Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                              EMPLOYMENT AGREEMENT

                                     Between
                                NRG Energy, Inc.
                                       and
                                 David W. Crane

                  THIS AGREEMENT is made as of November 10, 2003, between NRG
Energy, Inc. (the "Company"), and David W. Crane ("Executive").

                  In consideration of the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

                  1. Employment. The Company shall employ Executive, and
Executive hereby accepts employment with the Company, upon the terms and
conditions set forth in this Agreement for the period beginning on the later of
(i) December 1, 2003, or (ii) the date the bankruptcy court approves this
Agreement (the "Commencement Date") and ending as provided in Section 5 or 6
hereof (the "Employment Period"). The Company shall use its best efforts to
promptly obtain bankruptcy court approval of this Agreement. This Agreement
shall be void ab initio and of no force and effect if the Commencement Date does
not occur on or before January 1, 2004.

                  2. Position and Duties.

                  (a) During the Employment Period, Executive shall serve as the
President and Chief Executive Officer ("CEO") of the Company and shall have the
normal duties, responsibilities, functions and authorities customarily exercised
by the President and CEO of a company of similar size and nature as the Company.
During the Employment Period, Executive shall render such administrative,
financial and other executive and managerial services to the Company and its
affiliates which are consistent with Executive's position as the Board of
Directors of the Company (the "Board") may from time to time direct.

                  (b) During the Employment Period, Executive shall report to
the Board and shall devote his best efforts and his full business time and
attention (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the business and affairs of the Company.
Executive shall perform his duties, responsibilities and functions to the
Company hereunder to the best of his abilities in a diligent, trustworthy,
professional and efficient manner and shall comply with the Company's policies
and procedures in all material respects. In performing his duties and exercising
his authority under this Agreement, Executive shall support and implement the
business and strategic plans approved from time to time by the Board and shall
support and cooperate with the Company's efforts to expand its businesses and
operate profitably and in conformity with the business and strategic plans
approved by the Board. During

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the Employment Period, Executive shall not serve as an officer or director of,
or otherwise perform services for compensation for, any other entity without the
prior written consent of the Board. Executive may serve as an officer or
director of or otherwise participate in purely educational, welfare, social,
religious and civic organizations so long as such activities do not interfere
with Executive's employment. Nothing contained herein shall preclude Executive
from (i) engaging in charitable and community activities; (ii) participating in
industry and trade organization activities; (iii) managing his and his family's
personal investments and affairs; and (iv) delivering lectures, fulfilling
speaking engagements or teaching at educational institutions; provided, that
such activities do not materially interfere with the regular performance of his
duties and responsibilities under this Agreement.

                  3. Compensation and Benefits.

                  (a) During the period beginning on the Commencement Date and
ending on December 31, 2004, Executive's annual base salary shall be $875,000.
For the portion of the Employment Period beginning on January 1, 2005 and for
periods thereafter, the Executive's annual base salary shall be reviewed and
determined by the Board (such initial annual base salary and the annual base
salary as determined and adjusted from time to time by the Board are referred to
herein as, the "Base Salary"). The Base Salary shall be payable by the Company
in regular installments in accordance with the Company's general payroll
practices (in effect from time to time) but in any event no less frequently than
monthly. During the period beginning on the Commencement Date and ending
December 31, 2003, the Base Salary shall be pro rated on an annualized basis.
For purposes of this Agreement, the Base Salary shall not include any other type
of compensation or benefit paid or payable to the Executive. Notwithstanding
anything in this Agreement to the contrary, any decrease in Executive's then
Base Salary shall be deemed Good Reason.

                  (b) Bonuses and Incentive Compensation.

