects. At the Closing, Seller will deliver to Buyer a certificate of the
manager or an officer of Seller, dated as of the Closing Date, whereby such manager or
officer certifies that the conditions set forth in this <U>Section&nbsp;8.1</U> have been
satisfied.</FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Filings; Consents; Waiting Periods</U>.</B>&nbsp;&nbsp;The Buyer Required
Regulatory Approvals, Seller Required Regulatory Approvals and any other consent required
for Buyer to perform this Agreement in accordance with the Bankruptcy Code shall have been
obtained and in full force and effect on the Closing Date and in form and substance
reasonably acceptable to Buyer, and the waiting period applicable to the purchase and sale
contemplated by this Agreement under the HSR Act, if applicable, shall have expired or
been terminated. No injunction or restraining order shall have been issued by any court of
competent jurisdiction and be in effect which restrains or prohibits any material
transaction contemplated hereby and no other legal restraint or prohibition preventing the
consummation of any such material transaction shall be in effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Entry of Orders By Bankruptcy Court</U>.</B>&nbsp;&nbsp;The Bankruptcy Court shall have entered the
Approval Order, and the Approval Order shall have become a Final Order and shall not then
be vacated, stayed, or reversed, or modified, amended, or supplemented in any manner
adverse in any material respect to Buyer in its reasonable opinion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Assignment of Key Contracts</U>.</B>&nbsp;&nbsp;With respect to each Key
Contract, as listed on <U>Schedule 8.4</U>, the Approval Order shall provide, without
limitation, that: (i) all right, title, and interest of Seller under such Key Contract
shall, upon Closing, be transferred and assigned to and fully and irrevocably vest in
Buyer and remain in full force and effect; (ii) such Key Contract is in full force and
effect and is an executory contract or unexpired lease of Seller under Section&nbsp;365 of
the Bankruptcy Code; (iii) Seller may assume such Key Contract pursuant to
Section&nbsp;365 of the Bankruptcy Code; (iv) Seller may assign such Key Contract to Buyer
pursuant to Section&nbsp;365 of the Bankruptcy Code free and clear of all Liens and any
provisions in such Key Contract which purport to prohibit or condition the assignment of
such contract constitute unenforceable anti-assignment provisions which are void and of no
force or effect; (v) all other requirements and conditions of Section&nbsp;365 of the
Bankruptcy Code for the assumption by Seller and assignment to the Buyer of such Key
Contract have been satisfied; (vi) upon Closing, in accordance with Section&nbsp;365 of
the Bankruptcy Code, Buyer shall be fully and irrevocably vested in all right, title, and
interest of Seller in such Key Contract; (vii)&nbsp;the assignments of such Key Contract
to Buyer is in good faith under Sections&nbsp;363(b) and 363(m) of the Bankruptcy Code;
and (viii) Seller gave due and proper notice of such assumption and assignment to each
party to such Key Contract. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>No Material Adverse Effect</U>.</B>&nbsp;&nbsp;Since the date hereof there shall have occurred no
material damage or casualty loss to, and there shall be no material defects in or
condition of (whether latent or patent, and whether existing before or arising after the
date hereof), the Power Plant that individually or collectively renders the Power Plant
physically incapable of generating electric power and delivering it to the Interconnect
Point in the Ordinary</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42</FONT></P>
<PAGE>


<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Course on the Closing Date. All components of all buildings,
structures and other improvements included in or located on the Owned Real Property shall
be reasonably sufficient in all material respects and reasonably adequate in all material
respects for Buyer to generate electric power at the Power Plant and transmit it to the
Interconnect Point in the Ordinary Course on the Closing Date. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted.] </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.7</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted.] </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Non-Foreign Person Affidavit</U>.</B>&nbsp;&nbsp;Seller shall deliver to
Buyer an affidavit to the effect that it is not a &#147;foreign person&#148; within the
meaning of Sections&nbsp;1445 or 7701 of the Code, executed under penalties of perjury and
satisfying the requirements of the Treasury Regulations promulgated pursuant to such Code
sections. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 8.9</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Other</U>.</B>&nbsp;&nbsp;Seller shall have delivered all items and
satisfied all obligations arising under <U>Section&nbsp;2.4</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Buyer may waive any condition
specified in this Article&nbsp;VIII if it executes a writing so stating at or prior to
Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE IX<BR>
Conditions to Seller&#146;s Obligation to Close </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller&#146;s obligation to
consummate the Asset Purchase is subject to the satisfaction or written waiver on or prior
to the Closing Date of all of the following conditions: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 9.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Representations, Warranties and Covenants of Buyer</U>.</B>&nbsp;&nbsp;The
representations and warranties of Buyer contained in this Agreement shall be true and
correct in all material respects (except that any representation or warranty which by its
terms is expressly qualified by materiality shall be true and correct in all respects) on
and as of the Closing Date with the same effect as though such representations and
warranties had been made on and as of such date except for representations and warranties
that speak as of a specific date or time other than the Closing Date (which need only be
true and correct in all material respects or in all respects, as applicable, as of such
date or time), and the covenants and agreements of Buyer to be performed on or before the
Closing Date in accordance with this Agreement shall have been duly performed in all
material respects. At the Closing, Buyer will deliver to Seller a certificate of an
officer of Buyer dated as of the Closing Date whereby such officer certifies that the
conditions set forth in this <U>Section&nbsp;9.1</U> have been satisfied. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 9.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Filings; Consents; Waiting Periods</U>.</B>&nbsp;&nbsp;The Seller Required
Regulatory Approvals, Buyer Required Regulatory Approvals and any other consent required
for Seller to perform this Agreement in accordance with the Bankruptcy Code, shall have
been obtained and be in full force and effect on the Closing Date and (with respect to
Seller Required Regulatory Approvals) in form and substance reasonably acceptable to
Seller, and the waiting period applicable to the purchase and sale contemplated by this
Agreement under the HSR Act, if</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>applicable, shall have expired or been terminated. No
injunction or restraining order shall have been issued by any court of competent
jurisdiction and be in effect which restrains or prohibits any material transaction
contemplated hereby and no other legal restraint or prohibition preventing the
consummation of any such material transaction shall be in effect. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 9.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Entry of Orders By Bankruptcy Court</U>.</B>&nbsp;&nbsp;The Bankruptcy Court shall have entered the
Approval Order, and the Approval Order shall have become a Final Order and shall not then
be vacated, stayed, or reversed, or modified, amended, or supplemented in any manner
adverse in any material respect to Seller in its reasonable opinion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 9.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Other</U>.</B>&nbsp;&nbsp;Buyer shall have delivered all items and
satisfied all obligations arising under <U>Sections&nbsp;2.5</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller may waive any condition
specified in this Article&nbsp;IX if it executes a writing so stating at or prior to
Closing. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE X<BR>
Disclaimers </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclaimers</U>. </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>EXCEPT FOR THOSE REPRESENTATIONS AND WARRANTIES SET FORTH IN <U>ARTICLE
          III</U> OF THIS AGREEMENT, SELLER MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY
          KIND OR NATURE, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, AS TO THE PURCHASED
          ASSETS AND TITLE THERETO, THE OPERATION OF THE PURCHASED ASSETS, OR THE
          PROSPECTS (FINANCIAL AND OTHERWISE), RISKS AND OTHER INCIDENTS OF THE PURCHASED
          ASSETS AND BUSINESS, INCLUDING WITHOUT LIMITATION WITH RESPECT TO THE ACTUAL OR
          RATED GENERATING CAPABILITY OF THE POWER PLANT OR THE ABILITY OF BUYER TO
          GENERATE OR SELL ELECTRICAL ENERGY.</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>WITHOUT LIMITING THE FOREGOING, AND EXCEPT FOR THOSE REPRESENTATIONS AND
          WARRANTIES SET FORTH IN <U>ARTICLE III</U> OF THIS AGREEMENT, SELLER MAKES NO
          REPRESENTATIONS OR WARRANTIES OF MERCHANTABILITY, USAGE OR SUITABILITY OR
          FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE PURCHASED ASSETS, OR ANY
          PART THEREOF, OR AS TO THE WORKMANSHIP THEREOF, OR THE ABSENCE OF ANY DEFECTS
          THEREIN, WHETHER LATENT OR PATENT, OR COMPLIANCE OF SUCH ASSETS WITH ANY LAWS,
          INCLUDING ENVIRONMENTAL LAWS, OR AS TO THE CONDITION OF THE PURCHASED ASSETS, OR
          ANY PART THEREOF, OR AS TO THE ABSENCE OF HAZARDOUS SUBSTANCES OR LIABILITY OR
          POTENTIAL LIABILITY UNDER ENVIRONMENTAL LAWS WITH RESPECT TO THE PURCHASED
          ASSETS. ANY SUCH OTHER REPRESENTATIONS AND WARRANTIES ARE HEREBY EXPRESSLY
          DISCLAIMED.</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>THE PURCHASED ASSETS ARE SOLD AND PURCHASED &#147;AS-IS, WHERE-IS&#148; ON
          THE CLOSING DATE, AND IN THEIR CONDITION ON THE CLOSING DATE &#147;WITH ALL
          FAULTS.&#148;</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>WITHOUT LIMITING THE FOREGOING, NO MATERIAL OR INFORMATION PROVIDED BY OR
          COMMUNICATIONS MADE BY SELLER OR ITS REPRESENTATIVES WILL CAUSE OR CREATE ANY
          REPRESENTATION OR WARRANTY (OTHER THAN THOSE SET FORTH HEREIN) OF ANY KIND OR
          NATURE, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING ANY
          REPRESENTATION OR WARRANTY AS TO TITLE, CONDITION, VALUE OR QUALITY OF THE
          PURCHASED ASSETS.</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>NOTWITHSTANDING ANYTHING CONTAINED TO THE CONTRARY IN THIS AGREEMENT, OTHER
          THAN <U>SECTION 10.1(f)</U>, SELLER AND BUYER AGREE THAT THE RECOVERY BY EITHER
          PARTY OF ANY DAMAGES</B></FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SUFFERED OR INCURRED BY IT AS A RESULT OF ANY BREACH BY THE
          OTHER PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS OR OBLIGATIONS
          UNDER THIS AGREEMENT SHALL BE LIMITED TO THE ACTUAL DAMAGES SUFFERED OR INCURRED
          BY THE NON-BREACHING PARTY AS A RESULT OF THE BREACH BY THE BREACHING PARTY OF
          ITS REPRESENTATIONS, WARRANTIES, COVENANTS AND OBLIGATIONS HEREUNDER AND IN NO
          EVENT SHALL THE BREACHING PARTY BE LIABLE TO THE NON-BREACHING PARTY FOR ANY
          INDIRECT, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES (INCLUDING ANY
          DAMAGES ON ACCOUNT OF LOST PROFITS OR OPPORTUNITIES OR LOST OR DELAYED
          GENERATION) SUFFERED OR INCURRED BY THE NON-BREACHING PARTY AS A RESULT OF THE
          BREACH BY THE BREACHING PARTY OF ANY OF ITS REPRESENTATIONS, WARRANTIES,
          COVENANTS AND OBLIGATIONS HEREUNDER.</B> </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <B>NOTHING IN THIS <U>SECTION 10.1</U>, OR ELSEWHERE IN THIS AGREEMENT, SHALL
          LIMIT BUYER&#146;S RIGHTS OR REMEDIES WITH RESPECT TO FRAUD.</B> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 10.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Specific Performance</U>.</B>&nbsp;&nbsp;Each of the parties acknowledges
and agrees that the other party would be damaged irreparably in the event any of the
provisions of this Agreement is not performed in accordance with its specific terms or
otherwise is breached. Accordingly, each of the parties agrees that the other party is
entitled to an injunction or injunctions to prevent breaches of the provisions of this
Agreement and to enforce specifically this Agreement, in addition to any other remedy to
which it may be entitled, at law or in equity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 10.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Survival After Closing</U>.</B>&nbsp;&nbsp;Except with respect to
<U>Sections 2.8</U> through <U>2.12</U>, <U>5.2(a)</U>, <U>5.8</U>, <U>5.12</U>,
<U>5.13</U>, <U>5.15</U>, <U>6.1(a)</U>, <U>7.1</U>, <U>7.2</U> and <U>7.3</U> and
<U>Articles X</U> and <U>XIII</U> (and the definitions referenced in this Agreement used
therein), the representations, warranties, covenants and agreements of the parties shall
not survive Closing and the execution and delivery of the other Transaction Documents. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ARTICLE XI</B><BR>
[Intentionally omitted] </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ARTICLE XII<BR>
Termination</B></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 12.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Termination</U>.</B>&nbsp;&nbsp;This Agreement may be terminated at any time prior
to the Closing by:</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          the mutual written consent of Seller and Buyer; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if the Closing has not occurred on or before December 1, 2003 and the
          failure to consummate the Asset Purchase on or before such date did not result
          from the</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>failure by the Buyer to fulfill any undertaking or commitment provided
          for herein that is required to be fulfilled prior to the Closing;</FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller, if the Closing has not occurred on or before December 1, 2003 and the
          failure to consummate the Asset Purchase on or before such date did not result
          from the failure by Seller or any of its Affiliates to fulfill any undertaking
          or commitment provided for herein that is required to be fulfilled prior to the
          Closing; (d) Buyer, if the Case shall have been dismissed and not reinstated in
          the Bankruptcy Court within 10 Business Days of any such dismissal; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if the Bidding Procedures Order shall not have been entered on the docket
          of the Bankruptcy Court on or prior to September 11, 2003; provided, however,
          that Buyer shall not be in breach of this Agreement in any material respect at
          the time of termination; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if the Bidding Procedures Order shall not have become a Final Order on or
          prior to September 21, 2003; provided, however, that Buyer shall not be in
          breach of this Agreement in any material respect at the time of termination;
          provided further, however, that Buyer shall not be entitled to terminate this
          Agreement as a result of the Bidding Procedures Order not becoming a Final Order
          on or prior to September 21, 2003 if (i) the Bidding Procedures Order is not a
          Final Order as of such time solely as a result of the fact that the time for
          instituting or filing a challenge to such order shall not have expired, and (ii)
          it is determined by a court of competent jurisdiction that the Bidding
          Procedures Order is an interlocutory order as of such time; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if the Approval Order shall not have become a Final Order on or prior to
          November 24, 2003; provided, however, that Buyer shall not be in breach of this
          Agreement in any material respect at the time of termination; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if (i) the Bidding Procedures Order, or (ii) the Approval Order, in
          either case, is vacated, stayed, or reversed, or supplemented, amended, or
          modified in any manner adverse in any material respect to Buyer in its
          reasonable opinion and such vacation, stay, reversal, supplement, amendment or
          modification, as the case may be, is not cured to the reasonable satisfaction of
          Buyer within ten Business Days after the occurrence thereof; provided, that
          Buyer shall not be in breach of this Agreement in any material respect at the
          time of termination; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if since the date hereof there shall have occurred material damage or
          casualty loss to, or there shall exist a material defect in or condition of
          (whether latent or patent, and whether existing before or arising after the date
          hereof), the Power Plant that individually or collectively renders the Power
          Plant physically incapable of generating electric power and delivering it to the
          Interconnect Point in the Ordinary Course, if such damage, loss, defect or
          condition shall not have been cured within twenty Business Days after the
          occurrence thereof (or, as to defects or conditions, the identification thereof
          by or to Seller); provided, however, that if despite Seller&#146;s exercise of
          all commercially reasonable efforts to diligently cure such damage, loss, defect
          or condition it would be and is incapable of being cured through the</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>use of such
          efforts within such twenty Business Day period, at the end of such period as
          would suffice to cure such damage, loss, defect or condition through the
          exercise of all commercially reasonable efforts to do so if such damage, loss,
          defect or condition has not then been cured; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, upon: (i) conversion of the Case to a case under Chapter 7 of the
          Bankruptcy Code; (ii) Seller seeking to transfer the venue of the Case; (iii)
          the filing by Seller of a plan of reorganization or liquidation for Seller which
          does not provide for the sale of the Purchased Assets to Buyer under this
          Agreement, or the confirmation of any such plan, whether or not filed by Seller;
          or (iv) the appointment of a trustee for Seller; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, if Seller accepts or the Bankruptcy Court approves an alternative bid for
          any of the Purchased Assets or Seller otherwise decides to pursue an Alternative
          Transaction, or Seller, if Seller accepts or the Bankruptcy Court approves an
          alternative bid for any of the Purchased Assets pursuant to the terms of the
          Bidding Procedures Order; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          [Intentionally omitted]; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          [Intentionally omitted]; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer, provided that Buyer shall not be in breach of this Agreement in any
          material respect at the time of termination, upon a breach of this Agreement in
          any material respect on the part of Seller and failure to cure such breach
          within ten Business Days after notice thereof, subject, however, to <U>Section
          5.2(e)</U> to the extent applicable; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Seller, provided that Seller shall not be in breach of this Agreement in any
          material respect at the time of termination, upon a breach of this Agreement in
          any material respect on the part of Buyer, and Buyer&#146;s failure to cure such
          breach within ten Business Days after notice thereof; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          either Seller or Buyer if a United States federal or state court of competent
          jurisdiction or United States federal or state governmental, regulatory or
          administrative agency or commission shall have issued an order, decree or ruling
          or taken any other action permanently restraining, enjoining or otherwise
          prohibiting the transactions contemplated hereby and such order, decree, ruling
          or other action shall have become final and non-appealable; provided, however,
          that the party seeking to terminate this Agreement pursuant to this
          <U>Section&nbsp;12.1(p)</U> shall have complied with <U>Section&nbsp;5.5</U>
          above, and with respect to other matters not covered by <U>Section&nbsp;5.5</U>
          above, shall have used all commercially reasonable efforts to remove such order,
          decree, ruling or other action; </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer in accordance with <U>Section 5.2(e)</U>; or </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Buyer if the Prepetition Lenders (or the collateral agent or administrative
          agent therefor) take affirmative steps to exercise the sale or foreclosure
          rights and remedies afforded them against Seller or any of the Purchased Assets. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Notwithstanding the foregoing, if the
Case shall not have been filed with the Bankruptcy Court by the Business Day immediately
subsequent to the date hereof, subject to the proviso in <U>Section 12.2(i)</U> this
Agreement will automatically terminate and become void and of no effect unless, if the
Case shall not have been filed with the Bankruptcy Court by such Business Day, prior to
the end of that day Buyer notifies Seller in writing that this Agreement shall not
terminate on such day, in which event the Agreement shall instead automatically terminate
and become void and of no effect on such later date as is notified by Buyer to Seller in
writing unless the Case is filed with the Bankruptcy Court prior to such later date. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 12.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Procedure and Effect of Termination</U>.</B>&nbsp;&nbsp;In the event of
termination of this Agreement by either Seller or Buyer pursuant to
<U>Section&nbsp;12.1</U> above, (i) written notice thereof shall forthwith be given by the
terminating party to the other party hereto specifying the basis for such termination, and
this Agreement shall thereupon terminate and become void and have no effect, and the
transactions contemplated hereby shall be abandoned without further action by the parties
hereto, provided that the provisions of <U>Article&nbsp;X</U>, <U>Sections&nbsp;3.20</U>,
<U>4.3</U>, <U>5.2(a) </U>and <U>5.2(b)</U>, and Article XIII hereof (and the definitions
referenced in this Agreement used therein) shall survive the termination of this Agreement
and shall also survive the automatic expiration of this Agreement pursuant to
<U>Section&nbsp;12.1</U> and (ii) such termination and automatic expiration shall (absent
fraud or material breach of this Agreement) be without liability of any party (or any
stockholder, director, officer, employee, agent, consultant or representative of such
party) other than as set forth in or pursuant to an order of the Bankruptcy Court. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE XIII<BR>
Miscellaneous </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.1</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Counterparts</U>.</B>&nbsp;&nbsp;This Agreement may be executed in one or
more counterparts, all of which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed by each of the parties and
delivered to the other parties. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.2</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Governing Law</U>.</B>&nbsp;&nbsp;This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without giving effect to
any choice or conflict of law provision or rule (whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of New York, except to the extent preempted by federal bankruptcy laws. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.3</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Severability</U>.</B>&nbsp;&nbsp;Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or invalid
under applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.4</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Forum Selection and Consent to Jurisdiction</U>.</B>&nbsp;&nbsp;For so long as Seller is subject to
the jurisdiction of the Bankruptcy Court, the parties hereto irrevocably elect as the sole</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>judicial forum for the adjudication
of any matter arising under or in connection with this
Agreement, and consent to the jurisdiction of, the Bankruptcy Court. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.5</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Intentionally omitted.] </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.6</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Entire Agreement; Third-Party Beneficiaries</U>.</B>&nbsp;&nbsp;This Agreement (including agreements
incorporated herein) and the Exhibits and Schedules hereto contain the entire agreement
between the parties with respect to the subject matter hereof and there are no agreements,
understandings, representations or warranties between the parties other than those set
forth or referred to herein. Except as provided in <U>Sections&nbsp;13.9</U> and
<U>5.12</U>, this Agreement is not intended to confer upon any Person not a party hereto
any rights or remedies hereunder. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.7</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Expenses</U>.</B>&nbsp;&nbsp;Except as set otherwise expressly forth in
this Agreement, whether the Asset Purchase is or is not consummated, all legal and other
costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs and expenses. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.8</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Notices</U>.</B>&nbsp;&nbsp;All notices hereunder shall be sufficiently
given for all purposes hereunder if in writing and delivered personally, sent by
documented overnight delivery service or, to the extent receipt is confirmed, telecopy,
facsimile or other electronic transmission service to the appropriate address or number as
set forth below. </FONT></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices to Seller shall be addressed to:</FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=350>
<TR VALIGN="BOTTOM">
     <TD WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=65%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">c/o NRG Energy, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">901 Marquette Avenue</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Suite 2300</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Minneapolis, MN 55402-3265</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Attention: George P. Schaefer</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facsimile No.: (612) 373-8804</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
with a required copy to:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG West Coast LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">4600 Carlsbad Blvd.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Carlsbad, CA 92008</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Attention: David Lloyd</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facsimile No.: (760) 268-4017</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>or at such other address and to the
attention of such other person as Seller may designate by written notice to Buyer. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notices to Buyer shall be addressed to:</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50</FONT></P>
<PAGE>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=350>
<TR VALIGN="BOTTOM">
     <TD WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=65%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oklahoma Gas and Electric Company</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">PO Box 321</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oklahoma City, Oklahoma 73101-0321</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Attention: Peter B. Delaney</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facsimile No.: (405) 553-3625</FONT></TD></TR>
</TABLE>
<BR><BR>



<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=350>
<TR VALIGN="TOP">
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
with a required copy to:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=65%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Jones Day</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">77 West Wacker Drive, Suite 3500</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Chicago, Illinois 60601-1692</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Attention: Peter D. Clarke</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facsimile No.: (312) 782-8585</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>or at such other address and to the attention
of such other person as Buyer may designate by written notice to Seller. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.9</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Successors and Assigns</U>.</B>&nbsp;&nbsp;This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and
assigns (including any trustee appointed in respect of Seller under the Bankruptcy Code);
provided, however, that no party hereto shall assign its rights or delegate its
obligations under this Agreement without the express prior written consent of the other
party hereto (except that Buyer may transfer, assign, and delegate any or all of its
rights and obligations arising under this Agreement and any of the Transaction Documents
to a subsidiary of Buyer; provided further, however, that any such assignment shall not
relieve Buyer from any liability or obligation hereunder or under the Transaction
Documents). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.10</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Headings; Definitions</U>.</B>&nbsp;&nbsp;The Section&nbsp;and Article
headings contained in this Agreement are inserted for convenience of reference only and
shall not affect the meaning or interpretation of this Agreement. All references to
Sections or Articles contained herein mean Sections or Articles of this Agreement unless
otherwise stated. All defined terms and phrases herein are equally applicable to both the
singular and plural forms of such terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.11</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Amendments and Waivers</U>.</B>&nbsp;&nbsp;This Agreement may not be modified or
amended except by an instrument or instruments in writing signed by the party against whom
enforcement of any such modification or amendment is sought. Seller may waive compliance
by Buyer or Buyer may waive compliance by Seller with any term or provision of this
Agreement on the part of such party to be performed or complied with, but only by an
instrument in writing. The waiver by any party hereto of a breach of any term or provision
of this Agreement shall not be construed as a waiver of any subsequent breach. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Section 13.12</B>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>Interpretation</U>.</B>&nbsp;&nbsp;In this Agreement, unless clear
contrary intention appears: (a)&nbsp;the singular number includes the plural number and
vice versa; (b)&nbsp;reference to any</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Person includes such Person&#146;s successors and
assigns but, if applicable, only if such successors and assigns are permitted by this
Agreement, and reference to a Person in a particular capacity excludes such Person in any
other capacity; (c)&nbsp;reference to any gender includes each other gender;
(d)&nbsp;reference to any agreement (including this Agreement), document or instrument
means such agreement, document or instrument as amended or modified and in effect from
time to time in accordance with the terms thereof and, if applicable, the terms hereof,
(e)&nbsp;reference to any Article, Section, Schedule or Exhibit means such Article,
Section, Schedule or Exhibit to this Agreement, and references in any Article, Section,
Schedule, Exhibit or definition to any clause means such clause of such Article, Section,
Schedule, Exhibit or definition, (f)&nbsp;&#147;hereunder,&#148; &#147;hereof,&#148;
&#147;hereto,&#148; &#147;herein&#148; and words of similar import are reference to this
Agreement as a whole and not to any particular Section&nbsp;or other provision hereof;
(g)&nbsp;relative to the determination of any period of time, &#147;from&#148; means
&#147;from and including,&#148; &#147;to&#148; means &#147;to but excluding&#148; and
&#147;through&#148; means &#147;through and including;&#148;
(h)&nbsp;&#147;including&#148; (and with correlative meaning
&#147;include&#148;)&nbsp;means including without limiting the generality of any
description preceding such term; (i)&nbsp;reference to any law (including statutes and
ordinances) means such law as amended, modified, codified or reenacted, in whole or in
part, and in effect from time to time, including rules and regulations promulgated
thereunder; and (j)&nbsp;unless otherwise specified in this Agreement, all accounting
terms used in this Agreement shall be interpreted, all determinations with respect to
accounting matters under this Agreement, and all financial statements and certificates and
reports as to financial matters required to be furnished under this Agreement shall be
prepared in accordance with GAAP, consistent with Seller&#146;s historical practices,
applied on a consistent basis. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.13
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Electronic Signatures</U>.</FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Notwithstanding the Electronic Signatures in Global and National Commerce Act
          (15 U.S.C. Sec. 7001 <I>et </I>seq.), the Uniform Electronic Transactions Act,
          or any other Law relating to or enabling the creation, execution, delivery, or
          recordation of any contract or signature by electronic means, and
          notwithstanding any course of conduct engaged in by the Parties, no Party shall
          be deemed to have executed this Agreement or any other Transaction Document
          (including any amendment or other change thereto) unless and until such Party
          shall have executed this Agreement or such Transaction Document or other
          document on paper by a handwritten original signature or any other symbol
          executed or adopted by a Party with current intention to authenticate this
          Agreement or such Transaction Document or such other document contemplated. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Delivery of a copy of this Agreement or any other Transaction Document or such
          other document bearing an original signature by facsimile transmission (whether
          directly from one facsimile device to another by means of a dial-up connection
          or whether mediated by the worldwide web), by electronic mail in &#147;portable
          document format&#148; (&#147;.pdf&#148;) form, or by any other electronic means
          intended to preserve the original graphic and pictorial appearance of a
          document, or by combination of such means, shall have the same effect as
          physical delivery of the paper document bearing the original signature.
          &#147;Originally signed&#148; or &#147;original signature&#148; means or refers
          to a signature that has not been mechanically or electronically reproduced. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 13.14
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Arbitration</U>.</FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Subject to <U>Section 13.4</U>, either Buyer or Seller (the
          &#147;<U>claimant</U>&#148;) may give written notice to the other (hereinafter
          &#147;respondent&#148;) of its intention to arbitrate any dispute among the
          parties hereto arising out of or in connection with this Agreement or any
          alleged breach hereof, which notice shall contain a statement setting forth the
          nature of the dispute, the amount involved, if any, and the remedy sought, and
          file with an office of the American Arbitration Association
          (&#147;<U>AAA</U>&#148;) located in New York, New York or Chicago, Illinois a
          copy of the notice and a copy of the arbitration provisions of this Agreement,
          together with the appropriate filing fee as provided in the Schedule of the AAA
          Commercial Arbitration Rules as amended and effective on January 1, 2003 (the
          &#147;<U>AAA Rules</U>&#148;). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The AAA shall give notice of such filing to the respondent which may file an
          answering statement in duplicate with the AAA within ten days after notice from
          the AAA, in which event the respondent shall at the same time send a copy of the
          answering statement to the claimant. If a counterclaim is asserted, it shall
          contain a statement setting forth the nature of the counterclaim, the amount
          involved, if any, and the remedy sought. If a counterclaim is made, the
          appropriate fee provided in the fee schedule to the AAA Rules shall be forwarded
          to the AAA with the answering statement. If no answering statement is filed
          within the stated time, it will be treated as a denial of the claim. Failure to
          file an answering statement shall not operate to delay the arbitration. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The AAA Rules and the AAA Optional Procedures for Large, Complex Commercial
          Disputes (the &#147;<U>Optional Procedures</U>&#148;), as modified or revised by
          the provisions herein, shall govern these proceedings. The arbitration shall be
          conducted by a single arbitrator selected pursuant to Section R-13 of the AAA
          Rules thereof, with prehearing discovery permitted pursuant to the AAA Rules and
          Optional Procedures. Under Section R-13 of the AAA Rules, the AAA will place on
          its list of potential arbitrators only persons from the Large, Complex
          Commercial Case Panel who are retired judges or practicing attorneys with at
          least twenty years experience in large commercial cases. Under Section R-44 of
          the AAA Rules, the arbitrator shall render a reasoned award, setting forth the
          findings of fact and conclusions of law upon which the award is based, which
          award shall be final and binding upon the parties, and judgment on any such
          award or final decision of the arbitrator may be entered in any court having
          jurisdiction. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[SIGNATURE PAGE FOLLOWS] </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>53</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, this Agreement
has been signed by or on behalf of each of the parties as of the day first above written. </FONT></P>

