Document:

2005 TXU Corp. Omnibus Incentive Plan

 Exhibit 10.3 
  
 2005 OMNIBUS INCENTIVE PLAN 
  

TXU CORP. 
  
 Effective as of May 20, 2005 

 Contents 
  

					
	 Article 1.
	  	Establishment, Purpose and Duration	  	1
	 Article 2.
	  	Definitions	  	1
	 Article 3.
	  	Administration	  	5
	 Article 4.
	  	Shares Subject to this Plan and Maximum Awards	  	6
	 Article 5.
	  	Eligibility and Participation	  	9
	 Article 6.
	  	Stock Options	  	9
	 Article 7.
	  	Stock Appreciation Rights	  	10
	 Article 8.
	  	Restricted Stock and Restricted Stock Units	  	12
	 Article 9.
	  	Performance Units/Performance Shares	  	13
	 Article 10.
	  	Other Stock-Based Awards	  	14
	 Article 11.
	  	Transferability of Awards and Shares	  	14
	 Article 12.
	  	Performance Measures	  	15
	 Article 13.
	  	Covered Employee Annual Incentive Award	  	16
	 Article 14.
	  	Dividend Equivalents	  	17
	 Article 15.
	  	Beneficiary Designation	  	17
	 Article 16.
	  	Rights of Participants	  	17
	 Article 17.
	  	Amendment, Modification, Suspension, and Termination	  	18
	 Article 18.
	  	Withholding	  	18
	 Article 19.
	  	Successors	  	18
	 Article 20.
	  	General Provisions	  	19

  

  
 TXU Corp. 2005 Omnibus
Incentive Plan 
  
 Article 1. Establishment, Purpose, and Duration

  
 1.1 Establishment. TXU Corp., a Texas corporation (the
“Company”), has established an incentive compensation plan to be known as the TXU Corp. 2005 Omnibus Incentive Plan (the “Plan”). 
  
 The Plan permits the grant of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Other Stock-Based Awards, as well as Covered Employee Annual Incentive Awards, all as defined and described in more detail herein. 
  
 1.2 Purpose of the Plan. The primary purpose of the Plan is to promote the interests of the Company and its shareholders through: (i) the attraction and retention
of executive officers and other key employees, as well as non-employee directors, all of whom are essential to the success of the Company; (ii) the motivation of executive officers and other key employees using performance-related incentives linked
to long-range performance goals and the interests of Company shareholders; and (iii) enabling such employees to share in the long-term growth and success of the Company. 
  
 1.3 Effective Date and Duration of the Plan. The Plan was adopted by the Board of Directors of the Company on February 18, 2005, and
shall become effective upon shareholder approval, which is expected to occur at the 2005 annual shareholder’s meeting of the Company on May 20, 2005 (“Effective Date”). Unless sooner terminated as provided herein, this Plan shall
terminate on December 31, 2014. After this Plan is terminated, no additional Awards may be granted but Awards previously granted shall remain outstanding in accordance with their terms and conditions. 
  
 Article 2. Definitions 
  
 Whenever used in this Plan, the following terms shall have the meanings set forth below:

  

	 	2.1	“Affiliate” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations of the Exchange Act. 

  

	 	2.2	“Annual Award Limit” or “Annual Award Limits” have the meaning set forth in Section 4.3. 

  

	 	2.3	“Award” means, individually or collectively, a grant under this Plan of Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units,
Other Stock-Based Awards, Nonqualified Stock Options, Incentive Stock Options, SARs, or Covered Employee Annual Incentive Awards. 

  

	 	2.4	 “Award Agreement” means either: (i) a written agreement entered into by the Company and a Participant setting forth the terms and provisions
 

  

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applicable to an Award granted under this Plan, or (ii) a written statement issued by the Company to a Participant describing the terms and provisions of
such Award.  

  

	 	2.5	“Beneficial Owner” or “Beneficial Ownership” have the meaning ascribed to such term in Rule 13d-3 of the General Rules and Regulations under
the Exchange Act. 

  

	 	2.6	“Board” or “Board of Directors” means the Board of Directors of the Company. 

  

	 	2.7	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be
deemed to include references to any applicable regulations thereunder and any successor or similar provision. 

  

	 	2.8	“Committee” means the Organization and Compensation Committee of the Board, or any other committee or subcommittee designated by the Board from time to time
to administer this Plan. 

  

	 	2.9	“Company” means TXU Corp., a Texas corporation, and any successor thereto. 

  

	 	2.10	“Consolidated Operating Earnings” means the consolidated earnings before income taxes of the Company, computed in accordance with generally accepted
accounting principles, but shall exclude the effects of Extraordinary Items. 

  

	 	2.11	“Covered Employee” means any Participant who is or may become a “Covered Employee,” as defined in Code Section 162(m), or any successor statute;
provided that a Participant who is designated by the Committee as a Covered Employee, either as an individual or within a class of Employees, with respect to a particular Award or Performance Period is a Covered Employee under the Plan with respect
to such Award or Performance Period. 

  

	 	2.12	“Covered Employee Annual Incentive Award” means an Award granted to a Covered Employee under Article 12 of this Plan. 

  

	 	2.13	“Director” means any individual who is a member of the Board. 

  

	 	2.14	“Effective Date” has the meaning set forth in Section 1.3. 

  

	 	2.15	“Employee” means any employee of the Company, an Affiliate, and/or a Subsidiary. 

  

	 	2.16	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto. 

  

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	 	2.17	“Extraordinary Items” means (i) extraordinary, unusual, and/or nonrecurring items of gain or loss; (ii) gains or losses on the disposition of a business;
(iii) changes in tax or accounting regulations or laws; or (iv) the effect of a merger or acquisition, provided that such item is disclosed by the Company in its audited financial statements, including footnotes, or in the Management Discussion and
Analysis section of the Company’s Exchange Act reports. 

  

	 	2.18	“Fair Market Value” or “FMV” means, with respect to a Share, the value of a Share as of a certain date or over a period of time as
determined by the Committee as reported on the New York Stock Exchange (“NYSE”), or if the Shares are not traded on the NYSE, on such other established stock exchange (or exchanges) on which the Shares are traded as the Committee may
determine. In the event Shares are not publicly traded at the time a determination of FMV is required to be made hereunder, the determination of FMV shall be made by the Committee in such manner, as it deems appropriate. 

  

	 	2.19	“Full Value Award” means an Award other than an ISO, NQSO, or SAR, and which is settled by the issuance of Shares. 

