Document:

EX-10.1

 

Exhibit 10.1

May 1, 2008

Mr. Jon I. Klippel

70 Shannon Hill Road

Basking Ridge, NJ 07920

Dear Jon:

This letter will confirm our discussion about your separation from employment with Electro-Optical
Sciences, Inc. (the “Company”) on mutually agreeable terms as set forth below. You and the Company
agree that this letter agreement (this “Agreement”) represents the full and complete agreement
concerning your separation from employment with the Company.

	1.	 	Separation: Your employment with the Company will be terminated effective May 1,
2008 (the “Separation Date”).
	 
	2.	 	Separation Payment: Provided you execute and do not revoke this Agreement, the
Company agrees to pay you a separation amount of $70,000, less all applicable withholdings
(the “Separation Payment”). You acknowledge and agree that the Company had no previous
contractual obligation to pay you this amount. The Company will pay the Separation Payment to
you as continued salary consistent with the Company’s regular payroll policies, commencing on
the Company’s next regular payroll following the eighth day after you execute and deliver the
Agreement.
	 
	3.	 	Outplacement Services: EOS will provide you with $5,000 worth of outplacement
services at the outplacement provider of your choice. It is further agreed that any unused
balance of the $5,000 not used for outplacement services will be paid to you in the form of
separation payments as outlined in 2 above.
	 
	4.	 	Vacation Payment: In addition to the Separation Payment set forth in Paragraph 2,
the Company will pay you for accrued but unused vacation time which was calculated as of your
last day of employment and which will be paid to you on May 15, 2008.
	 
	5.	 	Employee Benefits: Your employee benefits will terminate effective May 31, 2008.
Under the provisions of the Consolidated Omnibus Reconciliation Act of 1985

 

 

Mr. Jon I. Klippel

May 1, 2008

Page 2 of 6

	 	 	(“COBRA”), as amended, and the requirements and limitations thereof, you may be entitled to
certain rights. Those rights are outlined in the attached COBRA letter.
	 
	6.	 	Acknowledgment: You acknowledge and agree that other than as specifically set forth
in this Agreement, you will not be due any other compensation, including, but not limited to,
compensation for unpaid salary, unpaid bonus, severance, or accrued or unused vacation time or
vacation pay, after the Termination Date.
	 
	7.	 	Stock Option: You and EOS acknowledge and agree that: (i) pursuant to that certain
Standard Form Incentive Stock Option Agreements dated as of December 17, 2004 (the “2004
Option Agreement”), and the stock option granted there under to purchase up to 45,000 shares
of common stock, par value $0.001 per share, of EOS (the “2004 Option Shares,” which number of
shares reflects the 2-for-1 reverse stock split declared by EOS in connection with its initial
public offering) is exercisable at a per share exercise price of $0.46 (which exercise price
reflects the 2-for-1 reverse stock split declared by EOS in connection with its initial public
offering) in its entirety as of the Separation Date and shall remain exercisable for ninety
(90) days following the Separation Date in accordance with the terms of the 2004 Option
Agreement; and (ii) the 2004 Option Shares have been included in and were covered under the
Registration Statement on Form S-8 that EOS filed with the Securities and Exchange Commission
on July 31, 2006 with respect to shares of EOS common stock authorized for issuance pursuant
to EOS’ stock option plans.
	 
	 	 	In addition, you and EOS acknowledge and agree that: (i) pursuant to the Standard Form
Incentive Stock Option Agreements dated as of May 22, 2006 (the “2006 Option Agreement”),
and the stock option granted there under to purchase up to 5,000 shares of common stock, par
value $0.001 per share, of EOS (the “2006 Option Shares”), all of the 2006 Option Shares
were subject to performance-based vesting; and (ii) since none of the milestones required
for vesting of the 2006 Option Shares were achieved prior to the Separation Date, you have
forfeited your right to acquire all or any portion of the 2006 Option Shares.
	 
	 	 	If you plan to exercise the option granted to you pursuant to the 2004 Option Agreement, a
completed stock option exercise form (enclosed) and a check for the appropriate amount must
be received by EOS prior to July 29, 2008.
	 
	8.	 	Company Property; Confidential Information: You agree that on or before the
Separation Date you will have: (i) returned all personal property provided to you by EOS in
connection with the performance of your duties as an employee of EOS, including, without
limitation, all keys, card keys, identification cards and credit cards, and all other property
of EOS in your possession; and (ii) as requested by EOS, returned all materials containing
confidential information including, without limitation, all confidential information as
defined in the Standard Confidentiality Agreement between you and EOS

2 

 

Mr. Jon I. Klippel

May 1, 2008

Page 3 of 6

	 	 	(the “Confidentiality Agreement”) and all memoranda, books, papers, letters, customer lists,
processes, and computers. You further agree that pursuant to your Confidentiality Agreement
you will continue to owe certain obligations regarding confidentiality that precludes your
use of the Company’s confidential information (including, without limitation, information
that would be material nonpublic information for federal securities law purposes) for
personal gain.
	 
	9.	 	Insider Trading Policy: You agree that you are deemed to be an “Insider” for purposes
of the Company’s Insider Trading Policy because of the nature of your responsibilities as an
employee of the Company. You agree, as provided for in the Insider Trading Policy, the
Insider Trading Policy continues to apply to transactions in Company securities by Insiders
even after such persons have terminated employment with or service to the Company. If an
Insider is in possession of material nonpublic information, then upon such termination, such
person may not trade in Company securities until that information has become public or is no
longer material.
	 
	 	 	In addition to the Company’s Insider Trading Policy, we remind you that you are subject to
federal securities laws regarding insider trading without regard to your employment status.
	 
	10.	 	Release: In consideration of the payments and benefits set forth in this Agreement,
you voluntarily, knowingly and willingly release and forever discharge the Company, its
subsidiaries, affiliates and parents, together with each of those entities’ respective
officers, directors, shareholders, employees, agents, fiduciaries and administrators
(collectively, the “Releasees”) from any and all claims and rights of any nature whatsoever
which you now have or in the future may have against them. This release includes, but is not
limited to, any rights or claims relating in any way to your employment relationship with the
Company or any of the other Releasees or the termination thereof, any contract claims (express
or implied, written or oral), or any rights or claims under any statute, including, without
limitation, the Americans with Disabilities Act, the Age Discrimination in Employment Act, the
Older Workers’ Benefit Protection Act, the Rehabilitation Act of 1973 (including Section 504
thereof), Title VII of the 1964 Civil Rights Act, the Civil Rights Act of 1866 (42 U.S.C. §
1981), the Civil Rights Act of 1991, the Equal Pay Act, the National Labor Relations Act, the
Worker Adjustment and Retraining Notification Act, the New York State Human Rights Law, the
New York City Human Rights Law, and the Employee Retirement Income Security Act of 1974, all
as amended, and any other federal, state or local law. This release specifically includes,
but is not limited to, any claims based upon the right to the payment of wages, bonuses,
vacation, pension benefits, 401(k) Plan benefits, stock benefits or any other employee
benefits, or any other rights arising under federal, state or local laws prohibiting
discrimination and/or harassment on the basis of race, color, age, religion,

3 

 

Mr. Jon I. Klippel

May 1, 2008

Page 4 of 6

	 	 	sexual orientation, creed, sex, national origin, ancestry, alienage, citizenship,
nationality, mental or physical disability, marital status, gender identity, genetics,
military status, harassment or any other basis prohibited by law.
	 
	11.	 	No Claims Filed: As a condition of the Company entering into this Agreement, you
represent that you have not filed with any government agency or court any claim against the
Releasees relating to your employment, your separation from employment, or otherwise. You
understand that by signing this Agreement, you waive your right to any monetary recovery in
connection with any local, state or federal government agency proceeding and you waive your
right to file a claim seeking monetary damages in any court. This Agreement does not (i)
prohibit or restrict you from responding to or otherwise cooperating with any request by the
EEOC or any other government authority with responsibility for the administration of
discriminatory employment practices, or (ii) require you to notify the Company of such
communications or inquiry; provided, however, you agree not to accept any monetary settlement
in connection with such an inquiry from the EEOC or such other governmental authority.
	 
	12.	 	Cooperation: In further consideration of the payments and benefits set forth in this
Agreement, you voluntarily agree to cooperate with the Company concerning any of the work you
performed on its behalf through the period you receive the Separation Payment. You agree,
without limitation, that you will meet with the Company’s employees at reasonable times and on
reasonable notice in order to comply with this Paragraph.
	 
	13.	 	No Admission of Wrongdoing: By entering into this Agreement, neither you nor the
Company, nor any of the Company’s parents or affiliates, nor any of their respective
directors, officers or employees, admit any wrongdoing or violation of any law.
	 
	14.	 	Confidentiality: You and the Company agree that the terms of this Agreement are
CONFIDENTIAL. You and the Company therefore agree not to tell anyone about this Agreement and
not to disclose any information contained in this Agreement to anyone, other than to your
lawyers, financial advisors or your immediate family members, as necessary to administer this
Agreement, to enforce this Agreement, or to respond to a valid subpoena or other legal
process. If you do tell your lawyer, financial advisor or immediate family members about this
Agreement or its contents, you must immediately tell them that they must keep them
confidential as well.

4 

 

Mr. Jon I. Klippel

May 1, 2008

Page 5 of 6

	15.	 	Non-Compete: By executing this agreement you specifically agree that for a period
of 2 years after May 1st 2008, you will not provide services related to early
melanoma detection, directly or indirectly, either as proprietor, partner, officer,
employee, consultant, independent contractor or otherwise, any person or entity.
	 
	16.	 	No Negative Statements: You agree not to make, or cause to be made, any negative or
disparaging statements about, or to intentionally do anything that damages, the Company, or
its Releasees, or their respective services, reputation, financial status, business
relationships, directors, officers or employees. The Company shall use commercially
reasonable efforts to cause all executive officers of the Company and the Company’s Manager,
Human Resources not to make, or cause to be made, any negative or disparaging statements
about, or to intentionally do anything that damages, you or your respective services,
reputation, financial status or business relationships.
	 
	17.	 	Breach of this Agreement: You promise to abide by the terms and conditions in this
Agreement, and understand that if you do not, the Company shall be entitled to attorneys’ fees
and any other damages incurred due to such breach, except that this provision will not apply
if you file a lawsuit challenging the validity of this Agreement.
	 
	18.	 	Changes to the Agreement: This Agreement may not be changed unless the changes are
in writing and signed by you and an authorized representative of the Company.
	 