&nbsp;

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=700>
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH ALIGN=LEFT COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">"SELLER"</FONT></TH>
</TR>
<TR VALIGN="TOP">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McCLAIN LLC</FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;/s/ Scott J. Davido
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Scott J. Davido</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>"BUYER"</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">OKLAHOMA GAS AND ELECTRIC COMPANY</FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>/s/&nbsp;&nbsp;&nbsp;Jack T. Coffman&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jack T. Coffman</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sr. Vice President, Power Supply</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54</FONT></P>
<PAGE>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=700>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>EXHIBIT</U></FONT></TD>
     <TD WIDTH=75% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DESCRIPTION</U></FONT></TD></TR>
<TR>
<TD COLSPAN=2>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Forms of Real Property Deed and Bill of Sale</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of Sale Motion</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of Bidding Procedures Order</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of Approval Order</FONT></TD></TR>
<TR>
<TD COLSPAN=2>&nbsp;</TD>
</TR>
<TR>
<TD COLSPAN=2>&nbsp;</TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>SCHEDULE</U></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2(e)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Retained Books and Records</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2(j)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Excluded Contracts</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2(l)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other Retained Assets</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Purchase Price Allocation</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Seller Required Regulatory Approvals</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Seller Required Consents</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Ownership of Purchased Assets</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Compliance with Orders</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Intellectual Property</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Contracts</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Permits and Licenses</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Owned Real Property</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Litigation</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13(a)Compliance</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>with Applicable Laws</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13(b)Environmental</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Matters</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13(c)Environmental</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reports</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employee Benefit Plans</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Warranty Matters</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tax Matters</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Insurance Policies</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.21</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Absence of Changes</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Buyer Required Regulatory Approvals</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conduct of Business Before the Closing Date</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Key Contracts</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55</FONT></P>
<PAGE>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT A TO<BR>
ASSET PURCHASE AGREEMENT</B></FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>REAL PROPERTY DEED AND BILL OF SALE</B></FONT></P><BR><BR><BR><BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56</FONT></P>
<PAGE>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SPECIAL WARRANTY DEED </FONT></H1>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KNOW ALL PERSONS BY THESE PRESENTS: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That NRG MCCLAIN LLC (formerly known
as Duke Energy McClain, L.L.C.), a Delaware limited liability company (the
&#147;Grantor&#148;), in consideration of the sum of Ten and 00/100 Dollars ($10.00) and
other valuable considerations, in hand paid, the receipt of which is hereby acknowledged,
does hereby grant, bargain, sell and convey unto OKLAHOMA GAS AND ELECTRIC COMPANY, an
Oklahoma corporation (the &#147;Grantee&#148;), the following (collectively, the
&#147;Property&#148;): </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
<TR VALIGN=Top>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a)</FONT></TD>
     <TD WIDTH=85% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A seventy-seven percent (77%) undivided interest in that certain tract of real<BR>
property situated in McClain County, Oklahoma, as specifically described on<BR>
<U>Exhibit A-1</U> attached hereto and made a part hereof; and</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A one hundred percent (100%) interest in those two certain tracts of real property<BR>
situated in McClain County, Oklahoma, as specifically described on <U>Exhibit A-2</U><BR>
attached hereto and made a part hereof;</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>together with all and singular the
improvements thereon and the appurtenances thereunto belonging, and warrant the title to
the same against all persons claiming by, through or under the Grantor, but not otherwise
<B>SUBJECT TO</B> all &#147;Permitted Liens&#148;, as such term is defined in that certain
Asset Purchase Agreement dated as of August 18, 2003 by and between Grantor and Grantee
(the &#147;Permitted Exceptions&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TO HAVE AND TO HOLD</B> the
Property and appurtenances, tenements and hereditaments thereto belonging unto the
Grantee, the Grantee&#146;s successors and assigns, forever free, clear and discharged of
and from all former grants, charges, taxes, judgments, mortgages, liens and encumbrances
of whatsoever nature made or suffered to be made by or through the Grantor, but not
otherwise, <B>EXCEPT THE PERMITTED EXCEPTIONS</B>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signed and delivered effective as of
the ______ day of ________, 20__. </FONT></P>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=700>
<TR VALIGN="BOTTOM">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG MCCLAIN LLC, a Delaware limited liability</FONT></TD>
</TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">company</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=45%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Name:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Title:</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57</FONT></P>
<PAGE>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=200>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">STATE OF<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</U></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">) ss.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">COUNTY OF<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">)</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing instrument was
acknowledged before me this ______ day of _____________, 20___, by <U> </U>, as <U> </U>,
of NRG McClain LLC, a Delaware limited liability company, on behalf of said company and he
is personally known to me. </FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=700>
<TR VALIGN="TOP">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;</U></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Notary Public</FONT></TD></TR>
</TABLE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>My Commission Expires:</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;(SEAL)</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58</FONT></P>
<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A-1</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Legal Description of 77% Undivided Interest Parcel</U></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Parcel 1:</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A piece, parcel or tract of land lying in Section Thirty-five
(35), Township Ten (10) North, Range Four (4) West
of the Indian Meridian, McClain County, State of Oklahoma, being a part of Government Lots Two (2) and Three (3)
and a part of the North Half (N/2) of the South Half (S/2) of said Section 35, being more particularly described
by metes and bounds as follows:  Commencing at the Southeast (SE/C) of said Section 35; thence North 00(degree)00'00"
East along the East line of said Section 35 a distance of 1320.00 feet to the Southeast (SE/C) of the North Half
(N/2) of the South Half (S/2) of said Section 35; thence North 89(degree)47'39" West, along the South line of the North
Half (N/2) of the South Half (S/2) of said Section 35, a distance of 2025.00 feet, to a point 3255.00 feet East
of the West line of said Section 35, said point being the POINT OF BEGINNING; thence continuing North 89(degree)47'39"
West along said South line a distance of 1239.00 feet; thence North 00(degree)00'00" East a distance of 2736.98 feet to
a point on the South Bank of the Canadian River; thence South 89(degree)32'16" East a distance of 192.08 feet; thence
South 78(degree)33'08" East a distance of 540.73 feet; thence South 84(degree)56'11" East a distance of 605.31 feet; thence
South 00(degree)00'00" West a distance of 2196.44 feet to a point 383.00 feet North of the South line of the N/2 of the
S/2 of said Section 35; thence North 89(degree)47'39" West and parallel with said South line a distance of 86.00 feet;
thence South 00(degree)00'00" West a distance of 383.00 feet to the POINT OR PLACE OF BEGINNING.</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59</FONT></P>
<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A-2</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Legal Description of 100% Interest Parcels</U></FONT></P>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WELLSITE #1 (Parcel 2):</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A part of the East Half (E/2) of the East Half
(E/2) of the Southwest Quarter (SW/4) of Section FOUR (4),
Township NINE (9) North, Range FOUR (4) West of the Indian Meridian, McClain County, Oklahoma, being more
particularly described as follows:  COMMENCING at the Southwest Corner of Said SW/4; THENCE North 89(degree)44'43" East
along the South line of said SW/4 a distance of 2087.00 feet; THENCE North 00(degree)47'53" West a distance of 188.00
feet to the POINT OF BEGINNING; THENCE continuing North 00(degree)47'53" West a distance of 225.00 feet; THENCE North
89(degree)12'07" East a distance of 242.50 feet; THENCE South 00(degree)47'53" East a distance of 225.00 feet; THENCE South
89(degree)12'07" West a distance of 242.50 feet to the POINT OR PLACE OF BEGINNING.</FONT></P>
<BR><BR>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WELLSITE #2 (Parcel 4):</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A part of the East Half (E/2) of the East Half
(E/2) of the Southwest Quarter (SW/4) of Section FOUR (4),
Township NINE (9) North, Range FOUR (4) West of the Indian Meridian, McClain County, Oklahoma, being more
particularly described as follows:  COMMENCING at the Southwest Corner of Said SW/4; THENCE North 89(degree)44'43" East
along the South line of said SW/4 a distance of 2087.00 feet; THENCE North 00(degree)47'53" West a distance of 1312.00
feet to the POINT OF BEGINNING; THENCE continuing North 00(degree)47'53" West a distance of 145.00 feet; THENCE North
89(degree)12'07" East a distance of 185.00 feet; THENCE South 00(degree)47'53" East a distance of 145.00 feet; THENCE South
89(degree)12'07" West a distance of 185.00 feet to the POINT OR PLACE OF BEGINNING.</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60</FONT></P>
<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT B</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Permitted Exceptions</U></FONT></P>
<BR>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[to come]</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61</FONT></P>
<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>BILL OF SALE</B></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,  pursuant to the terms and  provisions of that
certain Asset Purchase  Agreement,  dated
as of August 18,  2003 (the  "Agreement"),  by and between NRG McClain LLC, a Delaware limited liability company
("Seller") and Oklahoma Gas and Electric Company,  an Oklahoma  corporation  ("Buyer"),  Seller has agreed to sell,
transfer,  convey,  assign and  deliver  to Buyer,  and Buyer has agreed to acquire  and accept  from  Seller,  the
Purchased Assets (as defined in the Agreement);</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,  THEREFORE,  KNOW ALL  PERSONS  BY  THESE  PRESENTS,
that  Seller,  for  good and  valuable
consideration,  the receipt and sufficiency of which is hereby acknowledged,  does hereby sell,  transfer,  convey,
assign and deliver to Buyer,  all of Seller's right,  title and interest in and to the Purchased  Assets,  SAVE AND
EXCEPT,  HOWEVER,  those portion of the Purchased Assets that are being transferred and conveyed by Seller to Buyer
pursuant to that certain Special  Warranty Deed and those two certain  Conveyance and Assignment  agreements  dated
of even date herewith (the  "Transferred  Assets"),  to have and to hold the same unto Buyer,  its  successors  and
assigns, forever.</FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Bill of Sale is made for and shall  inure to the
benefit  of Buyer and its  successors  and
assigns,  and all issues and questions  concerning the construction,  validity,  enforcement and  interpretation of
this Bill of Sale  shall be  governed  by,  and  construed  in  accordance  with the laws of the State of New York,
without  giving  effect to any choice of law or  conflict of law rules or  provisions  (whether of the State of New
York or any other  jurisdiction)  that would cause the application of the laws of any  jurisdiction  other than the
State of New York.</FONT></P>
<BR><BR><BR>





<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[remainder of page intentionally left blank]</FONT></P>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS  WHEREOF,  this Bill of Sale has been duly
executed and  delivered by the  undersigned
duly authorized officers of Seller and Buyer on this _____ day of _______________, 2003.</FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=700>
<TR VALIGN="BOTTOM">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG MCCLAIN LLC, a Delaware limited</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">liability company</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Its:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">OKLAHOMA GAS AND ELECTRIC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">COMPANY, an Oklahoma corporation</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Its:</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT B TO<BR>
ASSET PURCHASE AGREEMENT</B></FONT></P><BR><BR>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SALE MOTION </FONT></H1>


<!-- MARKER PAGE="sheet: 1; page: 1" -->


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KIRKLAND &amp; ELLIS LLP<BR>
Citicorp Center<BR>
153 East 53rd Street<BR>
New York, NY 10022-4675<BR>
Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900<BR>
Matthew A. Cantor, Esq. (MC 7727)<BR>
Robbin L. Itkin, Esq. (RI 1019)<BR>
Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice)</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reorganization Counsel for<BR>
Debtor and Debtor in Possession</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY COURT<BR>
SOUTHERN DISTRICT OF NEW YORK</U></FONT></H1>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <U>et al.</U>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS MOTION APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>MOTION
FOR ORDERS PURSUANT TO SECTIONS 105(A), 363, 365 AND 1146(C) OF<BR>
THE BANKRUPTCY CODE: (A)&nbsp;(I)&nbsp;ESTABLISHING BIDDING PROCEDURES AND</B></FONT></P>


<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>BID
PROTECTIONS IN CONNECTION WITH THE SALE OF SUBSTANTIALLY ALL<BR>
OF THE ASSETS OF NRG MCCLAIN LLC, (II)&nbsp;APPROVING THE FORM AND<BR>
MANNER OF NOTICES, (III)&nbsp;APPROVING THE FORM OF THE ASSET PURCHASE<BR>
AGREEMENT AND (IV)&nbsp;SETTING A SALE HEARING DATE; AND<BR>
(B)&nbsp;(I)&nbsp;APPROVING THE SALE FREE AND CLEAR OF ALL LIENS, CLAIMS AND<BR>
ENCUMBRANCES TO THE SUCCESSFUL BIDDER, (II)&nbsp;AUTHORIZING THE<BR>
ASSUMPTION AND ASSIGNMENT OF CERTAIN EXECUTORY<BR>
<U>CONTRACTS AND UNEXPIRED LEASES AND (III)&nbsp;GRANTING RELATED RELIEF</U></B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NRG
McClain LLC (&#147;<U>NRG McClain</U>&#148; or the &#147;<U>Debtor</U>&#148;) respectfully
submits this motion (the &#147;<U>Motion</U>&#148;) for entry of two orders pursuant to
sections 105(a), 362, 363, 365 and 1146(c) of title&nbsp;11 of the United States Code (as
amended, the &#147;<U>Bankruptcy Code</U>&#148;). The Debtor first requests the entry of
an order, substantially in the form attached hereto as Exhibit&nbsp;A (the
&#147;<U>Bidding Procedures Order</U>&#148;): (a)&nbsp;establishing bidding procedures and
certain protections (the &#147;<U>Bidding Procedures</U>&#148;) payable to the Purchaser
(as such term is defined below) including a break-up fee or expense reimbursement in
connection with the sale of substantially all of the assets of NRG McClain (the
&#147;<U>Sale Assets</U>&#148;); (b)&nbsp;approving the form and manner of notice of such
sale; (c)&nbsp;approving the form of the asset purchase agreement attached hereto as
Exhibit&nbsp;B (the &#147;<U>Asset Purchase Agreement</U>&#148;); (d)&nbsp;setting a
hearing date to consider approval of the sale of the Sale Assets (the &#147;<U>Sale
Hearing</U>&#148;); and (e)&nbsp;granting certain related relief. The Debtor also requests
the entry of a second order, substantially in the form attached hereto as Exhibit&nbsp;C
(the &#147;<U>Approval Order</U>&#148;): (a)&nbsp;approving the sale of the Sale Assets,
free and clear of (i)&nbsp;all liens, claims and encumbrances and (ii)&nbsp;certain
transfer taxes, to the successful bidder (the &#147;<U>Successful Bidder</U>&#148;);
(b)&nbsp;authorizing the assumption and assignment of certain executory contracts and
unexpired leases; and (c)&nbsp;granting certain related relief. In support of this Motion,
the Debtor respectfully represents as follows: </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>JURISDICTION</U></B></FONT></P>

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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Court has jurisdiction over this matter pursuant to 28&nbsp;U.S.C.
               &sect;&sect;&nbsp;157(b)(1) and 1334(b). This proceeding is a core proceeding
               pursuant to 28&nbsp;U.S.C. &sect;&nbsp;157(b)(2)(A), (M), (N) and (O). Venue of
               this Motion is proper under 28&nbsp;U.S.C. &sect;&sect;&nbsp;1408 and 1409. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The statutory predicates for this Motion are sections&nbsp;105, 362, 363, 365
               and 1146(c) of the Bankruptcy Code, and Rules&nbsp;2002, 6004 and 6006 of the
               Federal Rules of Bankruptcy Procedure (the &#147;Bankruptcy Rules&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>BACKGROUND</U></B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On May 14, 2003 (the &#147;<U>NRG Commencement Date</U>&#148;), NRG Energy, Inc.
               (&#147;NRG&#148;) and certain of its affiliates (collectively, the
               &#147;NRG&nbsp;Debtors&#148;) filed voluntary petitions for relief under
               chapter&nbsp;11 of the Bankruptcy Code.<SUP>1</SUP> The NRG&nbsp;Debtors
               continue in possession of their properties and are operating and managing their
               businesses as debtors and debtors in possession pursuant to sections 1107(a) and
               1108 of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the date hereof (the &#147;<U>NRG McClain Commencement Date</U>&#148;),
               NRG&nbsp;McClain, a direct subsidiary of NRG, filed its voluntary petition for
               relief under chapter 11 of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               NRG and its direct and indirect Debtor and nondebtor subsidiaries (collectively,
               the &#147;<U>NRG Companies</U>&#148;) comprise a leading global energy company
               primarily engaged in the ownership and operation of power generation facilities
               and the sale and marketing of energy, capacity and </FONT></TD>
               </TR>
               </TABLE>
               <BR><BR>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
<SUP>1</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On June 5, 2003,
two additional NRG-related entities, NRG Nelson Turbines, LLC and LSP-Nelson<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy, LLC, commenced
voluntary chapter 11 cases as well, both of which are pending before this Court.</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               related products throughout
               the world. The NRG Companies are one of the largest independent power generation
               companies in the world, measured by their net ownership interest in power
               generation facilities. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               NRG McClain, a direct and wholly-owned subsidiary of NRG, owns a 77% undivided
               ownership interest (with Oklahoma Municipal Power Authority, a governmental
               agency of the State of Oklahoma, owning the remaining 23%) as a tenant-in-common
               in an approximately 520 MW gas-fired electric generating facility primarily
               located in McClain County, Oklahoma (the <U>&#147;McClain Facility</U>&#148;)
               and is engaged in the business of generating and selling electric power
               therefrom. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Prior to the Commencement Date, NRG McClain entered into a credit agreement,
               dated as of November&nbsp;28, 2001 (as heretofore amended, supplemented or
               otherwise modified, the &#147;<U>Prepetition </U> <U>Credit
               Agreement</U>&#148;), among NRG McClain, the lenders party thereto from time to
               time (the &#147;<U>Prepetition Secured Lenders</U>&#148;) and West LB AG (f/k/a
               Westdeutsche Landesbank Girozentrale), New York branch, as administrative agent
               and collateral agent for the Prepetition Secured Lenders (the
               &#147;<U>Agent</U>&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Pursuant to the Prepetition Credit Agreement and related documentation (all such
               documentation, together with the Prepetition Credit Agreement, the
               &#147;<U>Existing Agreements</U>&#148;), NRG McClain pledged substantially all
               of its assets in favor of the Agent for its benefit and the ratable benefit of
               the Prepetition Secured Lenders. In addition, NRG pledged all of its membership
               interests in NRG McClain, and issued a guarantee to the</FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Prepetition Secured
               Lenders in respect of certain obligations of NRG McClain under the Existing
               Agreements. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               As of the Commencement Date, NRG McClain was indebted to the Prepetition Secured
               Lenders under the Existing Agreements in an aggregate principal amount of
               approximately $156,500,000, plus interest thereon and fees, expenses and other
               obligations incurred in connection therewith. As of the Commencement Date, NRG
               McClain was in default under the Existing Agreements. Specifically, NRG McClain
               missed two scheduled payments of principal (an $8 million payment due on
               December 31, 2002, with respect to working capital loans, and an approximately
               $778,000 payment due on June 30, 2003, with respect to a term loan), and
               defaulted on several covenants. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Available financial projections show that, based on current market conditions
               for electric power in the region, the McClain Facility, if operated on a purely
               merchant power basis, will not be able to meet scheduled debt service. Indeed,
               projections indicate that substantial additional cash infusions will be required
               during such period to operate the McClain Facility. Neither NRG nor the
               Prepetition Secured Lenders are prepared to provide additional funds to NRG
               McClain to operate its facility at a loss during such period. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               As a result of all of the foregoing and after evaluating its options to sell the
               McClain Facility, NRG McClain extensively negotiated and subsequently entered
               into an asset purchase agreement, dated as of August </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               18, 2003 (the
               &#147;<U>Asset Purchase Agreemen</U>t&#148;), with Oklahoma Gas and Electric
               Company (&#147;<U>OG&amp;E</U>&#148; or the &#147;<U>Purchaser</U>&#148;)
               pursuant to which NRG McClain, subject to Bankruptcy Court approval, has agreed
               to sell to OG&amp;E (subject to a higher or better offer) substantially all of
               its assets, including NRG McClain&#146;s ownership interest in the McClain
               Facility. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>THE MARKETING AND SALE OF THE SALE ASSETS</U></B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In April&nbsp;2002, NRG and NRG McClain consulted with their financial advisors
               in an effort to evaluate NRG McClain&#146;s investment in the McClain Facility
               and related assets, and to identify various potential strategic and financial
               buyers selected on the basis of a variety of factors, including perceived
               interest in the Sale Assets, familiarity with the Debtor&#146;s industry and
               financial ability to consummate a sale transaction with the Debtor. As of the
               NRG McClain Commencement Date, no viable third party offer had been identified
               other than that which is contemplated in the Asset Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In or around February&nbsp;2003, the Debtor began detailed negotiations with
               OG&amp;E. On February&nbsp;20, the Debtor received a letter of interest from
               OG&amp;E specifying the terms and conditions of a possible transaction, and on
               May&nbsp;2, 2003, the Debtor received a draft asset purchase agreement from
               OG&amp;E. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor, in consultation with its various financial advisors, evaluated the
               terms and benefits of OG&amp;E&#146;s proposal, as well as the benefits of other
               alternatives. The Debtor, in its business judgment, concluded that the proposal
               from OG&amp;E which formed the basis of the Asset Purchase </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-6-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Agreement offered the
               most advantageous terms and greatest economic benefit to the Debtor and its
               creditors, at which point, the Debtor commenced its negotiations with OG&amp;E
               concerning the terms of the Sale. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On August 18, 2003, the Debtor and the Purchaser executed the Asset Purchase
               Agreement, which requires that the Sale Assets be sold pursuant to
               section&nbsp;363 of the Bankruptcy Code free and clear of all liens, claims and
               encumbrances. Pursuant to the Asset Purchase Agreement, the Sale is subject to
               higher or better offers, and the Purchaser is treated as a stalking horse
               purchaser. The Purchaser&#146;s agreement to serve as a stalking horse purchaser
               was conditioned on receiving the bidding protections described below. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>THE PROPOSED SALE</U></B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               After extensive arms-length negotiations between the Debtor and the Purchaser,
               the parties entered into the Asset Purchase Agreement for the sale and purchase
               of the Sale Assets on terms and conditions that include or contemplate the
               following salient provisions:<SUP>2</SUP> </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Sale Assets</U>. The Sale Assets consist of all of the Debtor&#146;s right,
               title and interest in and to all assets owned by or leased or licensed to the
               Debtor and used or held by the Debtor whether real, personal or mixed, tangible
               or intangible, excepting only the Retained Assets. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Purchase Price</U>. The Purchaser will pay $159,950,000.00 in immediately
               available funds, subject to certain adjustments described in the Asset Purchase
               Agreement (such amount, or the </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
<SUP>2</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following description of the Asset Purchase Agreement is provided
for the convenience of the Court<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and parties in interest.  To the extent that there are any discrepancies
between this summary and the Asset<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase Agreement, the terms and language of the Asset Purchase
Agreement shall govern.  Capitalized<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;terms not otherwise defined herein shall have the meanings given
to them in the Asset Purchase<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement.</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-7-</FONT></P>
<PAGE>