                           (i)      Signing Bonus. In addition to the Base
         Salary, on the Commencement Date the Company shall pay Executive a
         one-time signing bonus of $1.75 million dollars (the "Signing Bonus")
         payable in a single lump-sum cash payment; provided, however, that
         except as set forth under Section 5 below, Executive agrees to
         reimburse the Company, on a pro-rata basis (based on the ratio of (x)
         the number of days in the period beginning on the date of Executive's
         termination of employment and ending on the first anniversary of the
         Commencement Date to (y) 365), if prior to one year from Executive's
         Commencement Date he (A) terminates his employment with the Company
         other than for "Good Reason" or following a "Change of Control" (as
         defined herein), or (B) is terminated by the Board for "Cause" (as
         defined herein).

                           (ii)     Annual Bonus. Beginning for fiscal year 2004
         and for each fiscal year thereafter during the Employment Period, based
         on achievement of criteria determined by the Board as soon as
         administratively practicable following the beginning of each such
         fiscal year with input from Executive, Executive will be entitled to an
         annual bonus with a target amount equal to 100% of the Executive's then
         Base Salary (the "Annual Bonus"). For the Company's fiscal year 2004
         only, Executive shall receive an

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         Annual Bonus of not less than 75% of his Base Salary. The Company shall
         pay the Annual Bonus in a single cash lump-sum after the end of the
         Company's fiscal year in accordance with procedures established by the
         Board, but in no event later than April 15 of the subsequent fiscal
         year.

                           (iii)    Stretch Bonus. Beginning for fiscal year
         2004 and for each fiscal year thereafter during the Employment Period,
         based on achievement of criteria determined by the Board as soon as
         administratively practicable following the beginning of each such
         fiscal year with input from Executive, Executive shall be eligible to
         receive a "stretch bonus" in an amount up to, but not exceeding, 50% of
         Executive's then Base Salary (the "Stretch Bonus"). The Company shall
         pay the Stretch Bonus in a single cash lump-sum following the end of
         the Company's fiscal year in accordance with procedures established by
         the Board, but in no event later than April 15 of the subsequent fiscal
         year.

                           (iv)     Long Term Incentive. The Company shall
         provide Executive with a combination of restricted stock or units
         ("restricted stock") and stock options (the "Executive LTIP") to be
         issued to Executive upon the Company's emergence from bankruptcy
         protection under Chapter 11 of Title 11 of the United States Code (the
         "Bankruptcy Code"). The aggregate value of the grant under the
         Executive LTIP shall be $12.5 million, which is currently approximately
         0.5% of the equity to be distributed pursuant to the Company's Plan of
         Reorganization under Chapter 11 of the Bankruptcy Code (the "Plan").
         One-third of the grant under the Executive LTIP will be issued in
         restricted stock and the balance shall be issued in stock options.

                           It is currently contemplated that the Executive shall
         receive 166,667 shares of restricted stock valued at $25 per share and
         602,555 stock options valued at $13.83 per share. The exact number of
         restricted stock and stock options awarded will be determined based on
         the equity value reflected in the final Disclosure Statement to the
         Plan of Reorganization; provided, however, that regardless of the
         actual number of restricted stock or stock options granted to the
         Executive, the aggregate value of such restricted stock and stock
         options shall be $12.5 million. The stock options shall have a ten-year
         term (subject to early termination, upon termination for Cause or
         resignation without Good Reason prior to the third anniversary of the
         Commencement Date) and an exercise price equal to the per share equity
         value reflected in such final Disclosure Statement (currently $25 per
         share). The Company shall reserve a sufficient number of shares of
         common stock for issuance upon exercise of the stock options to be
         granted hereunder, and any such stock options granted as part of the
         Executive LTIP shall be duly and validly authorized by a subset of the
         Company's board of directors compromised solely of two or more "outside
         directors" (as such term is defined in Treasury Regulations Section
         1.162-27(e) and ratified by the Company's full board of directors.

                           The restricted stock granted under the Executive LTIP
         shall be entitled to participate currently in dividends and shall vest
         100% on the third anniversary of the Executive's Commencement Date. The
         stock options shall vest in three equal installments on each of first
         three anniversaries of the Executive's Commencement Date.