	19.	 	Governing Law: This Agreement shall be governed by the laws of New York State,
without regard to New York’s law of conflicts.
	 
	20.	 	Entire Agreement: This Agreement constitutes the entire agreement between you and the
Company and supersedes all other agreements between you and the Company.
	 
	21.	 	Waiver: By signing this Agreement, you acknowledge that

	 	(i)	 	You have carefully read and understand this Agreement;
	 
	 	(ii)	 	you have been given twenty-one (21) days to consider your rights and
obligations under this Agreement and to consult with an attorney about both;
	 
	 	(iii)	 	the Company advised you to consult with an attorney and/or any other advisors
of your choice before signing this Agreement;
	 
	 	(iv)	 	you understand that this Agreement is LEGALLY BINDING and by signing it you
give up certain rights;
	 
	 	(v)	 	you have voluntarily chosen to enter into this Agreement and have not been
forced or pressured in any way to sign it;

5 

 

Mr. Jon I. Klippel

May 1, 2008

Page 6 of 6

	 	(vi)	 	you acknowledge and agree that the payments and benefits set forth in
Paragraphs 2, 3 and 4 of this Agreement are contingent on your execution of this
Agreement, which releases all of your claims against the Company, and you KNOWINGLY
AND VOLUNTARILY AGREE TO RELEASE the Company and its parents, subsidiaries,
affiliates, shareholders officers, directors, or employees from any and all claims you
may have, known or unknown, in exchange for the benefits you have obtained by signing,
and that these benefits are in addition to any benefit you would have otherwise
received if you did not sign this Agreement;
	 
	 	(vii)	 	you have seven (7) days after you sign this Agreement to revoke it by
notifying the Company in writing. The Agreement will not become effective or
enforceable until the seven (7) day revocation period has expired;
	 
	 	(viii)	 	this Agreement includes a WAIVER OF ALL RIGHTS AND CLAIMS you may have under the Age
Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.); and
	 
	 	(ix)	 	this Agreement does not waive any rights or claims that may arise after this
Agreement becomes effective, which is seven (7) days after you sign it, provided that
you do not exercise your right to revoke this Agreement.

	22.	 	Return of Signed Agreement: You should return the signed Agreement to me no later
than May 22, 2008.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Richard I. Steinhart
 	 
	 	Richard I. Steinhart 	 
	 	Vice President and CFO 	 
	 

Read, Accepted and Agreed to:

	 	 	 	 	 
	 	 	 
	/s/ Jon I. Klippel
 	 	 
	Jon I. Klippel 	 	 
	 	 	 
	Dated:  	May 1, 2008 	 	 
	  	 	 	 
	 

6EX-10.1

 

EXHIBIT 10.1

Execution Version

      

Amended and Restated

Contribution Agreement

(NRG)

By and Among

Texas Genco Holdings, Inc.,

NRG South Texas LP

And

NRG Nuclear Development Company LLC, 

and Certain Subsidiaries Thereof

March 25, 2008

      

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 Construction
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	CONTRIBUTION
	 	 	 	 
	 
	 	 	 	 
	2.1 Contribution by South Texas
	 	 	2	 
	2.2 Contribution by Genco
	 	 	3	 
	2.3 Excluded Assets
	 	 	3	 
	2.4 Retained Obligations
	 	 	3	 
	2.5 Assumed Obligations
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	CLOSING
	 	 	 	 
	 
	 	 	 	 
	3.1 Closing
	 	 	4	 
	3.2 Closing Conditions
	 	 	4	 
	3.3 Closing Deliveries
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF SOUTH TEXAS
	 	 	 	 
	 
	 	 	 	 
	4.1 Organization; Power of Authority
	 	 	6	 
	4.2 Execution and Delivery
	 	 	6	 
	4.3 Non-Contravention
	 	 	6	 
	4.4 Transferred Contracts
	 	 	7	 
	4.5 Legal Proceedings
	 	 	7	 
	4.6 Contributed Assets
	 	 	7	 
	4.7 South Texas Nuclear Plant Representations
	 	 	8	 
	4.8 Brokers, Finders and Investment Bankers
	 	 	8	 
	4.9 NRG Energy Inc. Ownership of South Texas
	 	 	8	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF GENCO
	 	 	 	 
	 
	 	 	 	 
	5.1 Organization; Power of Authority
	 	 	8	 
	5.2 Execution and Delivery
	 	 	8	 
	5.3 Non-Contravention
	 	 	8	 
	5.4 Legal Proceedings
	 	 	9	 
	5.5 Contributed Assets
	 	 	9	 
	5.6 Brokers, Finders and Investment Bankers
	 	 	9	 
	5.7 NRG Energy Inc. Ownership of Genco
	 	 	9	 

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i

 

 

	 	 	 	 	 
	ARTICLE VI
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	 	 
	 
	 	 	 	 
	6.1 Organization; Power of Authority
	 	 	9	 
	6.2 Execution and Delivery
	 	 	9	 
	6.3 Non-Contravention
	 	 	9	 
	6.4 Brokers, Finders and Investment Bankers
	 	 	10	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	ADDITIONAL AGREEMENTS AND COVENANTS
	 	 	 	 
	 
	 	 	 	 
	7.1 No Other Representation
	 	 	10	 
	7.2 Transaction Costs
	 	 	10	 
	7.3 Indemnifications by South Texas and Genco
	 	 	10	 
	7.4 Indemnifications by the Company and its Subsidiaries
	 	 	11	 
	7.5 Indemnification Procedure
	 	 	11	 
	7.6 Liability Limits
	 	 	13	 
	7.7 Exclusive Remedy
	 	 	14	 
	7.8 Tax Matters
	 	 	14	 
	7.9 Access to Records
	 	 	14	 
	7.10 Consequential Damages
	 	 	14	 
	7.11 Disclosure Schedules
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	GENERAL
	 	 	 	 
	 
	 	 	 	 
	8.1 Successors and Assigns
	 	 	15	 
	8.2 Amendments
	 	 	15	 
	8.3 No Merger
	 	 	16	 
	8.4 Further Assurances
	 	 	16	 
	8.5 Notices
	 	 	16	 
	8.6 Entire Agreement
	 	 	17	 
	8.7 Governing Law
	 	 	17	 
	8.8 Dispute Resolution
	 	 	17	 
	8.9 Severability
	 	 	17	 
	8.10 Counterparts
	 	 	17	 
	8.11 Remedies
	 	 	18	 

EXHIBITS

	 	 	 	 	 
	A

	 	-
	 	Defined Terms
	B

	 	-
	 	Contribution and Assumption Agreement
	C

	 	-
	 	Arbitration Procedures

Contribution Agreement

(NRG)

Table of Contents

ii

 

 

SCHEDULES

	 	 	 
	Schedule 2.1(d)

	 	Transferred Contracts and Permits
	Schedule 2.3

	 	Excluded Assets
	Schedule 4.3

	 	Non-Contravention
	Schedule 4.4

	 	Defaults under Transferred Contracts
	Schedule 4.5

	 	Legal Proceedings
	Schedule 4.6

	 	Exceptions to Title
	Schedule X

	 	Permitted Encumbrances

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GLOSSARY OF DEFINED TERMS

     The page or Exhibit location of the definition of each capitalized term used in this Agreement is
set forth in this Glossary:

	 	 	 	 	 
	Affiliate
	 	Exhibit A	 
	Agreement
	 	 	1	 
	Arbitration Notice
	 	Exhibit C	 
	Arbitrator
	 	Exhibit C	 
	Assumed Obligations
	 	 	3	 
	Basket Amount
	 	 	13	 
	Business Day
	 	Exhibit A	 
	Charter Documents
	 	Exhibit A	 
	Claim
	 	 	11	 
	Closing
	 	 	4	 
	Closing Date
	 	 	4	 
	COLA
	 	Exhibit A	 
	Common South Texas Project Property
	 	Exhibit A	 
	Common Station Facilities
	 	Exhibit A	 
	Company
	 	 	1	 
	Company Parties
	 	 	10	 
	Contributed Assets
	 	 	3	 
	Contributing Parties
	 	 	11	 
	Contribution and Assumption Agreement
	 	 	5	 
	CPR
	 	Exhibit C	 
	Development Rights
	 	 	3	 
	Dispute
	 	Exhibit C	 
	Disputing Party
	 	Exhibit C
	Effective Date
	 	 	1	 
	Encumbrance
	 	Exhibit A	 
	Environmental Laws
	 	Exhibit A	 
	**
	 	 	3	 
	Genco
	 	 	1	 
	Governmental Authority
	 	Exhibit A	 
	Hazardous Substance
	 	Exhibit A	 
	Indemnified Party
	 	 	11	 
	Indemnifying Party
	 	 	11	 
	Knowledge of Genco
	 	Exhibit A	 
	Knowledge of South Texas
	 	Exhibit A	 
	Law
	 	Exhibit A	 
	Lien
	 	Exhibit A	 
	Litigation Counsel
	 	 	12	 
	Losses
	 	Exhibit A	 
	Material Adverse Effect
	 	Exhibit A	 
	Multi-Unit Agreement
	 	Exhibit A	 
	NRC
	 	Exhibit A	 
	NRG 3
	 	 	1	 
	NRG 4
	 	 	1	 
	Nuclear Intangibles
	 	Exhibit A	 
	OPCO
	 	Exhibit A	 
	Operating Agreement
	 	Exhibit A	 
	Participant
	 	Exhibit A	 
	Participation Agreement
	 	Exhibit A	 
	Parties
	 	 	1	 
	Party
	 	 	1	 
	Permits
	 	Exhibit A	 
	Permitted Encumbrances
	 	Exhibit A	 
	Person
	 	Exhibit A	 
	Project Land
	 	Exhibit A	 
	Property Taxes
	 	 	14	 
	Release
	 	Exhibit A	 
	Retained Obligations
	 	Exhibit A	 
	Rules
	 	Exhibit C	 
	SEO
	 	Exhibit C	 
	South Texas
	 	 	1	 
	South Texas Plant Site
	 	Exhibit A	 
	South Texas Project
	 	Exhibit A	 
	ST3&4 Project
	 	Exhibit A	 
	STP3&4
	 	 	1	 
	Supplemental Agreements
	 	Exhibit A	 
	Tax
	 	Exhibit A	 
	Taxes
	 	Exhibit A	 
	Taxing Authority
	 	Exhibit A	 
	Title Transfer
	 	Exhibit A	 
	Transaction Documents
	 	Exhibit A	 
	Transferred Contracts
	 	Exhibit A	 
	Tribunal
	 	Exhibit C	 

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

Contribution Agreement

(NRG)

Table of Contents

 

 

Contribution Agreement

(NRG)

Table of Contents

 

 

CONTRIBUTION AGREEMENT

(NRG)

     This AMENDED AND RESTATED CONTRIBUTION AGREEMENT (NRG) (this “Agreement”) is made as of March
25, 2008 (the “Effective Date”), by and among Texas Genco Holdings, Inc., a Texas corporation
(“Genco”), NRG South Texas LP, a Texas limited partnership (“South Texas”, and together with
Genco, the “NRG Parties”), NRG Nuclear Development Company LLC, a Delaware limited liability
company (the “Company”), STP 3&4 Investments LLC, a Delaware limited liability company (“STP 3&4
”), NRG South Texas 3 LLC, a Delaware limited liability company (“NRG 3 ”) and NRG South Texas 4
LLC, a Delaware limited liability company (“NRG 4”). Each of the above are individually referred
to herein as a “Party” and collectively as the “Parties.”