  

	 	2.20	“Grant Price” means the price established at the time of grant of a SAR pursuant to Article 7, used to determine whether there is any payment due upon
exercise of the SAR. 

  

	 	2.21	“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted under Article 6 to an Employee and that is designated as an
Incentive Stock Option and that is intended to meet the requirements of Code Section 422, or any successor provision. 

  

	 	2.22	“Insider” means an individual who, as of the relevant date, is determined, under the Company’s internal policy, to be an insider for purposes of Section
16 of the Exchange Act. 

  

	 	2.23	“Material Corporate Event” shall have the meaning set forth in Section 4.4 hereof. 

  

	 	2.24	“Net Income” means the consolidated net income before taxes for this Plan Year, as reported in the Company’s annual report to shareholders or as
otherwise reported to shareholders. 

  

	 	2.25	“Nonemployee Director” means a Director who is not an Employee. 

  

	 	2.26	 “Nonemployee Director Award” means any NQSO, SAR, or Full Value Award granted, whether singly, in combination, or in tandem, to a
Participant who is a Nonemployee Director pursuant to such applicable terms,  

  

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conditions, and limitations as the Board or Committee may establish in accordance with this Plan. 

  

	 	2.27	“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code Section 422, or that otherwise
does not meet such requirements. 

  

	 	2.28	“Operating Cash Flow” means cash flow from operating activities as defined in SFAS Number 95, Statement of Cash Flows. 

  

	 	2.29	“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as described in Article 6. 

  

	 	2.30	“Option Price” means the price at which a Share may be purchased by a Participant pursuant to an Option. 

  

	 	2.31	“Other Stock-Based Award” means an equity-based or equity-related Award not otherwise described by the terms of this Plan, granted pursuant to Article 10.

  

	 	2.32	“Participant” means any eligible individual as set forth in Article 5 to whom an Award is granted. 

  

	 	2.33	“Performance-Based Compensation” means compensation under an Award that satisfies the requirements of Code Section 162(m) for certain performance-based
compensation paid to Covered Employees. Notwithstanding the foregoing, nothing in this Plan shall be construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not
constitute performance-based compensation for other purposes, including Code Section 409A. 

  

	 	2.34	“Performance Measures” means measures as described in Article 12 on which the performance goals of Awards intended to qualify as Performance-Based
Compensation are based. 

  

	 	2.35	“Performance Period” means the period of time during which the performance goals must be met in order to determine the amount of payout and/or vesting with
respect to an Award. 

  

	 	2.36	“Performance Share” means an Award granted under Article 9, denominated in Shares, the value of which at the time it is payable is determined as a function
of the extent to which corresponding performance goals have been achieved. 

  

	 	2.37	 “Performance Unit” means an Award granted under Article 9, denominated in units, the value of which at the time it is payable is determined
as a 

  

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function of the extent to which corresponding performance goals have been achieved. 

  

	 	2.38	“Period of Restriction” means the period during which Restricted Stock or Restricted Stock Units are subject to a substantial risk of forfeiture (based on
the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8. 

  

	 	2.39	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof, other than the Company, a Subsidiary or any employee benefit plan(s) sponsored or maintained by the Company or any Subsidiary. 

  

	 	2.40	“Plan” means the TXU Corp. 2005 Omnibus Incentive Plan. 

  

	 	2.41	“Plan Year” means the calendar year. 

  

	 	2.42	“Prior Plan” means the TXU Long-Term Incentive Compensation Plan established effective May 23, 1997 and renamed and restated effective May 10, 2002.

  

	 	2.43	“Restricted Stock” means an Award granted to a Participant pursuant to Article 8 under which restricted Shares are granted to the Participant on the date of
grant. 

  

	 	2.44	“Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to the Participant on the date
of grant. 

  

	 	2.45	“Share” means a share of common stock of the Company, without par value, and any preference stock purchase rights appurtenant thereto.

  

	 	2.46	“Share Authorization” has the meaning set forth in Section 4.1(a). 

  

	 	2.47	“Stock Appreciation Right” or “SAR” means an Award granted, pursuant to Article 7. 

  

	 	2.48	“Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, an ownership
interest of more than fifty percent (50%). 

  
 Article 3.
Administration 
  
 3.1 General Administrative Authority. The Plan
shall be administered and interpreted by the Committee, which, unless otherwise expressly limited by the terms of this Plan, shall have full authority, discretion and power necessary or desirable for such 

  

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administration and interpretation. The express grant in this Plan of any specific power to the Committee shall not be construed as limiting any power or
authority of the Committee. In its sole and complete discretion, the Committee may adopt, alter, suspend and repeal any such administrative rules, regulations, guidelines, and practices governing the operation of the Plan as it shall from time to
time deem advisable. In addition to any other powers and, subject to the provisions of the Plan, the Committee shall have the following specific powers: (i) except with respect to the determination of the terms and conditions of Awards to
Nonemployee Directors (which shall be made by the Board pursuant to Section 5.3 hereof), to determine the Participants to whom Awards shall be made and the terms and conditions of such Awards; (ii) to determine and certify the extent to which
performance goals have been achieved; (iii) to authorize the payment or distribution of Awards; (iv) to construe and interpret all terms, conditions and provisions of the Plan and all Award Agreements; (v) to establish, amend, or waive rules or
regulations for the Plan’s administration; and (vi) to make all other determinations and take all other actions necessary or advisable for the administration or interpretation of the Plan and any Award Agreement. The Committee may seek the
assistance or advice of any persons it deems necessary for the proper administration of the Plan. All determinations and decisions made by the Committee in the administration of this Plan shall be final, conclusive, and binding upon all persons.
 
  
 3.2 Delegation. The Committee may delegate to the
Company’s Chief Executive Officer, the authority to grant Awards to Employees who are not Insiders. Additionally, the Committee may, either through express delegation or by virtue of their relevant job duties, delegate to employees,
representatives, consultants and/or agents of the Company, the ministerial, day-to-day operational functions relative to the Plan.  
  
 Article 4. Shares Subject to this Plan and Maximum Awards 
  
 4.1 Number of Shares Available for Awards. 
  

	 	(a)	Subject to adjustment as provided in Section 4.4 herein, the maximum number of Shares available for issuance to Participants under this Plan (the “Share Authorization”)
shall be: 

  

	 	(i)	Nine million (9,000,000), plus 

  

	 	(ii)	Any Shares subject to awards previously made under the Prior Plan which, as of the Effective Date, have been granted and are outstanding, to the extent that, on or after the
Effective Date, such Shares cease for any reason to be subject to such awards (e.g., through forfeiture of all or any part of the award) other than by reason of the distribution of such Shares in settlement of the award. 