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         Notwithstanding anything above to the contrary, all grants made under
         the Executive LTIP will become 100% vested upon a "Change of Control"
         (as defined herein).

                           The specific terms of the restricted stock and the
         stock options granted under the LTIP (including, without limitation,
         customary anti-dilution and other provisions) will be reflected in
         separate stock option and restricted stock agreements that will be
         negotiated by Executive and the Company in good faith prior to the
         Commencement Date. Such agreements shall provide that, if the Company's
         common stock becomes registered under the Securities Exchange Act of
         1934, as amended, the Company shall take such steps as are reasonably
         required so that any shares awarded to the Executive under the
         Executive LTIP shall, as soon as practicable after the award or awards
         of such shares, be covered by a registration statement on Form S-8 or a
         successor form and any other appropriate forms determined by the
         parties. In the event that the Executive and Company cannot mutually
         agree to the terms of both the stock option agreement and the
         restricted stock agreement as of the Commencement Date, either the
         Company or the Executive shall have the right to declare that this
         Agreement shall be void and shall not take effect.

                  (c) During the Employment Period, the Company shall promptly
reimburse Executive for all reasonable business expenses incurred by him in the
course of performing his duties and responsibilities under this Agreement which
are consistent with the Company's policies in effect from time to time with
respect to travel, entertainment and other business expenses, subject to the
Company's requirements with respect to reporting and documentation of such
expenses. The Company will promptly reimburse Executive for reasonable expenses
incurred for tax return preparation, tax advice, financial planning and legal
expenses incurred in connection with negotiating this Agreement and the other
agreements referred to herein.

                  (d) In addition to the Base Salary and any bonuses and
incentives payable to Executive pursuant to this Section 3, Executive shall also
be entitled to the following benefits during the Employment Period, unless
otherwise modified by the Board:

                           (i)      participation in the Company's retirement
         plans, health and welfare plans and disability insurance plans, under
         the terms of such plans and to the same extent and under the same
         conditions such participation and coverages are provided to other
         senior management of the Company;

                           (ii)     term life insurance with a death benefit of
         $7.75 million through the continuation of the term life insurance
         provided to Executive by his former employer (other than adjustable
         rate life insurance) immediately prior to the Executive's employment
         with the Company;

                           (iii)    prompt reimbursement of the costs, not to
         exceed $10,000 per year, Executive incurs in obtaining additional
         disability insurance coverage with a monthly disability benefit of up
         to $30,000;

                           (iv)     five weeks paid vacation each calendar year;

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                           (v)      coverage under the Company's director and
         officer liability insurance policy; and

                           (vi)     reasonable moving and relocation expenses.

Notwithstanding anything in this Agreement to the contrary, if the benefits
provided to Executive under Section 3(d)(i), (iv) (v) or (vi) are materially
reduced or benefits provided to Executive under Section 3(d)(ii) or (iii) are
reduced at all, such reduction shall be deemed "Good Reason."

                  (e) During the period commencing on the Executive's
Commencement Date and ending June 30, 2004, the Company shall reimburse
Executive (and gross-up Executive for any income taxes incurred by Executive as
a result of such reimbursement) for all reasonable expenses incurred by him in
connection with commuting to Minneapolis, Minnesota from his permanent residence
in Lawrenceville, New Jersey up to one round-trip each week (but not in excess
of the amount of a full fare economy class round-trip ticket), (ii) leasing an
apartment in Minneapolis, Minnesota, and (iii) reasonable transportation
expenses while in Minneapolis Minnesota. .

                  4. Board Membership. With respect to all regular elections of
directors during the Employment Period, the Company shall nominate, and use its
reasonable efforts to cause the election of, Executive to serve as a member of
the Board. Effective upon the termination or expiration of the Employment
Period, Executive shall resign as a director of the Company and its affiliates,
as the case may be.