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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               higher amount of any other Accepted Bid (as
               defined below), being the &#147;<U>Purchase Price</U>&#148;).<SUP>3</SUP> </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Executory Contracts and Unexpired Leases</U>. The Debtor shall assume and
               assign to the Purchaser all of the executory contracts and unexpired leases
               listed on Schedule&nbsp;3.8 to the Asset Purchase Agreement (collectively, the
               &#147;<U>Assigned Agreements</U>&#148;) and shall pay any and all cure amounts
               pursuant to section&nbsp;365 of the Bankruptcy Code necessary for the assumption
               of the Assigned Agreements. The Purchaser has the right to amend
               Schedule&nbsp;3.8 at any time prior to Closing. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Closing Conditions</U>. The consummation of the Asset Purchase Agreement by
               the Purchaser is subject to, among others, the following conditions, as more
               fully set forth in Article&nbsp;VIII of the Asset Purchase Agreement: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               all representations and warranties of the Debtor shall be true on and as of the
               Closing Date (except representations and warranties made only as of a specific
               earlier date) with the same effect as though they were made on the Closing Date; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the Purchaser will have obtained all necessary regulatory consents; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               this Court will have entered an order approving the sale of the Sale Assets to
               the Purchaser, and such order will have become a Final Order; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               no materially adverse effect to the ability of the McClain Facility to operate
               shall have occurred. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Bidding Protections</U>. As more fully discussed below, the Purchaser is
               entitled to payment of a break-up fee or an expense reimbursement and the
               protection of an initial overbid amount (collectively, the &#147;<U>Bidding
               Protections</U>&#148;): </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon termination of the Asset Purchase Agreement due solely to the Debtor
               closing an Alternative Transaction (as defined below) (and provided that such
               transaction is not the result of the termination of the Asset Purchase </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
<SUP>3</SUP>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Asset Purchase Agreement, the Purchase
Price may be adjusted:  (a) by adding the amount<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of natural gas prepaid by the Debtor to be supplied to
the Purchaser after the Closing; and (b) by<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subtracting (i) the amount, if any, of property or
casualty insurance proceeds received by the Debtor on<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;account of loss or damage to the Sale Assets, but
not applied by the Debtor to pay the costs of repairs or<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;replacements thereof and (ii) ad valorem and personal
property taxes allocable to the period prior to the<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Closing but not paid by the Debtor.</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-8-</FONT></P>
<PAGE>


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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Agreement
               pursuant to Sections&nbsp;12.1(b), (o) or (p) thereof), the Purchaser will be
               entitled to a fee (the &#147;Break-Up Fee&#148;), payable from the proceeds of
               such Alternative Transaction in accordance with paragraph&nbsp;28 below, in the
               amount of $5,000,000; provided that the Break-Up Fee shall not be payable if
               such Alternative Transaction results from a credit bid made by the Agent
               following any termination of the Asset Purchase Agreement by the Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon certain other circumstances where the Break-Up Fee is not otherwise paid,
               upon termination of the Asset Purchase Agreement pursuant to Section&nbsp;12.1
               thereof (other than clauses&nbsp;(a), (b), (k), (o) or (p) thereof), the
               Purchaser will be entitled to the reimbursement of its actual documented fees
               and expenses incurred in connection with the transactions contemplated by the
               Asset Purchase Agreement up to an aggregate amount of $1,500,000 (the
               &#147;Expense Reimbursement&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A competing bid will not be considered by the Debtor unless such bid is at least
               $166,450,000, which is $1,500,000 (the &#147;<U>Initial Overbid
               Amount</U>&#148;) more than the purchase price set forth in the Asset Purchase
               Agreement plus the Break-Up Fee (the &#147;<U>Overbid Protection</U>&#148;). Any
               bids thereafter must be at least $500,000 higher than the then existing highest
               bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>PROPOSED AUCTION AND BIDDING PROCEDURES</U></B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Consistent with the Asset Purchase Agreement, the Debtor is proposing the
               Bidding Procedures as the procedures most likely to maximize the realizable
               value of the Sale Assets for the benefit of the Debtor&#146;s estate, creditors
               and other interested parties. Pursuant to Section&nbsp;5.3 of the Asset Purchase
               Agreement, the Debtor must obtain the Bidding Procedures Order authorizing the
               Bidding Procedures as a precondition of implementing the proposed sale to the
               Purchaser or another Successful Bidder. Accordingly, the Debtor seeks immediate
               approval of the following Bidding Procedures: </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-9-</FONT></P>
<PAGE>


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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Initial Qualification</U>. Any bidder wishing to receive information relating
               to the sale of the Sale Assets shall first submit to the Debtor (with a copy to
               the Agent), at a minimum, the following information (the &#147;<U>Qualifying
               Information</U>&#148;): (i)&nbsp;certified financial statements for the
               preceding two years (provided that if such bidder is an entity specially formed
               to purchase the Sale Assets, it should submit such financial statements of its
               parent company or principals); (ii)&nbsp;other evidence establishing such
               bidder&#146;s ability to timely consummate the purchase of the Sale Assets; and
               (iii)&nbsp;any additional information reasonably requested by the Debtor or the
               Agent in connection with the Debtor&#146;s evaluation of such bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Confidentiality</U>. All bidders who request an information packet relating
               to the Sale Assets shall be required to enter into a standard confidentiality
               agreement with the Debtor. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Due Diligence</U>. Upon (i)&nbsp;execution of a confidentiality agreement;
               (ii)&nbsp;the delivery of other Qualifying Information; and (iii)&nbsp;the
               Debtor&#146;s determination (after consultation with the Agent) that the bidder
               is qualified to participate in the bidding process, the Debtor shall provide
               such bidder reasonable access to its books, records and executives to allow the
               bidder to conduct due diligence prior to the submission of a bid. The Debtor
               shall not provide any non-public information to any bidder that it has not
               delivered or made available to the Purchaser. By participating in the Auction,
               all Qualified Bidders (as defined herein) are deemed to acknowledge that they
               have had sufficient and reasonable access to the Debtor&#146;s books, records
               and executives for the purposes of conducting due diligence and opportunity to
               conduct such due diligence. Qualified Bidders must complete their due diligence
               prior to the date of the Auction. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Bid Deadline</U>. All Bids must be submitted to (i)&nbsp;Kirkland &amp; Ellis
               LLP, 200 East Randolph Drive, Chicago, Illinois 60601-6636, Attention: Ryan
               Blaine Bennett, Esq. (bankruptcy counsel to the Debtor); (ii)&nbsp;Andrews &amp;
               Kurth, Attn: Paul Pipitone, Esq., 600&nbsp;Travis, Suite 4200, Houston, Texas
               77002 (special corporate counsel to the Debtor); (iii)&nbsp;Jones Day, Attn:
               Charles N. Bensinger III, Esq., 77&nbsp;West Wacker, Chicago, Illinois
               60601-1692 (counsel to OG&amp;E); (iv)&nbsp;Milbank, Tweed, Hadley &amp; McCloy
               LLP, Attn: L. Douglas Harris, Esq., and Dennis Dunne, Esq., 1&nbsp;Chase
               Manhattan Plaza, New York, New York 10005 (counsel for the Agent);
               (v)&nbsp;Bingham McCutchen, Attn: Enid L. Veron, Esq., 399&nbsp;Park Avenue, New
               York, New York 10022-4689 (counsel to the Committee in the NRG Debtors&#146;
               cases); and (vi)&nbsp;counsel to any subsequently appointed committee(s), if
               any, so as to be received </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-10-</FONT></P>
<PAGE>


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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               by no later than 10&nbsp;days prior to the Sale
               Hearing (the &#147;<U>Bid </U> <U>Submission Deadline</U>&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Qualifying Bids</U>. To constitute a qualifying bid (a &#147;<U>Qualifying
               Bid</U>&#148;) such bid shall, at a minimum: (i)&nbsp;be delivered to the Debtor
               and other parties in interest pursuant to the delivery requirements on or before
               the Bid Submission Deadline; (ii)&nbsp;contain an executed copy of a modified
               version of the Asset Purchase Agreement (with a red-lined comparison to the form
               of Asset Purchase Agreement attached as Exhibit&nbsp;B to this Motion);
               (iii)&nbsp;provide a good faith deposit payable to the Debtor (the
               &#147;<U>Initial Deposit</U>&#148;) in the amount of 5 percent (or, in the case
               of the Purchaser, 2.5 percent) of the bid amount in cash or other form of
               consideration; (iv)&nbsp;clearly state the portion of the consideration to be
               paid in cash (the &#147;<U>Cash Payment</U>&#148;), which must be at least equal
               to the cash portion of the purchase price provided for in the Asset Purchase
               Agreement, plus the amount of the Break-Up Fee, and the portion to be paid in
               any other form of value; (v)&nbsp;provide for the purchase price, taking into
               account the conditions associated with such proposal, greater than or equal to
               the sum of $166,450,000, which is (A)&nbsp;$159,950,000 (the stalking horse bid)
               plus (B)&nbsp;$5,000,000 (the Break-Up Fee) plus (C)&nbsp;$1,500,000 (the
               Initial Overbid Amount); (vi)&nbsp;identify each executory contract or unexpired
               lease the assumption and assignment of which is a condition of closing;
               (vii)&nbsp;provide a statement that the bid shall be irrevocable until
               10&nbsp;days after the Closing Date; (viii)&nbsp;not contain any contingencies
               to the validity, effectiveness and/or binding nature of the offer, including,
               without limitation, contingencies for financing, due diligence or inspection;
               (ix)&nbsp;include evidence of authorization and approval from the bidder&#146;s
               Board of Directors (or comparable governing body) with respect to the
               submission, execution and delivery of the bid; (x)&nbsp;provide satisfactory
               evidence of committed financing or other ability to perform; and (xi)&nbsp;give
               sufficient indicia that its representative who will be attending the Auction is
               duly authorized to both bid on behalf of the Qualified Bidder at the Auction and
               enter into and bind the Qualified Bidder to the asset purchase agreement. Each
               of the Purchaser, the Agent and any bidder that makes a Qualifying Bid shall be
               deemed a &#147;Qualified Bidder.&#148; Any party asserting a lien on the Sale
               Assets may credit bid the value of such lien; provided, however, that any such
               bid must include a Cash Payment of at least $5&nbsp;million to cover the
               Break-Up Fee. Notwithstanding the foregoing, if the Agent credit bids the value
               of the Prepetition Secured Lenders&#146; liens, its bid must include a Cash
               Payment to cover the Break-Up Fee only if the purchase price is equal to or
               greater than the purchase price set forth in the Asset Purchase Agreement;
               provided that the Break-Up Fee shall not be payable in the case of an
               Alternative Transaction </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-11-</FONT></P>
<PAGE>


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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               resulting from a credit bid made by the Agent following
               any termination of the Asset Purchase Agreement by the Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Evaluation of Qualifying Bid</U>. Prior to the Auction, the Debtor shall, in
               consultation with its professionals and the Agent, evaluate each bid, to
               determine whether such bid is a Qualifying Bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Initial Deposit</U>. All Initial Deposits paid to the Debtor shall be held in
               an interest bearing account subject to the jurisdiction of the Bankruptcy Court. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Auction</U>. If more than one Qualifying Bid is received by the Bid
               Submission Deadline, the Debtor will conduct an auction (the
               &#147;<U>Auction</U>&#148;) with respect to the Sale Assets. If no Qualifying
               Bid (other than that of the Purchaser) is received by the Bid Submission
               Deadline, the Debtor shall report the same to the Bankruptcy Court at the Sale
               Hearing, where the Debtor shall request (i)&nbsp;that the Purchaser&#146;s bid
               be deemed the highest or otherwise best offer for the Sale Assets and
               (ii)&nbsp;authority to proceed to close the Sale, in accordance with the Asset
               Purchase Agreement, as promptly as possible. The Auction, if required, will be
               held no later than 3&nbsp;business days prior to the Sale Hearing, at such date
               and time as agreed to by the Purchaser, the Debtor and the Agent at the offices
               of Kirkland &amp; Ellis LLP, Citicorp Center, 153&nbsp;East 53<SUP>rd</SUP>
               Street, New York, New York 10022-4675, of which the Debtor will notify all
               Detailed Notice Parties (as defined herein) no later than 5&nbsp;business days
               after entry of the Bidding Procedures Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Only
the Purchaser, the Debtor, the Agent, representatives of the Committee, Qualified Bidders
and the professionals of the foregoing shall be entitled to attend and be heard at the
Auction, and only Qualified Bidders shall be entitled to make any subsequent bids at the
Auction. All Qualified Bidders, or their qualified representatives, must be physically
present at the Auction.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
During
the Auction, bidding shall begin initially with the highest Qualifying Bid and
subsequently continue in minimum increments of at least $500,000 higher than the previous
bid. Subsequent bids submitted by the Purchaser shall be deemed to include a credit in an
amount equal to the Break-Up Fee. Bidding at the Auction shall continue until such time as
the highest or otherwise best bid is determined.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
the conclusion of the Auction, the Debtor, in consultation with the Agent, shall select
the highest or best Qualified Bid (the</FONT></TD>
</TR>
</TABLE>
<BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-12-</FONT></P>
<PAGE>


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<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&#147;<U>Accepted Bid</U>&#148;). The bidder
submitting such Accepted Bid shall become the &#147;Winning Bidder,&#148; and shall have
such rights and responsibilities of the purchaser, as set forth in the applicable asset
purchase agreement. Within 24&nbsp;hours after adjournment of the Auction, the Winning
Bidder (if other than the Purchaser) shall complete and execute all agreements, contracts,
instruments or other documents evidencing and containing the terms and conditions upon
which the Winning Bid was made.</FONT></TD>
</TR>
</TABLE>
<BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Sale Hearing</U>. The Accepted Bid shall be subject to the approval of the
          Bankruptcy Court at the Sale Hearing. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Closing</U>. Following approval of the Accepted Bid at the Sale Hearing, the
          Winning Bidder shall close the transaction pursuant to the terms set forth in
          the applicable asset purchase agreement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(k) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Return of Initial Deposit</U>. Within 10&nbsp;business days following the
          Closing Date, the Debtor shall return the Initial Deposits to each unsuccessful
          bidder. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(l) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Failure to Close</U>. If the Winning Bidder fails to close the Accepted Bid
          in breach of the terms of the applicable asset purchase agreement (a
          &#147;<U>Purchase Default</U>&#148;), the Winning Bidder shall forfeit the
          Initial Deposit to, and such Initial Deposit shall be retained irrevocably by,
          the Debtor. In addition, the Debtor shall also retain the right to seek all
          other appropriate damages from such Winning Bidder. In the event of a Purchase
          Default, the next highest or otherwise best Qualifying Bid will automatically be
          deemed to be the Accepted Bid, and the bidder submitting such bid will be deemed
          to be the Winning Bidder. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>BIDDING PROTECTIONS</U></B></FONT></P>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Purchaser has expended, and likely will continue to expend, considerable
          time, money and energy in lengthy good faith negotiations of the Asset Purchase
          Agreement and related documents. The Asset Purchase Agreement is the culmination
          of these efforts. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In recognition of this expenditure of time, energy and resources and the benefit
          to the Debtor&#146;s estate of securing a &#147;stalking horse&#148; or minimum
          bid, the Debtor has agreed to provide the Bidding Protections to the </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-13-</FONT></P>
<PAGE>


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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Purchaser.
          The Debtor seeks to provide to the Purchaser the Break-Up Fee, the Expense
          Reimbursement and the Overbid Protection. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor shall be obligated to pay the Break-Up Fee to the Purchaser if the
          Debtor consummates any transaction (which payment shall be made from the
          proceeds of such transaction) involving the sale, recapitalization or other
          disposition of all or substantially all of the Sale Assets to an entity or
          entities other than the Purchaser (an &#147;<U>Alternative </U>
          <U>Transaction</U>&#148;), <U>provided</U> that such transaction is not the
          result of the termination of the Asset Purchase Agreement pursuant to
          Sections&nbsp;12.1(b), (o) or (p) thereof, and <U>further</U> <U>provided</U>
          that the Break-Up Fee shall not be payable if such Alternative Transaction
          results from a credit bid made by the Agent following any termination of the
          Asset Purchase Agreement by the Purchaser. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor shall be obligated to pay the Expense Reimbursement to the Purchaser
          only if the Asset Purchase Agreement is terminated pursuant to Section&nbsp;12.1
          thereof (other than clauses (a), (b), (k), (o) or (p) thereof); <U>provided</U>,
          <U>however</U>, that the Debtor shall not be obligated to pay the Expense
          Reimbursement under any circumstances in which it pays the Break-Up Fee. The
          Break-Up Fee and Expense Reimbursement, as applicable, shall each constitute an
          administrative expense of the Debtor&#146;s estate that shall be payable, in the
          case of an Alternative Transaction, in accordance with paragraph&nbsp;28 below
          from the proceeds thereof and payable prior to any NRG Support Payment Amount or
          other NRG </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-14-</FONT></P>
<PAGE>


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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Support Claim under the Omnibus Restructuring and Consent Agreement,
          dated as of August&nbsp;18, 2003, among the Debtor, the Prepetition Secured
          Lenders and the Agent (the &#147;ORCA&#148;). In a case other than an
          Alternative Transaction, the Expense Reimbursement shall be payable pursuant and
          subject to the terms and conditions set forth in the ORCA. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Bidding Protections were a material inducement for, and a condition of, the
          Purchaser&#146;s entry into the Asset Purchase Agreement. The Debtor believes
          that the Bidding Protections are fair and reasonable in view of, among other
          things, (a)&nbsp;the intensive analysis and negotiation undertaken by the
          Purchaser in connection with the transactions contemplated by the Asset Purchase
          Agreement and (b)&nbsp;the fact that the efforts of the Purchaser have increased
          the chances that the Debtor will receive the highest or otherwise best offer for
          the Sale Assets by establishing a minimum bid for other bidders, placing the
          property of the Debtor&#146;s estate in a sale configuration mode, thereby
          attracting other bidders to the Auction, and serving as a catalyst for other
          potential or actual bidders, all to the benefit of the Debtor, its estate, its
          creditors and all other parties in interest. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Purchaser is unwilling to commit to hold open its offer to purchase the Sale
          Assets under the terms of the Asset Purchase Agreement unless the Bidding
          Protections are approved and payment of the Break-Up Fee and the Expense
          Reimbursement is authorized. The Debtor thus requests that the Court approve the
          Bidding Protections and authorize payment of </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-15-</FONT></P>
<PAGE>


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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Break-Up Fee and the Expense
          Reimbursement pursuant to the terms and conditions of the Asset Purchase
          Agreement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>ASSUMPTION AND ASSIGNMENT OF CONTRACTS</U></B></FONT></P>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor also seeks authority under Bankruptcy Code sections&nbsp;105(a) and
          365 to (i)&nbsp;assume and assign the Assigned Agreements identified on
          Schedule&nbsp;3.8 to the Asset Purchase Agreement (subject to Purchaser&#146;s
          right to modify such schedule), effective as of the Closing Date, and
          (ii)&nbsp;execute and deliver to the Purchaser or the Winning Bidder such
          documents or other instruments as may be necessary to assign and transfer the
          Assigned Agreements thereto. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor believes it is necessary to establish a process by which the Debtor
          and the counter-parties to the Assigned Agreements (the &#147;<U>Contract
          Parties</U>&#148;) can establish the cure obligations, if any, necessary to be
          paid under section&nbsp;365 of the Bankruptcy Code for the assumption of the
          Assigned Agreements (the &#147;<U>Cure Amounts</U>&#148;). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          To facilitate a prompt resolution of disputes, if any, relating to the Cure
          Amounts or otherwise to the assignment of the Assigned Agreements, the Debtors
          propose the following deadlines and procedures: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Notice of Cure Objection Deadline</U>: Within 5&nbsp;business days after the
          date the Bidding Procedures Order is entered, the Debtor shall serve a copy of
          such Order together with the Notice of Debtor&#146;s Intent to Assume and Assign
          Executory Contracts and Unexpired Leases (the &#147;<U>Contract Assignment
          Notice</U>&#148;), substantially in the form attached as Exhibit&nbsp;D to this
          Motion, by regular mail to the Contract Parties notifying them of the
          Debtor&#146;s intent to assume and assign each agreement listed on
          Schedule&nbsp;3.8 to the Asset Purchase Agreement (as it may be modified by that
          time) and of the Cure Amount determined by the Debtor for each such Assigned
          Agreement to be necessary for such assumption and assignment on </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-16-</FONT></P>
<PAGE>


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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Closing
          Date. If Schedule&nbsp;3.8 to the Asset Purchase Agreement is amended subsequent
          to the mailing of the initial Contract Assignment Notice, the Debtor shall serve
          a copy of the Bidding Procedures Order and a subsequent Contract Assignment
          Notice(s) on any additional Contract Party or any other party affected thereby
          within 5&nbsp;business days of such amendment. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Cure Objections</U>: Any Contract Party seeking to (a)&nbsp;assert a Cure
          Amount based on defaults, conditions or pecuniary losses under its Assigned
          Agreement (collectively, the &#147;<U>Cure </U> <U>Obligation</U>&#148;)
          different from that set forth on any of the Contract Assignment Notices or
          (b)&nbsp;object to the potential assumption and assignment of its Assigned
          Agreement on any other grounds, shall be required to file and serve an objection
          (a &#147;<U>Cure Objection</U>&#148;), in writing, setting forth with
          specificity (a)&nbsp;any and all Cure Obligations that the Contract Party
          asserts must be cured or satisfied respecting such Assigned Agreement and/or
          (b)&nbsp;if the objection to the potential assignment of such Assigned Agreement
          is based on adequate assurance issues, what information with respect to the
          Purchaser or another Winning Bidder such Contract Party requires to satisfy its
          adequate assurance concerns. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Cure Objection Deadline</U>: To be considered a timely Cure Objection, the
          Cure Objection must be filed with the Court and a copy delivered to each of:
          (i)&nbsp;Kirkland &amp; Ellis LLP, 200 East Randolph Drive, Chicago, Illinois
          60601-6636, Attention: Ryan Blaine Bennett, Esq. (bankruptcy counsel to the
          Debtor); (ii)&nbsp;Andrews &amp; Kurth, Attn: Paul Pipitone, Esq., 600 Travis,
          Suite 4200, Houston, Texas 77002 (special corporate counsel to the Debtor);
          (iii)&nbsp;Jones Day, Attn: Charles N. Bensinger III, Esq., 77&nbsp;West Wacker,
          Chicago, Illinois 60601-1692 (counsel to OG&amp;E); (iv)&nbsp;Milbank, Tweed,
          Hadley &amp; McCloy LLP, Attn: L. Douglas Harris, Esq., and Dennis Dunne, Esq.,
          1&nbsp;Chase Manhattan Plaza, New York, New York 10005 (counsel for the Agent);
          (v)&nbsp;Bingham McCutchen, Attn: Enid L. Veron, Esq., 399&nbsp;Park Avenue, New
          York, New York 10022-4689 (counsel to the Committee in the NRG Debtors&#146;
          cases); and (vi)&nbsp;counsel to any subsequently appointed committee(s), if
          any, so as to be received no later than 15&nbsp;days after service of the Cure
          Assignment Notice (the &#147;<U>Cure Objection Deadline</U>&#148;). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Failure to File Cure Objection</U>: Unless a Cure Objection is timely filed
          and served by a Contract Party by the Cure Objection Deadline, the Court shall
          enter an order authorizing or effecting the assumption and assignment of the
          applicable Assigned Agreement at the Sale Hearing or otherwise without regard to
          any objection </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-17-</FONT></P>
<PAGE>


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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          such party may have or any provisions to the contrary in the
          applicable Assigned Agreement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Waiver of Cure Objection</U>: Contract Parties that fail to file and serve
          Cure Objections as provided above shall be deemed to have waived and released
          any and all Cure Obligations and shall be forever barred and estopped from
          asserting or claiming against the Debtor, the Purchaser or any other assignee of
          the relevant contract or lease that any additional amounts are due or defaults
          exist, or prohibitions or conditions to assignment exist or must be satisfied,
          under such Assigned Agreement for the period prior to the Closing Date. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          <U>Reservation of Rights</U>: The Debtor and the Purchaser each reserve the
          right to exclude or add any Assigned Agreement from or to the proposed Sale and
          to withdraw the request to assume and assign any Assigned Agreement pursuant to
          the terms of the Asset Purchase Agreement. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor believes that the proposed process is fair, reasonable and provides
          sufficient notice to the Contract Parties. Accordingly, the Debtor requests that
          the Court approve the procedures set forth above, including the form of the
          Contract Assignment Notice. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>VIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>USE OF SALE PROCEEDS</U></B></FONT></P>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor also is requesting the authority to direct the Purchaser or the
          Winning Bidder (as applicable) to disburse the Purchase Price payable at the
          closing (the date thereof being the &#147;<U>Closing Date</U>&#148;), on the
          Closing Date, as follows: (a)&nbsp;to the Purchaser, the Break-Up Fee or the
          Expense Reimbursement (as applicable); (b)&nbsp;to NRG, the portion of the NRG
          Support Payment Amount mutually agreed to by the Agent and NRG at least
          5&nbsp;business days prior to the Closing Date, reflecting the undisputed
          portion of (i)&nbsp;amounts set forth in the NRG Support Calculations provided
          to the Agent in accordance with the ORCA prior to such date and </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-18-</FONT></P>
<PAGE>


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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          (ii)&nbsp;related expenses anticipated to be incurred through the Closing Date
          (such amounts, collectively, being the <U>&#147;Undisputed NRG Support Payment
          Amount</U>&#148;); (c)&nbsp;to the escrow agent designated pursuant to an escrow
          agreement in substantially the form attached hereto as Exhibit&nbsp;G, the sum
          of (i)&nbsp;the excess, if any, of the amount requested by NRG as constituting
          the NRG Support Payment Amount <U>over</U> the Undisputed NRG Support Payment
          Amount and (ii)&nbsp;an additional contingency amount, if any, mutually agreed
          to by NRG and the Agent at least 5&nbsp;business days prior to the Closing Date
          in respect of the NRG Support Payment Amount not otherwise included in the
          amount referred to in the immediately preceding clause (i); and (d)&nbsp;to the
          Agent, the balance of the Purchase Price (the &#147;<U>Net Purchase </U>
          <U>Price</U>&#148;) for repayment of all outstanding loans, interest thereon and
          fees, expenses and other obligations incurred in connection with the Prepetition
          Credit Agreement and to be otherwise applied in accordance with the ORCA. All
          capitalized terms used in this paragraph and not otherwise defined herein shall
          have the respective meanings given to them in the ORCA. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>IX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>PROPOSED NOTICE OF SALE, AUCTION AND BIDDING PROCEDURES</U></B></FONT></P>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Bankruptcy Rules 2002(a)(2) and 6004(a) require that notice of a proposed sale
          of substantially all of a debtor&#146;s assets be given to all creditors. The
          Debtor proposes to send two forms of notice to creditors in this case, both of
          which will be served no later than 5&nbsp;business days after entry of the
          Bidding Procedures Order. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-19-</FONT></P>
<PAGE>