  

	 	(b)	 Subject to the limit set forth in Section 4.1(a) on the number of Shares that may be issued in the aggregate under this Plan, the maximum 

  

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number of Shares that may be issued pursuant to the exercise of ISOs shall be nine million (9,000,000) Shares. 

  

	 	(c)	Subject to the limit set forth in Section 4.1(a) on the number of Shares that may be issued in the aggregate under this Plan, the maximum number of shares that may be issued to
Nonemployee Directors shall be one million (1,000,000) Shares, and no Nonemployee Director may receive Awards subject to, or having a value equal to, more than twenty thousand (20,000) Shares in any Plan Year. 

  

	 	(d)	Except with respect to a maximum of five percent (5%) of the Shares authorized in Section 4.1(a), any Full Value Awards which vest on the basis of the Participant’s continued
employment with or provision of service to the Company shall not provide for vesting which is any more rapid than annual pro rata vesting over a three (3) year period and any Full Value Awards which vest upon the attainment of performance goals
shall provide for a performance period of at least twelve (12) months. 

  
 4.2 Share Usage. Shares shall only be counted against the maximum number of Shares set forth in Section 4.1 only to the extent they are actually issued pursuant to an Award. Any Awards which, in whole or in part: (a) terminate by
expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, (b) are settled in cash rather than Shares, or (c) are exchanged prior to the issuance of Shares, for Awards not payable in Shares, shall be available again for
grant under this Plan. The Shares available for issuance under this Plan may be authorized and unissued Shares or treasury Shares. 
  
 4.3 Annual Award Limits. Unless and until the Committee determines that an Award to a Covered Employee shall not be designed to qualify as Performance-Based
Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of such Awards under this Plan: 
  

	 	(a)	Options: The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be one million (1,000,000).

  

	 	(b)	SARs: The maximum aggregate number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be one million (1,000,000).

  

	 	(c)	Restricted Stock or Restricted Stock Units: The maximum aggregate number of Shares subject to Awards of Restricted Stock or Restricted Stock Units in any one Plan Year to any
one Participant shall be five hundred thousand (500,000) with respect to Restricted Stock Awards, and a Fair Market Value of 500,000 Shares with respect to Restricted Stock Units (such Fair Market Value determined as of the date of grant).

  

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	 	(d)	Performance Shares or Performance Units: The maximum aggregate number of Shares or Award value subject to Awards of Performance Shares or Performance Units that may be paid
to a Participant in any one Plan Year shall be one million (1,000,000) Shares with respect to Performance Share Awards, and a Fair Market Value of one million (1,000,000) Shares with respect to Performance Unit Awards, such Fair Market Value
determined as of the date of payment of the Award. 

  

	 	(e)	Covered Employee Annual Incentive Award: The maximum aggregate Covered Employee Annual Incentive Award which may be paid in any one Plan Year shall be determined in
accordance with Article 13. 

  

	 	(f)	Other Stock-Based Awards: The maximum aggregate number of Shares or Award value subject to Awards of Other Stock-Based Awards which may be granted in any one Plan Year to any
one Participant shall be five hundred thousand (500,000) Shares with respect to Other Stock-Based Awards payable in Shares and a Fair Market Value of five hundred thousand (500,000) Shares with respect to Other Stock-Based Awards payable in cash,
such Fair Market Value to be determined as of the date of agreement. 

  
 4.4 Adjustments in Authorized Shares. In the event of any material corporate event or transaction affecting the Shares or the capitalization of the Company, including without limitation a merger, consolidation, reorganization,
recapitalization, separation, stock dividend, stock split, reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change in
capital structure or distribution (other than normal cash dividends or share repurchases) or any similar corporate event or transaction (each a “Material Corporate Event”), the Committee, in its sole discretion, in order to prevent
dilution or enlargement of Participants’ rights under this Plan, may substitute or adjust, as applicable, the number and/or kind of Shares that may be issued under this Plan or under particular types of Awards, the number and/or kind of Shares
subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the Annual Award Limits, and other value determinations applicable to outstanding Awards. 
  
 Additionally, upon the occurrence of a Material Corporate Event, the Committee, in its sole
discretion, may make appropriate adjustments or modifications in the terms of any outstanding Awards under this Plan, including modifications of performance goals and of Performance Periods. The determination of the occurrence of a Material
Corporate Event, as well as any appropriate adjustments or modifications shall be made in the sole discretion of the Committee, and its determinations, shall be conclusive and binding on all interested parties, including Participants under this
Plan.  
  

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 Article 5. Eligibility and Participation 
  
 5.1 Eligibility. All Employees and Nonemployee Directors shall be eligible to participate in this Plan; provided that actual
participation by Employees and Nonemployee Directors shall be determined in accordance with Sections 5.2 and 5.3, respectively. 
  
 5.2 Participation by Employees. The Committee shall, from time to time, select the Employees to whom Awards shall be granted and shall determine, in its sole
discretion, all terms and conditions of all such Awards. 
  
 5.3 Participation
by Nonemployee Directors. The Board shall establish, from time to time in its sole discretion, the amount(s) and type(s) of Awards, if any, that shall be granted to all Nonemployee Directors on a periodic, nondiscriminatory basis pursuant to the
Plan. The Board’s determination shall be based on such factors as the Board determines, in its sole discretion, to be appropriate, which may include but shall not be limited to: (i) the number of committees of the Board on which a Nonemployee
Director serves; (ii) service as the chair of a committee of the Board; and (iii) the initial selection or appointment of an individual as a Nonemployee Director. 
  
 Article 6. Stock Options 
  
 6.1 Grant of Options. Subject to the terms and conditions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time
and from time to time as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted only to eligible Employees of the Company or of any Affiliate or Subsidiary of the Company (as permitted under Code Section
422); provided, however, an Employee who is employed by an Affiliate and/or Subsidiary of the Company and is subject to Code Section 409A, may only be granted Options to the extent the Affiliate and/or Subsidiary of the Company is part of the
Company’s consolidated group for United States federal tax purposes. 
  
 6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement, which shall specify number of Shares to which the Option pertains, the Option Price, whether the Option is intended to constitute an ISO or NQSO, the
maximum duration of the Option, the conditions upon which an Option shall become vested and exercisable, and such other provisions as the Committee shall determine which are not inconsistent with the terms of this Plan, and which need not be the
same for each grant. 
  