                  5. Certain Early Terminations of Agreement. Notwithstanding
anything in this Agreement to the contrary, in the event that on or prior to
June 30, 2004, the effective date of the Company's Plan of Reorganization under
Chapter 11 of the United States Bankruptcy Code (the "Effective Date") has not
occurred, the Executive may elect to unilaterally terminate the Agreement, and
the Company agrees to pay Executive $3.5 million (in a prompt lump-sum cash
payment), provided that Executive (a) notifies the Board by July 31, 2004, in
writing, of Executive's decision to terminate the Agreement pursuant to this
Section 5 and (b) executes and delivers the Release substantially in the form
attached hereto as Exhibit A. However, in the event that Executive elects to
terminate this Agreement pursuant to this Section 5, Executive shall remain
entitled to the payments and benefits set forth in Section 7(d) and shall not
have any obligation to repay any portion of the Signing Bonus set forth in
Section 3(b)(1). Executive shall also be entitled to elect to receive all of the
benefits specified in this Section 5 and in Section 7(d) if the Company shall
terminate his employment without Cause or he shall terminate such employment for
Good Reason prior to July 31, 2004, and prior to the Effective Date. For
avoidance of doubt, Executive acknowledges that by electing to receive benefits
under this Section 5 Executive shall relinquish all benefits payable to him
under this Agreement (other than benefits set forth under Section 7(d)),
including, without limitation, any rights or benefit associated with any
non-vested restricted stock and stock options under the Executive LTIP.

                  6. Termination. The Employment Period shall end on the third
anniversary of the Commencement Date, provided, however, that the Employment
Period shall be automatically renewed for successive one-year terms thereafter
on the same terms and conditions set forth

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herein unless either party provides the other party with notice that it has
elected not to renew the Employment Period at least 90 days prior to the end of
the initial Employment Period or any subsequent extension thereof.
Notwithstanding the foregoing, (i) the Employment Period shall terminate
immediately upon Executive's resignation (with or without Good Reason, as
defined herein), death or Disability (as defined herein) and (ii) the Employment
Period may be terminated by the Company at any time prior to such date for Cause
(as defined herein) or without Cause. Except as otherwise provided herein, any
termination of the Employment Period by the Company shall be effective as
specified in a written notice from the Company to Executive, but in no event
more than 30 days from the date of such notice.

                  7. Severance.

                  (a) Termination Without Cause or for Good Reason. In the event
of Executive's termination of employment with the Company (i) by the Company
without "Cause" (as defined herein), (ii) by Executive for "Good Reason" (as
defined herein) or (iii) if the Company notifies Executive pursuant to Section 6
that it has elected not to renew this Agreement after the initial three-year
term or any subsequent one-year term, Executive shall be entitled to the
benefits set forth below in this Section 7(a). As a condition to the payment of
any severance benefits or any other benefits to which Executive is not
absolutely entitled as a matter of law, the Executive shall execute and deliver
the "Release" in the form attached hereto as Exhibit A, in consideration for
which the Company agrees to the following:

                           (A)      The Company shall pay Executive in a prompt
                                    lump-sum cash payment an amount equal to two
                                    times the Executive's annual Base Salary (as
                                    in effect at the date of Executive's
                                    termination determined without regard to any
                                    reduction in such Base Salary constituting
                                    Good Reason).

                           (B)      The Company shall pay Executive in a prompt
                                    lump-sum payment 50% of target Annual Bonus
                                    (75% of his target Annual Bonus for fiscal
                                    year 2004 only) then in effect (excluding
                                    the Stretch Bonus but determined without
                                    regard to any reduction in such target
                                    Annual Bonus constituting Good Reason)
                                    pro-rated for the number of days during such
                                    year that Executive was employed by the
                                    Company.

                           (C)      All restricted stock, stock options and
                                    other equity awards granted under the
                                    Executive LTIP, shall vest in full on the
                                    date of such termination of employment, and
                                    all stock options shall continue to be
                                    exercisable for the remainder of their
                                    stated terms.

