Document:

Exhibit 4.1

 

AMENDMENT NO. 2 TO RIGHTS AGREEMENT

 

THIS AMENDMENT NO. 2 TO RIGHTS AGREEMENT (this “Amendment”) is made as of the 14th day of December, 2012, by and between GENON ENERGY, INC., a Delaware corporation, formerly known as RRI Energy, Inc. (the “Company”), and Computershare Trust Company, N.A. (“Computershare”).

 

WHEREAS, the Company and JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) are parties to that certain Rights Agreement, dated as of January 15, 2001, as amended by Amendment No. 1, dated November 23, 2010, between the Company, JPMorgan Chase and Computershare, as successor to JPMorgan Chase as Rights Agent (the “Rights Agreement”);

 

WHEREAS, Section 27 of the Rights Agreement permits the Company to amend the Rights Agreement on the terms set forth in this Amendment;

 

WHEREAS, as of the date hereof, no Person has become an Acquiring Person under the Rights Agreement, and the Company has satisfied all requirements to effect an amendment to the Rights Agreement;

 

WHEREAS, the Company, NRG Energy, Inc., a Delaware corporation (“NRG”), and Plus Merger Corporation, a Delaware corporation and a wholly-owned subsidiary of Parent (“NRG Merger Sub”), have entered into an Agreement and Plan of Merger dated July 20, 2012 (the “NRG Merger Agreement”);

 

WHEREAS, pursuant to Section 6.23 of the NRG Merger Agreement, the Company has agreed to take all action necessary to cause the Rights Agreement to terminate immediately prior to the NRG Merger Effective Time (as the term “Effective Time” is defined in the NRG Merger Agreement) without payment of any consideration to any holder of the Rights;

 

WHEREAS, the Company has approved the NRG Merger (as the term “Merger” is defined in the NRG Merger Agreement) for purposes of clause (v) of the definition of “Acquiring Person” in the Rights Agreement, and, accordingly, none of NRG, NRG Merger Sub or their Affiliates (as defined in the NRG Merger Agreement) will, solely as a result of the NRG Merger, be an Acquiring Person under the Rights Agreement;

 

WHEREAS, the Company’s Board of Directors has authorized and empowered the President and Chief Executive Officer, the Executive Vice President and Chief Financial Officer, and the Executive Vice President, General Counsel and Corporate Secretary of the Company, or any of them acting alone (the “Authorized Officers”), to amend the Rights Agreement to effect the termination of the Rights Agreement immediately prior to the NRG Merger Effective Time;

 

NOW, THEREFORE, in accordance with the procedures for amendment of the Rights Agreement set forth in Section 27 thereof, and in consideration of the foregoing and the mutual agreements herein set forth, the parties hereby agree as follows:

 

1.                                      Section 1 of the Rights Agreement is hereby amended by adding the following terms in the appropriate alphabetical order:

 

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“NRG Merger Effective Time” shall have the meaning ascribed to the term “Effective Time” in the NRG Merger Agreement.

 

“NRG Merger Agreement” shall mean the Agreement and Plan of Merger dated as of July 20, 2012, by and among the Company, NRG and NRG Merger Sub.

 

“NRG Merger Sub” shall mean Plus Merger Corporation, a Delaware corporation and a wholly-owned subsidiary of NRG.

 

“NRG” shall mean NRG Energy, Inc., a Delaware corporation.

 

2.                                      The definition of “Expiration Date” set forth in Section 1 of the Rights Agreement is hereby amended to read in its entirety:

 

“Expiration Date” shall mean the earliest of: (i) the Final Expiration Date, (ii) the time at which the Rights are redeemed as provided in Section 23 hereof, (iii) the time at which the Rights expire pursuant to Section 13(d) hereof, (iv) the time at which all Rights then outstanding and exercisable are exchanged pursuant to Section 24 hereof, (v) the repeal of Section 382 or any successor statute if the Board of Directors of the Company determines that this Agreement is no longer necessary for the preservation of Tax Benefits, (vi) the date on which the Board of Directors determines that no Tax Benefits may be carried forward and (vii) the point in time immediately prior to the NRG Merger Effective Time, but only if such NRG Merger Effective Time shall occur.”

