Document:

Exhibit

Exhibit 10.2

AMENDMENT TO LETTER OF CREDIT AGREEMENT

This AMENDMENT TO LETTER OF CREDIT AGREEMENT, dated as of July 5, 2018 (this “Amendment”), is entered into by and among GENON ENERGY, INC., a Delaware corporation (the “Applicant”) and CITIBANK, N.A. (“Citibank” and the “Issuing Bank”), and is made with reference to the Facility Agreement (defined below). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the Amended Facility Agreement (as defined below).  
W I T N E S S E T H :
WHEREAS, reference is hereby made to the Letter of Credit Agreement, dated as of July 14, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to, but not including, the date hereof, the “Facility Agreement”; the Facility Agreement as amended by this Amendment, the “Amended Facility Agreement”), by and among the Applicant and the Issuing Bank;
WHEREAS, the parties hereto wish to amend the Facility Agreement as set forth herein, subject to the terms and conditions set forth below; 
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.    Amendments to the Facility Agreement.  
(i)    The definition of “L/C Exposure Cap” in Section 1.01 of the Facility Agreement is hereby amended by deleting “$300,000,000” and replacing it with “$150,000,000”. 
(ii)    The definition of “Termination Date” in Section 1.01 of the Facility Agreement is hereby amended by deleting phrase “one year” in clause (a) thereof and replacing it with the phrase “eighteen (18) months”. 
2.    Conditions to Effectiveness of this Amendment. This Amendment shall become effective as of the date upon which all of the following conditions are satisfied (the “Amendment Effective Date”): 
(a)     the Issuing Bank shall have received the counterparts hereof, duly executed on behalf of the Applicant and the Issuing Bank; 
(b)    the Applicant shall have paid  all costs, fees, expenses (including, without limitation, reasonable and documented legal fees and expenses) and other compensation payable to the Issuing Bank to the extent due and invoices at least one (1) day prior to the Amendment Effective Date; and 
(c)    the Applicant shall have filed a notice of this Amendment with the Bankruptcy Court, which notice shall be reasonably satisfactory to Citibank. 
3.    Acknowledgment of Security Interest. Pursuant to the L/C Cash Collateral Agreement, the Applicant granted a security interest in favor of Citibank, in its capacity as secured party in its Collateral (as defined in the L/C Cash Collateral Agreement).  The Applicant hereby ratifies and reaffirms its pledge, grant of security interest and liens and other obligations under and subject to the terms of the L/C Cash Collateral Agreement, and agrees that after the Amendment Effective Date, such pledge, grant of security interest and liens and other obligations, and the terms of the L/C Cash Collateral Agreement, are not impaired or adversely affected in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all the Obligations, as amended and extended pursuant to this Amendment. 
4.    Representations and Warranties.  
(a)    The execution, delivery and performance by the Applicant of this Amendment (i) has been duly authorized by all corporate or stockholder action required to be obtained by the Application and (ii) will 

not violate (x) any provision of law, statute, rule or regulation, or of the certificate or articles of incorporation or by-laws of the Applicant, (y) any applicable order of any court or any rule, regulation or order of any Governmental Authority or (z) any indenture, agreement or other instrument to which the Applicant is a party, with respect to clauses (y) and (z) where any such violation would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.
(b)    This Amendment has been duly executed and delivered by the Applicant and constitutes a legal, valid and binding obligation of the Applicant enforceable against the Applicant in accordance with its terms, subject to (i) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied covenants of good faith and fair dealing.
(c)    No action, consent or approval of, registration or filing with or any other action by any Governmental Authority is or will be required in connection with the execution, delivery and performance by the Applicant of this Amendment except for (a) such consents, authorizations, filings or other actions that have been made or obtained and are in full force and effect and (b) such actions, consents and approvals the failure to be obtained or made which would not reasonably be expected to have a Material Adverse Effect.
(d)    All of the representations and warranties set forth in the Facility Agreement and the other Facility Documents are true and correct in all material respects (or in all respects if any such representation and warranty if already qualified by materiality) as of the date hereof with the same force and effect as though made on and as of such date (except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (or, if applicable, all respects) as of such earlier date).
(e)    No Default or Event of Default has occurred and is continuing immediately before and after giving effect to this Amendment.
5.    Reference to and Effect on the Facility Documents.  On and after the Amendment Effective Date, this Amendment shall constitute a “Facility Document” for purposes of the Amended Facility Agreement and each reference in the Facility Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, and each reference in each of the other Facility Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import, shall mean and be a reference to the Amended Facility Agreement. Except as expressly set forth in this Amendment, all of the terms and provisions of the Facility Agreement and the other Facility Documents are and shall remain in full force and effect and the Applicant shall continue to be bound by all of such terms and provisions.  This Amendment is limited as specified herein and shall not constitute an amendment or waiver of, or an indication of the Issuing Bank’s willingness to amend or waive, any other provisions of the Facility Agreement or the other Facility Documents for any other date or purpose.
6.    Applicable Law. THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
7.    Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart to this Amendment by facsimile transmission shall be as effective as delivery of a manually signed original. 
8.    Severability.  In the event that any one or more of the provisions contained in this Amendment should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.
9.    Waiver of Jury Trial.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT 

OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AMENDMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.
10.    Entire Agreement.  This Amendment and the other Facility Documents constitute the entire contract between the parties relative to the subject matter hereof.  Any previous agreement among or representations from the parties or their Affiliates with respect to the subject matter hereof is superseded by the Amendment and the other Facility Documents.
11.    Headings. Section headings used herein are for convenience of reference only, are not part of this Amendment and are not to affect the construction of, or to be taken into consideration in interpreting, this Amendment.