                           (D)      For six (6) months from the date of
                                    termination, the Company shall arrange to
                                    provide Executive and his dependents, at the
                                    Company's cost, medical and dental coverage
                                    providing substantially similar benefits to
                                    those which Executive and his dependents
                                    were receiving immediately prior to such
                                    date, and

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                                    additionally, the Company shall pay
                                    Executive, in a prompt lump-sum payment, an
                                    amount equal to the Company's monthly COBRA
                                    rate for family coverage then in effect
                                    times eighteen (18).

                           (E)      The Company shall pay Executive the amounts
                                    described in Section 7(d).

                  (b) Termination for Cause or Voluntary Resignation. In the
event Executive's employment with the Company is terminated (i) by the Board for
Cause (as defined herein), or (ii) by Executive's resignation from the Company
for any reason other than Good Reason or Disability (as defined herein) the
Company agrees to the following:

                           (A)      The Company shall pay Executive the amounts
                                    described in Section 7(d).

                           (B)      The Company shall treat all restricted
                                    stock, stock options and other equity awards
                                    outstanding under the Executive LTIP or any
                                    other Company equity plans in accordance
                                    with the terms of the plans or agreements
                                    under which such awards were created or
                                    maintained. If Executive resigns from the
                                    Company for any reason on or after the third
                                    anniversary of the Commencement Date, all
                                    stock options granted under the Executive
                                    LTIP will remain exercisable for the
                                    remainder of their stated terms.

                  (c) Death or Disability. In the event that Executive's
employment with the Company is terminated as a result of Executive's death or
Disability, the Company agrees to the following:

                           (A)      The Company shall pay Executive in a prompt
                                    lump-sum payment 50% of target Annual Bonus
                                    (75% of his target Annual Bonus for fiscal
                                    year 2004 only) then in effect (excluding
                                    the Stretch Bonus but determined without
                                    regard to any reduction in such target
                                    Annual Bonus constituting Good Reason)
                                    pro-rated for the number of days during such
                                    year that Executive was employed by the
                                    Company. Any stock options granted under the
                                    Executive LTIP that have vested will remain
                                    exercisable for the remainder of their
                                    stated terms.

                           (B)      If the Executive is terminated as a result
                                    of his Death or Disability prior to the
                                    third anniversary of his Commencement Date,
                                    his "restricted stock" (as defined above)
                                    shall vest on a pro-rata basis (based on the
                                    ratio of (x) the number of complete months
                                    beginning on the Commencement Date and
                                    ending on the date of Executive's
                                    termination of employment to (y) thirty-six
                                    (36)).

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                           (C)      The Company shall treat all stock options
                                    under the Executive LTIP or other equity
                                    under any other Company plans in accordance
                                    with the terms of the plans or agreements
                                    under which such awards were created or
                                    maintained.

                           (D)      The Company shall pay Executive the amounts
                                    described in Section 7(d).

                  (d) In the case of any termination of Executive's employment
with the Company, Executive or his estate or legal representative shall be
entitled to receive from the Company (i) Executive's Base Salary through the
date of termination to the extent not theretofore paid, (ii) to the extent not
theretofore paid, the amount of any bonus, incentive compensation, deferred
compensation and other compensation earned or accrued by Executive as of the
date of termination under any compensation and benefit plans, programs or
arrangements maintained in force by the Company (for this purpose, Executive's
Annual Bonus, if any, for any fiscal year shall be deemed to have accrued on the
last day of such fiscal year), (iii) any vacation pay, expense reimbursements
and other cash entitlements accrued by Executive, in accordance with Company
policy, as of the date of termination to the extent not theretofore paid, and
(iv) all benefits accrued by Executive under all benefit plans and qualified and
nonqualified retirement, pension, 401k and similar plans and arrangements of the
Company, in such manner and at such time as are provided under the terms of such
plans and arrangements.

                  (e) No Other Payments. Except as provided in (a), (b) (c) or
(d) above, all of Executive's rights to salary, bonuses, employee benefits and
other compensation hereunder which would have accrued or become payable after
the termination or expiration of the Employment Period shall cease upon such
termination or expiration, other than those expressly required under applicable
law (such as COBRA).