RECITALS

     WHEREAS, Genco and South Texas have previously formed the Company;

     WHEREAS, South Texas owns certain development rights related to the development of additional
nuclear generation facilities on the Project Land;

     WHEREAS, Genco owns certain intangibles related to the nuclear energy generation industry;

     WHEREAS, Genco, South Texas and the Company have previously entered into a Contribution
Agreement (the “Prior Agreement”) whereby the NRG Parties agreed to contribute the Contributed
Assets to the Company; and

     WHEREAS, the Parties now desire to amend and restate the Prior Agreement in its entirety.

     NOW, THEREFORE, in consideration of the premises, the agreements and mutual covenants
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:

AGREEMENTS

ARTICLE I

DEFINITIONS

     1.1 Definitions. In addition to the terms defined in the body of this Agreement, capitalized terms used
herein shall have the meanings given to them in Exhibit A. The Glossary of Defined Terms,
which follows the Table of Contents, sets forth the location in this Agreement of the definition
for each capitalized term used herein.

     1.2 Construction. Unless the context requires otherwise: (a) the gender (or lack of gender) of all words
used in this Agreement includes the masculine, feminine, and neuter; (b) each reference to an
Article or Section refers to such Article or Section of this Agreement; (c)

Contribution Agreement

(NRG)

1

 

each reference to a
Schedule or Exhibit refers to such Schedule or Exhibit attached to this Agreement, which is made a
part hereof for all purposes; (d) each reference to a Law refers to such Law as it may be amended
from time to time, and each reference to a particular provision of a Law includes any corresponding
provision of any succeeding Law; (e) the word “including” means “including, but not limited to”;
and (f) each reference to money refers to the legal currency of the United States of America.

ARTICLE II

CONTRIBUTION

     2.1 Contribution by South Texas. Subject to and in accordance with the terms and conditions of this Agreement, at the
Closing, and in exchange for an interest in the Company which shall be deemed immediately
distributed to its parents and then to Genco, South Texas shall contribute (or cause its applicable
Affiliate to contribute) to a subsidiary of the Company (as designated by the Company at Closing)
the following assets and properties, in each case free and clear of any and all Encumbrances, other
than Permitted Encumbrances:

	 	(a)	 	all rights of South Texas under the Participation Agreement to
develop the ST3&4 Project on the Project Land and the rights to become a
Participant thereunder as to the development of the ST3&4 Project, which rights
include (i) the right to the use of Common Station Facilities under such
agreement as it relates to the ST3&4 Project, (ii) the rights under Section
6.5.2 of the Participation Agreement to own an undivided interest in a portion
of the South Texas Plant Site, the Railroad Strip and the Common Station
Facilities as a result of the development of the ST3&4 Project, (iii) the
beneficial interest in all contract rights, Permit applications (including
COLA) and all other intangible rights held by OPCO as agent for the
Participants in the ST3&4 Project;
	 
	 	(b)	 	the rights of South Texas under the Supplemental Agreement;
	 
	 	(c)	 	the rights of a Participant under the Operating Agreement as
such rights relate to the ST3&4 Project;
	 
	 	(d)	 	those contracts, Permit applications and other intangible
rights described on Schedule 2.1(d) and, to the extent transferable to
the Company, all other rights under contracts held directly by South Texas or
its Affiliates, Permit applications, and other intangible rights held by South
Texas or its Affiliates and in each case to the extent related to the
development of the ST3&4 Project;
	 
	 	(e)	 	two resonant column torsional shear testing machines utilized
for the analysis of soil borings;
	 
	 	(f)	 	subject to obligations of confidentiality set forth in the
Transferred Contracts, copies of all books and records of South Texas relating
to the Development Rights described in clauses (a) through (e) above; and

Contribution Agreement

(NRG)

2

 

	 	(g)	 	**

     The rights described in (a) through (f) above are the “Development Rights ”.

          2.2 Contribution by Genco. Subject to and in accordance with the terms and conditions of this Agreement, at the
Closing, and in exchange for an interest in the Company, Genco shall contribute to the Company the
Nuclear Intangibles, free and clear of any and all Encumbrances other than Permitted Encumbrances
(the Nuclear Intangibles, the Development Rights and the **being the “Contributed Assets
”).

          2.3 Excluded Assets. Anything contained in Sections 2.1 and 2.2 or elsewhere to the contrary
notwithstanding, the Contributed Assets shall not include the assets and rights of South Texas and
Genco listed on Schedule 2.3.

          2.4 Retained Obligations. Notwithstanding anything in this Agreement or any Transaction Document to the contrary, it is
understood and agreed that South Texas and Genco shall retain all liability for, and neither the
Company nor any subsidiary thereof shall assume or have any obligation with respect to, their
respective Retained Obligations.

          2.5 Assumed Obligations. NRG 3 and NRG 4, each severally as to unit 3 and unit 4, respectively, of the South Texas
Project (and not as to the other of such units) shall at Closing assume all liabilities and
obligations relating to the following: (a) all liabilities and obligations relating to the
Development Rights (including the obligation to pay Property Taxes related to the ST3&4 Project or
the Common South Texas Project Property if any, arising from and after the Closing Date), (b) South
Texas’ obligations to make payments under the Participation Agreement for its share of the Project
Costs (as defined in the Participation Agreement) related to the ST3&4 Project (to the extent not
previously reimbursed by another Participant), even if Title Transfer has not yet occurred and even
if such costs were incurred prior to the Closing Date, (c) all third party out of pocket costs incurred by South Texas or its Affiliates prior to the Closing Date
(but not paid prior to Closing) and which relate the development of the ST3&4 Project and (d)
obligations of subrogation with respect to guaranties provided by NRG or its Affiliates (other than
the Company) to pay liabilities assumed under (a) through (c) of this Section 2.5. The
Company shall at the Closing assume all liabilities and obligations relating to the Nuclear
Intangibles. STP 3&4 shall at the Closing assume all liabilities and obligations relating to the
**. The liabilities assumed by each of the above entities shall be the “Assumed
Obligations ” of such entity. None of the Company or its subsidiaries is assuming any obligation
assumed by any of the other of them under this Section 2.5.

 

			
	**	 	This portion has been redacted pursuant to a
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ARTICLE III

CLOSING

     3.1 Closing. The consummation of the actions described in Article II (the “Closing” ) shall be held at a
location selected by the Parties, or if not otherwise selected at the offices of South Texas at
1301 McKinney, Suite 2300, Houston, Texas 77010, on a date selected by the Parties and occurring on
or before April 30, 2008 or a date that is five (5) Business Days after satisfaction of the
conditions set forth in Section 3.2 (the “Closing Date ”), and shall be deemed to have
occurred at 11:59 p.m., central daylight time.

     3.2 Closing Conditions. The obligations of each of the Parties to proceed with the Closing are subject to the
following:

	 	(a)	 	Each other Party shall have delivered the Transaction Documents
to which it is a party;
	 
	 	(b)	 	the accuracy in all material respects of the representations
and warranties hereunder of the NRG Parties and the compliance by the NRG
Parties with their material obligations hereunder, and the absence of any
amendment or supplement to the Schedules hereto having been made which is
reasonably likely to result in a Material Adverse Effect;
	 
	 	(c)	 	the accuracy in all material respects of the representations
and warranties hereunder of the Company and its subsidiaries and the compliance
by the Company with its obligations hereunder;
	 
	 	(d)	 	all consents set forth on Schedule 4.3 shall have been
obtained, or with respect to such matters that under the applicable Law do not
require
consent but require that the Parties wait an amount of time prior to the
Closing, the applicable amount of time shall have passed; and
	 
	 	(e)	 	there shall be no effective injunction, writ or preliminary
restraining order or any order of any nature issued by a Governmental Authority
of competent jurisdiction to the effect that the transactions contemplated
hereby may not be consummated, no proceeding or lawsuit shall have been
commenced by any Governmental Authority for the purpose of obtaining any such
injunction, writ or preliminary restraining order and no written notice shall
have been received from any Governmental Authority indicating an intent to
restrain, prevent, materially delay or restructure the transactions
contemplated hereby, in each case where the Closing would (or would be
reasonably likely to) result in a material fine or penalty payable by a Party
or a material restriction on a Party’s operations as a result of such matter.

     The conditions set forth in the forgoing clauses are for the benefit of all Parties and may
only be waived in a writing signed by all Parties.

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     3.3 Closing Deliveries.

	 	(a)	 	At the Closing, South Texas and Genco shall execute and
deliver, as applicable, the following documents, where the execution or
delivery of documents is contemplated, and shall take or cause to be taken the
following actions, where the taking of action is contemplated:

	 	(i)	 	Assignment and assumption agreements, duly
executed by South Texas and Genco, assigning the Contributed Assets to
the Company (or at the request of the Company, directly to one or more
subsidiaries thereof), in the form of Exhibit B (each a
“Contribution and Assumption Agreement ”);
	 
	 	(ii)	 	A certificate of the secretary or an authorized
officer of South Texas, or its general partner, as applicable, dated as
of the Closing Date, certifying as to (and attaching copies of) (A) a
resolution of the general partner of South Texas authorizing and
approving the execution by South Texas of each of the Transaction
Documents to which it is a party and performance of the transactions
contemplated thereunder, (B) the Charter Documents of South Texas and
(C) the officers or directors of South Texas or its general partner, as
applicable, who are authorized to sign the Transaction Documents to
which South Texas is a party;
	 
	 	(iii)	 	A certificate of the secretary or an
authorized officer of Genco, dated as of the Closing Date, certifying
as to (and attaching copies
of) (A) a resolution of board of directors of Genco authorizing and
approving the execution by Genco of each of the Transaction Documents
to which it is a party and performance of the transactions
contemplated thereunder, (B) the Charter Documents of Genco and (C)
the officers or directors of Genco who are authorized to sign the
Transaction Documents to which Genco is a party;
	 
	 	(iv)	 	A certificate, duly executed by authorized
officer of South Texas, certifying to the Company the truth as of the
Closing Date of the representations and warranties of such entity as
set forth in Article IV hereof;
	 
	 	(v)	 	A certificate, duly executed by authorized
officer of Genco, certifying to the Company the truth as of the Closing
Date of the representations and warranties of such entity as set forth
in Article V hereof;
	 
	 	(vi)	 	Such other instruments and documents as are
reasonably necessary to effect the transactions contemplated hereby to
occur at Closing.