[Signature Pages Follow]

Exhibit 10.2

IN WITNESS WHEREOF, the Applicant and Issuing Bank have caused their names to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date first above written.
GENON ENERGY, INC., as Applicant

By:      /s/ Mark McFarland                
Name: Mark McFarland    
Title:  Chief Executive Officer

Exhibit 10.2

CITIBANK N.A., as Issuing Bank 

By:      /s/ Allister Chan            
Name: Allister Chan    
Title:   Vice PresidentExhibit

Exhibit 10.3.1

Appendix B

Term Sheet for NRG Settlement Agreement1
		
	1.
	NRG and GenOn to waive any unsatisfied conditions precedent to the NRG Settlement Agreement for all purposes, including the Plan. GenOn and NRG to consummate the NRG Settlement Agreement no later than July 16, 2018. The NRG Settlement Agreement shall be deemed consummated upon NRG paying $124.7 million in cash to GenOn, subject to post-closing adjustments, if any, within 30 days thereafter. Such consummation shall be a condition precedent to the making of any interim distributions.

		
	2.
	NRG to assign its historical claims ($8.4 million asserted) against REMA to GenOn in exchange for $4.2 million, to be deducted from the amount NRG pays to GenOn upon consummation of the NRG Settlement.

		
	3.
	The monthly settlement of NRG’s non-historical intercompany claims with GenOn to continue normal course.

		
	4.
	Until REMA has provided NRG a release, GenOn to post a $10 million letter of credit to secure any NRG exposure  in  respect  of  the  claims  asserted  by  REMA  against  NRG. GenOn shall have no obligation to indemnify NRG for any exposure beyond $10 million. The indemnification and letter of credit shall automatically terminate and GenOn shall have no ongoing obligations to NRG if and when REMA provides NRG a release consistent with Article IX.E of the Plan. If GenOn unable to cause the issuance of the $10 million letter of credit prior to July 16, 2018, NRG shall be entitled to holdback $10 million from the payment contemplated under paragraph 1 hereof until such issuance occurs (at which point NRG shall remit the $10 million holdback amount to GenOn).

		
	5.
	GenOn to use best efforts to cause the replacement of, as soon as reasonably practicable, those certain letters of credit procured by NRG for the benefit of GenOn and/or its subsidiaries; in furtherance of the same, GenOn authorizes NRG and its cash management team, with the consent of the GenOn management team, to cause replacement letters of credit to be issued under GenOn’s current DIP LC Facility or such other form of acceptable credit support provided by GenOn and/or its subsidiaries, provided that no replacement letter of credit shall exceed the amount of the applicable letter of credit being replaced. Replacement to occur no later than August 15, 2018; provided that if such replacement does not occur by such time and NRG has used best efforts to effectuate the replacement, GenOn and/or its subsidiaries will provide credit support to NRG in the form of a letter of credit or cash collateral for any such NRG letters of credit that have not been replaced until such time of the replacement. NRG to continue to support the process to replace letters of credit issued under the Revolving Credit Agreement, at no cost, if it continues beyond August 15, 2018.   In the event that any outstanding letter of credit issued under the Revolving Credit Agreement is drawn after consummation of the NRG Settlement, GenOn shall fully reimburse NRG for the resulting claim no later than August 15, 2018.

1 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in GenOn’s confirmed chapter 11 plan (as amended, supplemented, or otherwise modified from time to time, the “Plan”).

		
	6.
	The treatment of surety bonds procured by NRG, regardless of when procured and whether drawn or undrawn, for the benefit of GenOn and/or its subsidiaries under the Plan shall remain unchanged except that (i) if GenOn effectuates a further interim distribution before December 15, 2018, then GenOn shall provide such treatment no later than December 15, 2018, and (ii) if GenOn effectuates a further interim distribution after December 15, 2018, then GenOn shall provide such treatment contemporaneously with such distribution.

		
	7.
	NRG and GenOn to use commercially reasonable efforts to negotiate, in good faith, and finalize reasonable, mutually acceptable changes in respect of the tax matters agreement, exit planning, and related indemnification obligations.

		
	8.
	NRG to continue to reasonably cooperate with GenOn and REMA in relation to claims GenOn may assert against REMA, including providing historical diligence related to any and all such claims by or against REMA.

		
	9.
	Pursuant to its termination notice, the TSA shall be deemed terminated as of August 15, 2018, and GenOn waives the early services termination fee in exchange for NRG’s provision of payroll services, at no cost and consistent with historical practice, on behalf of GenOn and its subsidiaries (including GenMA and REMA) with reference to payroll periods ending October 21, 2018. Parties acknowledge that NRG has no obligations to provide any Shared Services under the TSA—with the sole exception of payroll services— beyond August 15, 2018, and that NRG shall have no obligation to provide payroll services beyond the October 21, 2018 payroll period.

		
	10.
	NRG to withdraw its objection and not oppose the relief requested in the interim distribution motion, provided that this term sheet is appended to the order on the interim distribution motion and specifically approved by the Court.

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