 6.3 Option Price. The Option Price for each grant
of an Option under this Plan shall be as determined by the Committee and shall be specified in the Award Agreement evidencing such Option; provided, however, the Option Price must be at least equal to one hundred percent (100%) of the FMV of the
Shares on the date of grant of the Option. 
  
 6.4 Term of Options. Each
Option shall expire at such time as the Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later 

  

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than the tenth (10th)
anniversary date of its grant. Notwithstanding the foregoing, for Nonqualified Stock Options granted to Participants outside the United States, the Committee may grant Nonqualified Stock Options that have a term greater than ten (10) years.

  
 6.5 Exercise of Options. Each Option shall be exercisable at such times
and in such manner, and shall be subject to such restrictions and conditions on exercise, as the Committee shall determine, which terms and restrictions shall be specified in the Award Agreement for such Option and need not be the same for each
grant or for each Participant. 
  
 6.6 Payment. A condition to the exercise
of an Option and the issuance of the underlying Shares shall be the payment of the Option Price. The Option Price of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual
delivery or attestation) previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the Option Price (provided that, except as otherwise determined by the Committee, the Shares that are tendered for the Option
Price must: (i) have been held by the Participant for at least six (6) months (or such other period, if any, as the Committee may permit) prior to such tender if acquired under this Plan or any other compensation plan maintained by the Company; or
(ii) have been purchased on the open market); (c) by a combination of (a) and (b); or (d) any other method approved or accepted by the Committee in its sole discretion, including, without limitation, if the Committee so determines, a cashless
(broker-assisted) exercise. 
  
 Subject to any applicable legal limitations, as
soon as reasonably practicable after the completion of all conditions of the exercise of an Option, the Company shall deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an
appropriate amount based upon the number of Shares purchased under the Option(s). 
  
 Unless otherwise determined by the Committee, all payments of the Option Price shall be made in United States dollars. 
  
 6.7 Separation from Service. The Committee shall determine the extent to which the Participant shall have the right to exercise the Option following the
Participant’s separation from service with the Company, its Affiliates, and/or its Subsidiaries, as the case may be, including separation following a change in control of the Company. Such provisions shall be determined in the sole discretion
of the Committee, shall be included in the Award Agreement entered into with each Participant, need not be uniform among all Options, and may reflect distinctions based on the reasons for separation, and/or other factors as determined by the
Company. 
  
 Article 7. Stock Appreciation Rights 
  
 7.1 Grant of SARs. Subject to the terms and conditions of this Plan, SARs may be
granted to Participants at any time and from time to time as shall be determined by the Committee. However, an Employee who is employed by an Affiliate and/or Subsidiary 

  

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of the Company and is subject to Code Section 409A, may only be granted SARs to the extent such Affiliate and/or Subsidiary is part of the Company’s
consolidated group for United States federal income tax purposes. 
  
 The
Committee shall have complete discretion in determining the terms and conditions of any SAR grants. 
  
 The Grant Price for each SAR shall be determined by the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price must be at least equal to one hundred percent (100%) of the FMV of
the Shares on the date of grant. 
  
 7.2 SAR Agreement. Each SAR Award
shall be evidenced by an Award Agreement, which shall specify the Grant Price, the term of the SAR, the time and manner in which the SAR may be exercised, and such other provisions as the Committee shall determine, which shall not be inconsistent
with the terms of this Plan and which need not be the same for each grant. 
  
 7.3 Term of SAR. The term of a SAR shall be determined by the Committee, in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable later than the
tenth (10th) anniversary date of its grant. Notwithstanding the foregoing, for SARs granted to Participants outside
the United States, the Committee shall have the authority to grant SARs that have a term greater than ten (10) years. 
  
 7.4 Exercise of SARs. An SAR may be exercised upon whatever terms and conditions the Committee, in its sole discretion, determines as set forth in the Award
Agreement. 
  
 7.5 Settlement of SAR Amount. Upon the exercise of an SAR,
the Participant shall be entitled to receive Shares equal in value to the amount determined by multiplying: 
  

	 	(a)	The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by 

  

	 	(b)	The number of Shares with respect to which the SAR is exercised. 

  
 All SARs shall be payable only in Shares. 
  
 7.6 Separation from Service. The Committee shall determine forth the extent to which the Participant shall have the right to exercise the SAR following the
Participant’s separation from service with the Company, its Affiliates, and/or its Subsidiaries, as the case may be, including separation following a change in control of the Company. Such provisions shall be determined in the sole discretion
of the Committee, shall be included in the Award Agreement, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the reasons for separation, and/or other factors as determined by the Committee.
 
  

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 Article 8. Restricted Stock and Restricted Stock Units 
  
 8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and
provisions of this Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or Restricted Stock Units to Participants in such amounts, as the Committee shall determine. 
  
 8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement, which shall specify the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, the Period(s) of Restriction, and such other provisions as the
Committee shall determine, which shall not be inconsistent with the terms of this Plan and which need not be the same for each grant. 
  
 8.3 Other Restrictions. The Committee may impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock Units as it may
deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based on the achievement of specific performance goals,
restrictions based on the passage of time and/or the continued employment of a Participant, and/or restrictions necessary or advisable to comply with applicable laws or the requirements of any stock exchange or market upon which such Shares are
listed or traded. 
  
 To the extent deemed appropriate by the
Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse. 
  
 8.4 Certificate Legend. In addition to any other legends required under law, each
certificate representing Shares of Restricted Stock granted pursuant to this Plan shall bear a legend such as the following or as otherwise determined by the Committee in its sole discretion: 
  
 “The sale or transfer of Shares of stock represented by this
certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the TXU Corp. 2005 Omnibus Incentive Plan, and in the associated Award Agreement. A copy of this Plan and such Award
Agreement may be obtained from TXU Corp.” 
  
 8.5 Voting and Dividend
Rights. The Award Agreement shall set forth whether and the extent to which a Participant shall have voting rights with respect to Restricted Stock, and how dividends on Restricted Stock shall be handled. 
  
 8.6 Separation from Service. The Committee shall determine the extent to which the
Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following the Participant’s separation from service with the Company, its Affiliates, and/or its Subsidiaries, as the case may be, including separation
following a change in 

  

 12 

 
control of the Company. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into
with each Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units, and may reflect distinctions based on the reasons for separation and/or other factors as determined by the Committee. 
  
 Article 9. Performance Units/Performance Shares 
  
 9.1 Grant of Performance Units/Performance Shares. Subject to the terms and
provisions of this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine. 
  
 9.2 Value of Performance Units/Performance Shares. Each Performance Unit shall have an
initial value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion
which, depending on the extent to which they are met, will determine the value and/or number of Performance Units or Performance Shares that will be paid to the Participant. 
  