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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The first form of notice, attached hereto as Exhibit&nbsp;E (the
          &#147;<U>Detailed Notice</U>&#148;), is a detailed notice that provides the time
          and place of the Auction, if any, a summary of the terms and conditions of the
          proposed Sale and the time set for any objection deadlines. The Detailed Notice,
          together with a copy of the Bidding Procedures Order, will be served upon the
          following entities (collectively, the &#147;<U>Detailed Notice
          Parties</U>&#148;): </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Governmental Entities: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the U.S. Trustee; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Federal Energy Regulatory Commission; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Internal Revenue Service </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the United States Environmental Protection Agency; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          any applicable Oklahoma environmental agency; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vi) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Pension Benefit Guaranty Corporation; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(vii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          the Securities and Exchange Commission; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(viii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          all relevant federal, state and local taxing authorities. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Debtor&#146;s significant creditors: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          counsel for the Agent; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          all other persons who are known by the Debtor to have liens upon or are
          asserting a security interest in the Sale Assets; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          all financial institutions that have provided loans to the Debtor; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          holders of the twenty largest unsecured claims against the Debtor; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
          <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          counsel to the Committee in the NRG Debtors&#146; cases. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          All non-debtor parties to the Assigned Agreements. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-20-</FONT></P>
<PAGE>


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          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          All known parties that have expressed an interest in writing to the Debtors in
          the last 12&nbsp;months in acquiring the Sale Assets. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
          <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Any entity that has filed a notice of appearance and demand for service of
          papers pursuant to Bankruptcy Rule&nbsp;2002 as of the date of service of the
          Detailed Notice in the NRG Debtors&#146; cases or the NRG McClain&#146;s case. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          In addition to the Detailed Notice, the Debtor proposes to send a general notice
          (the &#147;<U>General Notice</U>&#148;, attached hereto as Exhibit&nbsp;F) that
          will alert creditors of the time and place of the proposed auction, if any, the
          time and place of the Sale Hearing and the time for filing an objection, and
          will direct them to contact Kirkland &amp; Ellis LLP, proposed counsel to the
          Debtor, for more information. Additionally, pursuant to Bankruptcy
          Rule&nbsp;2002(l), the Debtor proposes to submit for publishing the General
          Notice in the national edition of the <U>Wall Street Journal</U> and the
          <U>Daily Oklahoman</U> no later than 10&nbsp;business days after entry of the
          Bidding Procedures Order. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor believes that the foregoing notice is sufficient to provide effective
          notice of the Bidding Procedures, the Auction and the proposed Sale to
          potentially interested parties in a manner designed to maximize the chance of
          obtaining the broadest possible participation in the Sale, while minimizing
          costs to the estate. Accordingly, the Debtor requests that the Court find that
          the proposed notice procedures are sufficient under the circumstances, and that
          no further notice of the Auction, Bidding Procedures or the proposed Sale is
          required. </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-21-</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>X.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>MEMORANDUM OF POINTS AND AUTHORITIES</U></B></FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Proposed Sale Is Within the Debtor&#146;s Sound Business Judgment and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Should Therefore Be Approved</B></FONT></P>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          This court has statutory authority to authorize the sale of the Sale Assets to
          the Purchaser or another Winning Bidder. <U>Cinicola v. Schaffenberger</U>, 248
          F.3d 110, 112 (3d Cir. 2001); <U>In re </U> <U>Met-L-Wood Corp.</U>, 861 F.2d
          1012 (7th Cir. 1988); <U>cert.</U> <U>denied</U>, <U>Gekas v. Pipin</U>,
          490&nbsp;U.S. 1006 (1989); <U>In re Andy Frain Services, Inc.</U>, 798 F.2d 1113
          (7th Cir. 1986) <U>reconsideration</U> <U>denied</U>; <U>In&nbsp;re Lionel
          Corp.</U>, 722 F.2d 1063, 1070-71 (2d Cir. 1983); <U>In </U> <U>re Titusville
          Country Club</U>, 128&nbsp;B.R. 396, 399 (Bankr. W.D. Pa. 1991); <U>In re
          Ionosphere </U> <U>Clubs, Inc.</U>, 100 B.R. 670, 674-77 (Bankr. S.D.N.Y. 1989).
          Section 363(b)(1) of the Bankruptcy Code provides that &#147;[t]he trustee,
          after notice and a hearing, may use, sell, or lease, other than in the ordinary
          course of business, property of the estate.&#148; 11&nbsp;U.S.C.
          &sect;&nbsp;363(b)(1). Moreover, Bankruptcy Code section&nbsp;105(a) provides,
          in relevant part, that &#147;[t]he court may issue any order, process, or
          judgment that is necessary or appropriate to carry out the provisions of this
          title.&#148; 11&nbsp;U.S.C. &sect;&nbsp;105(a). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          A debtor&#146;s sale or use of property of the estate outside the ordinary
          course of business should be approved by the Court if the debtor can demonstrate
          a sound business justification for the proposed transaction. <U>In re Delaware
          &amp; Hudson Ry. Co.</U>, 124 B.R. 169, 175-76 (D. Del. 1991); <U>see</U>
          <U>also</U>, <U>Fulton State Bank v. Schipper</U>, 933 F.2d 513, 515 (7th Cir.
          1991) (finding that debtor&#146;s decision must be supported by &#147;some
          articulated business </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-22-</FONT></P>
<PAGE>


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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          justification&#148;); <U>Committee of Equity Sec. Holders
          v. Lionel Corp. (In re Lionel)</U>, 722 F.2d 1063, 1070-71 (2d Cir. 1983);
          <U>Stephens Ind., Inc. v. McClung</U>. 789 F.2d 386, 389-90 (6th Cir. 1986);
          <U>In re Abbotts Dairies of Pennsylvania, Inc.</U>, 788 F.2d 143, 147 (3d Cir.
          1986) (enunciating the good faith requirement); <U>In re Continental Airlines,
          </U> <U>Inc.</U>, 780 F.2d 1223 (5th Cir. 1986); In re United Healthcare System,
          Inc., 1997 WL 176574 (D.N.J. 1997) (finding that courts typically must examine
          whether there was: (1)&nbsp;adequate notice to interested parties,
          (2)&nbsp;adequate price paid for the asset, (3)&nbsp;good faith by the parties,
          and (4)&nbsp;sound business reason for the sale) (citations omitted);
          <U>Titusville Country Club</U>, 128&nbsp;B.R. at 399 (stating that the
          &#147;sound business judgment test requires (i)&nbsp;that a sound business
          purpose justifies the sale outside the ordinary course of business,
          (ii)&nbsp;that adequate and reasonable notice has been provided to all of the
          interested parties, (iii)&nbsp;that the debtor has obtained a fair and
          reasonable price, and (iv)&nbsp;good faith); and <U>In re Phoenix Steel
          Corp</U>., 82&nbsp;B.R. 334, 335-36 (Bankr. D. Del. 1987) (listing elements
          necessary for approval of a section 363 sale in a chapter 11 case). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Debtor submits that there is more than an adequate business justification to
          sell the Sale Assets to the Purchaser (or another Winning Bidder, as the case
          may be). Based upon the results of their exhaustive analysis of the
          Debtor&#146;s ongoing and future business prospects, the Debtor&#146;s
          management and financial advisors have concluded that the best way to maximize
          the value of the Debtor&#146;s assets is to commence an </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-23-</FONT></P>
<PAGE>


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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          expeditious sale of
          substantially all of such assets. <U>See</U> <U>Lionel</U>, 722 F.2d at 1071
          (the most important factor in approving a section&nbsp;363 sale whether the
          asset is increasing or decreasing in value). </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Purchaser has offered substantial value for the Sale Assets. The Debtor
          respectfully submits that such consideration is both fair and reasonable. But to
          dispel any doubt, the sale of the Sale Assets will be subject to competing bids,
          thereby enhancing the Debtor&#146;s ability to receive the highest and best
          value for its estate. Consequently, the fairness and reasonableness of the
          consideration to be received by the Debtor will ultimately be demonstrated by a
          &#147;market check&#148; through an auction process, which is the best means for
          establishing whether a fair and reasonable price is being paid. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          The Sale to the Purchaser is intended to result in proceeds of approximately
          $159,950,000. The Net Purchase Price, in addition to any remaining funds in the
          project&#146;s operating accounts at the time of closing, will be used to repay
          the Debtor&#146;s obligations to the Prepetition Secured Lenders and other
          creditors. Indeed, by the resulting pay down of the all or substantially all of
          the Debtor&#146;s outstanding secured debt, the Sale should concurrently reduce
          NRG&#146;s potential exposure pursuant to a debt service guaranty of the
          Debtor&#146;s obligations under the Prepetition Credit Agreement. Given the
          economic prospects of operating the McClain Facility as a stand-alone merchant
          facility and the lack of interest by other third parties, the transaction
          contemplated in the Asset Purchase </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-24-</FONT></P>
<PAGE>


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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Agreement represents the best possible
          alternative to maximize the value of the estate for the benefit of the
          Debtor&#146;s estate and creditors. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Finally, as discussed herein, all creditors and parties in interest will receive
          adequate notice of the Bidding Procedures, the Auction and the Sale. Such notice
          is reasonably calculated to provide timely and adequate notice to the
          Debtor&#146;s major creditor constituencies, those parties potentially
          interested in bidding on the Sale Assets and others whose interests are
          potentially implicated by the proposed sale. The Debtor submits that such notice
          is sufficient, under section&nbsp;363(b) of the Bankruptcy Code, for entry of
          the Approval Order. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Under the circumstances, sound business reasons exist that justify the immediate
          sale of the Sale Assets outside of the ordinary course of business and prior to
          the confirmation of a reorganization plan. Accordingly, the Debtor submits that
          the proposed Sale to the Purchaser pursuant to Bankruptcy Code section&nbsp;363
          should be approved. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Purchaser is a Good Faith Purchaser and is Entitled to the Protections<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;of Bankruptcy Code Section 363(m)</B></FONT></P>

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          <TR VALIGN=TOP>
          <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40. </FONT></TD>
          <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          Section 363(m) of the Bankruptcy code provides: </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<TR VALIGN=TOP>
<TD WIDTH=20%>&nbsp;</TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The reversal or modification on appeal of an authorization under<BR>
subsection&nbsp;(b) or (c) of this section of a sale or lease of property<BR>
does not affect the validity of a sale or lease under such<BR>
authorization to an entity that purchased or leased such property in<BR>
good faith, whether or not such entity knew of the pendency of the<BR>
appeal, unless such authorization and such sale or lease were<BR>
stayed pending appeal.</FONT></TD>
</TR>
</TABLE>
<BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 U.S.C. &sect;. 363(m).  While the Bankruptcy
Code does not define "good faith",  the Second Circuit in In re Colony
Hill Associates, 11 F.3d 269 (2d Cir. 1997) held that:</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-25-</FONT></P>
<PAGE>


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<TR VALIGN=TOP>
<TD WIDTH=20%>&nbsp;</TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The &#145;good faith&#146; component of the test under &sect;363(m) speaks to<BR>
the equity of the [bidder&#146;s] conduct in the course of the sale<BR>
proceedings. Typically, the misconduct that would destroy a<BR>
purchaser&#146;s good faith status at the judicial sale involves fraud,<BR>
collusion between the purchaser and other bidders or the trustee, or<BR>
an attempt to take grossly unfair advantage of other bidders.</FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 F.3d at 276. </FONT></P>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Asset Purchase Agreement came as a result of arms-length negotiations and
               was not tainted by fraud, collusion or bad faith. Accordingly, the Debtor
               requests that the Court make a finding that the Purchaser is entitled to the
               protections of Bankruptcy Code section 363(m). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Sale Satisfies the Requirements of Bankruptcy Code Section 363(f) for a<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Sale Free and Clear of Liens, Claims, Encumbrances and Interests</B></FONT></P>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Under section&nbsp;363(f) of the Bankruptcy Code, a debtor in possession may
               sell property free and clear of any lien, claim, or interest in such property
               if, among other things: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               applicable nonbankruptcy law permits sale of such property free and clear of
               such interest; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               such entity consents; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               such interest is a lien and the price at which such property is sold is greater
               than all liens on such property; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               such interest is in bona fide dispute; or </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               such entity could be compelled, in a legal or equitable proceeding, to accept a
               money satisfaction of such interest. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 U.S.C. &sect; 363(f). </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-26-</FONT></P>
<PAGE>


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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Because section&nbsp;363(f) of the Bankruptcy Code is drafted in the
               disjunctive, satisfaction of any one of its five requirements will be sufficient
               to permit the sale of the Sale Assets free and clear of liens, claims,
               encumbrances, pledges, mortgages, security interests, charges, options, and
               other interests (collectively, the &#147;<U>Interests</U>&#148;). The Debtor
               satisfies at least two of these requirements. First, the Prepetition Secured
               Lenders, who hold a lien on substantially all of the Sale Assets, have consented
               to the sale pursuant to the terms of the Asset Purchase Agreement, on the
               conditions that: (a)&nbsp;the Purchase Price is equal to at least the Minimum
               Amount (as such term is defined in the ORCA); (b)&nbsp;the Net Purchase Price is
               paid directly by the Purchaser or the Winning Bidder (as applicable) to the
               Agent; and (c)&nbsp;the Agent&#146;s rights under section&nbsp;363(k) of the
               Bankruptcy Code are fully preserved. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In addition, all holders of interests in the Sale Assets could be compelled to
               accept a money satisfaction of their interests in legal or equitable proceedings
               in accordance with section&nbsp;363(f)(5) of the Bankruptcy Code. Such legal or
               equitable proceedings include proceedings to confirm a plan of reorganization,
               under which the holder of a lien may be compelled to accept payment in
               satisfaction of its lien pursuant to section 1129(b)(2)(A) of the Bankruptcy
               Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In fact, section&nbsp;1129(b)(2)(A) of the Bankruptcy Code specifically allows a
               debtor to sell property subject to a lien free and clear of such lien if such
               lien attaches to the net proceeds of the sale, subject to any claims and </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-27-</FONT></P>
<PAGE>


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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               defenses the debtor may possess with respect thereto. The Debtor submits that
               any existing interests in the Sale Assets will immediately attach to the net
               proceeds of the Sale. Indeed, the Debtor intends, and requests the Court&#146;s
               approval, to have the Net Purchase Price paid directly by the Purchaser or the
               Winning Bidder (as applicable) to the Agent in satisfaction of the Prepetition
               Secured Lenders&#146; liens. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Based upon the foregoing, the sale of the Sale Assets free and clear of liens,
               claims, encumbrances and interests should be approved under section&nbsp;363(f)
               of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Debtor's Request for Relief from Transfer Taxes Under Bankruptcy<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Code Section 1146(c) Should be Granted</B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Pursuant to section&nbsp;1146(c) of the Bankruptcy Code, the &#147;transfer
               .&nbsp;.&nbsp;. or the making or delivery of an instrument of transfer under a
               plan confirmed under section&nbsp;1129 of this title, may not be taxed under any
               law imposing a stamp or similar tax.&#148; This provisions has been broadly
               construed to include sales and transfers that occur outside a chapter 11 plan
               and before or after plan confirmation, provided that such sales and transfers
               enable the confirmation and consummation of a chapter&nbsp;11 plan for the
               debtor. <U>See</U> <U>e.g.</U>, <U>City </U> <U>of New York v. Jacoby-Bender,
               Inc. (In re Jacoby-Bender, Inc.)</U>, 758&nbsp;F.2d 840, 842 (2d Cir. 1985);
               <U>City of New York v. Smoss Enterprises Corp. (In re Smoss Enterprises
               Corp.</U>), 54 B.R. 950, 951 (E.D.N.Y. 1985) (holding that section&nbsp;1146(c)
               applied when &#147;the transfer of property was essential to the confirmation of
               a plan&#148;); <U>In re United </U> <U>Press Int&#146;l, Inc.</U>, Case No.
               91-B-13955 (FSC) 1992 Bankr. LEXIS 842 at </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-28-</FONT></P>
<PAGE>


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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               *4 (Bankr. S.D.N.Y. May 18, 1992)
               (finding that section&nbsp;1146(c) exemption applied to section&nbsp;363 sale
               where the value of the debtor&#146;s assets were likely to deteriorate over the
               time necessary to confirm a plan). In so holding, courts have focused upon
               whether the sale and transfer is &#147;necessary to the consummation of a
               plan.&#148; <U>Id.</U> at 842. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>48. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor submits that there is no doubt that the proposed sale is
               &#147;necessary to the consummation of a plan.&#148; Simply put, if there is no
               sale, there will likely be no plan. As previously discussed, the Debtor will use
               the net sale proceeds to satisfy claims asserted against it. Without this
               opportunity, the Debtor may be forced to conduct a &#147;fire sale&#148; of
               their assets, and settle for the resultant depressed prices. Accordingly, the
               Debtor submits that the sale of its assets falls within the scope of the
               exemption provided for under section&nbsp;1146(c) of the Bankruptcy Code.
               <U>See</U> <U>In re Permar </U> <U>Provisions, Inc.</U>, 79&nbsp;B.R. 530, 534
               (Bankr. E.D.N.Y. 1987) (sale of property one year prior to plan confirmation was
               exempt under section&nbsp;1146(c) of the Bankruptcy Code where sale proceeds
               were distributed to secured and unsecured creditors). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Court Should Waive or Reduce the Ten Day Stay Periods Required By<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Rules 6004(g) and 6006(d) of the Federal Rule Bankruptcy Procedure</B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>49. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Pursuant to Bankruptcy Rule&nbsp;6004(g), unless the court orders otherwise, all
               orders authorizing the sale of property pursuant to section&nbsp;363 of the
               Bankruptcy Code are automatically stayed for 10&nbsp;days after entry of the
               order. Fed. R. Bankr. P. 6004(g). The purpose of Bankruptcy Rule&nbsp;6004(g) is
               to provide sufficient time for an objecting party to appeal </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-29-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               before the order can
               be implemented. <U>See</U> Advisory Committee Notes to Fed. R. Bankr.
               P.&nbsp;6004(g). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>50. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Although Bankruptcy Rule&nbsp;6004(g) and the Advisory Committee Notes are
               silent as to when a court should &#147;order otherwise&#148; and eliminate or
               reduce the 10&nbsp;day stay period, Collier suggests that the 10 day stay period
               should be eliminated to allow a sale or other transaction to close immediately
               &#147;where there has been no objection to the procedure.&#148; 10&nbsp;Collier
               on Bankruptcy 15th Ed. Rev., 6064.09 (L. King, 15th rev. ed. 1988). Furthermore,
               Collier provides that if an objection is filed and overruled, and the objecting
               party informs the court of its intent to appeal, the stay may be reduced to the
               amount of time actually necessary to file such appeal. <U>Id</U>. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>51. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Similarly, Bankruptcy Rule&nbsp;6006(d) stays all orders authorizing a debtor to
               assign an executory contract or unexpired lease pursuant to section&nbsp;365(f)
               of the Bankruptcy Code for 10&nbsp;days, unless the court orders otherwise. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>52. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To preserve the value of the Sale Assets and limit the costs of administering
               and preserving the Sale Assets, it is critical that the Debtor close the sale of
               the Sale Assets as soon as possible after all closing conditions have been met
               or waived. Accordingly, the Debtor hereby requests that the Court waive the
               10-day stay periods under Bankruptcy Rules&nbsp;6004(g) and 6006(d), or in the
               alternative, if an objection to the sale or to the assignment of a contract or
               lease is filed, reduce the stay period to </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-30-</FONT></P>
<PAGE>


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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the minimum amount of time needed by
               the objecting party to file its appeal to allow the sale to close as provided
               under the Asset Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assumption and Assignment of Assigned Agreements Should Be<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Authorized</B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>53. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Section&nbsp;365(f) of the Bankruptcy Code provides that a debtor in possession
               may assign an executory contract or unexpired lease of the debtor only if
               (a)&nbsp;the debtor in possession assumes such contract or lease in accordance
               with the provisions of section&nbsp;365, and (b)&nbsp;adequate assurance of
               future performance by the assignee of such contract or lease is provided.
               11&nbsp;U.S.C. &sect;&nbsp;365(f)(2). Under section&nbsp;365(a) of the
               Bankruptcy Code, a debtor, &#147;subject to the court&#146;s approval, may
               assume or reject any executory contract or unexpired lease of the debtor.&#148;
               11&nbsp;U.S.C. &sect;&nbsp;365(a). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>54. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Section&nbsp;365(b)(1) of the Bankruptcy Code, in turn, codifies the
               requirements for assuming an unexpired lease or executory lease or executory
               contract of a debtor. This subsection provides: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b)(1)&nbsp;&nbsp;
          If there has been a default in an executory contract or unexpired lease of the
          debtor, the trustee may not assume such contract or lease unless, at the time of
          assumption of such contract or lease, the trustee &#151; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          cures or provides adequate assurance that the trustee will promptly cure, such
          default; </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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          <TR VALIGN=TOP>
          <TD ALIGN=RIGHT WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          compensates, or provides adequate assurance that the trustee will promptly
          compensate, a party other than the debtor to such contract or lease, for any
          actual pecuniary loss to such party resulting from such default; and </FONT></TD>
          </TR>
          </TABLE>
          <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-31-</FONT></P>
<PAGE>


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          <TD ALIGN=LEFT WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          provide adequate assurance of future performance under such contract or lease. </FONT></TD>
          </TR>
          </TABLE>
          <BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 U.S.C. &sect; 365(b)(1). </FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>55. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The meaning of &#147;adequate assurance of future payment&#148; depends on the
               facts and circumstances of each case, but should be given &#147;practical,
               pragmatic construction.&#148; <U>EBG Midtown South </U> <U>Corp. v. McLaren/Hart
               Envtl. Engineering Corp. (In re Sanshoe Worldwide Corp.)</U>, 139 B.R. 585, 592
               (S.D.N.Y. 1992) (citations omitted), aff&#146;d, 993 F.2d 300 (2d Cir. 1993). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               When an executory contract or lease is to be assumed and assigned, adequate
               assurance may be provided by, among other things demonstrating the financial
               health of the assignee and its experience and ability in managing the type of
               enterprise or property assigned. <U>See </U> <U>e.g.</U>, <U>In re Bygaph,
               Inc.</U>, 56 B.R. 596, 605-06 (Bankr. S.D.N.Y. 1986) (stating that adequate
               assurance of future performance is present when a prospective assignee of lease
               from debtor has financial resources and has expressed a willingness to devote
               sufficient funding to the business in order to give it a strong likelihood of
               success). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>57. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To the extent that any defaults exist under any Assigned Agreements, the Debtor
               will cure such defaults pursuant to the procedures outlined herein. Moreover,
               the Debtor will demonstrate facts at the Sale Hearing that show the
               Purchaser&#146;s (or the Winning Bidder&#146;s, as the case may be) financial
               credibility, experience in the industry, and willingness and ability to perform
               under the Assigned Agreements. The Sale Hearing will therefore </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-32-</FONT></P>
<PAGE>


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               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               provide the Court
               and other interested parties with the opportunity to evaluate and, if necessary,
               challenge the ability of the Purchaser (or the Winning Bidder, as the case may
               be) to provide adequate assurance of future performance under the Assigned
               Agreements. Accordingly, the Debtor submits that the assumption and assignment
               of the Assigned Agreements as set forth herein should be approved. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>G.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conducting an Auction Pursuant to the Bidding Procedures is in the Best<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Interests of the Debtor's Estate and Creditors</B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>58. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor believes that the Auction and proposed Bidding Procedures will
               promote active bidding from seriously interested parties and will ultimately
               reveal the best or otherwise highest offer available for the Sale Assets. The
               proposed Bidding Procedures will allow the Debtor to conduct the Auction in a
               controlled, fair and open fashion that will encourage participation by
               financially capable bidders who demonstrate the ability to close a transaction.
               The Debtor believes that the Bidding Procedures will encourage, rather than
               hinder, bidding for the Sale Assets, are consistent with other procedures
               previously approved by this Court, and are appropriate under the relevant
               standards governing auction proceedings and bidding incentives in bankruptcy
               proceedings. <U>See</U>, <U>e.g.</U>, <U>In re Kmart</U>, Case No. 02-B02474
               (SPS) (Bankr. N.D. Ill. May 10, 2002); <U>In re </U> <U>Global Crossing</U>,
               Case No. 02-40188 (S.D.N.Y., March 25, 2002) (REG); <U>In re Randall&#146;s </U>
               <U>Island Family Golf Center, Inc.</U>, 261 B.R. 96 (S.D.N.Y. 2001); <U>In re
               Integrated </U> <U>Resources, Inc.</U>, 147 B.R. 650 (S.D.N.Y. 1992). </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-33-</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>H.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bid Protection Provisions Are Warranted</B></FONT></P>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>59. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To compensate the Purchaser for serving as a &#147;stalking horse&#148; whose
               bid will be subject to better or higher offers, the Debtor and the Purchaser
               seek authority for the Debtor to pay the Purchaser the Break-up Fee if the
               Purchaser is not the Winning Bidder, pay the Expense Reimbursement in certain
               other circumstances and provide for the Overbid Protection described herein. The
               Debtor and the Purchaser believe that the Break-up Fee, the Expense
               Reimbursement and Overbid Protection are fair and reasonable, given the benefits
               to the estate of having a definitive Asset Purchase Agreement and the risk to
               the Purchaser that a third-party offer may ultimately be accepted, and are
               necessary to preserve the value of the Debtor&#146;s estate. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Bidding incentives such as the Break-up Fee, Expense Reimbursement and Overbid
               Protection encourage a potential purchaser to invest the requisite time, money
               and effort to conduct due diligence and sale negotiations with a debtor (or in
               this case a prospective debtor) despite the inherent risks and uncertainties of
               the chapter&nbsp;11 process. <U>See</U> <U>e.g.</U>, <U>In </U> <U>re 995 Fifth
               Ave. Assocs., L.P.</U>, 96 B.R. 24, 28 (Bankr. S.D.N.Y. 1989) (finding that
               bidding incentives may be &#147;legitimately necessary to convince a white
               knight to enter the bidding by providing some form of compensation for the risks
               it is undertaking&#148;) (citations omitted); <U>In re Marrose Corp.</U>, Case
               Nos. 89 B 12171-12179 (B), 1992 WL 33848 at *5 (Bankr. S.D.N.Y. 1992) (stating
               that &#147;[a]greements to provide breakup fees or reimbursement of fees and </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-34-</FONT></P>
<PAGE>