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	 	(b)	 	At the Closing, the Company shall deliver to South Texas and
Genco, as applicable, the following documents, where the execution or delivery
of documents is contemplated, and shall take or cause to be taken the following
actions, where the taking of action is contemplated:

	 	(i)	 	The Contribution and Assumption Agreements,
duly executed by the Company or one of its subsidiaries;
	 
	 	(ii)	 	Certificates, duly executed by authorized
officers of the Company, and its subsidiaries certifying to South Texas
and Genco the truth as of the Closing Date of the representations and
warranties of such entity as set forth in Article VI hereof; and
	 
	 	(iii)	 	Such other instruments and documents as South
Texas or Genco reasonably deems necessary to effect the transactions
contemplated hereby to occur at Closing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SOUTH TEXAS

     South Texas hereby represents and warrants to the Company as follows:

     4.1 Organization; Power of Authority. South Texas is duly formed (as applicable), validly existing, and (if applicable) in good
standing under the Law of the jurisdiction of its formation. If required by applicable Law, South
Texas is duly qualified and in good standing in the jurisdiction of its principal place of
business, if different from its jurisdiction of formation, and South Texas has full power and
authority to execute and deliver this Agreement and the other Transaction Documents and to perform
its obligations hereunder and thereunder, and all necessary actions by the board of directors,
shareholders, managers, members, partners, trustees, or beneficiaries, necessary for the due
authorization, execution, delivery, and performance of this Agreement and the other Transaction
Documents by South Texas have been duly taken.

     4.2 Execution and Delivery. South Texas has duly executed and delivered this Agreement, and it constitutes the legal,
valid and binding obligation of South Texas enforceable against it in accordance with its terms
(except as may be limited by bankruptcy, insolvency or similar Laws of general application and by
the effect of general principles of equity, regardless of whether considered at law or in equity).

     4.3 Non-Contravention. South Texas’ authorization, execution, delivery, and performance of this Agreement and the
other Transaction Documents does not and will not (a) conflict with, or result in a breach, default
or violation of, (i) the Charter Documents of South Texas, (ii) any contract or agreement to which
South Texas is a party or is otherwise subject or (iii) any Law, order, judgment, decree, writ,
injunction or arbitral award to which South Texas is subject or (b) require any consent, approval
or authorization from, filing or registration with, or notice to, any Governmental Authority or
other Person, unless in each case such requirement has already been satisfied or such matter is set
forth in Schedule 4.3. South Texas has delivered to the Company copies of the written
notices it gave to the other Participants pursuant to Sections 

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6.1 and 6.2 of the
Participation Agreement with respect to the development of ST3&4 Project and such notices were
provided to the other Participants on December 3, 2007, and **.

     4.4 Transferred Contracts. With respect to each Transferred Contract, except as set forth on Schedule 4.4 :
(a) a true, correct and complete copy of such Transferred Contract has been provided to Toshiba by
South Texas, (b) except as expressly set forth on Schedule 4.4 , such Transferred Contract
has not been amended, modified or terminated and is in full force and effect, (c) such Transferred
Contract is the legal and valid obligation of South Texas, and, to the Knowledge of South Texas, of
each other party thereto, (d) neither South Texas nor, to the Knowledge of South Texas, any other
Person is in breach or default under such Transferred Contract, (e) no event has occurred
(including any event with notice or lapse of time, or both) that would, and the transactions
contemplated by this Agreement and the other Transaction Documents shall not, constitute a breach
or default, or permit termination, modification in any manner materially adverse to South Texas or
acceleration of such Transferred Contract, and (f) to the Knowledge of South Texas, no party has
asserted any right to offset, discount or otherwise abate any amount owing under such
Transferred Contract. None of the rights of South Texas under the Transferred Contracts has
been assigned or otherwise transferred (including by an absolute assignment of rents or contracts)
or is the subject of any Encumbrance other than a Permitted Encumbrance.

     4.5 Legal Proceedings. Except as set forth in Schedule 4.5, there are no proceedings pending or, to the
Knowledge of South Texas, threatened (a) with respect to the Development Rights or the
** or (b) that seek to restrain, prohibit, or obtain damages or other relief in
connection with, this Agreement or the transactions contemplated hereby.

     4.6 Contributed Assets. South Texas is vested with good title to each item included in the Development Rights and
the **, and such title is free and clear of all Encumbrances other than Permitted
Encumbrances. The Development Rights constitute all of the property and rights used or held for
use by South Texas for the development of the ST3&4 Project. South Texas, as a Participant under
the Participation Agreement, has good and marketable fee title to an undivided 44% tenant in common
interest in land covered by the title policy referenced in Schedule 4.6 (which is generally
the land defined as the South Texas Plant Site and the Railroad Strip in the Participation
Agreement), except for the portions of such land that have since the date of the policy been
conveyed for transmission or other purposes related to the South Texas Project and which are not
material to the development of the ST3&4 Project or any Additional Units, as defined in the
Multi-Unit Agreement, subject only to the Encumbrances set forth on Schedule 4.6 with
respect thereto. To the Knowledge of South Texas, (i) all of the insurance required to be
maintained by OPCO pursuant to the Participation is in full force and effect and (ii) all Property
Taxes due and payable prior to the Closing date have been paid. To the Knowledge of South Texas,
South Texas has not received any written notice that any portion of the South Texas Plant Site is
the subject of any Release of Hazardous Substances that has not been remediated to the extent
required by any Law effect at the time of such Release. As of the

 

			
	**	 	This portion has been redacted pursuant to a
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Closing, the incurred but unpaid
accounts payable included within the Assumed Obligations do not exceed $10,000,000.00.

     4.7 South Texas Nuclear Plant Representations. To the Knowledge of South Texas, there are no inaccuracies related to the Common South
Texas Project Property contained in the COLA or the supporting or supplementing documentation
submitted to the NRC that could reasonably be expected to give rise to a Material Adverse Effect.

     4.8 Brokers, Finders and Investment Bankers. Neither South Texas nor any of its Affiliates, nor any of their respective partners, members,
shareholders, directors, officers or employees has employed or retained any broker, finder or
investment banker or incurred any liability for any investment banking fees, financial advisory
fees, brokerage fees or finders’ fees in connection with the transactions contemplated hereby for
which any of the other Parties has liability.

     4.9 NRG Energy Inc. Ownership of South Texas. South Texas is an indirect, wholly-owned subsidiary of NRG Energy, Inc.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF GENCO

     Genco hereby represents and warrants to the Company as follows:

     5.1 Organization; Power of Authority. Genco is duly formed (as applicable), validly existing, and (if applicable) in good
standing under the Law of the jurisdiction of its formation. If required by applicable Law, Genco
is duly qualified and in good standing in the jurisdiction of its principal place of business, if
different from its jurisdiction of formation, and Genco has full power and authority to execute and
deliver this Agreement and the other Transaction Documents and to perform its obligations hereunder
and thereunder, and all necessary actions by the board of directors, shareholders, managers,
members, partners, trustees, beneficiaries, necessary for the due authorization, execution,
delivery, and performance of this Agreement and the other Transaction Documents by Genco have been
duly taken.

     5.2 Execution and Delivery. Genco has duly executed and delivered this Agreement, and it constitutes the legal, valid
and binding obligation of Genco enforceable against it in accordance with its terms (except as may
be limited by bankruptcy, insolvency or similar Laws of general application and by the effect of
general principles of equity, regardless of whether considered at law or in equity).

     5.3 Non-Contravention. Genco’s authorization, execution, delivery, and performance of this Agreement and the other
Transaction Documents does not and will not (a) conflict with, or result in a breach, default or
violation of, (i) the Charter Documents of Genco, (b) any contract or agreement to which Genco is a
party or is otherwise subject or (ii) any Law, order, judgment, decree, writ, injunction or
arbitral award to which Genco is subject or (iii) require any consent, approval or authorization
from, filing or registration with, or notice to, any Governmental Authority or other Person, unless
in each case such requirement has already been satisfied or such matter is set forth in
Schedule 4.3.

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     5.4 Legal Proceedings. Except as set forth in Schedule 4.5, there are no proceedings pending or, to the
Knowledge of Genco, threatened (a) with respect to the Nuclear Intangibles or the proposed
developments
described therein or (b) which seek to restrain, prohibit, or obtain damages or other relief
in connection with, this Agreement or the transactions contemplated hereby.

     5.5 Contributed Assets. Genco is vested with good title to each item included in the Nuclear Intangibles, and such
title is free and clear of all Encumbrances other than the Permitted Encumbrances.

     5.6 Brokers, Finders and Investment Bankers. Neither Genco nor any of its Affiliates, nor any of their respective partners, members,
shareholders, directors, officers or employees has employed or retained any broker, finder or
investment banker or incurred any liability for any investment banking fees, financial advisory
fees, brokerage fees or finders’ fees in connection with the transactions contemplated hereby for
which any of the other Parties has
liability.

     5.7 NRG Energy Inc. Ownership of Genco. Genco is an indirect, wholly-owned subsidiary of NRG Energy, Inc.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     Each of the Company and its subsidiaries that is a Party hereto hereby represents and warrants
to South Texas and Genco as follows:

     6.1 Organization; Power of Authority. It is duly formed (as applicable), validly existing, and (if applicable) in good standing
under the Law of the jurisdiction of its formation. If required by applicable Law, it is duly
qualified and in good standing in the jurisdiction of its principal place of business, if different
from its jurisdiction of formation, and it has full power and authority to execute and deliver this
Agreement and the other Transaction Documents and to perform its obligations hereunder and
thereunder, and all necessary actions by the board of directors, shareholders, managers, members,
partners, trustees, beneficiaries, necessary for the due authorization, execution, delivery, and
performance of this Agreement and the other Transaction Documents by it have been duly taken.