 9.3 Performance Unit or Performance Share Award Agreement. Each Performance Unit or Performance Share grant shall be evidenced by an
Award Agreement, which shall specify the initial number or value of Performance Units or Performance Shares granted, applicable performance goals, the number or value of Performance Units or Performance Shares payable upon the attainment of such
performance goals, and such other provisions as the Committee shall determine which provisions shall not be inconsistent with the terms of this Plan, and need not be the same for each grant. 
  
 9.4 Form and Timing of Payment of Performance Units/Performance Shares. Following the
applicable Performance Period, the value and/or number of Performance Units or Performance Shares shall be determined based on the achievement of the relevant performance goals. Payment of an Award of Performance Units or Performance Shares may be
in the form of Shares or cash as determined by the Committee and set forth in the Award Agreement. Payment shall be made as soon as reasonably practicable following the Committee’s certification of the level of achievement of the performance
goals and the resulting Award value. 
  
 9.5 Separation from Service. The
Committee shall determine the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following the Participant’s separation from service with the Company, its Affiliates, and/or its
Subsidiaries, as the case may be, including separation following a change in control of the Company. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each
Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on the reasons for separation and/or other factors as determined by the Committee.

  

 13 

 Article 10. Other Stock-Based Awards 
  
 10.1 Other Stock-Based Awards. Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time,
may grant other types of equity-based or equity-related Awards not otherwise specifically described in this Plan (including the grant or offer for sale of unrestricted Shares or Share Units). Such Other Stock-Based Awards may be in such amounts, and
subject to such terms and conditions, as the Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment in cash or otherwise of amounts based on the value of Shares and may include, without
limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. 
  
 10.2 Value of Other Stock-Based Awards. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the
Committee. The Committee may establish performance goals relating to Other Stock-Based Awards. If the Committee exercises its discretion to establish performance goals, the number and/or value of Other Stock-Based Awards payable will depend on the
extent to which the performance goals are met. 
  
 10.3 Other Stock-Based Award
Agreement. Each Other Stock-Based Award grant shall be evidenced by an Award Agreement, which shall specify the number of Shares or value of the Award, and applicable performance goals, payment terms applicable to the Award, and such other
provisions as the Committee shall determine which provisions shall not be inconsistent with the terms of this Plan, and need not be the same for each grant. 
  
 10.4 Payment of Other Stock-Based Awards. Payment, if any, with respect to an Other Stock-Based Award shall be made in accordance with the terms of the Award, in
cash or Shares as the Committee determines. 
  
 10.5 Separation from
Service. The Committee shall determine the extent to which the Participant shall have the right to receive Other Stock-Based Awards following the Participant’s separation from service with the Company, its Affiliates, and/or its
Subsidiaries, as the case may be, including separation following a change in control. Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in an Award Agreement entered into with each
Participant, but need not be uniform among all Awards of Other Stock-Based Awards issued pursuant to this Plan, and may reflect distinctions based on the reasons for separation and/or other factors as determined by the Committee. 
  
 Article 11. Transferability of Awards and Shares 
  
 11.1 General Restrictions on Transferability. Except as expressly permitted in an
Award Agreement: (a) no Award may, prior to exercise or payment thereof, be sold, transferred, pledged, assigned, or otherwise alienated or hypothetical, other than by will or the laws of descent and distribution; and (b) all Awards shall be
exercisable or payable during the Participant’s lifetime only by, or to, the Participant. All ISOs shall be subject 

  

 14 

 
to the restrictions set forth in the preceding sentence. With respect to Awards other than ISOs, the Committee may permit transferability on such basis and
subject to such conditions and limitations as the Company may determine and as set forth in the applicable Award Agreement. 
  
 11.2 Restrictions on Share Transferability. Shares acquired or obtained by a Participant under any Award are subject to any restrictions imposed by the Committee
in its discretion, or imposed by policies of the Company in effect from time to time. Such restrictions may include without limitation, minimum holding period requirements, restrictions under applicable federal or state securities laws, and
restrictions of any applicable stock exchange or market upon which the Shares are listed and/or traded.  
  
 Article 12. Performance Measures 
  
 12.1 Performance Measures. The performance goals upon which the payment or vesting of an Award to a Covered Employee (other than a Covered Employee Annual
Incentive Award awarded or credited pursuant to Article 13) that is intended to qualify as Performance-Based Compensation shall be limited to the following Performance Measures: 
  

	 	(a)	Net earnings, net income to common or operational earnings; 

  

	 	(b)	Earnings per share or operational earnings per share; 

  

	 	(c)	Net sales or revenue growth; 

  

	 	(d)	Net operating profit; 

  

	 	(e)	Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue); 

  

	 	(f)	Cash flow (including, but not limited to, operating cash flow, free cash flow, cash flow return on equity, and cash flow return on investment); 

  

	 	(g)	Earnings before or after taxes, interest, depreciation, amortization, and/or any combination thereof; 

  

	 	(h)	Gross or operating margins; 

  

	 	(i)	Productivity ratios; 

  

	 	(j)	Share price (including, but not limited to, growth measures and total shareholder return); 

  

	 	(k)	Expense targets or ratios; 

  

	 	(l)	Margins; 

  

	 	(m)	Operating efficiency; 

  

	 	(n)	Market share; 

  

	 	(o)	Customer satisfaction and/or customer retention; 

  

	 	(p)	Service reliability; 

  

	 	(q)	Working capital targets; and 

  

 15 

	 	(r)	Economic value added or EVA® (net operating profit after tax minus the sum of capital multiplied by the cost of capital). 

  
 Any Performance Measure(s) may apply to the Company or any Subsidiary or Affiliate of the Company, or to any group, business unit or function or any combination thereof,
as the Committee may deem appropriate. Additionally in the discretion of the Committee, any Performance Measures may be used in a comparison to the performance of a group of comparator companies or any stock market or other index. 
  
 12.2 Evaluation of Performance. The Committee may determine, at the time of the grant
of an Award, that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax
laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in
management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year, (f) acquisitions or divestitures, and (g) foreign exchange gains and
losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, the Committee shall, in making its determination consider the deductibility of the Award under Code Section 162(m). The Committee shall have the sole and
absolute authority to include or exclude any of such events (or other types of events) in its evaluation of performance, and any such determination made by the Committee shall be final and binding on all Participants and other affected parties.

  
 12.3 Adjustment of Performance-Based Compensation. Awards that are
intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis or any combination, as the Committee determines.