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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               expenses are meant to compensate the potential acquirer who serves as a catalyst
               or &#145;stalking horse&#146; which attracts more favorable offers&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor submits that break-up fees, expense reimbursements and overbid
               protections are a normal, and oftentimes necessary component of sales outside
               the ordinary course of business under section&nbsp;363 of the Bankruptcy Code.
               <U>See e.g., In re Kmart</U>, Case No. 02-B02474 (SPS) (Bankr. N.D. Ill.
               May 10, 2002) (authorizing a termination fee and overbid protections for
               potential bidders); <U>In re Comdisco, Inc.</U>, Case No. 01-24795 (RB) (Bankr.
               N.D. Ill. Aug. 9, 2002) (approving a termination fee as, inter alia, an actual
               and necessary cost and expense of preserving the Debtor&#146;s estate, of
               substantial benefit to the Debtor&#146;s estate, and a necessary inducement for,
               and a condition to, the proposed purchaser&#146;s entry into the purchase
               agreement); <U>In re Integrated Resources, Inc.</U>, 147&nbsp;B.R. at 660
               (noting that break-up fees may be legitimately necessary to convince a
               &#147;white knight&#148; to offer an initial bid by providing some form of
               compensation for the expenses such bidder incurs, and the risks such bidder
               faces by having its offer held open, subject to higher and better offers); <U>In
               re Crowthers McCall Pattern, Inc.</U>, 114&nbsp;B.R. 877, 880 (Bankr. S.D.N.Y.
               1990) (approving an overbid requirement in an amount equal to the approved
               break-up fee); <U>In re Kupp Acquisition Corp.</U>, Case No. 96-1223 (PJW)
               (Bankr. D. Del. March 3, 1997). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>62. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               In this case, the proposed Break-up Fee, Expense Reimbursement and Overbid
               Protection are of substantial benefit to the Debtor, its creditors </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-35-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               and estate.
               <U>See</U> <U>e.g.</U>, <U>In re Integrated Resources </U> <U>Inc.</U>,
               147&nbsp;B.R. at 660; <U>In re Kmart Corp.</U>, Case No. 02-B02474 (SPS) (Bankr.
               N.D. Ill. May&nbsp;10, 2002); <U>In re Comdisco, Inc.</U>, Case No. 01-24795
               (RB) (Bankr. N.D. Ill. Aug.&nbsp;9, 2002) (finding proposed termination fee to
               be of substantial benefit to the Debtor&#146;s estate). Moreover, the Break-Up
               Fee, which is approximately 3.1% of the purchase price provided for in the Asset
               Purchase Agreement, the Expense Reimbursement, which is less than 1% of the
               purchase price provided for in the Asset Purchase Agreement, and Overbid
               Protection, which is approximately 5.0% of the purchase price provided for in
               the Asset Purchase Agreement when aggregated with the Break-Up Fee, are
               reasonable and appropriate in light of the size and nature of the sale of the
               Sale Assets and the efforts that have been and will be expended by the
               Purchaser. <U>See</U> <U>Consumer News and </U> <U>Business Channel Partnership
               v. Dow Jones/Group W Television Company (In re Financial </U> <U>News Network,
               Inc.)</U>, 931&nbsp;F.2d 217, 219 (2nd Cir. 1991) (breakup fee of 2.8% and
               overbid protection of 9.5% approved); <U>Doehring v. Crown Corporation (In re
               Crown Corp.</U>), 679 F.2d 774 (9th Cir. 1982) (overbid protection of 4.9%
               approved); <U>In re </U> <U>Canyon Partnership</U>, 55 B.R. 520 (Bankr. S.D.
               Cal. 1985) (overbid protection of 3% approved). Finally, the Break-Up Fee and
               other Bidding Protections are necessary to ensure that the Purchaser will
               continue to pursue its proposed acquisition of the Sale Assets. <U>See</U>
               11&nbsp;U.S.C. &sect;&nbsp;503(b) (defining actual and necessary costs and
               expenses of preserving a debtor&#146;s estate). Accordingly, the Debtor believes
               that the </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-36-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Break-Up Fee, Expense Reimbursement and Overbid Protection should be
               approved. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>I.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notice</B></FONT></P>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>63. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Notice of this Motion has been given to (a) the Office of the United States
               Trustee, (b) counsel to the administrative agents for the Debtors&#146;
               prepetition secured lenders, including the Prepetition Agent, (c) counsel for
               the Creditors&#146; Committee, (d) counsel to the Ad Hoc Committees, (e) counsel
               to the indenture trustees pursuant to the NRG Debtors&#146; secured indentures,
               (f) Xcel and its counsel, and (g) counsel to OG&amp;E. The Debtors submit that,
               in light of the nature of the relief requested, no other or further notice need
               be given. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-37-</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREFORE,
the Debtor respectfully requests that the Court: (i)&nbsp;enter the Bidding Procedures
Order; (ii)&nbsp;enter the Approval Order and (iii)&nbsp;grant such other and further
relief as the Court deems necessary or appropriate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: August ____, 2003<BR>
New York, New York </FONT></P>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=600>
<TR VALIGN="BOTTOM">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Respectively submitted,</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">KIRKLAND &amp; ELLIS LLP</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="BOTTOM">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT>&nbsp;<HR SIZE=1 NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Matthew A. Cantor, Esq. (MC 7727)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Robbin L. Itkin, Esq. (RI 1019)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro<BR>Hac Vice)</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Citigroup Center</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">153 East 53rd Street</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">New York, NY 10022-4675</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Telephone:  (212) 446-4800</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Facsimile:  (212) 446-4900</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reorganization Counsel for</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Debtor and Debtor in Possession</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-38-</FONT></P>
<PAGE>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT A</U></FONT></H1><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[BIDDING PROCEDURES
ORDER] </FONT></H1>


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<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY COURT<BR>
SOUTHERN DISTRICT OF NEW YORK</U></FONT></H1>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <U>et al.</U>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS ORDER APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ORDER PURSUANT TO SECTIONS 105(A), 363 AND 365<BR>
OF THE BANKRUPTCY CODE (A)&nbsp;ESTABLISHING<BR>
BIDDING PROCEDURES AND BID PROTECTIONS<BR>
IN CONNECTION WITH THE SALE OF SUBSTANTIALLY<BR>
ALL OF THE ASSETS OF NRG MCCLAIN LLC; (B) APPROVING<BR>
THE FORM AND MANNER OF NOTICES AND FIXING DEADLINES<BR>
TO OBJECT TO CURE AMOUNTS AND ASSET SALE; (C)&nbsp;APPROVING<BR>
THE FORM OF THE ASSET PURCHASE AGREEMENT; (D)&nbsp;SETTING<BR>
<U>AN AUCTION AND SALE HEARING; AND (E) GRANTING RELATED RELIEF</U></B></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the motion (the &#147;Motion&#148;) of NRG McClain&nbsp;LLC (the &#147;Debtor&#148;) in
the above-captioned chapter&nbsp;11 cases for, among other things, the entry of an order:
(a)&nbsp;establishing</FONT></P>


<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>bidding procedures and protections in connection with the sale of
substantially all of the assets of NRG McClain LLC; (b)&nbsp;approving the form and manner
of various notices; (c)&nbsp;approving the form of the asset purchase agreement;
(d)&nbsp;setting a sale hearing date; and (e)&nbsp;granting certain related relief; and it
being found that the relief requested in the Motion is in the best interest of the Debtor,
its estate, creditors and interest holders; and after due deliberations and sufficient
cause appearing therefor; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT: </FONT></H1>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Service of the Motion, the notice of the Motion and the Bidding Procedures Order
               and the hearing thereon in the manner set forth in the Motion is hereby approved
               as constituting proper, timely, adequate and sufficient notice under the
               circumstances in accordance with section&nbsp;102(1) of the Bankruptcy Code and
               Bankruptcy Rules&nbsp;2002, 6004 and 6006 and no other further notice is
               required with respect thereto. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Bidding Protections set forth in the Motion are hereby approved,
               specifically as follows: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor shall be obligated to pay to the Purchaser $5,000,000 (the
               &#147;Break-Up Fee&#148;) if the Debtor consummates any transaction (which
               payment shall be made from the proceeds of such transaction) involving the sale,
               recapitalization or other disposition of all or substantially all of the Sale
               Assets to an entity or entities other than the Purchaser (an &#147;Alternative
               Transaction&#148;), payable from the proceeds of such Alternative Transaction in
               accordance with paragraph&nbsp;28 of the Motion; provided that such transaction
               is not the result of the termination of the Asset Purchase Agreement pursuant to
               Sections&nbsp;12.1(b), (o) or (p) thereof and further provided that the Break-Up
               Fee shall not be payable if such Alternative Transaction results from a credit
               bid made by the Agent following any termination of the Asset Purchase Agreement
               by the Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor shall be obligated to reimburse the Purchaser for its actual
               documented fees and expenses incurred in connection with </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the transactions
               contemplated by the Asset Purchase Agreement, up to an aggregate amount of
               $1,500,000 (the &#147;Expense Reimbursement&#148;) in the event the Asset
               Purchase Agreement is terminated pursuant to Section&nbsp;12.1 thereof (other
               than clauses (a), (b), (k), (o) or (p) thereof); <U>provided</U>,
               <U>however</U>, that the Debtor shall not be obligated to pay the Expense
               Reimbursement under any circumstances in which it pays the Break-Up Fee. The
               Break-Up Fee and Expense Reimbursement, as applicable, shall each constitute an
               administrative expense of the Debtor&#146;s estate that shall be payable, in the
               case of an Alternative Transaction, in accordance with paragraph&nbsp;28 of the
               Motion from the proceeds thereof and payable prior to any NRG Support Payment
               Amount or other NRG Support Claim under the Omnibus Restructuring and Consent
               Agreement, dated as of August&nbsp;18, 2003, among the Debtor, the Prepetition
               Secured Lenders and the Agent (the &#147;ORCA&#148;). In a case other than an
               Alternative Transaction, the Expense Reimbursement shall be payable pursuant and
               subject to the terms and conditions set forth in the ORCA. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A competing bid will not be considered by the Debtor unless such bid is at least
               $166,450,000, which is $1,500,000 (the &#147;Initial Overbid Amount&#148;) more
               than the purchase price set forth in the Asset Purchase Agreement plus the
               Break-Up Fee (the &#147;Overbid Protection&#148;). Any bids thereafter must be
               at least $500,000 higher than the then existing highest bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Bidding Procedures set forth in the Motion are hereby approved, as follows: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Initial Qualification</U>. Any bidder wishing to receive information relating
               to the sale of the Sale Assets shall first submit to the Debtor (with a copy to
               the Agent), at a minimum, the following information (the &#147;Qualifying
               Information&#148;): (i)&nbsp;certified financial statements for the preceding
               two years (provided that if such bidder is an entity specially formed to
               purchase the Sale Assets, it should submit such financial statements of its
               parent company or principals); (ii)&nbsp;other evidence establishing such
               bidder&#146;s ability to timely consummate the purchase of the Sale Assets; and
               (iii)&nbsp;any additional information reasonably requested by the Debtor or the
               Agent in connection with the Debtor&#146;s evaluation of such bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Confidentiality</U>. All bidders who request an information packet relating
               to the Sale Assets shall be required to enter into a standard confidentiality
               agreement with the Debtor. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Due Diligence</U>. Upon (i)&nbsp;execution of a confidentiality agreement;
               (ii)&nbsp;the delivery of other Qualifying Information; and (iii)&nbsp;the
               Debtor&#146;s determination (after consultation with the Agent) that the bidder
               is qualified to participate in the bidding process, the Debtor shall provide
               such bidders reasonable access to its books, records and executives to allow the
               bidder to conduct due diligence prior to the submission of a bid. The Debtor
               shall not provide any non-public information to any bidder that it has not
               delivered or made available to the Purchaser. By participating in the Auction,
               all Qualified Bidders (as defined herein) are deemed to acknowledge that they
               have had sufficient and reasonable access to the Debtor&#146;s books, records
               and executives for the purposes of conducting due diligence and opportunity to
               conduct such due diligence. Qualified Bidders must complete their due diligence
               prior to the date of the Auction. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Bid Deadline</U>. All Bids must be submitted to (i)&nbsp;Kirkland &amp; Ellis
               LLP, 200 East Randolph Drive, Chicago, Illinois 60601-6636, Attention: Ryan
               Blaine Bennett, Esq. (bankruptcy counsel to the Debtor); (ii)&nbsp;Andrews &amp;
               Kurth, Attn: Paul Pipitone, Esq., 600&nbsp;Travis, Suite 4200, Houston, Texas
               77002 (special corporate counsel to the Debtor); (iii)&nbsp;Jones Day, Attn:
               Charles N. Bensinger III, Esq., 77&nbsp;West Wacker, Chicago, Illinois
               60601-1692 (counsel to OG&amp;E); (iv)&nbsp;Milbank, Tweed, Hadley &amp; McCloy
               LLP, Attn: L. Douglas Harris, Esq., and Dennis Dunne, Esq., 1&nbsp;Chase
               Manhattan Plaza, New York, New York 10005 (counsel for the Agent);
               (v)&nbsp;Bingham McCutchen, Attn: Enid L. Veron, Esq., 399&nbsp;Park Avenue, New
               York, New York 10022-4689 (counsel to the Committee in the NRG Debtors&#146;
               cases); and (vi)&nbsp;counsel to any subsequently appointed committee(s), if
               any, so as to be received by no later than 10&nbsp;days prior to the Sale
               Hearing (the &#147;Bid Submission Deadline&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Qualifying Bids</U>. To constitute a qualifying bid (a &#147;Qualifying
               Bid&#148;) such bid shall, at a minimum: (i)&nbsp;be delivered to the Debtor and
               other parties in interest pursuant to the delivery requirements on or before the
               Bid Submission Deadline; (ii)&nbsp;contain an executed copy of a modified
               version of the Asset Purchase Agreement (with a red-lined comparison to the form
               of Asset Purchase Agreement attached as Exhibit&nbsp;B to the Motion);
               (iii)&nbsp;provide a good faith deposit payable to the Debtor (the &#147;Initial
               Deposit&#148;) in the amount of 5 percent (or, in the case of the Purchaser, 2.5
               percent) of the bid amount in cash or other form of consideration;
               (iv)&nbsp;clearly state the portion of the consideration to be paid in cash (the
               &#147;Cash Payment&#148;), which must be at least equal to the cash portion of
               the purchase price provided for in the Asset Purchase Agreement, plus the amount
               of the Break-Up Fee, and the portion to be paid in any </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               other form of value;
               (v)&nbsp;provide for the purchase price, taking into account the conditions
               associated with such proposal, greater than or equal to the sum of $166,450,000,
               which is (A)&nbsp;$159,950,000 (the stalking horse bid) plus (B)&nbsp;$5,000,000
               (the Break-Up Fee) plus (C)&nbsp;$1,500,000 (the Initial Overbid Amount);
               (vi)&nbsp;identify each executory contract or unexpired lease the assumption and
               assignment of which is a condition of closing; (vii)&nbsp;provide a statement
               that the bid shall be irrevocable until 10&nbsp;days after the Closing Date;
               (viii)&nbsp;not contain any contingencies to the validity, effectiveness and/or
               binding nature of the offer, including, without limitation, contingencies for
               financing, due diligence or inspection; (ix)&nbsp;include evidence of
               authorization and approval from the bidder&#146;s Board of Directors (or
               comparable governing body) with respect to the submission, execution and
               delivery of the bid; (x)&nbsp;provide satisfactory evidence of committed
               financing or other ability to perform; and (xi)&nbsp;give sufficient indicia
               that its representative who will be attending the Auction is duly authorized to
               both bid on behalf of the Qualified Bidder at the Auction and enter into and
               bind the Qualified Bidder to the asset purchase agreement. Each of the
               Purchaser, the Agent and any bidder that makes a Qualifying Bid shall be deemed
               a &#147;Qualified Bidder.&#148; Any party asserting a lien on the Sale Assets
               may credit bid the value of such lien; provided, however, that any such bid must
               include a Cash Payment of at least $5&nbsp;million to cover the Break-Up Fee.
               Notwithstanding the foregoing, if the Agent credit bids the value of the
               Prepetition Secured Lenders&#146; liens, its bid must include a Cash Payment to
               cover the Break-Up Fee only if the purchase price is equal to or greater than
               the purchase price set forth in the Asset Purchase Agreement; provided that the
               Break-Up Fee shall not be payable in the case of an Alternative Transaction
               resulting from a credit bid made by the Agent following any termination of the
               Asset Purchase Agreement by the Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Evaluation of Qualifying Bid</U>. Prior to the Auction, the Debtor shall, in
               consultation with its professionals and the Agent, evaluate each bid, to
               determine whether such bid is a Qualifying Bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Initial Deposit</U>. All Initial Deposits paid to the Debtor shall be held in
               an interest bearing account subject to the jurisdiction of the Bankruptcy Court. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Auction</U>. If more than one Qualifying Bid is received by the Bid
               Submission Deadline, the Debtor will conduct an auction (the
               &#147;Auction&#148;) with respect to the Sale Assets. If no Qualifying Bid
               (other than that of the Purchaser) is received by the Bid Submission Deadline,
               the Debtor shall report the same to the Bankruptcy Court at the Sale Hearing,
               where the Debtor shall </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               request (i)&nbsp;that the Purchaser&#146;s bid be deemed
               the highest or otherwise best offer for the Sale Assets and (ii)&nbsp;authority
               to proceed to close the Sale, in accordance with the Asset Purchase Agreement,
               as promptly as possible. The Auction, if required, will be held no later than
               3&nbsp;business days prior to the Sale Hearing, at such date and time as agreed
               to by the Purchaser, the Debtor and the Agent at the offices of Kirkland &amp;
               Ellis LLP, Citicorp Center, 153&nbsp;East 53<SUP>rd</SUP> Street, New York, New
               York 10022-4675, of which the Debtor will notify all Detailed Notice Parties (as
               defined herein) no later than 5&nbsp;business days after entry of the Bidding
               Procedures Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Only
the Purchaser, the Debtor, the Agent, representatives of any official statutory committees
appointed in the Bankruptcy Case, if any, Qualified Bidders and the professionals of the
foregoing shall be entitled to attend and be heard at the Auction, and only Qualified
Bidders shall be entitled to make any subsequent bids at the Auction. All Qualified
Bidders, or their qualified representatives, must be physically present at the Auction.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
During
the Auction, bidding shall begin initially with the highest Qualifying Bid and
subsequently continue in minimum increments of at least $500,000 higher than the previous
bid. Subsequent bids submitted by the Purchaser shall be deemed to include a credit in an
amount equal to the Break-Up Fee. Bidding at the Auction shall continue until such time as
the highest or otherwise best bid is determined.</FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=25%>&nbsp;</TD>
<TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At
the conclusion of the Auction, the Debtor, in consultation with the Agent, shall select
the highest or best Qualified Bid (the &#147;Accepted Bid&#148;). The bidder submitting
such Accepted Bid shall become the &#147;Winning Bidder,&#148; and shall have such rights
and responsibilities of the purchaser, as set forth in the applicable asset purchase
agreement. Within 24&nbsp;hours after adjournment of the Auction, the Winning Bidder (if
other than the Purchaser) shall complete and execute all agreements, contracts,
instruments or other documents evidencing and containing the terms and conditions upon
which the Winning Bid was made.</FONT></TD>
</TR>
</TABLE>
<BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Sale Hearing</U>. The Accepted Bid shall be subject to the approval of the
               Bankruptcy Court at the Sale Hearing. The Sale Hearing shall be held on
               ____________, 2003 at __:__ _.m. at this Court. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Closing</U>. Following approval of the Accepted Bid at the Sale Hearing, the
               Winning Bidder shall close the transaction pursuant to the terms set forth in
               the applicable asset purchase agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-6-</FONT></P>
<PAGE>


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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(k) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Return of Initial Deposit</U>. Within 10&nbsp;business days following the
               Closing Date, the Debtor shall return the Initial Deposits to each unsuccessful
               bidder. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(l) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Failure to Close</U>. If the Winning Bidder fails to close the Accepted Bid
               in breach of the terms of the applicable asset purchase agreement (a
               &#147;Purchase Default&#148;), the Winning Bidder shall forfeit the Initial
               Deposit to, and such Initial Deposit shall be retained irrevocably by, the
               Debtor. In addition, the Debtor shall also retain the right to seek all other
               appropriate damages from such Winning Bidder. In the event of a Purchase
               Default, the next highest or otherwise best Qualifying Bid will automatically be
               deemed to be the Accepted Bid, and the bidder submitting such bid will be deemed
               to be the Winning Bidder. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Procedures for notifying Contract Parties and resolving any potential cure
               amount disputes in connection with the Debtor&#146;s proposed assumption of
               executory contracts and unexpired leases and assignment of such agreements to
               the Purchaser (or other Winning Bidder), as set forth below, are hereby
               approved: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Notice of Cure Objection Deadline</U>: Within 5&nbsp;business days after the
               date the Bidding Procedures Order is entered, the Debtor shall serve a copy of
               such Order together with the Notice of Debtor&#146;s Intent to Assume and Assign
               Executory Contracts and Unexpired Leases (the &#147;Contract Assignment
               Notice&#148;), substantially in the form attached as Exhibit&nbsp;D to the
               Motion, by regular mail to the Contract Parties notifying them of the
               Debtor&#146;s intent to assume and assign each agreement listed on
               Schedule&nbsp;3.8 to the Asset Purchase Agreement (as it may be modified by that
               time) and of the Cure Amount determined by the Debtor for each such Assigned
               Agreement to be necessary for such assumption and assignment on the Closing
               Date. If Schedule&nbsp;3.8 to the Asset Purchase Agreement is amended subsequent
               to the mailing of the initial Contract Assignment Notice, the Debtor shall serve
               a copy of the Bidding Procedures Order and a subsequent Contract Assignment
               Notice(s) on any additional Contract Party or any other party affected thereby
               within 5&nbsp;business days of such amendment. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Cure Objections</U>: Any Contract Party seeking to (a)&nbsp;assert a Cure
               Amount based on defaults, conditions or pecuniary losses under its Assigned
               Agreement (collectively, the &#147;Cure Obligation&#148;) different from that
               set forth on any of the Contract Assignment Notices or </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-7-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               (b)&nbsp;object to the
               potential assumption and assignment of its Assigned Agreement on any other
               grounds, shall be required to file and serve an objection (a &#147;Cure
               Objection&#148;), in writing, setting forth with specificity (a)&nbsp;any and
               all Cure Obligations that the Contract Party asserts must be cured or satisfied
               respecting such Assigned Agreement and/or (b)&nbsp;if the objection to the
               potential assignment of such Assigned Agreement is based on adequate assurance
               issues, what information with respect to the Purchaser or another Winning Bidder
               such Contract Party requires to satisfy its adequate assurance concerns. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Cure Objection Deadline</U>: To be considered a timely Cure Objection, the
               Cure Objection must be filed with the Court and a copy delivered to each of:
               (i)&nbsp;Kirkland &amp; Ellis LLP, 200 East Randolph Drive, Chicago, Illinois
               60601-6636, Attention: Ryan Blaine Bennett, Esq. (bankruptcy counsel to the
               Debtor); (ii)&nbsp;Andrews &amp; Kurth, Attn: Paul Pipitone, Esq., 600 Travis,
               Suite 4200, Houston, Texas 77002 (special corporate counsel to the Debtor);
               (iii)&nbsp;Jones Day, Attn: Charles N. Bensinger III, Esq., 77&nbsp;West Wacker,
               Chicago, Illinois 60601-1692 (counsel to OG&amp;E); (iv)&nbsp;Milbank, Tweed,
               Hadley &amp; McCloy LLP, Attn: L. Douglas Harris, Esq., and Dennis Dunne, Esq.,
               1&nbsp;Chase Manhattan Plaza, New York, New York 10005 (counsel for the Agent);
               (v)&nbsp;Bingham McCutchen, Attn: Enid L. Veron, Esq., 399&nbsp;Park Avenue, New
               York, New York 10022-4689 (counsel to the Committee in the NRG Debtors&#146;
               cases); and (vi)&nbsp;counsel to any subsequently appointed committee(s), if
               any, so as to be received no later than 15&nbsp;days after service of the Cure
               Assignment Notice (the &#147;Cure Objection Deadline&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Failure to File Cure Objection</U>: Unless a Cure Objection is timely filed
               and served by a Contract Party by the Cure Objection Deadline, the Court shall
               enter an order authorizing or effecting the assumption and assignment of the
               applicable Assigned Agreement at the Sale Hearing or otherwise without regard to
               any objection such party may have or any provisions to the contrary in the
               applicable Assigned Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Waiver of Cure Objection</U>: Contract Parties that fail to file and serve
               Cure Objections as provided above shall be deemed to have waived and released
               any and all Cure Obligations and shall be forever barred and estopped from
               asserting or claiming against the Debtor, the Purchaser or any other assignee of
               the relevant contract or lease that any additional amounts are due or defaults
               exist, or prohibitions or conditions to assignment exist or must be satisfied,
               under such Assigned Agreement for the period prior to the Closing Date. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-8-</FONT></P>
<PAGE>


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               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Reservation of Rights</U>: The Debtor and the Purchaser each reserve the
               right to exclude or add any Assigned Agreement from or to the proposed Sale and
               to withdraw the request to assume and assign any Assigned Agreement pursuant to
               the terms of the Asset Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The forms of the Detailed Notice and the General Notice attached to the Motion
               as Exhibits&nbsp;E and F, respectively, are hereby approved and shall be served
               by the Debtor in accordance with the procedures set forth in the Motion. In
               addition, the Debtor shall publish the General Notice in the national edition of
               the <U>Wall Street Journal</U> and the <U>Daily </U> <U>Oklahoman</U> no later
               than 10&nbsp;business days after entry of this Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Each of the Purchaser and the Agent shall be deemed a party in interest with
               standing to appear and to be heard in connection with any motion, hearing or
               other proceeding relating to the Asset Purchase Agreement or the sale of the
               Sale Assets. The Agent&#146;s rights under section&nbsp;363(k) of the Bankruptcy
               Code are fully preserved. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Court shall retain jurisdiction over any matter or dispute arising from the
               implementation of this Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: New York, New York </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_____________,
2003</FONT></P><BR>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH=500>
<TR VALIGN="BOTTOM">
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR SIZE=1  NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States Bankruptcy Judge</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-9-</FONT></P>
<PAGE>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT B</U></FONT></H1><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[FORM OF ASSET
PURCHASE AGREEMENT] </FONT></H1>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT C</U></FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[APPROVAL ORDER] </FONT></H1>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY
COURT <BR>SOUTHERN DISTRICT OF NEW YORK </U></FONT></H1>