     6.2 Execution and Delivery. It has duly executed and delivered this Agreement, and it constitutes the legal, valid and
binding obligation of it enforceable against it in accordance with its terms (except as may be
limited by bankruptcy, insolvency or similar Laws of general application and by the effect of
general principles of equity, regardless of whether considered at law or in equity).

     6.3 Non-Contravention. Its authorization, execution, delivery, and performance of this Agreement and the other
Transaction Documents does not and will not (a) conflict with, or result in a breach, default or
violation of, (i) the Charter Documents of it, (ii) any contract or agreement to which it is a
party or is otherwise subject or (iii) any Law, order, judgment, decree,

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	writ, injunction or arbitral award to which it is subject or (b) require any consent, approval or authorization from,
filing or registration with, or notice to, any Governmental Authority or other Person.

     6.4 Brokers, Finders and Investment Bankers. Neither the Company nor any of its Affiliates, nor any of their respective partners, members,
shareholders, directors, officers or employees has employed or retained any broker, finder or
investment banker or incurred any liability for any investment banking fees, financial advisory
fees, brokerage fees or finders’ fees in connection with the transactions contemplated hereby for
which any of the other Parties has liability.

ARTICLE VII

ADDITIONAL AGREEMENTS AND COVENANTS

     7.1 No Other Representation. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS AGREEMENT, THE CONTRIBUTED
ASSETS ARE BEING CONTRIBUTED HEREBY ON AN “AS IS, WHERE IS” BASIS, AND NEITHER SOUTH TEXAS NOR
GENCO NOR ANY OTHER PERSON ON BEHALF OF SOUTH TEXAS, GENCO OR THEIR RESPECTIVE AFFILIATES MAKES ANY
REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WRITTEN OR ORAL, AND TO THE MAXIMUM EXTENT
PERMITTED BY APPLICABLE LAW DISCLAIMS ANY SUCH REPRESENTATION OR WARRANTY (INCLUDING WITHOUT
LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), WHETHER BY SOUTH
TEXAS, GENCO, THEIR RESPECTIVE AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, PARTNERS,
PRINCIPALS, EMPLOYEES, AGENTS, MEMBERS OR REPRESENTATIVES OR ANY OTHER PERSON ON BEHALF OF SOUTH
TEXAS, GENCO OR THEIR RESPECTIVE AFFILIATES, WITH RESPECT TO THE CONTRIBUTED ASSETS.

     7.2 Transaction Costs. Each Party shall bear and pay all of its own costs, fees and expenses, including any legal
fees, brokerage commissions or finders’ fees, if any, incurred by or on its behalf in connection
with the transactions contemplated by this Agreement and the other Transaction Documents.

     7.3 Indemnifications by South Texas and Genco.

	 	(a)	 	Subject to the other terms of this ARTICLE VII, South Texas
shall indemnify, defend and hold harmless, the Company, its subsidiaries, and
their respective directors, officers, employees, successors, assigns and
representatives (collectively, the “Company Parties ”) from and against any and
all Losses arising out of or resulting from (i) the failure of any of South
Texas’ representations or warranties contained in this Agreement, any
Contribution and Assumption Agreement or the certificates to be delivered at
Closing to be true and correct, (ii) the failure of South Texas to perform any
of its covenants or obligations under this Agreement, any 

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	 	 	 	Contribution and
Assumption Agreement or the certificates or any other documents executed
pursuant to this Agreement to be delivered at Closing, and (iii) the Retained
Obligations.

	 	(b)	 	Subject to the other terms of this ARTICLE VII, Genco shall
indemnify, defend and hold harmless the Company Parties from and against any
Losses arising out of or resulting from (i) the failure of any of Genco’s
representations or warranties contained in this Agreement, any Contribution and
Assumption Agreement or the certificates to be delivered at Closing to be true
and correct, and (ii) the failure of Genco to perform any of its covenants or
obligations under this Agreement, any Contribution and Assumption Agreement or
the certificates or any other documents executed pursuant to this Agreement to
be delivered at Closing.

     7.4 Indemnifications by the Company and its Subsidiaries. Subject to the other terms of this ARTICLE VII, the Company shall indemnify, defend and
hold harmless, Genco, South Texas, and their respective directors, officers, employees,
successors, assigns, and representatives (collectively, the “Contributing Parties ”) from and
against any and all Losses arising out of or resulting from (a) the failure of any of the Company’s
representations or warranties contained in this Agreement or in any other Transaction Document to
be true and correct and (b) the failure of the Company to perform any of its covenants or
obligations under this Agreement, any Contribution and Assumption Agreement or the certificates or
any other documents executed pursuant to this Agreement to be delivered at Closing. Subject to the
other terms of this ARTICLE VII, the one of the Company or its subsidiaries that under
Section 2.5 is assuming the relevant Assumed Obligation shall indemnify, defend and hold
harmless the Contributing Parties from and against any and all Losses arising out of or resulting
from the relevant Assumed Obligation it is assuming.

     7.5 Indemnification Procedure.

	 	(a)	 	Promptly following receipt by either the Company Parties or the
Contributing Parties (each an “Indemnified Party ”) of notice by a third party
(including any Governmental Authority) of any complaint or the commencement of
any audit, investigation, action or proceeding (in each
case, a “Claim ”) with respect to which such Indemnified Party may be
entitled to receive payment from the other Party for any Loss, such
Indemnified Party shall notify South Texas and Genco or the Company or its
subsidiaries, as the case may be (the “Indemnifying Party ”); provided,
however, that the failure to so notify the Indemnifying Party shall relieve
the Indemnifying Party from liability hereunder with respect to such Claim
only if, and only to the extent that, such failure to so notify the
Indemnifying Party results in the loss by the Indemnifying Party of (or
other limitations to) rights and defenses otherwise available to the
Indemnifying Party or the Indemnified Party with respect to such Claim. The
Indemnifying Party shall have the right, upon written notice delivered to
the Indemnified Party within twenty (20) days thereafter, to assume the

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	 	 	 	defense of such Claim (which may be with a reservation of rights to deny
liability under an indemnity), including the employment of counsel hired in
consultation with the Indemnified Party (“Litigation Counsel ”) and the
payment of the fees and disbursements of such Litigation Counsel and other
costs of such defense. In the event, however, that the Indemnifying Party
declines or fails to assume the defense of such Claim as provided above or
to employ Litigation Counsel, in either case within such twenty (20) day
period, then such Indemnified Party may employ counsel to represent or
defend the Indemnified Party in any such Claim, and the Indemnifying Party
shall promptly reimburse the Indemnified Party for all reasonable fees and
disbursements of such counsel and other reasonable costs of such defense
(which reimbursement obligation shall accrue from the first dollar of such
costs as incurred by the Indemnified Party). In any event, the Indemnifying
Party shall not be required to pay the fees and disbursements of more than
one counsel for all Indemnified Parties in any jurisdiction in connection
with such Claim, unless Litigation Counsel determines that continued
representation of the Indemnified Party is inappropriate due to a conflict
of interest under applicable ethical rules resulting from its representation
of both the Indemnifying Party and such Indemnified Party, in which case,
the Indemnifying Party shall have the option of (i) appointing substitute
counsel that does not believe it is subject to such a conflict of interest
or (ii) employing and paying the fees and disbursements of different counsel
to represent such Indemnified Party. Notwithstanding the Indemnifying
Party’s election to assume the defense of any third party Claim, the
Indemnified Party shall have the right at its cost to employ separate
counsel (including local counsel) to monitor (but not control) such defense.
The Indemnifying Party or the Indemnified Party (as the case may be) shall
at all times use commercially reasonable efforts to keep the Indemnifying
Party or Indemnified Party (as the case may be) reasonably apprised of the
status of the defense of any matter the defense of which it is maintaining
and to cooperate in good faith with each other with respect to the defense
of any such matter.

	 	(b)	 	No Indemnified Party may settle or compromise any Claim or
consent to the entry of any judgment with respect to which indemnification is
being sought hereunder without the prior written consent of the Indemnifying
Party, unless (i) the Indemnifying Party fails to assume and maintain the
defense of such Claim pursuant to Section 7.5(a), (ii) such settlement,
compromise or consent does not contain any admission or statement suggesting
any wrongdoing or liability on behalf of the Indemnifying Party and (iii) such
settlement, compromise or consent includes an unconditional release of the
Indemnifying Party and its directors, officers, employees, successors, assigns
and representatives from all liability arising out of such Claim. An
Indemnifying Party may not, without the prior written consent of the
Indemnified Party, settle or compromise any claim or consent to the entry of
any judgment with respect to which 

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	 	 	 	indemnification is being sought hereunder
unless such settlement, compromise or consent (x) includes an unconditional
release of the Indemnified Party and its directors, officers, employees,
successors, assigns and representatives from all liability arising out of such
Claim, (y) does not contain any admission or statement suggesting any
wrongdoing or liability on behalf of the Indemnified Party and (z) does not
contain any equitable order, judgment or term that in any material manner
affects, restrains or interferes with the business of the Indemnified Party or
any of the Indemnified Party’s Affiliates.

	 	(c)	 	If an Indemnified Party claims a right to payment pursuant
hereto, such Indemnified Party shall send written notice of such Claim to the
appropriate Indemnifying Party. Such notice shall specify the basis for such
Claim. The failure by any Indemnified Party so to notify the Indemnifying
Party shall not relieve the Indemnifying Party from any liability that it may
have to such Indemnified Party with respect to any Claim made pursuant to this
Section 7.5(c), it being understood that notices for Claims in respect
of a breach of a representation or warranty must be delivered prior to the
expiration of the period for such representation or warranty under Section
7.6. If the Indemnifying Party agrees it is liable for such Claim, it
shall pay the amount of such liability to the Indemnified Party within
** or, in the case of any notice in which the amount of the Claim
(or any portion of the Claim) is estimated, within ** after such
later date when the amount of such Claim (or such portion of such Claim)
becomes finally determined. In the event the Indemnifying Party does not
respond to such Claim or disputes its liability with respect to such Claim,
such Indemnified Party and the appropriate Indemnifying Party shall, as
promptly as possible, establish the merits and amount of such Claim by making
good faith efforts to come to an agreement or,
failing mutual agreement, by the exercise of such legal remedies as may be
available, subject to Sections 7.6, 7.7 and 7.10.