                  (f) No Mitigation, No Offset. In the event of Executive's
termination of employment for whatever reason, Executive shall be under no
obligation to seek other employment, and there shall be no offset against
amounts due him under this Agreement or otherwise on account of any remuneration
attributable to any subsequent employment or claims asserted by the Company or
any affiliate, provided that this provision shall not apply with respect to any
amounts that Executive owes the Company or any affiliate on account of any loan,
advance or other payment, in respect of any of which Executive is obligated to
make repayment to the Company or any affiliate of the Company.

                  (g) Definitions. For purposes of this Agreement, the following
terms shall have the following meanings:

                           (i)      "Cause" shall mean one or more of the
                                    following:

                           (A)      the conviction of, or an agreement to a plea
                                    of nolo contendere to, any felony or other
                                    crime involving moral turpitude;

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                           (B)      Executive's willful and continuing refusal
                                    to substantially perform duties as
                                    reasonably directed by the Board under this
                                    or any other agreement (after receipt of
                                    written notice from the Board setting forth
                                    such duties and responsibilities to be
                                    performed); or

                           (C)      in carrying out his duties, Executive
                                    engages in conduct that constitutes willful
                                    gross neglect or willful gross misconduct
                                    which, in either case, results in
                                    demonstrable harm to the business,
                                    operations, prospects or reputation of the
                                    Company.

                           (D)      any other material breach of Section 12 or
                                    27 of this Agreement which is not cured to
                                    the Board's reasonable satisfaction within
                                    15 days after written notice thereof to
                                    Executive.

                           For purpose of this Agreement, there shall be no
termination for "Cause" pursuant to subsection (A) through (D) above unless a
written notice, containing a detailed description of the grounds constituting
Cause hereunder, is delivered to Executive stating the basis for the termination
and Executive is given twenty (20) business days to cure fully the neglect or
conduct that is the basis of such claim, and if he fails to cure fully such
neglect or misconduct within such twenty (20) business day period, he has an
opportunity to be heard before the full Board and, after such hearing, there is
a vote of three-quarters of the Board to terminate Executive for Cause.

                           (ii)     "Change of Control" shall mean the first to
         occur of any of the following events:

                           (A)      Any "person" (as that term is used in
                                    Section 13 and 14(d)(2) of the Securities
                                    Exchange Act of 1934 ("Exchange Act"))
                                    becomes the beneficial owner (as that term
                                    is used in Section 13(d) of the Exchange
                                    Act), directly or indirectly, of fifty
                                    percent (50%) or more of the Company's
                                    capital stock entitled to vote in the
                                    election of directors;

                           (B)      Persons who on the Commencement Date
                                    constitute the Board (the "Incumbent
                                    Directors") cease for any reason, including
                                    without limitation, as a result of a tender
                                    offer, proxy contest, merger or similar
                                    transaction, to constitute at least a
                                    majority thereof, provided that any person
                                    becoming a director of the Company
                                    subsequent to the Commencement Date shall be
                                    considered an Incumbent Director if such
                                    person's election or nomination for election
                                    was approved by a vote of at least
                                    two-thirds (2/3) of the Incumbent Directors;
                                    but provided further, that any such person
                                    whose initial assumption of office is in
                                    connection with an actual or threatened
                                    election contest relating to the election of
                                    members of the Board or other actual or
                                    threatened solicitation of proxies or
                                    consents by or on behalf of a "person" (as
                                    defined in Section 13(d)

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                                    and 14(d) of the Exchange Act) other than
                                    the Board, including by reason of agreement
                                    intended to avoid or settle any such actual
                                    or threatened contest or solicitation, shall
                                    not be considered an Incumbent Director;