 

3.                                      The Company shall notify the Rights Agent of the occurrence of the NRG Merger Effective Time promptly thereafter.

 

4.                                      The Exhibits to the Rights Agreement shall be deemed restated to reflect this Amendment, mutatis mutandis.

 

5.                                      The term “Agreement” as used in the Rights Agreement shall be deemed to refer to the Rights Agreement as amended hereby.

 

6.                                      If the NRG Merger Agreement is terminated, then from and after such time this Amendment shall be of no further force and effect and the Rights Agreement shall be restored to the terms that existed immediately prior to execution of this Amendment, and the Company shall notify the Rights Agent of the occurrence of the termination of the NRG Merger Agreement promptly thereafter.

 

7.                                      The Rights Agreement, as amended by this Amendment, shall remain in full force and effect in accordance with its terms.  To the extent there is a conflict between the terms and provisions of the Rights Agreement and this Amendment, the terms and provisions of this Amendment shall govern for purposes of the subject matter of this Amendment only.

 

8.                                      All of the covenants and provisions of this Amendment by or for the benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective successors and permitted assigns hereunder.

 

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9.                                      If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated.

 

10.                               This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State.

 

11.                               This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.  A signature to this Amendment transmitted electronically shall have the same authority, effect and enforceability as an original signature.

 

[The remainder of this page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of this 14th day of December, 2012.

 

 

	
 
    	
GENON   ENERGY, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MICHAEL L.   JINES
    
	
 
    	
Name:
    	
Michael L. Jines
    
	
 
    	
Title:
    	
Executive Vice   President, General Counsel and Chief Compliance Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COMPUTERSHARE TRUST COMPANY, N.A.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ DENNIS V.   MOCCIA
    
	
 
    	
Name:
    	
Dennis V. Moccia
    
	
 
    	
Title:
    	
Manager, Contract   Administration
    

 

4Exhibit 10.1

 

THIS PROMISSORY NOTE
AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS
AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT
COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION
IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE
STATE AND FOREIGN LAW AND, IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED
BY COUNSEL.

 

PROMISSORY NOTE

 

	$14,500.00	Effective Date:  October 9, 2012

 

1.          Promise
to Repay. Israel Growth Partners Acquisition Corp., a Delaware corporation (“Borrower”), promises to pay
to Hung Lei (“Lender”), the principal sum of FOURTEEN THOUSAND FIVE HUNDRED DOLLARS AND NO CENTS ($14,500.00)
(the “Principal”) together with interest thereon at the rate hereinafter specified and any and all other sums
which may be due and owing to Lender in accordance with the terms contained herein as repayment of this Promissory Note (this “Note”).
As a condition precedent to any obligation of Borrower hereunder, Lender shall deliver to Borrower in cash, certified check payable
to Borrower or liquid funds wired to an account specified by Borrower, the entire amount of the Principal.

 

2.          Interest;
Penalty Interest. Interest on this Note shall accrue from the date hereof at a rate per annum equal to two percent (2%). Notwithstanding
any other provision contained in this Note, the maximum rate of interest hereunder at any time shall not exceed the maximum rate
then permitted by law. All accrued interest shall be due on the first to occur of: (i) the Maturity Date (as defined below); or
(ii) the repayment in whole or in part of the principal amount of this Note. During an Event of Default (as defined in Section
6), the interest rate applicable to the then outstanding balance shall be six percent (6%).

 

3.          Calculation
of Interest. Interest on the unpaid principal amount of this Note shall be calculated on the basis of a 360-day per year factor
applied to the actual days on which there exists an unpaid principal balance due under this Note.