     7.6 Liability Limits. Except as expressly provided in the third sentence of Section 7.5(a),
notwithstanding anything to the contrary set forth herein, in no event shall there be any liability
under Section 7.3(a)(i) or 7.3(b)(i) until the aggregate amount of all Losses
suffered arising from matters covered by the indemnity contained such Section exceeds **
(the “Basket Amount ”). In no event shall any Company Party be entitled to assert a claim under
Sections 7.3(a)(i) or 7.3(b)(i) unless such Claim is submitted in compliance with
the other procedures of Section 7.5 on or before, and the representations and warranties
shall survive only until ** after the Closing Date, except that the representations and
warranties contained in ** shall survive until 60 days after the termination of the
applicable statue of limitation covering such matters, if

 

			
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any. The collective liability of South
Texas and Genco under Sections 7.3(a)(i) or 7.3(b)(i) shall not exceed
**. No claim for indemnification may be made under Sections 7.3(a)(i) or
7.3(b)(i) if the Party making the claim had actual knowledge of such breach prior to
Closing and elected to consummate the Closing. In determining the amount of any Losses entitled to
indemnification under Section 7.3, the gross amount thereof will be reduced by any
insurance proceeds actually **received by the claimant with respect to such Losses (net
of any related deductibles and self insurance amounts).

     7.7 Exclusive Remedy. Notwithstanding any other provision of this Agreement to the contrary or any remedies that
might otherwise be available under Law (other than claims based on fraud), the remedies set forth
in this ARTICLE VII and the specific performance remedy referenced in Section 8.11 shall
constitute the sole and exclusive remedies of the Parties hereto (or any assignee of a Party to
which conveyance is made as contemplated in connection herewith) for any claims arising under this
Agreement, the Contribution and Assumption Agreements, the certificates or any other documents
executed pursuant to this Agreement to be delivered at Closing.

     7.8 Tax Matters. South Texas will duly and timely file with the appropriate Taxing Authority all Tax returns
required under applicable Laws to be filed by South Texas for any period ending on or before the
Closing Date that cover any of the Tax obligations described in clause (a) of the definition of the
term Retained Obligations. All ad valorem taxes, personal property taxes and similar obligations
(“Property Taxes ”) attributable to the Contributed Assets, including taxes indirectly payable
pursuant to any lease, with respect to the tax period in which the Closing Date occurs shall be
apportioned as of such Closing Date as set forth under the Participation Agreement. For the year
of the Closing and each succeeding year until Title Transfer, at least 20 days prior to the date
the
Property Taxes are due, South Texas shall send to the Company or the one of its subsidiaries
that is the owner thereof a statement that apportions the Property Taxes invoices received by South
Texas between South Texas, on the one hand, and such owner, on the other hand, based on the
Property Taxes actually invoiced and the relative value of the taxable property of South Texas and
such owner. Within fifteen (15) days of receipt of such statement, the Company shall pay its
portion of such Property Taxes.

     7.9 Access to Records. For all periods subsequent to Closing, the Company shall upon reasonable notice, allow
South Texas and its respective advisors, reasonable access to all original records of South Texas
delivered pursuant to this Agreement for the purpose of verifying or discovery of information
relating to the business or affairs of South Texas prior to the Closing Date (and for a period of
three (3) years after Closing) and after such reasonable notice, the Company shall cause such
records to be available for such inspection. South Texas agrees to reimburse the Company for any
and all expenses incurred by the Company or its subsidiaries in connection with the services
required by the foregoing sentence.

     7.10 Consequential Damages. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL ANY PARTY EVER BE LIABLE
TO ANY OTHER

 

			
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PARTY OR THIRD PARTY WITH RESPECT TO ANY CLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER SPECIAL, PUNITIVE, EXEMPLARY,
CONSEQUENTIAL, INCIDENTAL, OR INDIRECT LOSSES OR DAMAGES FROM ITS PERFORMANCE UNDER THIS AGREEMENT
OR FOR ANY FAILURE OR PERFORMANCE HEREUNDER OR RELATED HERETO, WHETHER ARISING OUT OF BREACH OF
CONTRACT, NEGLIGENCE, TORT, STRICT LIABILITY, OR OTHERWISE AND WHETHER OR NOT ARISING FROM ANY
OTHER PARTY’S SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT.

     7.11 Disclosure Schedules. From time to time up to the Closing, Genco and South Texas shall promptly supplement or
amend the schedules to this Agreement that it has delivered with respect to any matter first
existing or occurring following the date hereof that comes to the Knowledge of Genco or the
Knowledge of South Texas (except that Genco and South Texas shall update Schedule 2.1(d)
for any contract that is included within Section 2.1(d) but is not listed on Schedule
2.1(d), so long as with respect to contracts existing as of the Effective Date, such updating
occurs on or before March 21, 2008) and that (i) if existing or occurring at or prior to the date
hereof, would have been required to be set forth or described in the schedules to this Agreement,
or (ii) is necessary to correct any information in the schedules to this Agreement that has been
rendered inaccurate thereby, but will not restrict the ability of the Company to refuse to
consummate the Closing if the supplement or amendment of the schedules to this Agreement is
reasonably likely to result in a Material Adverse Effect.

ARTICLE VIII

GENERAL

     8.1 Successors and Assigns. All of the terms, covenants, representations, warranties and conditions of this Agreement
shall be binding upon, and inure to the benefit of, and be enforceable by, the Parties hereto and
their respective successors and permitted assigns (and in the case of indemnities to the benefit of
all Persons indemnified). This Agreement and the rights and obligations hereunder shall not be
assigned by any Party hereto without the prior written consent of the other Parties, except that
any Party may assign an interest in all of its rights and obligations hereunder to any Affiliate;
provided that no assignment shall relieve any Party of its obligations hereunder. Nothing herein
expressed or implied is intended or shall be construed to confer upon or to give any Person not a
Party any rights or remedies under or by reason of this Agreement, except for the indemnified
parties expressly identified in this Agreement.

     8.2 Amendments. This Agreement may be amended, modified or superseded, and any of the terms, covenants,
representations, warranties or conditions hereof may be waived, only by a written instrument
executed by all of the Parties. No waiver by any Party of any breach of any term, covenant,
representation or warranty contained in this Agreement, in any one or more instances, shall be
deemed to be or construed as a further or continuing waiver of any such breach or a waiver of any
other breach of any other term, covenant, representation or warranty.

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     8.3 No Merger. Notwithstanding the fact that the Transaction Documents are not intended to, and do not,
contain representations and warranties beyond those made in this Agreement, the Parties agree that
the representations and warranties of the Parties in this Agreement shall not be extinguished or
limited in any respect by, or be merged into the Transaction Documents.

     8.4 Further Assurances. Each Party agrees to execute such further instruments or documents as the other Party may
from time to time reasonably request in order to confirm or carry out the transactions contemplated
in this Agreement; provided that no such instrument or document shall expand a Party’s liability
beyond that contemplated in this Agreement.

     8.5 Notices. Unless otherwise provided herein, all notices, requests, consents, approvals, demands and
other communications to be given hereunder shall be in writing and shall be deemed given upon
(a) confirmation of receipt of a facsimile transmission, (b) confirmed delivery by a standard
overnight carrier or when delivered by hand, (c) actual receipt or (d) the expiration of four
Business Days after the day when mailed by registered or certified mail (postage prepaid, return
receipt requested), addressed to the respective Parties at the following addresses (or such
other address for a party hereto as shall be specified by like notice):

          If to Genco or South Texas, to:

               **

               and to:

               **

          If to the Company or its subsidiaries, to:

               **

               with a copy to:

               **

Any Party may change its Notice address by giving written notice to the other in the manner
specified above.

 

			
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     8.6 Entire Agreement. This Agreement, the other Transaction Documents, the attached schedules and exhibits and
the agreements and documents to be executed pursuant to this Agreement constitute the entire
agreement between the Parties as of the date of this Agreement and supersede any prior
understandings, agreements, or representations by or between the Parties, written or oral, to the
extent they have related in any way to the subject matter hereof.

     8.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS
OF NEW YORK. The foregoing shall not apply to the conveyance instruments delivered pursuant to
this Agreement to the extent the law of any state in which any particular asset or property is
located mandates that the law of that state apply to the conveyance of the asset or property
located there.

     8.8 Dispute Resolution.

	 	(a)	 	Each Party hereby agrees that any dispute, controversy or claim
between the Parties arises under this Agreement or is connected with or related
in any way to this Agreement or any right, duty or obligation arising
hereunder or the relationship of the Parties hereunder may be so submitted
to binding arbitration hereunder and pursuant to the procedures set forth in
Exhibit C, and if so submitted, shall be resolved exclusively and
finally through such binding arbitration. This Section 9.8 and
Exhibit C constitute a written agreement by the Parties to submit to
arbitration any Dispute arising under or in connection with this Agreement
within the meaning of the Federal Arbitration Act, 9.U.S.C. §§ 1, et. seq.
	 
	 	(b)	 	Prior to the appointment of the arbitration tribunal, any Party
may seek provisional relief, including provisional injunctive relief, from any
court of competent jurisdiction, and the application for such relief shall not
be deemed inconsistent with, or a waiver of, the right to arbitrate the
Dispute. With respect to any such application for provisional relief, the
Parties irrevocably submit to the personal jurisdiction of the federal courts
located in Washington, D.C., and waive objection to venue. Once the
arbitration tribunal is appointed, all subsequent applications for provisional
relief shall be made to the arbitration tribunal.

     8.9 Severability. In the event any of the provisions hereof are held to be invalid or unenforceable under any
Law, the remaining provisions hereof shall not be affected thereby. In such event, the Parties
hereto agree and consent that such provisions and this Agreement shall be modified and reformed so
as to effect the original intent of the Parties as closely as possible with respect to those
provisions which were held to be invalid or unenforceable.

     8.10 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which
shall be deemed an original, but all of which shall constitute but one agreement.

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     8.11 Remedies. Each Party acknowledges that the remedies at law of the Parties for a breach or threatened
breach of this Agreement would be inadequate and, in recognition of this fact, any Party, without
posting any bond, and in addition to all other remedies that may be available, shall be entitled to
obtain equitable relief in the form of specific performance, a temporary restraining order, a
temporary or permanent injunction or any other equitable remedy that may then be available.
Notwithstanding Section 8.8, either Party may seek a temporary restraining order or
preliminary injunction from a court of competent jurisdiction pending mediation or arbitration.

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     IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	TEXAS GENCO HOLDINGS, INC.