<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <U>et</U> <U>al.</U>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS ORDER APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ORDER:
(A)&nbsp;AUTHORIZING DEBTOR&#146;S SALE OF ASSETS, </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>FREE AND CLEAR OF
LIENS, CLAIMS AND ENCUMBRANCES </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURSUANT TO SECTION
363 OF THE BANKRUPTCY CODE; </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>(B) AUTHORIZING
DEBTOR&#146;S ASSUMPTION AND ASSIGNMENT </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>OF CERTAIN UNEXPIRED
LEASES AND OTHER EXECUTORY </FONT><BR>
<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONTRACTS PURSUANT TO
SECTION 365 OF </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>THE BANKRUPTCY CODE;
AND (C) GRANTING RELATED RELIEF </U></FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
the motion (the &#147;Motion&#148;) of NRG McClain&nbsp;LLC (the &#147;Debtor&#148;) in
the above-captioned chapter&nbsp;11 cases for, among other things, entry of an order:
(a)&nbsp;approving the sale of assets free and clear of (i)&nbsp;all liens, claims and
encumbrances and (ii)&nbsp;certain transfer </FONT></P>


<PAGE>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>taxes to the Winning Bidder;
(b)&nbsp;authorizing the assumption and assignment of certain executory contracts and
unexpired leases; and (c)&nbsp;granting related relief; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
this Court&#146;s order, dated _________, 2003, (A)&nbsp;Establishing Bidding Procedures
and Bid Protections in Connection with the Sale of Substantially All of the Assets of
NRG&nbsp;McClain&nbsp;LLC; (B)&nbsp;Approving the Form and Manner of Notices and Fixing
Deadlines to Object to Cure Amounts and Asset Sale; (C)&nbsp;Approving the Form of the
Asset Purchase Agreement; (D)&nbsp;Setting an Auction and Sale Hearing Dates; and
(E)&nbsp;Granting Certain Related Relief (the &#147;Bidding Procedures Order&#148;); and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due
and sufficient notice of the sale transactions and related relief approved hereby
(collectively, the &#147;Sale&#148;), the Auction and the Sale Hearing (as defined below)
having been given to all parties entitled thereto; and </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
hearing (the &#147;Sale Hearing&#148;) having been held before this Court on __________,
2003 to consider the Sale, at which time all parties in interest were afforded an
opportunity to be heard; and the Court having heard testimony and received evidence in
support of approval of the Sale; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, based upon this Court&#146;s review of all of (a)&nbsp;the evidence proffered
or adduced at, (b)&nbsp;memoranda and objections filed in connection with, and
(c)&nbsp;arguments of counsel made at, the Sale Hearing; and upon the entire record of the
Sale Hearing; and after due deliberation thereon; and good cause appearing therefor; </FONT></P>

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<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IT IS HEREBY FOUND AND
DETERMINED THAT: </FONT></H1>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>A.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; This Court has jurisdiction to hear and determine the Motion and the matters set
          forth herein pursuant to 28&nbsp;U.S.C. &sect;&sect;&nbsp;157 and 1334. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>B.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Venue of these cases in this district is proper pursuant to 28&nbsp;U.S.C.
          &sect;&sect;&nbsp;1408 and&nbsp;1409(a). </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>




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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>C.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Capitalized terms used herein that are not otherwise defined in this Order shall
          have the meanings ascribed to such terms in the Asset Purchase Agreement, dated
          as of ____________, 2003 (the &#147;Asset Purchase Agreement&#148;)<SUP>4</SUP>
          between the Debtor and Oklahoma Gas and Electric Company (the
          &#147;Purchaser&#148;) or, if not otherwise defined in the Asset Purchase
          Agreement or this Order, the meanings ascribed to such terms in the Motion. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>D.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Determination of the Motion is a core proceeding under 28&nbsp;U.S.C.
          &sect;&sect;&nbsp;157(b)(2)(A) and 157(b)(2)(N). The statutory predicates for
          the relief requested herein are sections&nbsp;105, 363, 365<I> </I>and 1146 of
          the Bankruptcy Code and Rules 2002, 6004, 6006, 9007 and 9008 of the Federal
          Rules of Bankruptcy Procedure (the &#147;Bankruptcy Rules&#148;). </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>E.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Proper, timely, adequate and sufficient notice of the Motion, the Sale Hearing,
          the Sale, the assumption and assignment of the Contracts designated pursuant to
          the Asset Purchase Agreement for assumption by the Debtor and assignment to the
          Purchaser (collectively, the &#147;Assigned Agreements&#148;) and the other
          relief granted herein has been provided in accordance with the Bidding
          Procedures Order and applicable law, including sections&nbsp;102(1), 105(a), 363
          and 365 of the Bankruptcy Code and Bankruptcy Rules&nbsp;2002, 6004, 6006, 9006,
          9008 and 9014 and the Local Rules of this Court, and no other or further notice
          of the Motion, the Sale Hearing, the Sale, the assumption and assignment of the
          Assigned Agreements or the entry of this Order is required. </FONT></P>


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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>F.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; A reasonable opportunity to bid on the Sale Assets or to object or be heard
          regarding the relief requested in the Motion and granted herein has been
          afforded to all interested persons and entities, including: (a)&nbsp;all
          parties, if any, that are known to claim interests in the Assigned Agreements;
          (b)&nbsp;all parties, if any, that are known to claim interests in or liens upon
          the </FONT></P>

<P><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
<!-- MARKER FORMAT-SHEET="Para Large Hang Lv 2-TNR" FSL="Project" -->

<FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>4</SUP> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
copy of the Asset Purchase Agreement without its voluminous exhibits and schedules is attached hereto as <U>Exhibit A</U>.</FONT></P>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3-</FONT></P>
<PAGE>




<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sale Assets; and (c)&nbsp;all governmental taxing authorities that have, or
          as a result of the sale of Sale Assets, may have claims, contingent or
          otherwise, against the Debtor or the Sale Assets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>G.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Approval of the Asset Purchase Agreement and consummation of the sale of the
          Sale Assets to the Purchaser at this time is in the best interests of the Debtor
          and its creditors. The Debtor has articulated good and sufficient business
          justification supporting the sale of the Sale Assets to the Purchaser pursuant
          to section&nbsp;363 of the Bankruptcy Code. The Debtor and the Purchaser have
          fully complied with the Bidding Procedures Order and the bidding procedures
          established therein. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>H.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Prepetition Secured Lenders have consented to the Sale, subject to the
          provisions of paragraphs&nbsp;8 and 9 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Approval of the Debtor&#146;s assumption of the Assigned Agreements and the
          Debtor&#146;s assignment of the Assigned Agreements to the Purchaser is in the
          best interests of the Debtor and its estate and creditors. The Debtor has
          articulated good and sufficient business justifications supporting the
          assumption and assignment of the Assigned Agreements to the Purchaser pursuant
          to section&nbsp;365 of the Bankruptcy Code. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>J.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; Each Assigned Agreement is a valid and binding agreement of the Debtor and is an
          executory contract or unexpired lease of the Debtor subject to assumption and
          assignment under section&nbsp;365 of the Bankruptcy Code. The cure amounts for
          the Assigned Agreements established pursuant to the procedures set forth in the
          Bidding Procedures Order and as identified on the Cure Schedule attached hereto
          as Exhibit&nbsp;__, or as otherwise established pursuant to the procedures set
          forth in this Order, represent all amounts necessary to cure all defaults and
          compensate Contract Parties for all pecuniary losses under the Assigned
          Agreements pursuant to section&nbsp;365(b) of the Bankruptcy Code. Adequate
          assurance (within the </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4-</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>meaning of section&nbsp;365(f)(2)(B) of the Bankruptcy
          Code) of the Purchaser&#146;s future performance under the Assigned Agreements
          has been provided and all other requirements and conditions of section&nbsp;365
          of the Bankruptcy Code for the assumption by the Debtor and assignment to the
          Purchaser of each of the Assigned Agreements has been satisfied. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>K.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Contract Parties have either: (a)&nbsp;consented to the assumption and
          assignment of the Assigned Agreements; (b)&nbsp;are deemed to have consented to
          such assumption and assignment by their failure to timely file Cure Objections
          as required by the Bidding Procedures Order; or (c)&nbsp;had their objections to
          the assumption and assignment of the Assigned Agreements overruled by the
          Bankruptcy Court. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>L.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Debtor has good and marketable title in and to the Sale Assets. The
          consideration to be paid by the Purchaser under the Asset Purchase Agreement
          constitutes adequate and fair value for the Sale Assets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>M.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Asset Purchase Agreement (a)&nbsp;was negotiated, proposed and entered into
          in good faith, from arm&#146;s length bargaining positions, by the Debtor and
          the Purchaser, without collusion; and (b)&nbsp;constitutes the highest or
          otherwise best offer for the Sale Assets. The Purchaser is entitled to the
          protections of a good faith purchaser pursuant to section&nbsp;363(m) of the
          Bankruptcy Code with respect to the transactions approved hereby. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>N.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Sale Assets constitute property of the Debtor&#146;s estate within the
          meaning of section&nbsp;541(a) of the Bankruptcy Code. The Debtor may sell and
          transfer the Sale Assets to the Purchaser free and clear of any and all
          interests in or liens, claims or encumbrances (collectively, the
          &#147;Encumbrances&#148;) upon the Sale Assets because (1)&nbsp;all such
          Encumbrances will attach to the net proceeds of the Sale with the same force and
          in the same order of priority as they currently enjoy with respect to the Sale
          Assets, and (2)&nbsp;all creditors claiming an interest in </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5-</FONT></P>
<PAGE>



<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the Sale Assets
          either (a)&nbsp;have consented to the Sale or are deemed to have consented to
          the Sale by failing to object to the relief granted herein; (b)&nbsp;could be
          compelled in a legal or equitable proceeding to accept a monetary satisfaction
          of such interests, liens, claims or encumbrances; or (c)&nbsp;otherwise fall
          within the provisions of section&nbsp;363(f) of the Bankruptcy Code. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>O.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The sale of the Sale Assets is a prerequisite to the Debtor&#146;s ability to
          confirm and consummate a plan of liquidation. The Sale is a sale in
          contemplation of such a plan and, accordingly, is a transfer pursuant to
          section&nbsp;1146(c) of the Bankruptcy Code, which shall not be taxed under any
          law imposing a stamp, transfer, recording or similar tax. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>P.</B>&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; The Court expressly finds that there is no just reason for delay in the
          implementation of this Order, and the closing of the Sale may occur as soon as
          all the conditions precedent to such closing have been satisfied or waived in
          accordance with the terms and conditions of the Asset Purchase Agreement. </FONT></P>

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<H1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, IT IS
HEREBY ORDERED, ADJUDGED AND DECREED THAT: </FONT></H1>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The findings set forth above and conclusions of law stated herein shall
               constitute the Court&#146;s findings of fact and conclusions of law pursuant to
               Bankruptcy Rule&nbsp;7052, made applicable to this proceeding pursuant to
               Bankruptcy Rule&nbsp;9014. To the extent any finding of fact later shall be
               determined to be a conclusion of law, it shall be so deemed. To the extent any
               conclusion of law later shall be determined to be a finding of fact, it shall be
               so deemed. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The request set forth in the Motion to approve the Sale shall be, and it hereby
               is, granted on the terms contained herein. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-6-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All objections to the Motion or the relief requested therein (whether stated in
               a written objection or on the record at the Sale Hearing) that have not been
               withdrawn, waived or settled, and all reservations of rights included therein,
               are hereby overruled on the merits; <U>provided</U>, <U>however</U>, that
               unresolved disputes with respect to Cure Amounts may be resolved on the terms
               provided herein after the date hereof. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The terms and conditions of the Asset Purchase Agreement (including all exhibits
               and schedules thereto and related ancillary agreements) hereby are approved in
               all respects, and the sale of the Sale Assets to the Purchaser pursuant to the
               Asset Purchase Agreement is hereby authorized under sections&nbsp;363(b) and
               363(f) of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor is authorized to execute and deliver, and empowered to fully perform
               under, consummate and implement, the Asset Purchase Agreement, together with all
               additional instruments and documents that may be reasonably necessary or
               desirable to implement the Asset Purchase Agreement and the transactions
               contemplated thereby and to take all further actions as may reasonably be
               requested by the Purchaser for the purpose of assigning, transferring, granting,
               conveying and conferring to the Purchaser, or reducing to possession, any or all
               of the Sale Assets. The Purchaser shall not be required to seek or obtain relief
               from the automatic stay under section&nbsp;362 of the Bankruptcy Code to enforce
               any of its remedies under the Asset Purchase Agreement or any other related sale
               document. The automatic stay imposed by section&nbsp;362 of the </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-7-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Bankruptcy Code
               is modified solely to the extent necessary to implement the preceding sentence. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Pursuant to section&nbsp;363(f) of the Bankruptcy Code and upon the Closing
               under the Asset Purchase Agreement, good and marketable title to the Sale Assets
               shall be transferred to the Purchaser, and the Sale Assets shall be free and
               clear of all Liens, claims, encumbrances or other interests that may be asserted
               against the Sale Assets (collectively, &#147;Encumbrances&#148;), with any such
               Encumbrances to attach to the proceeds of the Sale (the &#147;Sale
               Proceeds&#148;) in the order of their priority, with the same validity, force
               and effect that they now have as against the Sale Assets. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All persons and entities holding Encumbrances of any kind and nature with
               respect to the Sale Assets hereby are barred from asserting such Encumbrances
               against the Debtor, its estate, the Purchaser, and their respective affiliates,
               successors or assigns or their respective properties (including the Sale
               Assets). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All encumbrances shall attach to the proceeds of the Sale Assets with the same
               force and effect, and in the same order of priority, as such Encumbrances
               currently enjoy with respect to the Sale Assets, and subject to any existing
               defenses or counterclaims. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Purchaser or the Winning Bidder (as applicable) is authorized and directed
               to disburse the Purchase Price payable at the closing (the date thereof being
               the &#147;Closing Date&#148;), on the Closing Date, as follows: (a)&nbsp;to the
               Purchaser, the Break-Up Fee or the Expense Reimbursement (as </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-8-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               applicable);
               (b)&nbsp;to NRG, the portion of the NRG Support Payment Amount mutually agreed
               to by the Agent and NRG at least 5&nbsp;business days prior to the Closing Date,
               reflecting the undisputed portion of (i)&nbsp;amounts set forth in the NRG
               Support Calculations provided to the Agent in accordance with the ORCA prior to
               such date and (ii)&nbsp;related expenses anticipated to be incurred through the
               Closing Date (such amounts, collectively, being the &#147;Undisputed NRG Support
               Payment Amount&#148;); (c)&nbsp;to the escrow agent designated pursuant to an
               escrow agreement in substantially the form attached hereto as Exhibit&nbsp;G,
               the sum of (i)&nbsp;the excess, if any, of the amount requested by NRG as
               constituting the NRG Support Payment Amount <U>over</U> the Undisputed NRG
               Support Payment Amount and (ii)&nbsp;an additional contingency amount, if any,
               mutually agreed to by NRG and the Agent at least 5&nbsp;business days prior to
               the Closing Date in respect of the NRG Support Payment Amount not otherwise
               included in the amount referred to in the immediately preceding clause (i); and
               (d)&nbsp;to the Agent, the balance of the Purchase Price (the &#147;Net Purchase
               Price&#148;) for repayment of all outstanding loans, interest thereon and fees,
               expenses and other obligations incurred in connection with the Prepetition
               Credit Agreement and to be otherwise applied in accordance with the ORCA. All
               capitalized terms used in this paragraph and not otherwise defined herein shall
               have the respective meanings given to them in the ORCA. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               If any person or entity that has filed financing statements or other documents
               or agreements evidencing Encumbrances on or interests in the </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-9-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Sale Assets shall
               not have delivered to the Debtor prior to the Closing, in proper form for filing
               and execution by the appropriate parties, termination statements, instruments of
               satisfaction or releases of all Encumbrances or other interests which the person
               or entity has with respect to the Sale Assets, the Debtor hereby is authorized
               to execute and file such statements, instruments, releases or other documents on
               behalf of the person or entity with respect to the Sale Assets following payment
               of the Purchase Price on the Closing Date. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Subject to and conditioned upon the Closing of the transactions contemplated by
               the Asset Purchase Agreement and any amendments to the schedules thereto
               (including pursuant to Section&nbsp;5.6(b) of the Asset Purchase Agreement), the
               Debtor is authorized to assume the Assigned Agreements, and thereupon to assign
               the Assigned Agreements to the Purchaser, pursuant to sections&nbsp;365(a),
               365(f) and 363(m) of the Bankruptcy Code. If the Closing does not occur, the
               Assigned Agreements shall not be deemed to have been assumed by the Debtor or
               assigned to the Purchaser. Likewise, if a Contract is removed from the list of
               Assigned Agreements in accordance with the terms of the Asset Purchase
               Agreement, such agreement shall be an Excluded Contract and shall not be deemed
               to have been assumed by the Debtor or assigned to the Purchaser, pursuant to
               section&nbsp;365 of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any Contract Party that did not file a timely objection to the Motion in
               accordance with the Bidding Procedures Order or whose objection is </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-10-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               overruled
               hereby shall: (a)&nbsp;be deemed to have consented to the Debtor&#146;s
               assumption and assignment of the Assigned Agreements and the satisfaction of the
               requirements of section&nbsp;365<I> </I>of the Bankruptcy Code, other than as to
               cure amounts; and (b)&nbsp;as to cure amounts, (i)&nbsp;be deemed to have
               consented to the amounts set forth in the Cure Schedule or such other amount
               expressly agreed to by the parties or ordered by the Court, and (ii)&nbsp;be
               forever barred and estopped and permanently enjoined from asserting or claiming
               against the Debtor, the Purchaser, the Debtor&#146;s and the Purchaser&#146;s
               respective affiliates, successors or assigns or their respective properties
               (including the Sale Assets) that any additional amounts are due or defaults
               exist on account of obligations alleged to have accrued prior to the date of the
               Closing. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Each non-Debtor party to an Assigned Agreement hereby is forever barred,
               estopped and permanently enjoined from asserting against the Purchaser, its
               affiliates, successors or assigns or their respective properties (including the
               Sale Assets), any default or breach under any Assigned Agreement; any claim of
               lack of consent or any other condition to assignment thereof; or any
               counterclaim, defense, setoff, right of recoupment or any other claim, arising
               under or related to the Assigned Agreements and existing as of the Closing Date
               or arising by reason of the sale of the Sale Assets, except to the extent
               expressly provided for in the Asset Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-11-</FONT></P>
<PAGE>




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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The sale, transfer, assignment and delivery of the Sale Assets shall not be
               subject to any Encumbrances of any kind or nature whatsoever. All persons or
               entities holding Encumbrances against or with respect to the Sale Assets of any
               kind or nature whatsoever shall be, and hereby are, forever barred, estopped and
               permanently enjoined from asserting, prosecuting or otherwise pursuing such
               Encumbrances against the Purchaser, its affiliates, successors and assigns or
               their respective properties (including the Sale Assets). Following the Closing
               Date, no holder of an Encumbrance against or with respect to the Sale Assets
               shall interfere with the Purchaser&#146;s title to or use and enjoyment of the
               Sale Assets based on or related to such Encumbrances, and all such Encumbrances
               shall be and hereby are channeled, transferred and attached solely and
               exclusively to the Sale Proceeds. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon the Closing of the transactions contemplated by the Asset Purchase
               Agreement, the Purchaser shall assume all obligations and responsibilities of
               the Debtor under the Assigned Agreements to the extent set forth in the Asset
               Purchase Agreement; <U>provided</U>, <U>however</U>, that the Debtor shall be
               liable for any Cure Amounts as and to the extent required by this Order, the
               Bidding Procedures Order and the Asset Purchase Agreement. In no event shall the
               Purchaser be liable for such Cure Amounts. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               From and after the Closing of the transactions contemplated by the Asset
               Purchase Agreement, the Debtor shall be released from any and all </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-12-</FONT></P>
<PAGE>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               obligations,
               claims and liabilities the Purchaser may incur under the Assigned Agreements. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To the extent a Contract is added to the list of the Assigned Agreements in
               accordance with the terms of the Asset Purchase Agreement, or the cure amount
               for a Contract otherwise is not properly included in the Cure Notice, the
               Debtors shall serve within 10 days of the Closing a notice to the non-Debtor
               parties to such Contract that the Debtor seeks to assume and assign the Contract
               to the Purchaser as part of the Sale (the &#147;Supplemental Cure Notice&#148;).
               The Supplemental Cure Notice shall include the proposed cure amount for the
               Contract. The non-Debtor parties to the Contract shall have 10&nbsp;days from
               the Date of service of the Supplemental Cure Notice (the &#147;Supplemental
               Deadline&#148;) to assert an objection to the assumption and assignment of the
               Assigned Agreement or the proposed cure amount. Any such objection must by filed
               with the Court and served on the Debtor and the Purchaser by the Supplemental
               Deadline. If no timely objection is filed and served with respect to an Assigned
               Agreement, the assumption and assignment of such Assigned Agreement and the
               proposed cure amount shall be deemed approved, final and effective as of, and
               conditioned upon the occurrence of, the Closing Date, pursuant to
               section&nbsp;365 of the Bankruptcy Code, without further order of the Court. If
               a timely objection is received and the parties are unable to resolve such
               objection, it will be scheduled to be heard by the Court at the next regularly
               scheduled omnibus hearing in these chapter&nbsp;11 </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-13-</FONT></P>
<PAGE>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lvl 4-TNR" FSL="Project" -->
          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               cases that is at least
               10&nbsp;days after the Supplemental Deadline, or at such other date as agreed by
               the parties. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               To the extent a Contract is removed from the list of Assigned Agreements in
               accordance with the terms of the Asset Purchase Agreement, the Debtor shall,
               within 10&nbsp;days of Closing, serve a notice to the non-Debtor parties to such
               Contract that the Debtor will not seek to assume or assign such Contract to the
               Purchaser as part of the Sale. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Assigned Agreements shall be transferred to, and remain in full force and
               effect for the benefit<B> </B>of, the Purchaser or its designees in accordance
               with their respective terms, notwithstanding any provision in any such Assigned
               Agreement (including those described in sections&nbsp;365(b)(2) and 365(f) of
               the Bankruptcy Code) that otherwise would have the effect of prohibiting,
               restricting or conditioning such assignment or transfer. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All defaults or other obligations of the Debtor under the Assigned Agreements
               arising or accruing prior to the Closing Date have been cured or shall promptly
               be cured by the Debtor in accordance with this Order, and the Purchaser shall
               have no liability or obligation with respect to any default or obligation
               arising or accruing under any Assigned Agreement prior to the Closing Date. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Court retains jurisdiction: (a)&nbsp;to enforce and implement the terms and
               provisions of the Asset Purchase Agreement and each of the agreements executed
               in connection therewith; (b)&nbsp;to interpret, implement  </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-14-</FONT></P>
<PAGE>

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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               and enforce the
               provisions of this Order; and (c)&nbsp;to resolve any disputes arising under or
               related to the foregoing. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Asset Purchase Agreement (including exhibits and schedules thereto) and any
               related agreements, documents or other instruments may be modified, amended or
               supplemented by the parties thereto in accordance with the terms thereof without
               further order of this Court. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The transfer of the Sale Assets to the Purchaser shall not be subject to
               taxation under any state or local law imposing a stamp, transfer or similar tax
               in accordance with section&nbsp;1146(c) of the Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The failure specifically to include any particular provisions of the Asset
               Purchase Agreement in this Order shall not diminish or impair the efficacy of
               such provision, it being the intent of the Court that the Asset Purchase
               Agreement and each and every provision, term and condition thereof be authorized
               and approved in its entirety. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The consideration provided by the Purchaser for the Sale Assets under the Asset
               Purchase Agreement shall be deemed to constitute reasonably equivalent value and
               fair consideration under the Bankruptcy Code and under the laws of the United
               States, any state, territory or possession thereof or the District of Columbia. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The consideration provided by the Purchaser for the Sale Assets under the Asset
               Purchase Agreement is fair and reasonable. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon entry of this Order by this Court, the Purchaser shall be entitled to the
               protection of section&nbsp;363(m) of the Bankruptcy Code with respect to </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-15-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the
               Asset Purchase Agreement, including the assumption and assignment of the
               Assigned Agreements approved and authorized herein (or by subsequent order) and
               the other transactions comprising the Sale. The transactions contemplated by the
               Asset Purchase Agreement are undertaken by the Purchaser in good faith as that
               term is used in section&nbsp;363(m) of the Bankruptcy Code, and, accordingly,
               the reversal or modification on appeal of this Order and the authorization to
               consummate the transactions provided herein shall not affect the validity of any
               transfer under the Asset Purchase Agreement and this Order to the Purchaser,
               unless such transfer is duly stayed pending such appeal. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               On the Closing Date, this Order will be construed and shall constitute for any
               and all purposes a full and complete general assignment, conveyance and transfer
               of the Sale Assets and a bill of sale transferring good and marketable title in
               such Sale Assets to the Purchaser to the full extent set forth in the Asset
               Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Each and every federal, state and local governmental agency or department is
               hereby directed to accept any and all documents and instruments necessary and
               appropriate to consummate the transactions contemplated by the Asset Purchase
               Agreement and this Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Order (a)&nbsp;shall be effective as a determination that, upon their
               attachment to the Sale Proceeds on the Closing Date, all Encumbrances of any
               kind or nature whatsoever existing as to, against or with respect to the Sale
               Assets prior to the Closing Date have been unconditionally released,  </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-16-</FONT></P>
<PAGE>