 

4.          Maturity.
The principal balance of this Note, together with all then unpaid and accrued interest, shall be due and payable in full on the
date payment is requested by Lender, which notice thereof shall be provided in accordance with Section 10 of this Note (the “Maturity
Date”), provided that no such demand shall be made prior to June 30, 2013. If payment is not made by the Maturity Date,
Borrower shall have five (5) business days from the date of such notification to make full payment (the “Cure Period”).

 

5.          Prepayment;
Payment. Borrower may prepay this Note, together with all then unpaid and accrued interest, in whole or in part at any time
or from time to time without penalty or additional interest. Any prepayment will be applied pro rata to the outstanding balances
due under the Note. Payments will be applied first to interest due and payable at the time of payment and then to principal. Payments
of interest must be made in such coin or currency of the United States of America as at the time of payment is legal tender of
the payment of public and private debts or by wire transfer to an account specified by Lender at least ten (10) days prior to the
Maturity Date or by certified check made payable to Lender. Payments received after 5:00 p.m. New York time will be treated as
being received on the next banking day. If any interest is paid on this Note that is deemed to exceed the then-legal maximum rate,
that portion of the interest payment representing an amount in excess of the then-legal maximum rate will be deemed a payment of
principal and applied to the principal balance of this Note.

 

6.          Default
and Remedies. If there shall be any Event of Default hereunder (as defined below), at the option and upon the declaration of
Lender, this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable. The occurrence of
any one or more of the following prior to repayment in full or conversion, whichever comes first, shall constitute an “Event
of Default”:

 

(a)          if
the full amount due under this Note, including outstanding principal, accrued and unpaid interest and all other sums due thereunder,
is not received prior to the date when due;

 

(b)          Borrower
fails to discharge a material judgment rendered against Borrower within thirty (30) days;

 

    	 

    	 

    

 

(c)          Borrower
files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for
the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes
any corporate action in furtherance of any of the foregoing; or

 

(e)          an
involuntary petition is filed against Borrower by a third party (unless such petition is dismissed or discharged within sixty (60)
days) under any bankruptcy statute now or hereafter in effect, or a custodian, receiver, trustee, assignee for the benefit of creditors
(or other similar official) is appointed to take possession, custody or control of any property of Borrower.

 

7.          Costs
of Collection. If at any time the indebtedness evidenced by this Note is collected through legal proceedings or this Note is
placed in the hands of an attorney or attorneys for collection, Borrower hereby agrees to pay all costs and expenses of collection
(including reasonable attorneys’ fees) incurred by Lender in collecting or attempting to collect such indebtedness.

 

8.          Governing
Law. This Note shall be governed by and construed under the laws of Delaware as applied to agreements among Delaware residents
made and to be performed entirely within the state, without giving effect to conflicts of laws principles. The parties hereby covenant
and agree that any action brought to enforce the terms of this Note shall be located in the state or federal courts located in
the State of Maryland. The parties hereby consent to the jurisdiction of such courts and waive
any defense of an inconvenient forum and any right of jurisdiction on account of the place of residence or domicile. BORROWER HEREBY
WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO SUCH MATTERS.

 

9.          No
Waiver. The delay or failure of Lender to exercise its rights hereunder shall not be deemed a waiver thereof. No waiver of
any rights of Lender shall be effective unless in writing and signed by Lender and any waiver of any right shall not apply to any
other right or to such right in any subsequent event or circumstance not specifically included in such waiver.

 

10.         Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery
to the party to be notified, (b) five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next-day delivery,
with written verification of receipt.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
Borrower has caused this Note to be executed on its behalf by its duly authorized officer effective as of the day and year first
above written.

 

	 	ISRAEL GROWTH PARTNERS ACQUISITION CORP.
	 	 	 
	 	By: 	/s/ Craig Samuels
	 	Name: Craig Samuels
	 	Title: President and Chief Executive Officer

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