 	 
	 	By:  	/s/
Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	Vice President 	 
	 
	 	NRG SOUTH TEXAS LP

By: Texas Genco GP, LLC
 	 
	 	  	its general partner
 	 
	 	By:  	/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	Vice President 	 
	 
	 	NRG NUCLEAR DEVELOPMENT COMPANY LLC

 	 
	 	By:  	/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President 	 
	 
	 	STP 3&4 INVESTMENTS LLC

 	 
	 	By:  	/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President 	 
	 

 Contribution Agreement

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Signature Page

 

	 	 	 	 	 
	 	NRG SOUTH TEXAS 3 LLC

 	 
	 	By:  	/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President 	 
	 
	 	NRG SOUTH TEXAS 4 LLC

 	 
	 	By:  	/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President 	 
	 

 Contribution Agreement

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Signature Page

 

EXHIBIT A

Definitions

     “Affiliate ” means with respect to an entity, any other entity controlling, controlled by or
under common control with such entity. As used in this definition, the term “control,” including
the correlative terms “controlling,” “controlled by” and “under common control with,” shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of an entity, whether through ownership of voting securities, by contract or
otherwise.

     “Business Day ” means any day other than a Saturday, a Sunday or a day on which banks in New
York, New York are authorized or required by law to be closed.

     “Charter Documents ” means, with respect to any Person, the articles of incorporation or
association and by-laws, the limited liability company agreement, or limited partnership agreement
or other agreement or agreements that establish the legal personality of such Person.

     “COLA ” means the South Texas Project Unit 3 and 4 Docket No. PROJ0749 Combined License
Application filed with the NRC dated September 20, 2007 and the supplements thereto.

     “Common South Texas Project Property ” means the portion of the South Texas Project and the
Railroad Strip as to which the Company shall own an interest under the Participation Agreement as a
result of the development of the ST3&4 Project, including the Project Land, as well as an undivided
interest in the Common Station Facilities and the Railroad Strip.

     “Common Station Facilities ” has the meaning given such term in the Participation Agreement.

     “Encumbrance ” means any condemnation proceeding, restriction on transfer, preferential right,
option, defect in title, condemnation award, expropriation award, operating lease, sublease,
conditional sales contract or encumbrance of any nature whatsoever (including any Lien).

     “Environmental Laws ” means all Laws (and administrative or judicial interpretations by any
Governmental Authority having the force and effect of Laws) relating to pollution or the protection
of the environment (which includes its ambient air, surface water, ground water, land surface and
subsurface strata), and human health and safety in effect as of the date of this Agreement,
including Laws relating to emissions, discharges, releases or threatened releases of Hazardous
Substances, or otherwise relating to the manufacture, processing, distribution, use, existence,
treatment, storage, disposal, arrangement for transport, arrangement for disposal, transport,
reporting or handling of Hazardous Substances, and including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act, the Superfund Amendments

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Exhibit A—Definitions

A-1

 

Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the
Federal Water Pollution Control Act, the Oil Pollution Act of 1990, the Toxic Substances Control
Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, and the Occupational
Safety and Health Act, as each has been amended from time to time, and all other environmental
conservation and protection laws.

     “Governmental Authority ” means any federal, state or local governmental entity, authority or
agency, court, tribunal, regulatory commission or other body, whether legislative, judicial or
executive (or a combination or permutation thereof).

     “Hazardous Substance ” means any substance listed, defined, designated or classified as a
pollutant or contaminant or as hazardous, toxic or radioactive under any applicable Environmental
Law, including petroleum and any derivative or by-product thereof; asbestos containing materials;
polychlorinated biphenyls; urea formaldehyde foam insulation; radon gas; and radioactive material,
waste and pollutants; radiation, radionuclides and their progeny; and nuclear waste including used
nuclear fuel.

     “Knowledge of Genco ” means the actual knowledge of the following individuals: **.

     “Knowledge of South Texas ” means the actual knowledge of the following individuals:
**.

     “Law ” means any statute, law, treaty, rule, code, ordinance, regulation, permit (including
the Permits), or certificate of any Governmental Authority, any interpretation of any of the
foregoing by any Governmental Authority, or any binding judgment, decision, decree, injunction,
writ, order or like action of any court, arbitrator or other Governmental Authority.

     “Lien ” means any lien, mortgage, hypothecation, pledge, financing lease, security interest or
similar claim, including any statutory landlord lien or lien for Taxes that are due and payable.

     “Losses ” means damages, claims, liabilities, losses, costs and expenses (including reasonable
fees and expenses of counsel and court costs).

     “Material Adverse Effect ” means any supplement or amendment to the Schedules hereto pursuant
to Section 7.11 that, individually or in the aggregate with any such other breach,
supplement or amendment pursuant to Section 7.11 that could reasonably be expected to have
a material adverse effect on the ability to develop the ST3&4 Project, taking into account the
availability of insurance and time frame for expected development.

 

			
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Exhibit A—Definitions

A-2

 

     “Multi-Unit Agreement ” means that certain Multi-Unit Agreement, dated **, by and
among Toshiba Corporation, the Company and NRG Energy, Inc.

     “NRC ” means the US Nuclear Regulatory Commission.

     “Nuclear Intangibles ” means, subject to confidentiality restrictions, written information
memoranda received regarding ABWR investment opportunities and the right for the non-exclusive use
of any books and records, including development plans, memoranda, site evaluations, financing plans
and strategies and budgets related to the development of nuclear generation assets held by NRG
Energy, Inc. or its Affiliates.

     “OPCO ” means STP Nuclear Operating Company, a Texas non-profit corporation.

     “Operating Agreement ” means the Operating Agreement, dated as of November 17, 1997, among
OPCO, City of San Antonio, City of Austin and South Texas (as successor in interest to Central
Power and Light Company and Houston Lighting & Power the Company).

     “Participant ” has the meaning given such term in the Participation Agreement.

     “Participation Agreement ” means the Amended and Restated South Texas Project Participation
Agreement, effective as of November 17, 1997, between City of San Antonio, City of Austin and South
Texas (as successor in interest to Central Power and Light Company and Houston Lighting & Power
Company).

     “Permits ” means any permits, authorizations, registrations, identifications, licenses,
variances, exemptions, orders, franchises, certificates and approvals required under or issued
pursuant to any Law.

     “Permitted Encumbrances ” means the matters set forth on Schedule X .

     “Person ” means any natural person, corporation, company, partnership (general or limited),
limited liability company, trust or other entity.

     “Project Land ” means the portion of the South Texas Plant Site, which shall be allocated for
the exclusive use of the ST3&4 Project.

     “Release ” means any depositing, spilling, leaking, pumping, pouring, placing, emitting,
discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping,
or disposing.

     “Retained Obligations ” means the obligations under the Participation Agreement and the
Operating Agreement that by the terms of such documents are to be paid

 

			
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Exhibit A—Definitions

A-3

 

exclusively by the owners of the Generating Units (as defined in the Participation Agreement)
that do not constitute the ST3&4 Project.

     “South Texas Plant Site ” has the meaning given such term in the Participation Agreement.

     “South Texas Project ” has the meaning given such term in the Participation Agreement.

     “ST3&4 Project ” means the units 3 and 4 of the South Texas Project contemplated to be
developed by the Company.

     “Supplemental Agreement ” means the South Texas Project Supplemental Agreement effective as of
October 29, 2007, between South Texas and The City of San Antonio, as amended.

     “Tax ” or “Taxes ” means any taxes, assessments, fees, unclaimed property and escheat
obligations imposed by any Governmental Authority, including income, profits, gross receipts, net
proceeds, alternative or add-on minimum, ad valorem, value added, sales, use, property, personal
property (tangible and intangible), Property Taxes, environmental, stamp, leasing, lease, user,
excise, duty, franchise, capital stock, transfer, registration, withholding, social security (or
similar), unemployment, disability, payroll, employment, fuel, excess profits, occupational,
premium, windfall profit, severance, actual or estimated, or other charge of any kind whatsoever,
including any interest, penalty, or addition thereto, whether disputed or not.

     “Taxing Authority ” means, with respect to any Tax, the Governmental Authority or political
subdivision thereof that imposes such Tax, and the agency (if any) charged with the collection of
such Tax for such entity or subdivision, including any governmental or quasi-governmental entity or
agency that imposes, or is charged with collecting, social security or similar charges or premiums.

     “Title Transfer ” means the time at which title to the Common South Texas Project Property
shall have vested in the Company under the Participation Agreement.

     “Transaction Documents ” means, collectively, this Agreement, the Company LLC Agreement, the
Contribution and Assumption Agreements, and any and all certificates and other documents delivered
by the Parties at the Closing pursuant to the terms of this Agreement.

     “Transferred Contracts ” means the Participation Agreement, the Operating Agreement, the
Supplemental Agreement and the contracts described in Schedule 2.1(d).

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Exhibit A—Definitions

A-4

 

EXHIBIT B

Form of Contribution and Assumption Agreement

     This CONTRIBUTION AND ASSUMPTION AGREEMENT (this “Agreement”), is entered into as of
[                     ___], 2008, by and between NRG South Texas LP, a Texas limited partnership, Texas
Genco Holdings, Inc., a Texas corporation (each a “Transferor” and collectively, “Transferors”),
and NRG Nuclear Development Company LLC, a Delaware limited liability company (“Recipient”).

RECITALS

     WHEREAS, Recipient was formed effective [                     ___], 2008 by Transferor and NRG South
Texas LP, a Texas limited partnership and Texas Genco Holdings, Inc., a Texas corporation;

     WHEREAS, Transferors and Recipient have entered into a Contribution Agreement dated as of the
date hereof (the “Contribution Agreement”), providing, among other things, for the transfer by
Transferor to Recipient of the Contributed Assets;

     WHEREAS, pursuant to the Contribution Agreement, Transferors and Recipient are required to
execute and deliver this Agreement in connection with the consummation of the transactions
contemplated by the Contribution Agreement; and

     WHEREAS, NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

AGREEMENTS

     1. Capitalized Terms. Any capitalized term used but not defined in this Agreement
shall have the meaning ascribed to such term in the Contribution Agreement.

     2. Conveyance and Assignment of Assets. Subject to the terms of the Contribution
Agreement, Transferors hereby sells, assigns, conveys, transfers and delivers unto Recipient and
its successors and assigns the Contributed Assets.

     TO HAVE AND TO HOLD the Contributed Assets unto Recipient and its successors and assigns
forever, together with all and singular the rights and appurtenances belonging or pertaining
thereto; subject to the terms and limitations of the Contribution Agreement, and Transferors hereby
binds themselves and their respective successors and assigns to warrant and forever defend all and
singular the title to the Contributed Assets unto Recipient, its successors and assigns from all
claims that would constitute a breach of a representation or warranty under the Contribution
Agreement subject to the terms and limitations of the Contribution Agreement.