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               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               discharged
               and terminated with respect to the Sale Assets, and that the conveyances
               described herein have been effected, and (b)&nbsp;shall be binding upon and
               shall govern the acts of all entities, including, without limitation, all filing
               agents, filing officers, title agents, title companies, recorders of mortgages,
               recorders of deeds, registrars of deeds, administrative agencies, governmental
               departments, secretaries of state, federal, state and local officials and all
               other persons and entities who may be required by operation of law, the duties
               of their office or contract to accept, file, register or otherwise record or
               release any documents or instruments, or who may be required to report or insure
               any title or state of title in or to any of the Sale Assets. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               All entities that are presently, or on the Closing Date may be, in possession of
               some or all of the Sale Assets are hereby directed to surrender possession of
               the Sale Assets to the Purchaser on the Closing Date. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Any amounts payable by the Debtor to the Purchaser pursuant to the Asset
               Purchase Agreement or any transactions contemplated thereby (including, without
               limitation, any monies held in escrow) shall (a)&nbsp;constitute administrative
               priority expenses of the Debtor&#146;s estate pursuant to sections&nbsp;503(b)
               and 507(a)(1) of the Bankruptcy Code and (b)&nbsp;be paid by the Debtor in the
               time and manner provided in the Asset Purchase Agreement without further order
               of this Court. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-17-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Nothing contained in any chapter&nbsp;11 plan confirmed in these cases or the
               order confirming any such plan or in any other order in these cases (including
               any order entered after any conversion of these cases to cases under
               chapter&nbsp;7 of the Bankruptcy Code) shall alter, conflict with or derogate
               from the provisions of the Asset Purchase Agreement or the terms of this Order,
               including, but not limited to, (a)&nbsp;the obligation of the Debtor to pay any
               amounts due to the Purchaser pursuant to the Asset Purchase Agreement or any
               transactions contemplated thereby in the time and manner provided in the Asset
               Purchase Agreement and without further order of this Court and (b)&nbsp;the
               status of any such payments as administrative priority expenses of the
               Debtor&#146;s estate pursuant to sections&nbsp;503(b) and 507(a)(l) of the
               Bankruptcy Code. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The terms and provisions of the Asset Purchase Agreement and this Order shall be
               binding in all respects upon, and shall inure to the benefit of, the Debtor, its
               estate, creditors and interest holders, the Purchaser, and their respective
               affiliates, successors and assigns, notwithstanding any subsequent appointment
               of any trustee for the Debtor under any chapter of the Bankruptcy Code, as to
               which trustee such terms and provisions likewise shall be binding in all
               respects. In addition, the terms and provisions of this Order shall be binding
               in all respects upon any affected third parties including, but not limited to,
               all persons asserting an Encumbrance against, in or with respect to the Sale
               Assets to be sold to the Purchaser pursuant to the Asset Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-18-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Purchaser shall have no liability or responsibility for any liability or
               other obligation of the Debtor arising under or related to the Sale Assets other
               than as expressly set forth in the Asset Purchase Agreement. Without limiting
               the effect or scope of the foregoing, the transfer of the Sale Assets from the
               Debtor to the Purchaser does not and will not subject the Purchaser or its
               affiliates, successors or assigns or their respective properties (including the
               Sale Assets) to any liability for claims (as that term is defined in
               section&nbsp;101(5) of the Bankruptcy Code) against the Debtor or the Sale
               Assets by reason of such transfer under the laws of the United States, any
               state, territory or possession thereof or the District of Columbia applicable to
               such transactions. Neither the Purchaser nor its affiliates, successors or
               assigns shall be deemed, as a result of any action taken in connection with the
               purchase of the Sale Assets to: (a)&nbsp;be a successor to the Debtor;
               (b)&nbsp;have, <I>de facto</I> or otherwise, merged with or into the Debtor; or
               (c)&nbsp;be a continuation or substantial continuation of the Debtor or any
               enterprise of the Debtor. Neither the Purchaser nor its affiliates, successors
               or assigns is acquiring or assuming any liability, warranty or other obligation
               of the Debtor, except as expressly set forth in the Asset Purchase Agreement and
               this Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36. </FONT></TD>
               <TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               This Order shall be effective immediately upon entry pursuant to Bankruptcy
               Rules&nbsp;7062 and 9014, and no automatic stay of execution, pursuant to
               Rule&nbsp;62(a) of the Federal Rules of Civil Procedure, or Bankruptcy
               Rules&nbsp;6004(g) or 6006(d) applies with respect to this Order. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-19-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: _____________, 2003 </FONT></P>


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     <TD WIDTH="70%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">United States Bankruptcy Judge</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-20-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT D </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[CURE NOTICE] </FONT></H1>


<PAGE>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY
COURT <BR>SOUTHERN DISTRICT OF NEW YORK </U></FONT></H1>




<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <U>et</U> <U>al.</U>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS NOTICE APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TO: PARTIES ON THE
ATTACHED SERVICE LIST </FONT></h1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF
DEBTOR&#146;S INTENT TO ASSUME AND </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ASSIGN EXECUTORY
CONTRACTS AND UNEXPIRED LEASES </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURSUANT TO THE
DEBTOR&#146;S MOTION SEEKING, AMONG </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>OTHER THINGS,
AUTHORITY TO SELL ASSETS PURSUANT TO </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>SECTIONS 105(A), 363,
365 AND 1146(C) OF THE BANKRUPTCY CODE </U></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE NOTICE</B> that the Honorable Prudence Carter Beatty will conduct a hearing (the
&#147;Sale Hearing&#148;) in Courtroom [____] of the United States Bankruptcy Court
located at the Alexander Hamilton Courthouse, One Bowling Green, New York, NY </FONT></P>


<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10004 to
consider the motion filed by NRG McClain LLC (the &#147;Debtor&#148; or &#147;NRG
McClain&#148;) on __________, 2003 to sell substantially all of its assets (the &#147;Sale
Motion&#148;).<SUP>5</SUP> All capitalized terms used but not otherwise defined herein
shall have the meanings given to them in the Sale Motion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Sale Motion, the Debtor intends to assume and assign to the Purchaser, or another
successful bidder, those executory contracts and unexpired leases identified on
Schedule&nbsp;A attached hereto (the &#147;Assigned Agreements&#148;), pursuant to
section&nbsp;365 of title&nbsp;11 of the United States Code (the &#147;Bankruptcy
Code&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Debtor has indicated on Schedule&nbsp;A hereto the respective amounts due and owing, if
any, under each Assigned Agreement (the &#147;Cure Amounts&#148;). The Bankruptcy Code
requires the Debtor to pay the Cure Amounts (which include all of the Debtor&#146;s
prepetition obligations under the Assigned Agreements) in full to the parties owed such
amounts as a condition to the Debtor&#146;s assumption of the Assigned Agreements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
interested party seeking to object to (a)&nbsp;the applicable the Cure Amount as
determined by the Debtor, or to otherwise assert that any other amounts, defaults,
conditions or pecuniary losses must be cured or satisfied under its Assigned Agreement for
such agreement to be assumed or (b)&nbsp;the assignment of its Assigned Agreement for any
other reason, must file and serve an objection (a &#147;Cure Objection&#148;) setting
forth with specificity (a)&nbsp;any and all defaults which such party asserts must be
cured or (b)&nbsp;the grounds for any other objection, <U>so that such Cure Objection is
received by</U>: (i)&nbsp;Kirkland &amp; Ellis LLP, 200 East Randolph Drive, Chicago,</FONT></P>

<p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>5 </SUP></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> The
Sale Motion is captioned as &#147;Motion for Orders Pursuant to Sections&nbsp;105(A),
363, 365 and 1146(C) of the Bankruptcy Code: (A)&nbsp;(I)&nbsp;Establishing Bidding
Procedures and Bid Protections in Connection With the Sale of Substantially All of the
Assets of NRG McClain&nbsp;LLC, (II)&nbsp;Approving the Form and Manner of Notices, (III)&nbsp;Approving
the Form of the Asset Purchase Agreement and (IV)&nbsp;Setting a Sale Hearing Date; and
(B)&nbsp;(I)&nbsp;Approving the Sale Free and Clear of All Liens, Claims and Encumbrances
to the Successful Bidder, (II)&nbsp;Authorizing the Assumption and Assignment of Certain
Executory Contracts and Unexpired Leases and (III)&nbsp;Granting Related Relief.  </FONT></TD>
</TR>
</TABLE>
<BR>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Illinois 60601-6636, Attention: Ryan Blaine Bennett, Esq. (bankruptcy counsel to the
Debtor); (ii)&nbsp;Andrews &amp; Kurth, Attn: Paul Pipitone, Esq., 600 Travis, Suite 4200,
Houston, Texas 77002 (special corporate counsel to the Debtor); (iii)&nbsp;Jones Day,
Attn: Charles N. Bensinger III, Esq., 77&nbsp;West Wacker, Chicago, Illinois 60601-1692
(counsel to OG&amp;E); (iv)&nbsp;Milbank, Tweed, Hadley &amp; McCloy LLP, Attn: L. Douglas
Harris, Esq., and Dennis Dunne, Esq., 1&nbsp;Chase Manhattan Plaza, New York, New York
10005 (counsel for the Agent); (v)&nbsp;Bingham McCutchen, Attn: Enid L. Veron, Esq.,
399&nbsp;Park Avenue, New York, New York 10022-4689 (counsel to the Committee in the NRG
Debtors&#146; cases); and (vi)&nbsp;counsel to any subsequently appointed committee(s), if
any (collectively, the &#147;Service Parties&#148;), no later than 15&nbsp;days after
service of this notice (the &#147;Cure Objection Deadline&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
a Cure Objection is filed and served by a party to an Assigned Agreement by the Cure
Objection Deadline, all parties who have received actual or constructive notice hereof
shall be deemed to have waived and released any right to assert a Cure Amount different
from that proposed by the Debtor, if any, and to have otherwise <U>consented to the
assignment</U> of the applicable Assigned Agreement to the Purchaser and shall be forever
barred and estopped from asserting or claiming against the Debtor, its estate, the
Purchaser or any other assignee of the relevant Assigned Agreement that any additional
amounts are due or default exists, or conditions to assignment must be satisfied. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
Cure Objection shall set forth the asserted Cure Amount, along with a description of how
these amounts are derived, the period(s) to which such amounts relate, the specific types
and dates of any alleged defaults, pecuniary losses and conditions to assignment, and the
support therefor, including the underlying obligation itself asserted in detail and a
detailed description of any and all unliquidated claims, contingent claims, percentage
rent, real</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3-</FONT></P>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>estate taxes, common area maintenance or similar adjustable charges. All
documents or writings establishing the claim must be attached to the Cure Objection. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
a Cure Objection is timely filed and served by a party to an Assigned Agreement by the
Cure Objection Deadline, the Court shall enter an order authorizing or effecting the
assumption and assignment of such Assigned Agreement at the Sale Hearing or otherwise
without regard to any objection such party may have. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
properly filed and served Cure Objection shall reserve such party&#146;s rights against
the Debtor (but not against the Purchaser or another successful bidder) with respect to
the Cure Objection but shall not constitute an objection to the relief generally requested
in the Sale Motion. Parties wishing to otherwise object to the relief requested in the
Sale Motion must file and serve a separate objection, stating with particularity such
party&#146;s grounds for objecting, so as to be received by the Service Parties on or
before 4:00 p.m., Eastern Prevailing Time on __________, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
you agree with the Cure Amount(s) indicated on Schedule&nbsp;A and do not otherwise object
to the Debtor&#146;s assignment of your contract, you need not take any further action. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Debtor&#146;s decision to assume and assign the Assigned Agreements is subject to Court
approval and consummation of the sale of the Sale Assets. Accordingly, the Debtor shall be
deemed to have assumed and assigned each Assigned Agreement as of the date of and only
upon the Closing Date, and absent such closing, each Assigned Agreement shall neither be
deemed assumed nor assigned and shall in all respects be subject to further administration
under the Bankruptcy Code. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4-</FONT></P>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Debtor and the Purchaser each reserve the right to remove any Assigned Agreement from the
proposed sale and to withdraw the request to assume and assign any Assigned Agreement
pursuant to the terms of the Asset Purchase Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Asset Purchase Agreement with the Purchaser is subject to higher and better offers and the
Assigned Agreements may be assigned to a party other than the Purchaser. In order to
ascertain the identity of the prevailing successful bidder and the entity to which the
Assigned Agreement will be assigned, you must attend the Sale Hearing or such other
hearing as indicated by the Debtor. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: August ____, 2003<BR> New
York, New York </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Respectively submitted,<BR>
<BR>
KIRKLAND &amp; ELLIS LLP</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Matthew A. Cantor, Esq. (MC 7727)<BR>
Robbin L. Itkin, Esq. (RI 1019)<BR>
Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice)<BR>
Citigroup Center<BR>
153 East 53rd Street<BR>
New York, NY 10022-4675<BR>
Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reorganization Counsel for<BR>
Debtor and Debtor in Possession</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>EXHIBIT E</u> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[DETAILED NOTICE] </FONT></H1>


<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KIRKLAND &amp; ELLIS LLP <BR>Citicorp
Center <BR>153 East 53<SUP>rd</SUP> Street <BR>New York, NY 10022-4675 <BR>Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900 <BR>Matthew A. Cantor, Esq. (MC 7727) <BR>Robbin L. Itkin, Esq. (RI
1019) <BR>Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice) </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reorganization Counsel for<BR> Debtor
and Debtor in Possession </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY
COURT <BR>SOUTHERN DISTRICT OF NEW YORK </U></FONT></H1>

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<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <U>et</U> <U>al.</U>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


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<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS NOTICE APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TO: PARTIES ON THE
ATTACHED SERVICE LIST </FONT></H1>


<PAGE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOTICE
OF MOTION FOR ORDERS PURSUANT TO SECTIONS 105(A), 363, 365 AND 1146(C) OF THE BANKRUPTCY
CODE: </B> <B>(A)&nbsp;(I)&nbsp;ESTABLISHING BIDDING PROCEDURES AND BID PROTECTIONS IN
CONNECTION WITH THE SALE OF SUBSTANTIALLY ALL OF</B> <B>THE
ASSETS OF NRG MCCLAIN LLC, (II)&nbsp;APPROVING THE FORM AND MANNER OF NOTICES,
(III)&nbsp;APPROVING THE FORM OF THE </B> <B>ASSET PURCHASE AGREEMENT and
(IV)&nbsp;SETTING A SALE HEARING DATE; AND (B)&nbsp;(I)&nbsp;APPROVING THE SALE FREE AND
CLEAR OF </B> <B>ALL LIENS, CLAIMS AND ENCUMBRANCES TO THE SUCCESSFUL BIDDER,
(II)&nbsp;AUTHORIZING THE ASSUMPTION AND ASSIGNMENT OF CERTAIN EXECUTORY </B> </FONT><BR>

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<FONT FACE="Times New Roman, Times, Serif" SIZE=2><U><B>CONTRACTS AND
UNEXPIRED LEASES AND (III)&nbsp;GRANTING RELATED RELIEF</B></U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE NOTICE</B> that on <B>_________,</B> 2003, the Honorable Prudence Carter
Beatty will conduct a hearing (the &#147;Sale Hearing&#148;) in Courtroom [____] of the
United States Bankruptcy Court located at the Alexander Hamilton Courthouse, One Bowling
Green, New York, NY 10004 to consider the motion filed by NRG McClain LLC (the
&#147;Debtor&#148; or &#147;NRG McClain&#148;) on __________, 2003 to sell substantially
all of its assets (the &#147;Sale Motion&#148;).<SUP>6</SUP> All capitalized terms used
but not otherwise defined herein shall have the meanings given to them in the Sale Motion. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By
the Sale Motion, the Debtor seeks the entry of two orders pursuant to
sections&nbsp;105(a), 363, 365 and 1146(c) of title&nbsp;11 of the United States Code (the
&#147;Bankruptcy Code&#148;). The Debtor first requests the entry of an order,
substantially in the form attached to the Motion as Exhibit&nbsp;A (the &#147;Bidding
Procedures Order&#148;): (a)&nbsp;establishing bidding procedures and protections payable
to the Purchaser (as such term is defined below) including a break-up fee and expense
reimbursement (the &#147;Bidding Procedures&#148;) in connection with the sale of
substantially all of the assets of NRG McClain; (b)&nbsp;approving the form and manner of
notice of sale; (c)&nbsp;approving the form of the Asset Purchase Agreement attached to
the Motion as Exhibit&nbsp;B (the </FONT></P>

<P><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

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<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>6 </SUP></FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Sale Motion is captioned as &#147;Motion for Orders Pursuant to Sections&nbsp;105(A),
363, 365 and 1146(C) of the Bankruptcy Code: (A)&nbsp;(I)&nbsp;Establishing Bidding
Procedures and Bid Protections in Connection With the Sale of Substantially All of the
Assets of NRG McClain&nbsp;LLC, (II)&nbsp;Approving the Form and Manner of Notices,
(III)&nbsp;Approving the Form of the Asset Purchase Agreement and (IV)&nbsp;Setting a Sale
Hearing Date; and (B)&nbsp;(I)&nbsp;Approving the Sale Free and Clear of All Liens, Claims
and Encumbrances to the Successful  </FONT></TD>
</TR>
</TABLE>
<BR>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;Asset Purchase Agreement&#148;); (d)&nbsp;setting
a hearing date to consider final approval of the sale of the Sale Assets (the &#147;Sale
Hearing&#148;); and (e)&nbsp;granting related relief. The Debtor also requests the entry
of a second order, substantially in the form attached to the Motion as Exhibit&nbsp;C (the
&#147;Approval Order&#148;): (a)&nbsp;approving the sale of the Sale Assets, free and
clear of all liens, claims and encumbrances, to the successful bidder (the
&#147;Successful Bidder&#148;) at the conclusion of the Sale Hearing; (b)&nbsp;authorizing
the assumption and assignment of certain executory contracts and leases; and
(c)&nbsp;granting related relief. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Debtor believes that the transactions contemplated by the Asset Purchase Agreement
represent the best alternative available to the Debtor to maximize the value of its
bankruptcy estate (the &#147;Estate&#148;) and that consummation of the Sale will be in
the best interests of the Estate and its creditors. The specific relief requested in the
Sale Motion and certain material terms and conditions of the Asset Purchase Agreement are
summarized below. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that, pursuant to the Court&#146;s Order Pursuant to
Sections&nbsp;105(a), 363 and 365 of the Bankruptcy Code (A)&nbsp;Establishing Bidding
Procedures and Bid Protections in Connection with the Sale of Substantially All of the
Assets of NRG McClain LLC; (B)&nbsp;Approving the Form and Manner of Notices and Fixing
Deadlines to Object to Cure Amounts and Asset Sale; (C)&nbsp;Approving the Form of the
Asset Purchase Agreement; (D)&nbsp;Setting an Auction and Sale Hearing; and
(E)&nbsp;Granting Related Relief (the &#147;Bidding Procedures Order&#148;) entered on
_________, 2003, any objection to the relief requested in the Sale Motion must: </FONT></P>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               be in writing; </FONT></TD>
               </TR>
               </TABLE>
               <BR>
<p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(continued...)</FONT></TD>
</tr>
</table>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bidder, (II) Authorizing the Assumption and Assignment
of Certain Executory Contracts and Unexpired Leases and (III) Granting Related Relief.</FONT></TD>
</tr>
</table>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3-</FONT></P>
<PAGE>


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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               conform to all applicable requirements of the Bankruptcy Code, the Federal Rules
               of Bankruptcy Procedures and the Local Bankruptcy Rules; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               set forth the name of the objector and the nature and amount of any claim or
               interest held by such objector against the Debtor&#146;s estate or any property
               thereof; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(d) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               state with particularity any legal and factual basis for the objection and the
               specific grounds therefore; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(e) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               be filed by __________, 2003 with the Clerk of the Bankruptcy Court and served
               directly upon the following: (1)&nbsp;the Debtor, c/o Ryan Blaine Bennett,
               Kirkland &amp; Ellis LLP, 200 East Randolph Drive, Chicago, Illinois 60601
               <U>and</U> Andrews &amp; Kurth LLP, Attn: Paul Pipitone, 600&nbsp;Travis, Suite
               4200, Houston, Texas 77002; (2)&nbsp;the Agent, c/o L. Douglas Harris and Dennis
               Dunne, Milbank, Tweed, Hadley &amp; McCloy LLP, 1&nbsp;Chase Manhattan Plaza,
               New York, New York 10005; (3)&nbsp;the Purchaser, c/o Charles N.
               Bensinger&nbsp;III, Jones Day, 77&nbsp;West Wacker, Chicago, Illinois 60601; and
               (4)&nbsp;the Committee in the NRG Debtors&#146; cases, c/o Enid L. Veron,
               Bingham McCutchen, 399&nbsp;Park Avenue, New York, New York 10022-4689. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that pursuant to the Bidding Procedures Order, the failure of any
person or entity to file an objection to the Sale Motion on a timely basis shall be a bar
to the assertion by any such person or entity of any objection to the Debtor&#146;s
consummation of the transactions contemplated by the Sale Motion. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>THE PROPOSED SALE </u></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that after extensive arms-length negotiations between the Debtor
and the Purchaser, the parties entered into an agreement for the sale and purchase of the
Sale Assets on the following terms and conditions: </FONT></P>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(f) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Sale Assets</U>. The Sale Assets consist of all of the Debtor&#146;s right,
               title and interest in and to all assets owned by or leased or licensed to the
               Debtor and used or held by the Debtor whether real, personal or mixed, tangible
               or intangible, excepting only the Retained Assets. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(g) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Purchase Price</U>. The Purchaser will pay $159,950,000.00 in immediately
               available funds, subject to certain adjustments described in the Asset Purchase
               Agreement (such amount, or the higher amount of any other accepted bid, being
               the &#147;Purchase Price&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(h) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Executory Contracts and Unexpired Leases</U>. The Debtor shall assume and
               assign to the Purchaser all of the executory contracts and unexpired leases
               listed on Schedule&nbsp;3.8 to the Asset Purchase Agreement (collectively, the
               &#147;Assigned Agreements&#148;) and shall pay any and all cure amounts pursuant
               to section&nbsp;365 of the Bankruptcy Code relating to the assumption of the
               Assigned Agreements. The Purchaser has the right to amend Schedule&nbsp;3.8 at
               any time prior to Closing. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Closing Conditions</U>. The consummation of the Asset Purchase Agreement by
               the Purchaser is subject to, among others, the following conditions, as more
               fully set forth in Article&nbsp;VIII of the Asset Purchase Agreement: </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               all representations and warranties of the Debtor shall be true on and as of the
               Closing Date (except representations and warranties made only as of a specific
               earlier date) with the same effect as though they were made on the Closing Date; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the Purchaser will have obtained all necessary regulatory consents; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               this Court will have entered a final order approving the sale of the Sale Assets
               to the Purchaser; </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iv) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               no materially adverse effect to the ability of the McClain Facility to operate
               shall have occurred; and </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(v) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               the Debtor shall have satisfied certain other obligations under the Asset
               Purchase Agreement. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(j) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               <U>Bidding Protections</U>. As more fully discussed below, the Purchaser is
               entitled to payment of a break-up fee or an expense reimbursement and the
               protection of an initial overbid amount (collectively, the &#147;Bidding
               Protections&#148;): </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(i) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon termination of the Asset Purchase Agreement due solely to the Debtor
               closing an Alternative Transaction (as defined below) (and provided that such
               transaction is not the result of the termination of the Asset Purchase Agreement
               pursuant to Sections&nbsp;12.1(b), (o) or (p) thereof), </FONT></TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the Purchaser will be
               entitled to a fee (the &#147;Break-Up Fee&#148;), payable from the proceeds of
               such Alternative Transaction in accordance with paragraph&nbsp;28 of the Sale
               Motion, in the amount of $5,000,000; provided that the Break-Up Fee shall not be
               payable if such Alternative Transaction results from a credit bid made by the
               Agent following any termination of the Asset Purchase Agreement by the
               Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(ii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Upon certain other circumstances where the Break-Up Fee is not otherwise paid,
               upon termination of the Asset Purchase Agreement pursuant to Section&nbsp;12.1
               thereof (other than clauses&nbsp;(a), (b), (k), (o) or (p) thereof), the
               Purchaser will be entitled to the reimbursement of its actual documented fees
               and expenses incurred in connection with the transactions contemplated by the
               Asset Purchase Agreement up to an aggregate amount of $1,500,000 (the
               &#147;Expense Reimbursement&#148;). </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=25><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(iii) </FONT></TD>
               <TD WIDTH=70%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A competing bid will not be considered by the Debtor unless such bid is at least
               $166,450,000, which is $1,500,000 (the &#147;Initial Overbid Amount&#148;) more
               than the purchase price set forth in the Asset Purchase Agreement plus the
               Break-Up Fee (the &#147;Overbid Protection&#148;). Any bids thereafter must be
               at least $500,000 higher than the then existing highest bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
               <u>PROPOSED AUCTION AND BIDDING PROCEDURES</u></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that Debtor has requested certain bidding procedures for all
parties interested in bidding on the Sale Assets as detailed in the Bidding Procedures
Order served concurrently herewith. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>III. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>BIDDING PROTECTIONS</u></FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that in recognition of the Purchaser&#146;s expenditure of time,
energy and resources and the benefit to the Debtor&#146;s estate of securing a
&#147;stalking horse&#148; or minimum bid, the Debtor has agreed to provide the Bidding
Protections to the Purchaser in the form of the Break-up Fee, the Expense Reimbursement
and the Overbid Protection, as follows: </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-6-</FONT></P>
<PAGE>



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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor shall be obligated to pay the Break-Up Fee to the Purchaser if the
               Debtor consummates any transaction (which payment shall be made from the
               proceeds of such transaction) involving the sale, recapitalization or other
               disposition of all or substantially all of the Sale Assets to an entity or
               entities other than the Purchaser (an &#147;Alternative Transaction&#148;),
               <U>provided</U> that such transaction is not the result of the termination of
               the Asset Purchase Agreement pursuant to Sections&nbsp;12.1(b), (o) or (p)
               thereof, and <U>further</U> <U>provided</U> that the Break-Up Fee shall not be
               payable if such Alternative Transaction results from a credit bid made by the
               Agent following any termination of the Asset Purchase Agreement by the
               Purchaser. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               The Debtor shall be obligated to pay the Expense Reimbursement to the Purchaser
               only if the Asset Purchase Agreement is terminated pursuant to Section&nbsp;12.1
               thereof (other than clauses (a), (b), (k), (o) or (p) thereof); <U>provided</U>,
               <U>however</U>, that the Debtor shall not be obligated to pay the Expense
               Reimbursement under any circumstances in which it pays the Break-Up Fee. The
               Break-Up Fee and Expense Reimbursement, as applicable, shall each constitute an
               administrative expense of the Debtor&#146;s estate that shall be payable, in the
               case of an Alternative Transaction, in accordance with paragraph&nbsp;28 of the
               Sale Motion from the proceeds thereof and payable prior to any NRG Support
               Payment Amount or other NRG Support Claim under the Omnibus Restructuring and
               Consent Agreement, dated as of August&nbsp;18, 2003, among the Debtor, the
               Prepetition Secured Lenders and the Agent (the &#147;ORCA&#148;). In a case
               other than an Alternative Transaction, the Expense Reimbursement shall be
               payable pursuant and subject to the terms and conditions set forth in the ORCA. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
               <TR VALIGN=TOP>
               <TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
               <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(c) </FONT></TD>
               <TD WIDTH=75%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               A bid containing a purchase price higher than the Purchase Price set forth in
               the Asset Purchase Agreement will not be considered by the Debtor unless such
               Bid is at least $166,450,000, which is $1,500,000 (the &#147;Initial Overbid
               Amount&#148;) more than the purchase price set forth in the Asset Purchase
               Agreement plus the Break-Up Fee (the &#147;Overbid Protection&#148;). Any Bids
               thereafter must be at least $500,000 higher than the then existing highest or
               best bid. </FONT></TD>
               </TR>
               </TABLE>
               <BR>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
              <U>ASSUMPTION AND ASSIGNMENT OF CONTRACTS</U></FONT></H1>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that the Debtor also seeks authority under Bankruptcy Code
sections&nbsp;105(a) and 365 to (i)&nbsp;assume and assign the Assigned Agreements listed
on Schedule 3.8 to the Asset Purchase Agreement to the Purchaser free and </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-7-</FONT></P>
<PAGE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>clear of all
claims and interests of any kind whatsoever, effective as of the Closing Date, and
(ii)&nbsp;execute and deliver to the Purchaser such documents or other instruments as may
be necessary to assign and transfer the Assigned Agreements thereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that, given the number of agreements likely to be transferred, the
Debtor believes it is necessary to establish a process by which the Debtor and the
counter-parties (the &#147;Contract Parties&#148;) to the Assigned Agreements can
establish the cure obligations necessary to be paid under section&nbsp;365 of the
Bankruptcy Code (the &#147;Cure Amount&#148;). </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that the Debtor proposes that no later than 5&nbsp;business days
after entry of the Bidding Procedures Order, it provide the Contract Party to each
Assigned Agreement with a Contract Assignment Notice, substantially in the form attached
to the Motion as Exhibit&nbsp;D, which will include the Debtor&#146;s proposed Cure Amount
as shown by the Debtor&#146;s books and records. Pursuant to the Contract Assignment
Notice, if the Applicable Contract Party does not properly object no later than
15&nbsp;days after service of the Contract Assignment Notice, the Court shall enter an
order deeming the amount set forth in the Contract Assignment Notice to be the actual Cure
Amount payable under section&nbsp;365 of the Bankruptcy Code. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that the Contract Assignment Notice also provides that the
Purchaser&#146;s promise to perform under the Assigned Agreements is deemed, absent
objection, adequate assurance of future performance under the Assigned Agreements.
Finally, the Debtor reserves the right to remove any Assigned Agreement from the Asset
Purchase Agreement, thereby retaining all rights and liabilities thereunder. </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-8-</FONT></P>
<PAGE>