                           (C)      Consummation of a reorganization, merger or
                                    consolidation or sale or other disposition
                                    of all or substantially all of the assets of
                                    the Company (a "Business Combination"), in
                                    each case, unless, following such Business
                                    Combination, all or substantially all of the
                                    individuals and entities who were the
                                    beneficial owners of outstanding voting
                                    securities of the Company immediately prior
                                    to such Business Combination beneficially
                                    own, directly or indirectly, more than 50%
                                    of the combined voting power of the then
                                    outstanding voting securities entitled to
                                    vote generally in the election of directors,
                                    as the case may be, of the company resulting
                                    from such Business Combination (including,
                                    without limitation, a company which, as a
                                    result of such transaction, owns the Company
                                    or all or substantially all of the Company's
                                    assets either directly or through one or
                                    more subsidiaries) in substantially the same
                                    proportions as their ownership, immediately
                                    prior to such Business Combination, of the
                                    outstanding voting securities of the
                                    Company; or

                           (D)      The shareholders of the Company approve any
                                    plan or proposal for the liquidation or
                                    dissolution of the Company.

                           (iii)    "Disability" shall mean Executive's
         inability to perform the essential duties, responsibilities and
         functions of his position with the Company and its affiliates as a
         result of any mental or physical disability or incapacity even with
         reasonable accommodations of such disability or incapacity, provided by
         the Company and its affiliates, or if providing such accommodations
         would be unreasonable, for a period of six consecutive months.
         Executive shall cooperate in all respects with the Company if a
         question arises as to whether he has become disabled (including,
         without limitation, submitting to an examination by a medical doctor or
         other health care specialists selected by the Company and reasonably
         acceptable to Executive and authorizing such medical doctor or such
         other health care specialist to discuss Executive's condition with the
         Company).

                           (iv)     "Good Reason" shall mean the Executive's
         resignation from employment with the Company prior to the end of the
         Employment Period as a result of one or more of the following reasons:

                           (A)      the Company reduces the amount of his then
                                    current Base Salary or the target for his
                                    Annual Bonus,

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                           (B)      a material reduction in Executive's
                                    benefits, provided that if the benefits
                                    provided Executive under Section 3(d)(ii) or
                                    (iii) are reduced at all, such reduction
                                    shall be deemed "Good Reason",

                           (C)      a material diminution in Executive's title,
                                    authority, duties or responsibilities or the
                                    assignment of duties to Executive which are
                                    materially inconsistent with his position,

                           (D)      a change in reporting structure of the
                                    Company where Executive is required to
                                    report to someone other than the Board,

                           (E)      the failure of the Company to obtain in
                                    writing the obligation to perform this
                                    Agreement by any successor to the Company or
                                    a purchaser of all or substantially all of
                                    the assets of the Company within 15 days
                                    after a merger, consolidation, sale or
                                    similar transaction,

                           (F)      the failure to elect Executive to the Board
                                    within 30 days of the Effective Date or to
                                    reelect Executive to the Board for each
                                    subsequent term during the Employment
                                    Period, or

                           (G)      the failure of the Company to grant
                                    Executive the Executive LTIP within 10 days
                                    after the Effective Date.

                           For purposes of this Agreement, Executive is not
entitled to assert that his termination is for Good Reason unless Executive
gives the Board written notice of the event or events which are the basis for
such claim within ninety (90) days after the event or events occur, describing
such claim in reasonably sufficient detail to allow the Board to address the
event or events and a period of not less than twenty (20) business days to cure
or fully remedy the alleged condition.

                  8. Indemnification.

                  (a) The Company agrees that (i) if Executive is made a party,
or is threatened to be made a party, to any threatened or actual action, suit or
proceeding, whether civil, criminal, administrative, investigative, appellate or
other (each, a "Proceeding") by reason of the fact that he is or was a director,
officer, employee, agent, manager, consultant or representative of the Company
or is or was serving at the request of the Company as a director, officer,
member, employee, agent, manager, consultant or representative of another entity
or (ii) if any claim, demand, request, investigation, dispute, controversy,
threat, discovery request or request for testimony or information (each, a
"Claim") is made, or threatened to be made, that arises out of or relates to
Executive's service in any of the foregoing capacities, then Executive shall
promptly be indemnified and held harmless by the Company to the fullest extent
legally permitted or authorized by the Company's certificate of incorporation,
bylaws or Board resolutions or, if greater, by the laws of the State of
Minnesota, against any and all costs, expenses, liabilities and losses
(including, without limitation, attorney's fees, judgments, interest, expenses
of