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Exhibit B — Form of Contribution and Assumption Agreement

B-1

 

     3. Subsequent Actions. Transferors hereby covenant to and with Recipient, its
successors and assigns, to execute and deliver to Recipient, its successors and assigns, all such
other and further instruments of conveyance, assignment and transfer, and all such notices,
releases and other documents, that would more fully and specifically convey, assign, and transfer
to and vest in Recipient, its successors and assigns, the title of Transferors in and to all and
singular the Contributed Assets hereby conveyed, assigned, and transferred, or intended to be
conveyed, assigned or transferred. To the extent that, with respect to any of the Contributed
Assets, no assignment document other than this Agreement is executed, the parties intend for this
Agreement to constitute the conveyance, transfer and assignment of such Contributed Assets.
Following the date hereof, Transferors shall use their best efforts to take all actions necessary
and appropriate to obtain all appropriate consents to assignment and other instruments not
delivered at Closing necessary to validly assign the Contributed Assets.

     4. Assumption. Subject to terms of the Contribution Agreement, Recipient has and by
these presents does hereby fully assume and agrees to discharge the Assumed Obligations.

     5. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED, PERFORMED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

     6. Conflict and Inconsistency; No Merger. To the extent any conflict or inconsistency
exists between the provisions of this Agreement and the Contribution Agreement, the provisions of
the Contribution Agreement shall be controlling. The terms and provisions of the Contribution
Agreement (including, without limitation, the representations, warranties and covenants therein)
shall not merge, be extinguished or otherwise affected by the delivery and execution of this
Agreement or any other document delivered pursuant to Section 3 of this Agreement.

     7. Binding Effect. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective successors and assigns.

     8. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

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Exhibit B — Form of Contribution and Assumption Agreement

B-2

 

     IN WITNESS WHEREOF, Transferors and Recipient have executed this Agreement as of the day and
year first above written.

	 	 	 	 	 	 	 
	 	 	TEXAS GENCO HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	NRG SOUTH TEXAS LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Texas Genco GP, LLC	 	 
	 

	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	NRG NUCLEAR DEVELOPMENT COMPANY LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

  Contribution Agreement

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Exhibit B — Form of Contribution and Assumption Agreement

B-3

 

EXHIBIT C

Arbitration Procedures

     1.1 Disputes. Any and all claims, counterclaims, demands, causes of action, disputes,
controversies, and other matters in question arising out of or relating to this Agreement, or to
the alleged breach hereof, or in any way relating to the subject matter of this Agreement or the
relationship between the Parties created by this Agreement (whether extra-contractual in nature,
sounding in contract, tort or otherwise, or provided for by federal or state statute, common law or
otherwise) (a “Dispute ”) shall be finally resolved by binding arbitration under the
Non-Administered Arbitration Rules of the International Institute for Conflict Prevention and
Resolution (the “Rules”) then in force to the extent such Rules are not inconsistent with the
provisions of this Agreement.

     1.2 Negotiation to Resolve Disputes. If a Dispute arises out of or relates to this Agreement,
a Party may give notice to all other Parties that it intends to initiate the dispute resolution
procedures set forth herein. Promptly upon receipt of such notice, each Party that is a party to
the Dispute (each, a “Disputing Party ”) shall refer such Dispute to a senior executive officer
(“SEO”) of each Disputing Party (or of Toshiba’s Power Systems Company, in the case of Toshiba on
behalf of the Company or its subsidiaries). The SEOs will meet in person or by teleconference as
soon as mutually practicable in order to try and resolve the Dispute. If the SEOs are unable to
resolve the Dispute on or before the 30th Day after such notice, any Disputing Party may
commence an arbitration under this Appendix B by notifying each Party (an “Arbitration Notice”).

     1.3 Selection of Arbitrators.

          (a) Three Arbitrators. Any arbitration conducted under this Appendix B shall be heard by
three arbitrators (each an “Arbitrator ” and collectively the “Tribunal”) selected in accordance
with this Section 1.3. Each Disputing Party and any proposed Arbitrator shall, as soon as
practicable, disclose to the other Disputing Parties any business, personal or other relationship
or affiliation that may exist between any Party and the proposed Arbitrators. The Disputing
Parties may then object to any of the proposed Arbitrators on the basis of such relationship or
affiliation. The validity of any such objection shall be determined according to the Rules.

          (b) Selection of Arbitrators. Except as provided for in this Section 1.3, the
Tribunal shall be appointed according to the Rules. In the Arbitration Notice, the Disputing Party
requesting arbitration shall nominate one Arbitrator. The Disputing Party named as respondent by
the claimant shall nominate one Arbitrator. Within 30 Days of the appointment of the second
Arbitrator, the two party-appointed Arbitrators shall appoint a third Arbitrator who shall chair
the arbitration. Where the Dispute at issue involves more than two Disputing Parties, the
International Institute for Conflict Prevention and Resolution (“CPR” ) shall provide a list of
potential Arbitrators. Within seven (7) days of receiving this list, each Disputing Party shall
provide to CPR a ranking of the potential Arbitrators on such list showing such Disputing Party’s
order of preference among such proposed Arbitrators, with any one or more Disputing Parties who are
Affiliates of one another submitting one common ranked list. The CPR shall then

 

 

appoint all three Arbitrators as it shall determine in its discretion but taking into account
to the extent practical the Disputing Parties’ preferences.

     1.4 Conduct of Arbitration. The Tribunal shall expeditiously (and, if practicable, consistent
with the Tribunal’s primary responsibility to justly adjudicate the dispute before it, within 180
Days after the appointment of the third Arbitrator) hear and decide all matters concerning the
Dispute. Any arbitration hearing shall be held in Washington, D.C. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. §§1 et. seq. Except as expressly provided to the
contrary in this Agreement, the Tribunal shall have the power to gather such materials,
information, testimony and evidence as it deems relevant to the dispute before it (and each Party
will provide such materials, information, testimony and evidence requested by the Tribunal, subject
to such protective orders as the Tribunal determines necessary for the protection of any
information so requested that is proprietary, subject to a third-party confidentiality restriction
or to an attorney-client or other privilege) and to grant injunctive relief and enforce specific
performance. The Tribunal shall not have the power to award punitive or any other form of indirect
or non-compensatory damages, even if such are available under the governing law and even if a court
would otherwise be empowered to avoid this limitation on damages to make such an award. If it
deems necessary, the Tribunal may propose to the Disputing Parties that one or more other experts
be retained to assist it in resolving the Dispute. The retention of such other experts shall
require the unanimous consent of the Disputing Parties, which shall not be unreasonably withheld.
The decision of the Tribunal (which shall be rendered in writing) shall be final, nonappealable and
binding upon the Parties and may be enforced in any court of competent jurisdiction. Each Party
hereby consents to the non-exclusive personal jurisdiction and venue of the Washington D.C. courts
for any proceedings in aid of arbitration under this Section, including any request for interim or
injunctive relief. Notwithstanding the foregoing consent, the Parties may nevertheless seek
interim or injunctive relief from any court of competent jurisdiction.

     1.5 Arbitration Costs and Expenses. The responsibility for paying the costs and expenses of
the arbitration, including compensation to the Tribunal and any experts retained by the Tribunal,
shall be borne by the Disputing Party or Disputing Parties who is or are the least successful in
such process, which shall be determined by the Tribunal by comparing the position asserted by each
Disputing Party on all disputed matters taken together to the final decision of the Tribunal on
all disputed matters taken together, provided however, that each Disputing Party shall be
responsible for the fees and expenses of its respective counsel, consultants and witnesses, unless
the Tribunal determines that compelling reasons exist for allocating all or a portion of such costs
and expenses to the other Disputing Parties.

 

 

SCHEDULES TO CONTRIBUTION AGREEMENT (NRG)

     These schedules (the “Disclosure Schedules”) are being delivered in connection with the
Contribution Agreement (NRG) (the “Agreement”), dated as of **, by and among Genco,
South Texas and the Company. Unless the context otherwise requires, all capitalized terms used
herein shall have the meaning ascribed to them in the Agreement.

     No reference to or disclosure of any item or other matter in the Disclosure Schedules shall be
construed as an admission, representation or indication that such item or other matter is
“material” or is reasonably likely to have a “Material Adverse Effect,” that such item or other
matter is required to be referred to or disclosed in the Disclosure Schedules or that such item or
matter or similar items or matters are outside of the ordinary course of business or inconsistent
with past practice. No disclosure in the Disclosure Schedules relating to any possible breach or
violation of any law or contract shall be construed as an admission or indication that any such
breach or violation exists or has actually occurred.

     Unless otherwise indicated herein, all section references are to Sections of the Agreement.
Any matter set forth under any item in any section or subsection of the Disclosure Schedules shall
be deemed disclosed with respect to any other section or subsection to which the relevance of such
item is reasonably apparent.

     The headings to each section and subsection included in the Disclosure Schedules are inserted
for convenience only and shall not create a different standard for disclosure than the language set
forth in the Agreement.

     In disclosing the information in the Disclosure Schedules, Genco and South Texas expressly do
not waive any attorney-client privilege associated with such information or any protection afforded
by the work-product doctrine with respect to any of the matters disclosed or discussed herein.

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Schedules to Contribution Agreement

(NRG)

 

 

SCHEDULE 2.1(d)

Transferred Contracts and Permits

     **

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Schedules to Contribution Agreement

(NRG)

Schedule 2.1(d)

 

 

SCHEDULE 2.3

Excluded Assets

     1. None.

 Schedules to Contribution Agreement

(NRG)

Schedule 2.3

 

 

SCHEDULE 4.3

Non-Contravention

     **

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Schedules to Contribution Agreement

(NRG)

Schedule 4.3

 

 

SCHEDULE 4.4

Defaults Under Transferred Contracts

     1. None.

 Schedules to Contribution Agreement

(NRG)

Schedule 4.4

 

 

SCHEDULE 4.5

Legal Proceedings

     1. None.

 Schedules to Contribution Agreement

(NRG)

Schedule 4.5

 

 

SCHEDULE 4.6

Exceptions to Title

     **

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Schedules to Contribution Agreement

(NRG)

Schedule 4.6

 

 

SCHEDULE X

Permitted Encumbrances

     **

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Schedules to Contribution Agreement

(NRG)

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