  
 12.4 Committee Discretion. In the event that applicable laws permit
Committee discretion to modify the Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such modifications without obtaining shareholder approval. In addition, in the event
that the Committee determines that it is advisable to grant Awards that do not qualify as Performance-Based Compensation, the Committee may make such grants. 
  
 Article 13. Covered Employee Annual Incentive Award 
  
 13.1 Establishment of Maximum Incentive Pool. The Committee may designate Covered Employees who are eligible to receive a maximum annual incentive payment for any
Plan Year. The amount of such maximum payment for each such designated Covered Employee shall be equal to a designated percentage of an aggregate incentive pool, which pool shall be equal to the greater of: (a) one percent (1%) of the Company’s
aggregate Earnings Before Interest and Taxes for such Plan Year; (b) one percent (1%) of the Company’s Operating Cash Flow for such Plan Year; or (c) two and one-half percent 

  

 16 

 
(2.5%) of the Company’s Net Income for such Plan Year. The Committee shall allocate a percentage of such aggregate incentive pool to each designated
Covered Employee, and such percentage amount shall constitute such Covered Employee’s actual aggregate annual incentive award opportunity for such Plan Year. In no event may: (i) the incentive pool percentage for any one Covered Employee exceed
fifty percent (50%) of the total pool; and (ii) the sum of the incentive pool percentages for all Covered Employees cannot exceed one hundred percent (100%) of the aggregate annual incentive pool. 
  
 13.2 Determination of Covered Employees’ Portions. As soon as administratively
practical after the Committee’s certification of the aggregate annual incentive pool for a Plan Year, the Committee shall calculate each Covered Employee’s maximum annual incentive award opportunity based on the percentage established for
such Plan Year. In no event may a Covered Employee’s actual annual incentive award be increased above the maximum annual incentive award opportunity determined under this Article 13. The Committee shall, however, retain the sole discretion to
adjust the amount of a Covered Employee’s actual annual incentive award below the maximum annual incentive award opportunity based on such factors as the Committee may determine. 
  
 Article 14. Dividend Equivalents 
  
 Any Participant selected by the Committee may be granted the right to receive dividends or dividend equivalents under an Award on such basis as the Committee may, in its
sole discretion, determine, which rights shall be set forth in the applicable Award Agreement. 
  
 Article 15. Beneficiary Designation 
  
 Each Participant may, from time to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit payable pursuant to an Award under this Plan is to be paid in case of his death before such
payment. Each such designation shall revoke all prior designations by the same Participant, shall be in a form prescribed by the Company, and shall be effective only when filed by the Participant with the Company during the Participant’s
lifetime. In the absence of any such beneficiary designation, benefits payable, or rights exercisable, following a Participant’s death shall be paid or exercised by the Participant’s executor, administrator, or legal representative.

  
 Article 16. Rights of Participants 
  
 16.1 Employment/Service. Nothing in this Plan or any Award Agreement shall be deemed
to create any right of continued employment or Board service, or otherwise limit in any way the right of the Company, its Affiliates, and/or its Subsidiaries, to terminate the employment or Board service of any Participant. 
  
 16.2 Participation. No individual shall have the right to be selected to receive an
Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
  

 17 

 16.3 Rights as a Shareholder. Except as otherwise provided herein or in an Award Agreement, a Participant shall
have none of the rights of a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 
  
 Article 17. Amendment, Modification, Suspension, and Termination 
  

17.1 Amendment of Plan. The Board, upon recommendation by the Committee, may, in its sole and absolute discretion, amend, modify, suspend or terminate this Plan
in whole or in part from time to time, provided that such amendment, modification, suspension or termination shall be subject to shareholder approval if and to the extent legally required, including without limitation any shareholder approval
requirement necessary to comply with the Performance-Based Compensation exception under Code Section 162(m). 
  
 17.2 Amendment or Adjustment of Outstanding Awards. The Committee may amend any outstanding Award in whole or in part from time to time. Any such amendment which the Committee determines, in its sole and
absolute discretion, to be necessary or appropriate to conform the Award to, or otherwise satisfy, any legal requirement (including without limitation the provisions of Code Sections 162(m) or 409A or the regulations or rulings promulgated
thereunder), may be made retroactively or prospectively and without the approval or consent of the Participant. Additionally, the Committee may, without the approval or consent of the Participant, make adjustments in the terms and conditions of an
Award in recognition of unusual or nonrecurring events affecting the Company or the financial statements of the Company in order to prevent the dilution or enlargement of the benefits intended to be made available pursuant to the Award as
contemplated in Section 4.4 of this Plan. Any other amendments or adjustments to Awards not expressly contemplated in the two preceding sentences may be made by the Committee with the consent of the Participant. 
  
 Article 18. Withholding 
  
 18.1 Tax Withholding. The Company shall have the power and the right to deduct or
withhold from the payment of an Award, or to require a Participant to remit to the Company, the amount necessary to satisfy any federal, state, and/or local tax requirement. Such withholding may, in the sole discretion of the Company, be satisfied
by withholding Shares having a Fair Market Value on the date the tax is to be determined equal to the required tax 
  
 Article 19. Successors 
  
 All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, including any successor in
connection with a Change of Control. 
  

 18 

 Article 20. General Provisions 
  
 20.1 Forfeiture Events. 
  

	 	(a)	The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to separation from service and/or
conduct by the Participant that is detrimental to the business or reputation of the Company, its Affiliates, and/or its Subsidiaries, including violation of a Company policy, or breach of a noncompetition, nonsolicitation, confidentiality, or other
restrictive covenant that may apply to the Participant. 

  

	 	(b)	If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement
under the securities laws, if a Participant is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, such Participant shall reimburse the Company the amount of any payment in settlement of an
Award earned or accrued during the twelve- (12-) month period following the first public issuance or filing with the United States Securities and Exchange Commission (whichever first occurs) of the financial document embodying such financial
reporting requirement. 

  
 21.2 Awards Subject to Company
Policies. Awards shall be subject to Company policies implemented and as amended from time to time affecting Participants and Awards generally. 
  
 21.3 Legend. The certificates for Shares may include any legend that the Committee deems appropriate to reflect any restrictions on transfer of such Shares.

  
 21.4 Gender and Number. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the plural shall include the singular, and the singular shall include the plural. 
  
 21.5 Severability. In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
  
 21.6 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required. 
  

 19 

 21.7 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares
issued under this Plan prior to: 
  

	 	(a)	Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

  

	 	(b)	Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. 

  
 21.8 Inability to Obtain
Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 
  

21.9 Investment Representations. The Committee may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in
writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares. 
  