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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>VI. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SALE OF ACQUIRED
ASSETS FREE AND CLEAR OF LIENS</u> </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PLEASE
TAKE FURTHER NOTICE</B> that the Debtor proposes, pursuant to section&nbsp;363(f) of the
Bankruptcy Code, to sell the Debtor&#146;s assets free and clear of any claims, liens,
interests and/or other encumbrances. All such claims, liens, interests and/or other
encumbrances will attach to the proceeds of the Sale. If the Sale Motion is granted and
the assets are sold pursuant thereto, any party that believes it may have a claim, lien or
interest or other encumbrance against, on, in or otherwise relating to any of the assets,
shall be forever barred from asserting or enforcing such claim, lien, interest or other
encumbrance against the Purchaser or any of the Sale Assets. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: August ____, 2003 <BR>New
York, New York </FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Respectively submitted,<BR>
<BR>
KIRKLAND &amp; ELLIS LLP</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Matthew A. Cantor, Esq. (MC 7727)<BR>
Robbin L. Itkin, Esq. (RI 1019)<BR>
Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice)<BR>
Citigroup Center<BR>
153 East 53rd Street<BR>
New York, NY 10022-4675<BR>
Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Reorganization Counsel for<BR>
Debtor and Debtor in Possession</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-9-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>EXHIBIT F</u> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[GENERAL NOTICE] </FONT></H1>



<PAGE>







<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>KIRKLAND &amp; ELLIS LLP <BR>Citicorp
Center <BR>153 East 53<SUP>rd</SUP> Street <BR>New York, NY 10022-4675 <BR>Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900 <BR>Matthew A. Cantor, Esq. (MC 7727) <BR>Robbin L. Itkin, Esq. (RI
1019) <BR>Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice) </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reorganization Counsel for <BR>Debtor
and Debtor in Possession </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>UNITED STATES BANKRUPTCY
COURT<BR> SOUTHERN DISTRICT OF NEW YORK </U></FONT></H1>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="53%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD WIDTH="20%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER" WIDTH="2%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG ENERGY, INC., <u>et</u> <u>al.</u>,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-13024 (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtors.</B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>(Jointly Administered)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>In re</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Chapter 11</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>NRG McCLAIN LLC,</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;<B>Case No. 03-_____ (PCB)</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Debtor. </B></FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>:</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>x</B></FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD></TR>
</TABLE>
<BR><BR>


<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">THIS NOTICE APPLIES TO:</FONT><BR><BR></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TH></TR>
<TR VALIGN="TOP">
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">All Debtors</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Power Marketing, Inc.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Energy, Inc.</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Capital LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Arthur Kill Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Finance Company I LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Astoria Gas Turbine Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Central U.S. LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> Berrians I Gas Turbine Power LLC </FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Eastern LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Big Cajun II Unit 4 LLC</FONT></TD>
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRGenerating Holdings (No. 23) B.V.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Connecticut Jet Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG New Roads Holdings LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Devon Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG Northeast Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
    <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Dunkirk Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG South Central Generating LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Huntley Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Oswego Harbor Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Louisiana Generating LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Somerset Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Middletown Power LLC </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">South Central Generation Holding LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Montville Power LLC</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Norwalk Power LLC</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Northeast Generation Holding LLC</FONT></TD>
    <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">X</FONT><HR ALIGN=LEFT WIDTH=80% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG McClain LLC</FONT></TD></TR>
</TABLE>


<PAGE>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NOTICE OF PROPOSED
SALE, AUCTION AND HEARING ON THE DEBTOR&#146;S </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>MOTION TO SELL
SUBSTANTIALLY ALL OF NRG MCCLAIN LLC&#146;S ASSETS</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TO ALL INTERESTED
PARTIES, PLEASE TAKE NOTICE THAT: </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NRG
McClain LLC (the &#147;Debtor&#148;) has entered into an Asset Purchase Agreement with
Oklahoma Gas &amp; Electric Company, and has filed a motion (the &#147;Motion&#148;) to
sell substantially all of its assets free and clear of liens, claims and encumbrances,
pursuant to 11&nbsp;U.S.C. &sect;&nbsp;363(f), after an auction and subject to higher or
better offers. Pursuant to an Order entered by the Court on _______________, 2003, such
auction will be held at&nbsp;the&nbsp;offices of Kirkland&nbsp;&amp;&nbsp;Ellis&nbsp;LLP,
200 East Randolph Drive, Chicago, IL 60601 on ____________, 2003 beginning at ____:00
__.m. Prevailing Central Time. Subsequently, a hearing for approval of a sale of
substantially all of the Debtor&#146;s assets free and clear of liens to the successful
bidder at the auction will be held at the United States Bankruptcy Court, Southern
District of New York, Alexander Hamilton Courthouse, One Bowling Green, New York, NY 10004
on ____________, 2003 beginning at __:00 __.m. Prevailing Eastern Time. For details of the
auction, bidding procedures and proposed sale please visit <U>www.kccllc.com</U> or call
Christopher Schepper at <B>[________________]</B>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
objections to the proposed sale must be filed and served so as to be received by the
parties identified in the Motion no later than _______________, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: August ____, 2003 <BR>New
York, New York </FONT></P>



<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Respectively submitted,<BR>
<BR>
KIRKLAND &amp; ELLIS LLP</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Matthew A. Cantor, Esq. (MC 7727)<BR>
Robbin L. Itkin, Esq. (RI 1019)<BR>
Ryan Blaine Bennett, Esq. (RB 5236) (Admitted Pro Hac Vice)<BR>
Citigroup Center<BR>
153 East 53rd Street<BR>
New York, NY 10022-4675<BR>
Telephone: (212) 446-4800<BR>
Facsimile: (212) 446-4900<BR>
<BR>
Reorganization Counsel for<BR>
Debtor and Debtor in Possession</FONT></TD></TR>
</TABLE>





<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2-</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>EXHIBIT G</U> </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[ESCROW AGREEMENT] </FONT></H1>


<PAGE>




<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>ESCROW AGREEMENT </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS
ESCROW AGREEMENT, made and entered into as of this [__] day of [_____], 2003 (this
&#147;<U>Escrow Agreement</U>&#148;), by and among NRG MCCLAIN LLC, a Delaware limited
liability company (the &#147;<U>Debtor</U>&#148;), NRG ENERGY, INC., a Delaware
Corporation (&#147;<U>NRG</U>&#148;), [____________], as escrow agent (the &#147;<U>Escrow
Agent</U>&#148;), WESTLB AG, NEW YORK BRANCH, as Collateral Agent pursuant to the
below-defined Credit Agreement (the &#147;<U>Collateral Agent</U>&#148;) and
[____________], as the Winning Bidder (&#147;<U>Winning Bidder</U>&#148;). Capitalized
terms used herein and not defined herein shall have the meanings set forth in the
below-defined Sale Motion and Approval Order. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>RECITALS </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The Debtor, the lenders party thereto from time to time as lenders (the
          &#147;<U>Lenders</U>&#148;), WestLB AG, New York Branch, as Agent and Collateral
          Agent are parties to the credit agreement, dated as of November 28, 2001 (as
          amended, the &#147;<U>Credit Agreement</U>&#148;) under which the Debtor has
          incurred indebtedness. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The Debtor and the Collateral Agent, <U>inter</U> <U>alia</U>, are parties to
          the Omnibus Restructuring and Consent Agreement dated as of August 18, 2003,
          (the &#147;<U>ORCA</U>&#148;), pursuant to which the Collateral Agent, on behalf
          of the Lenders, has consented to the Debtor selling substantially all of its
          assets in accordance with the provisions of the below-defined APA. </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The Debtor and Oklahoma Gas &amp; Electric Company (&#147;<U>OGE</U>&#148;) are
          parties to an asset purchase agreement dated as of August 18, 2003 (the
          &#147;<U>APA</U>&#148;), pursuant to which the Debtor has agreed to sell
          substantially all of its assets pursuant to an auction process under section 363
          of the Bankruptcy Code. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The Debtor, OGE and the Collateral Agent have agreed on the form of certain sale
          motions to be filed with the court in connection with the sale of the
          Debtor&#146;s assets </FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(such motions, the &#147;<U>Sale Motion</U>&#148;). In
          accordance with the Sale Motion, the Debtor has requested this Court&#146;s
          approval of the auction process (such approval, the &#147;<U>Approval
          Order</U>&#148; and, together with the Sale Motion, the &#147;<U>Sale Motion and
          Approval Order</U>&#148;). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The Sale Motion and Approval Order provide for certain amounts in dispute as of
          the Closing Date to be placed into escrow pending either resolution among the
          parties or this Court&#146;s ruling on how such disputed funds should be
          distributed. The Sale Motion and Approval Order include this form of escrow
          agreement for this Court&#146;s consideration in retaining such funds in escrow
          pending resolution of the appropriate distribution thereof. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>AGREEMENTS </U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accordingly,
in consideration of the recitals and of the respective agreements and covenants contained
herein, and intending to be legally bound hereby, the parties hereby agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE I </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>ESCROW </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disputed Amounts. </U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Project Sale Proceeds</U>. On the Closing Date, pursuant to the Order
          Authorizing Debtor&#146;s Sale of Assets Pursuant to 11 U.S.C. &sect;&sect;
          105(a) and 363 (the &#147;<U>Approval Order</U>&#148;), by the United States
          Bankruptcy Court for the Southern District of New York (the
          &#147;<U>Court</U>&#148;) having jurisdiction over the jointly administered
          chapter 11 bankruptcy cases of the Debtor and related entities (the
          &#147;<U>Case</U>&#148;), the Winning Bidder shall, pursuant to Section VIII
          paragraph 28 of the Sale Motion and Approval Order, pay to the Escrow Agent, for
          deposit in an escrow account with the Escrow Agent (the
          &#147;<U>Account</U>&#148;), to be established by the Escrow Agent at least five
          business days prior to the Closing Date the sum of (i)&nbsp;the excess, if any,
          of the amount requested by NRG as constituting the NRG Support Payment Amount
          <U>over</U> the </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Undisputed NRG Support Payment Amount and (ii) an additional
          contingency amount, if any, mutually agreed to by NRG and the Agent at least
          five business days prior to the Closing Date in respect of the NRG Support
          Payment Amount not otherwise included in the amount referred to in the
          immediately preceding clause (i) (collectively, the &#147;<U>Disputed
          Amount</U>&#148;), in accordance with the terms of the Sale Motion and Approval
          Order. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;
          The Disputed Amount shall be held by the Escrow Agent in the Account for the
          benefit of NRG, the Collateral Agent and OGE. In no event shall the Escrow Agent
          disburse the Disputed Amount except in accordance with the Sale Motion and
          Approval Order and this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acceptance of Appointment as the Escrow Agent</U>. The Escrow Agent, by signing
this Escrow Agreement, accepts its appointment as escrow agent with respect to the
Disputed Amount and agrees to hold and deliver the Disputed Amount and make disbursements
from the Account in accordance with the terms of the Sale Motion and Approval Order and
this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Delivery of Disputed Amount</U>. All Disputed Amounts released hereunder shall be
released in accordance with Sections 1.4 and 1.5 hereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Escrow Period</U>. The Escrow Agent shall hold the Disputed Amount during the
Escrow Period. The &#147;Escrow Period&#148; shall commence on the Closing Date and
terminate on the earlier of (a)&nbsp;the date the Collateral Agent and NRG reach a mutual
agreement with respect to distribution of the amount of the Disputed Amount on deposit in
the Escrow Account and obtain approval of the Court with respect to such distribution, if
applicable, each of the Collateral Agent and NRG being required to use all commercially
reasonable efforts to reach such an agreement and obtain such Court approval, if
applicable, within forty-five (45)</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>days after the Closing Date (the &#147;<U>45-day
Period</U>&#148;), or (b)&nbsp;in the event the parties fail to reach an agreement within
the 45-day Period, the date set by the Court pursuant to a special order requested under
Section 3.2 of this Escrow Agreement for final settlement of distribution of the Disputed
Amount. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Distribution of the Disputed Amount</U>. Subject to any order of the Court
directing otherwise, after the end of the Escrow Period, the Escrow Agent shall disburse
the amount in escrow in accordance with the written direction of the Collateral Agent and
NRG. <B> </B>In the event that any funds remain in the Account following disbursements
made by the Escrow Agent to NRG, the Escrow Agent shall promptly transfer all such unused
funds to the Collateral Agent for disbursement pursuant to Section 6.02 of the ORCA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Method of Payment</U>. All disbursements of the Disputed Amount shall be made by
wire transfer of immediately available U.S. Federal funds to the payee so designated to
the Escrow Agent to the account for such payee specified in Exhibit&nbsp;A hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE II </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>ESCROW AGENT </U></FONT></P>

 <!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rights and Responsibilities of the Escrow Agent.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          The duties and responsibilities of the Escrow Agent shall be limited to those
          expressly set forth in this Escrow Agreement and it shall not be subject to, nor
          obligated to recognize, any other agreement between, or direction or instruction
          of, any or all of the parties to this Escrow Agreement, unless such agreement,
          direction or instruction is in writing and made pursuant to a court order. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;
          If any controversy or dispute arises between the parties to this Escrow
          Agreement, or with any other party, concerning the subject matter of this Escrow
          Agreement, its terms or conditions, the Escrow Agent shall not be required to
          determine the controversy or to </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4</FONT></P>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Project" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>take any action regarding it. In the event that
          the Escrow Agent shall be uncertain as to its duties or rights hereunder or
          shall receive instructions, claims or demands from any party hereto which, in
          its opinion, conflict with any of the provisions of this Escrow Agreement, it
          shall be entitled to refrain from taking any action and its sole obligation
          shall be to keep safely all property held in escrow until it shall be directed
          otherwise in writing by a court order. The Escrow Agent shall have no liability
          to the parties to this Escrow Agreement or any other party with respect to any
          such suspension of its performance, including, without limitation, any liability
          that may arise out of a delay in the disbursement of any funds held in the
          Account, except as a result of its gross negligence, willful misconduct, or bad
          faith. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fees and Expenses of the Escrow Agent</U>. The Escrow Agent shall be paid a fee for
the establishment of the Account and for the provision of services under this Escrow
Agreement as set forth in Exhibit&nbsp;B hereto (the &#147;<U>Escrow Fee</U>&#148;). The
Escrow Fee and all reasonable out-of-pocket expenses and disbursements of the Escrow Agent
shall, following review and approval thereof by NRG and the Collateral Agent, be paid from
the Disputed Amount. In the event that the Disputed Amount is distributed to more than one
party, the Escrow Fee and other disbursements payable to the Escrow Agent shall be shared
pro rata based upon the percentage distribution received by each recipient of the Disputed
Amount. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification of the Escrow Agent</U>. The Debtor agrees to indemnify and hold
the Escrow Agent harmless against any and all losses, claims, damages, liabilities, and
expenses, including reasonable costs of investigation, reasonable legal counsel fees and
disbursements that may be imposed on the Escrow Agent or incurred by the Escrow Agent in
connection with the performance of its duties under this Escrow Agreement, including but
not limited to any litigation arising from this Escrow Agreement or involving its subject</FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></P>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>matter; <U>provided</U>, <U>however</U>,
that neither the Debtor nor any other party hereto shall indemnify the Escrow Agent for any loss,
claim, damage, liability or expense caused by the Escrow Agent&#146;s gross negligence, willful
misconduct, or bad faith. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE III </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>MISCELLANEOUS </U></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>. All notices, consents, approvals, notifications or other
communications required of the parties under or pursuant this Escrow Agreement shall be
given or made in writing (including by facsimile) delivered to the intended recipient at
the address set forth below. All such communications shall be deemed to have been duly
given when transmitted by facsimile transmittal (as confirmed by the facsimile machine of
the sender) or personally delivered or, in the case of a mailed notice or notice sent by
courier, upon receipt. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH=600>
<TR VALIGN="TOP">
     <TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(i)</FONT></TD>
     <TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">If to the Debtor or NRG, to:<BR>
<BR>
NRG McClain LLC<BR>
c/o NRG Energy, Inc.<BR>
901 Marquette Avenue<BR>
Suite 2300<BR>
Minneapolis, MN 55042<BR>
Attention: George P. Schaefer<BR>
<BR>
with a required copy to:</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG West Coast LLC<BR>
4600 Carlsbad Blvd.<BR>
Carlsbad, CA 92008<BR>
Attention: David Lloyd</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(ii)</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">If to the Escrow Agent, to:<BR>
<BR>
[__________________]<BR>
[Address]</FONT></TD></TR>
</TABLE>
<BR><BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6</FONT></P>
<PAGE>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="600">
<TR VALIGN="TOP">
     <TD WIDTH="30%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(iii)</FONT></TD>
     <TD WIDTH="60%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">If to the Collateral Agent, to:</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">WestLB AG, New York Branch<BR>
1211 Avenue of the Americas, 24th Floor<BR>
New York, NY 10036<BR>
Attention: Remy Savoya<BR>
<BR>
with a copy to:<BR>
<BR>
WestLB AG, New York Branch<BR>
1211 Avenue of the Americas, 24th Floor<BR>
New York, NY 10036<BR>
Attention: Arcadio Diaz</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">(iv)</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">If to the NRG Creditor's Committee, to:<BR>
<BR>
NRG Creditor's Committee<BR>
Bingham McCutchen<BR>
399 Park Avenue<BR>
New York, NY 10022-4689<BR>
Attention: Enid L. Veron, Esq.</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Any party, by written notice to the
other parties pursuant to this <U>Section&nbsp;3.1</U>, may change the address or the
persons to whom notices or copies thereof shall be directed. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Special Order Procedures</U>. Each of the Collateral Agent and NRG shall be
responsible for requesting such an order promptly upon expiration of the 45-day Period,
and such order shall set forth the amounts to be paid to NRG, the Collateral Agent and
OGE, as the case may be. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>. This Escrow Agreement and the rights and duties hereunder shall be
binding upon and inure to the benefit of the parties hereto and their successors and
assigns. No rights, obligations or liabilities hereunder shall be assignable by any party
without the prior written consent of each other party. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>. This Escrow Agreement, together with its Exhibits, as well as
the Sale Motion and Approval Order to which this Escrow Agreement is an Exhibit, shall
constitute the entire agreement among the parties hereto with respect to the subject </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7</FONT></P>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>matter hereof and thereof and supersedes all prior agreements, understandings,
negotiations and discussions, whether oral or written, of the parties with respect
thereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Amendment</U>. This Escrow Agreement may be amended or modified only by an
instrument in writing duly executed by each of the parties to this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Construction</U>. This Escrow Agreement shall be construed and enforced in
accordance with and governed by the laws of the State of New York without giving effect to
the choice of law provisions thereof. The headings in this Escrow Agreement are solely for
convenience of reference and shall not be given any effect in the construction or
interpretation of this Escrow Agreement. Unless otherwise stated, references to Sections
and Exhibits are references to Sections and Exhibits of this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Third Parties</U>. Nothing expressed or implied in this Escrow Agreement is
intended, or shall be construed, to confer upon or give any person or entity other than
the parties hereto any rights or remedies under, or by reason of, this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination</U>. This Escrow Agreement shall terminate at the time of the payment
by the Escrow Agent of all of the Disputed Amount in accordance with the provisions of
this Escrow Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>. This Escrow Agreement may be executed in two or more
counterparts, each of which shall be deemed an original and all of which together shall
constitute a single instrument. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>. If any one or more of the provisions contained in this Escrow
Agreement should be invalid, illegal or unenforceable as to any party or in any
jurisdiction, then such provision or provisions shall be invalid, illegal or unenforceable
without </FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8</FONT></P>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>affecting or otherwise impairing the enforceability of the remaining provisions
contained herein and without affecting or otherwise impairing the enforceability of the
same provisions in this Escrow Agreement with respect to any other party or in any other
jurisdiction. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9</FONT></P>
<PAGE>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement as of the day and
year first written above. </FONT></P>




<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">NRG MCCLAIN LLC</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:<BR>
NRG ENERGY, INC.</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10</FONT></P>
<PAGE>




<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">WESTLB AG, NEW YORK BRANCH,<BR>
as Agent and Collateral Agent</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:</FONT></TD></TR>
</TABLE>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></P>
<PAGE>





<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[_____________],<BR>
as Escrow Agent</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></P>
<PAGE>





<TABLE CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">[____________________________]<BR>
as Winning Bidder</FONT><BR><BR></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By:_________________________________________________<BR>
Name:<BR>
Title:</FONT></TD></TR>
</TABLE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13</FONT></P>
<PAGE>




<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit A </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Wire Transfer Details </U></FONT></P>



<PAGE>



<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit B </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Center Underline-TNR" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Escrow Agent Fee </U></FONT></P>


<PAGE>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT C TO <BR>ASSET PURCHASE
AGREEMENT </B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BIDDING PROCEDURES
ORDER </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<P ALIGN=CENTER ><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(See Exhibit A to the
Sale Motion) </FONT></P>


<PAGE>



<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>EXHIBIT D TO <BR>ASSET PURCHASE
AGREEMENT</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>APPROVAL ORDER </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(See Exhibit C to the
Sale Motion) </FONT></P>


<PAGE>


<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibit 99.01</B></FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=4>OG&amp;E to Acquire 77%
Interest in McClain Power Plant </FONT><BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>Fuel savings for
customers, increased revenue for schools </i></FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OKLAHOMA CITY &#150; OGE Energy Corp.
(NYSE: OGE) announced today its subsidiary, Oklahoma Gas and Electric Company (OG&amp;E),
has signed an agreement to purchase a 77 percent interest in the McClain power plant near
Newcastle, Okla. for $159.9 million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>NRG McClain LLC, an indirect
subsidiary of NRG Energy Inc. of Minneapolis, agreed to sell its 400-megawatt interest in
the 520-megawatt electric generating facility. The remaining 23 percent, or 120 megawatts
of generating capacity, will continue to be owned by the Oklahoma Municipal Power
Authority (OMPA). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;OG&amp;E has had a longstanding
working relationship with the OMPA and we look forward to strengthening our partnership as
co-owners of this state-of-the-art power plant,&#148; said Steven E. Moore, chairman,
president and CEO of OGE Energy. &#147;For our customers, OG&amp;E&#146;s acquisition of
this new generating capacity represents a great opportunity for immediate cost savings and
the continued reliability of their electric service.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The acquisition is expected to close
later this year. It is subject to Federal Energy Regulatory  Commission approval
and antitrust clearance under the Hart-Scott-Rodino Act. Also, since NRG McClain
has filed for  bankruptcy,  the  acquisition  is subject to the  approval of the
bankruptcy court.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OG&amp;E sought the acquisition under
a 2002 Oklahoma rate settlement agreement which recognized the need for the company to
acquire at least 400 megawatts of new generation. &#147;We look forward to working with
our state regulatory officials to ensure this power plant serves Oklahoma&#146;s best
interests,&#148; Moore said. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OGE Energy spokesman Brian Alford
said OG&amp;E considered all options for expanding its capacity to deliver power to its
Oklahoma customers. &#147;Acquiring a 77 percent interest in the McClain plant, at the
agreed-upon price, was clearly the best option,&#148; Alford said. &#147;It is below the
cost of building a new plant and compares favorably to other opportunities in the
marketplace. Once we take ownership of this new, highly efficient capacity, the savings
for our customers begin right away, not three years from now as would be the case if we
built a plant from the ground up.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As part of the 2002 rate settlement
agreement, OG&amp;E guaranteed at least $25 million in annual savings to its customers,
made possible by the new generation. Alford said OG&amp;E expects the McClain plant to
enable the company to meet that requirement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Another benefit of OG&amp;E&#146;s
ownership of the McClain facility, Alford said, is increased tax revenue for local schools
at a time when they need it most. &#147;We will pay more taxes on this plant than are
being paid now,&#148; he said. &#147;We have no exemption. This means more money for
Oklahoma schools.&#148;  </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></P>
<PAGE>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With this acquisition, OG&amp;E is taking a major step to ensure
its long-term power supply needs are met, especially in light of increasing customer
demand. In five of the last six years, OG&amp;E customers have set new records for peak
power demand. The current record, 5,908 megawatts, was set July 21. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;This new plant will give us an
efficient means to meet the growing demand, replace expiring above-market cogeneration
contracts that have been mandated by the federal government, and reduce our dependence on
power-purchase contracts,&#148; Alford said. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Construction of the McClain plant
began in February 2000, initiated by a subsidiary of Duke Energy North America. Duke sold
the 23 percent interest to the OMPA in December 2000 and its remaining 77 percent stake to
NRG in June 2001, the same month the plant went into production. Using two combined-cycle
General Electric generating turbines fueled by natural gas, the plant is rated at 520
megawatts. ONEOK Gas Transportation, a subsidiary of Tulsa-based ONEOK Inc., provides
natural gas transportation and storage services to the McClain plant. </FONT></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OG&amp;E serves approximately 720,000
customers in a service territory spanning 30,000 square miles in Oklahoma and western
Arkansas. OGE Energy also is the parent company of Enogex Inc., a natural gas pipeline
company with principal operations in Oklahoma and Arkansas. </FONT></P>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2</FONT></P>
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