**EXHIBIT 10.2.2**

 

**SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT**

 

This Second Amendment to Purchase and Sale Agreement dated as of May 4, 2006 (this “***Amendment***”) is made and entered into by and among DukeEnergy Americas, LLC, a Delaware limited liability company (together with its successors and permitted assigns, “***Seller***”) and LS Power Generation, LLC, a Delaware limited liability company (formerly known as LSP Bay II HarborHolding, LLC) (together with its successors and permitted assigns, “***Buyer***”), LSP Gen Finance Co., LLC, a Delaware limited liability company (together with its successors and permitted assigns, “***LSP GenFinance***”), LSP South Bay Holdings, LLC, a Delaware limited liability company (together with its successors and permitted assigns, “***LSP South Bay Holdings***”), LSP Oakland Holdings, LLC, a Delaware limited liabilitycompany (together with its successors and permitted assigns, “***LSP Oakland Holdings***”), LSP Morro Bay Holdings, LLC, a Delaware limited liability company (together with its successors and permitted assigns, “***LSPMorro Bay Holdings***” and together with Buyer, LSP Gen Finance, LSP South Bay Holdings, LSP Oakland Holdings and Seller, the “***Parties***”). Capitalized terms used but not defined herein shall have the meaningsassigned to them in the PSA (as defined below). 

 

**RECITALS**

 

A.    Buyer and Seller entered into that certainPurchase and Sale Agreement dated as of January 8, 2006 (as amended, modified and supplemented, the “***PSA***”). 

 

B.    Buyer and Seller entered into that certain letter agreement dated as of February 15, 2006 relating to the financial assurance requirementsof the California State Lands Commission (the “***CSLC Bond Letter***”). 

 

C.    Buyer and Seller entered into that certain letter agreement dated February 24, 2006 relating to the tolling agreement for Units 6 and 7 of the Moss Landing Project (the “***Moss Landing TollLette***r”). 

 

D.    Buyer, LSP Gen Finance,LSP South Bay Holdings, LSP Oakland Holdings and LSP Morro Bay Holdings entered into that certain Assignment and Assumption Agreement dated as of March 21, 2006, pursuant to which certain of Buyer’s rights and obligations under the PSA wereassigned to and assumed by LSP Gen Finance, LSP South Bay Holdings, LSP Oakland Holdings and LSP Morro Bay Holdings. 

 

E.    The Parties entered into that certain Amendment to Purchase and Sale Agreement dated as of May 4, 2006. 

 

F.    The Parties now desire to further amend the PSA as set forthherein. 

 

Now, therefore, in consideration of the premises and for othergood and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 

**ARTICLE I**

**AMENDMENTS AND AGREEMENTS**

 

***1.1    Amendments to the PSA.***     The PSA is hereby amended as follows: Schedule 6.5(a) is hereby replaced in its entirety with the version of Schedule 6.5(a) attached hereto as ExhibitA. 

 

**ARTICLE II**

**MISCELLANEOUS**

 

***2.1    Effective on PSA.***    This amendment shall be deemed to be an amendment to the PSA, and the PSA, asamended hereby, is hereby ratified, approved and confirmed in each and every respect. All references to the PSA therein or in any other document instrument or agreement shall hereafter be deemed to be references to the PSA as amended hereby. In theevent of a conflict between the terms of the PSA and the terms of this Amendment, the terms of this Amendment shall control. 

 

***2.2    Construction and Other Provisions.***    The rules of construction in Section 1.2 of the PSA and theprovisions of Articles X and Article XI of the PSA are incorporated herein by reference. 

 

***2.3    Headings.***    The headings used in this Amendment have been inserted for convenience of reference only and do not define or limit the provisions hereof. 

 

***2.4    Counterparts;Facsimile.***    This Amendment may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Any facsimile copies hereof orsignature hereon shall, for all purposes, be deemed originals. 

 

***2.5    Governing Law.***    This Amendment shall be governed by and construed in accordance with the Laws of the State of New York, without giving effect to any conflict or choice of lawprovision that would result in the imposition of another state’s Law. 

 

**[Signature Pages Follow]**

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the duly authorized officer of eachParty as of the date first above written. 

 
**DUKE ENERGY AMERICAS, LLC**By: /S/    LON C. MITCHELL,JR.        Name: Lon C. Mitchell, Jr.Title: Group V.P., CFO and Treasurer
 
**LS POWER GENERATION, LLC**By: /S/    JAMESBARLETT        Name: James BarlettTitle: Executive Vice President
 
**LSP GEN FINANCE, CO. LLC**By: /S/    JAMESBARLETT        Name: James BarlettTitle: President
 
**LSP SOUTH BAY HOLDINGS, LLC**By: /S/    JAMESBARLETT        Name: James BarlettTitle: President
 
**LSP OAKLAND HOLDINGS, LLC**By: /S/    JAMESBARLETT        Name: James BarlettTitle: President
 
**LSP MORRO BAY HOLDINGS, LLC**By: /S/    JAMESBARLETT        Name: James BarlettTitle: President
 

 

 

 

 

 

 

 

 

*[Signature Page to Second Amendment to Purchase and Sale Agreement]*