 21.10 Employees Based Outside of the United States. Notwithstanding any provision of this Plan to the contrary, in order to comply with the laws in other countries
in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees or Directors, the Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	Determine which of its Affiliates and Subsidiaries shall be covered by this Plan; 

  

	 	(b)	Determine which Employees or Directors outside the United States are eligible to participate in this Plan; 

  

	 	(c)	Modify the terms and conditions of any Award granted to Employees or Directors outside the United States to comply with applicable foreign laws; 

  

	 	(d)	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan
terms and procedures established under this Section 21.9 by the Committee shall be attached to this Plan document as appendices; and 

  

	 	(e)	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

  

 20 

 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would
violate applicable law. 
  
 21.11 Uncertificated Shares. To the
extent that this Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange.

  
 21.12 Unfunded Plan. Participants shall have no right, title, or
interest whatsoever in or to any investments that the Company, its Subsidiaries, and/or its Affiliates may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions,
shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual. To the extent that any person acquires a right to receive
payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, its Subsidiary, or its Affiliate, as the case may be. All payments to
be made hereunder shall be paid from the general funds of the Company, or a Subsidiary or Affiliate of the Company, as the case may be and no special or separate fund shall be established and no segregation of assets shall be made to assure payment
of such amounts except as expressly set forth in this Plan. 
  
 21.13 No
Fractional Shares. No fractional Shares shall be issued or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such
fractional Shares or any rights thereto shall be forfeited or otherwise eliminated. 
  
 21.14 Nonexclusivity of this Plan. The adoption of this Plan shall not be construed as creating any limitations on the power of the Board or Committee to adopt such other compensation arrangements, as it may deem desirable for any
Participant. 
  
 21.15 No Constraint on Corporate Action. Nothing in this
Plan shall be construed to: (i) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (ii) limit the right or power of the Company or a Subsidiary or an Affiliate to take any action which such entity deems
to be necessary or appropriate. 
  
 21.16 Governing Law. The Plan and each
Award Agreement shall be governed by the laws of the State of Texas, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another jurisdiction.
Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Dallas County, Texas, to resolve any and all issues that may
arise out of or relate to this Plan or any related Award Agreement. 
  

 21Performance Unit Award of C. John Wilder

 Exhibit 10.4 
  
 PERFORMANCE UNIT AWARD AGREEMENT 
  
 THIS PERFORMANCE UNIT AWARD AGREEMENT (“Agreement”) is made and entered effective as of the 1st day of April, 2005, by and between TXU CORP., a Texas corporation (“Company”), and C. John Wilder
(“Participant”). 
  
 WHEREAS, the Company has adopted
the TXU Corp. 2005 Omnibus Incentive Plan (“Plan”), the primary purpose of which is to promote the interests of the Company and its shareholders through: (i) the attraction and retention of executive officers and other key employees, as
well as non-employee directors, all of whom are essential to the success of the Company; (ii) the motivation of executive officers and other key employees using performance-related incentives linked to long-range performance goals and the interests
of Company shareholders; and (iii) enabling such employees to share in the long-term growth and success of the Company; and 
  
 WHEREAS, the Plan provides for various types of stock-based incentive compensation awards as determined in the sole discretion of the Organization and
Compensation Committee of the Board of Directors of the Company (“Committee”), which administers the Plan; and 
  
 WHEREAS, in accordance with the provisions of the Plan, the Committee desires to award Participant performance units payable in stock and valued on the
basis of Company common stock as described herein (“Performance Units”) in order to carry out the intent and purposes of the Plan all as set forth herein; and 
  
 WHEREAS, this Agreement constitutes part of a prospectus covering the Performance Units which are being awarded hereunder,
where Company common stock constituting the value of the Award has been registered under the Securities Act of 1933. 
  
 NOW THEREFORE, in consideration of the covenants herein set forth and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows: 
  
 1. Award
of Performance Units. The Company hereby awards to Participant 150,000 Performance Units, each such Performance Unit having a value equal to one share of the Company’s common stock, without par value (“Company Stock”), pursuant to
the terms and subject to the conditions and restrictions set forth herein. 
  
 2. Performance Period and Adjustment of Number of Performance Units. The award of Performance Units shall be subject to comparative total shareholder return performance criteria as described below. For purposes
of determining the adjustments to the number of Performance Units under this section, the Target Award (“Target”) shall be the number of Performance Units awarded under Section 1 hereof plus any additional Performance Units added to this
Award during the Performance Period by virtue of the “dividends” provisions of Section 6 hereof. 
  
 (a) During the period commencing April 1, 2005 and ending March 31, 2008 (“Performance Period”), the Company’s financial
performance, measured in terms of total shareholder return, shall be compared to, and measured against, the performance of other companies within a peer group consisting of the Standard & Poor’s 500 Electric Utilities Index (“Peer
Group”). Upon the expiration of the Performance Period, the Committee will compare the Company’s total shareholder return with the total shareholder return of the companies within the Peer Group and determine the Company’s percentile
ranking within the Peer Group during the Performance Period. The Company will also set minimum, target and maximum 

  

 1 

 
performance levels in terms of the Company’s total shareholder return as compared to total shareholder return of the companies within the Peer Group.

  
 (b) Based on the Company’s performance
within the Peer Group during the Performance Period, the number of Performance Units shall be adjusted in accordance with the methodology set forth below. For purposes of this Agreement, the term Performance Units will include such adjusted number
of Performance Units. 
  

					
	 Performance Levels

	  	 Total Shareholder Return Ranges

	  	 Initial Number of Performance Units Adjusted by the Following:

	 Maximum
	  	81st Percentile & Above	  	Maximum payout (200% of Target)
	 150% of Target
	  	71st - 80.99th Percentiles	  	Interpolate between 150% of Target & Maximum (150% & 200% of Target)
	 125% of Target
	  	61st - 70.99th Percentiles	  	Interpolate between 125% of Target & 150% of Target
	 Target
	  	51st - 60.99th Percentiles	  	Interpolate between 100% of Target & 125% of Target
	 Minimum
	  	41st - 50.99th Percentiles	  	Interpolate between Minimum & Target (50% to 100% of Target)
	 Zero
	  	40.99th Percentile & Below	  	No payout

  
 3. Vesting,
Valuation and Payment of Award. 
  
 (a) The
Performance Units, as adjusted in accordance with the provisions of Section 2(b) above, shall become vested upon the expiration of the Performance Period, and shall be valued as of the date of the Committee’s determination of the Company’s
performance within the Peer Group during the Performance Period (“Valuation Date”), at which time the adjustment described in Section 2(b) shall be made. In calculating the value of the Award, each Performance Unit will equal the value of
the average of the high and low trading price of one (1) share of Company Stock on the Valuation Date. 
  
 (b) This Award shall be paid to Participant in the form of shares of Company Stock having an aggregate value equal to the value of the
Award determined in accordance with the valuation methodology described in Section 3(a) above. Such distribution of Company Stock, net of applicable tax withholding, shall be made as soon as reasonably practicable (and in any event within forty-five
(45) days) following the Valuation Date. 
  
 4. Forfeiture of
Performance Units Under Certain Circumstances. 
  
 (a) Forfeiture Upon Termination of Employment under Certain Circumstances. If Participant’s employment with the Company shall, at any time during the Performance Period, be terminated by the Company for Cause (as defined in that
certain Employment Agreement between the Company and Participant dated as of February 21, 2004, (“Employment Agreement”)) or by Participant without Good Reason (as defined in the Employment Agreement), this Award and all Performance Units
covered 

  

 2 

 
hereunder shall immediately be forfeited by Participant. Upon such forfeiture, Participant shall have no further right, title or interest in or to this Award
or any Performance Units. 
  
 (b) Continuation
Following Termination of Employment Under Certain Circumstances. If Participant’s employment with the Company shall, at any time during the Performance Period, be terminated under circumstances which, pursuant to the terms and conditions of
the Employment Agreement, do not result in the forfeiture of this Award, this Award shall not forfeit and shall be paid at the time and in the amount provided for in, and subject to the terms and conditions of, this Agreement, consistent with the
provisions of the Employment Agreement. 
  
 (c)
Consistency With Terms of Employment Agreement. The terms of this Section 4 are intended to be consistent with the terms of the Employment Agreement regarding the forfeiture or the continuation of this Award under the various circumstances
described in the Employment Agreement, and this Section 4 shall be so construed. In the event of any conflict between the provisions of this Section 4 and the Employment Agreement relating to the forfeiture of this Award, the provisions of the
Employment Agreement will control. 
  
 5.
Nontransferability. No right of the Participant hereunder may be sold, transferred, pledged, assigned or otherwise alienated, hypothecated or disposed of and any attempt to effect any such sale, transfer, pledge, assignment or disposition
shall be null and void and of no force or effect whatsoever. 
  
 6. Dividends. If and when dividends are paid on Company Stock, the number of Performance Units covered by the Award will be increased by: (a) in the case of a dividend paid in cash, the number of full and fractional shares of Company
Stock which could have been purchased with the amount of the dividend that would have been paid had each Performance Unit been one (1) share of Company Stock and as if the Performance Units had been invested in the TXU Direct Stock Purchase and
Dividend Reinvestment Plan; or (b) in the case of a dividend paid in stock, the number of full and fractional shares of Company Stock which would have been distributed in connection with such dividend had each Performance Unit been one (1) share of
Company Stock. 
  
 7. Capital Adjustments. The number of
Performance Units covered by this Award shall be subject to adjustment, if any, as the Committee deems appropriate upon the occurrence of certain events and in the manner as described in Section 5.4 of the Plan. 
  
 8. No Right to Employment. Neither this Agreement, nor the Award of
the Performance Units provided for herein, shall be construed as giving Participant any right of employment or continued employment with the Company or any affiliated entity of the Company. 
  
 9. Withholding. Participant understands and agrees that the Company
shall deduct or withhold any taxes required by law to be withheld in connection with the Award provided for herein. 
  

 3 

 10. Subject to Plan. The Award of the Performance Units and this Agreement are subject to all of
the terms and conditions of the Plan (as the Plan may be amended from time to time). In the event of any conflict between the terms and conditions of the Plan and those set forth herein, the terms and conditions of the Plan shall control.

  
 11. Governing Law. This Agreement shall be governed,
construed, interpreted and administered in accordance with the laws of the State of Texas. This Agreement is being entered into and shall be performed, in whole or in part, in Dallas County, Texas, and the parties hereby acknowledge and agree that,
in any dispute involving this Agreement, venue shall be in the appropriate court in Dallas County, Texas. 
  
 12. Severability. In the event any provision of this Agreement shall be held invalid, illegal or unenforceable, in whole or in part, for any
reason, such determination shall not affect the validity, legality or enforceability of any remaining provision or portion of provision, which shall remain in full force and effect as if this Agreement had not contained the invalid, illegal or
unenforceable provision or portion. 
  
 13. Amendment. The
Committee shall have the right at any time and from time to time, without the approval or consent of Participant, to amend this Agreement if additions and/or changes are made to the Internal Revenue Code of 1986, as amended, any federal or state
securities law, or other law or regulation applicable to the Award provided for herein. The Committee shall have the right at any time, and from time to time, to amend this Agreement for any other reason with the consent of Participant. 

 
 14. Award Not Benefit Eligible. Participant understands and agrees
that the Award of Performance Units shall be considered as extraordinary, special incentive compensation and will not be included as “earnings,” “wages,” “salary” or “compensation” in any pension, welfare,
life insurance, or other employee benefit plan or arrangement of the Company. 
  
 15. Notices. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States Post Office, by registered or
certified mail, with postage and fees prepaid, addressed to the other party hereto at the address shown opposite his, her or its signature below or at such other address as such party may designate by not less than five (5) days’ advance
written notice to the other party hereto. 
  
 16. Further
Assurances. The parties agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement. 
  
 17. Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof. 
  
 18. Binding Effect. This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs, executors, administrators, guardians and personal representatives. Nothing in this Agreement shall be construed to give any person or entity other
than the parties hereto and their respective successors any legal or equitable right, remedy or claim under this Agreement. 
  

 4 

 19. Capitalized Terms. Unless otherwise defined herein, each of the capitalized terms used herein
shall have the meaning given to such term in the Plan. 
  
 20.
Headings. Headings of the several sections of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective
as of the day and year first above written. 
  

									
	 	 	 	 	TXU CORP.
				
	 Address:
	 	 	 	By:	 	 
	 1601 Bryan Street
	 	 	 	 	 	 David Campbell

	 Dallas, TX 75201
	 	 	 	 	 	 Executive Vice President

	 Attn: Corporate Secretary
	 	 	 	 	 	 
			
	 	 	 	 	PARTICIPANT
			
	 Address:
	 	 	 	 
	 	 	 	 	 C. John Wilder

	 	 	 	 	 Chief Executive Officer and President

	 	 	 	 	 	 	 

  

 5

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