                                       11

<PAGE>

investigation, penalties, fines, ERISA excise taxes or penalties and amounts
paid or to be paid in settlement) incurred or suffered by the Executive in
connection therewith, and such indemnification shall continue as to Executive
even if he has ceased to be a director, member, employee, agent, manager,
consultant or representative of the Company or other entity and shall inure to
the benefit of Executive's heirs, executors and administrators. The Company
shall advance to Executive all costs and expenses incurred by him in connection
with any such Proceeding or Claim within 15 days after receiving written notice
requesting such an advance. Such notice shall include, to the extent required by
applicable law, an undertaking by Executive to repay the amount advanced if he
is ultimately determined not to be entitled to indemnification against such
costs and expenses.

                  (b) Neither the failure of the Company (including the Board,
independent legal counsel or stockholders) to have made a determination in
connection with any request for indemnification or advancement under Section
8(a) that Executive has satisfied any applicable standard of conduct, nor a
determination by the Company (including the Board, independent legal counsel or
stockholders) that Executive has not met any applicable standard of conduct,
shall create a presumption that Executive has or has not met an applicable
standard of conduct.

                  9. Gross-up. In the event that any payment or benefit made or
provided to or for the benefit of Executive in connection with this Agreement or
his employment with the Company or the termination thereof (a "Payment") is
determined to be subject to any excise tax ("Excise Tax") imposed by Section
4999 of the Code (or any successor to such Section), the Company shall pay to
Executive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount (a "Gross-Up
Payment") which, after the imposition of all income, employment, excise and
other taxes, penalties and interest thereon, is equal to the sum of (i) the
Excise Tax on such Payment plus (ii) any penalty and interest assessments
associated with such Excise Tax. The determination of whether any Payment is
subject to an Excise Tax and, if so, the amount and time of any Gross-Up Payment
pursuant to this Section 9 shall be made by an independent auditor (the
"Auditor") jointly selected by the parties and paid by the Company. Unless
Executive agrees otherwise in writing, the Auditor shall be a nationally
recognized United States public accounting firm that has not, during the two
years preceding the date of its selection, acted in any way on behalf of the
Company or any of its affiliates. If the parties cannot agree on the firm to
serve as the Auditor, then the parties shall each select one accounting firm and
those two firms shall jointly select the accounting firm to serve as the
Auditor. The parties shall cooperate with each other in connection with any
Proceeding or Claim relating to the existence or amount of any liability for
Excise Tax. All expenses relating to any such Proceeding or Claim (including
attorneys' fees and other expenses incurred by Executive in connection
therewith) shall be paid by the Company promptly upon demand by Executive, and
any such payment shall be subject to a Gross-Up Payment under this Section 9 in
the event that Executive is subject to Excise Tax on such payment. This Section
9 shall apply irrespective of whether a Change of Control has occurred.

                  10. Confidential Information.

                  (a) Executive acknowledges that the information, observations
and data (including trade secrets) obtained by him while employed by the Company
concerning the

                                       12

<PAGE>

business or affairs of the Company or any of its affiliates, ("Confidential
Information") are the property of the Company or such affiliate. Therefore,
except in the course of Executive's duties to the Company or as may be compelled
by law or appropriate legal process, Executive agrees that he shall not disclose
to any person or entity or use for his own purposes any Confidential Information
or any confidential or proprietary information of other persons or entities in
the possession of the Company and its affiliates ("Third Party Information"),
without the prior written consent of the Board, unless and to the extent that
the Confidential Information or Third Party Information becomes generally known
to and available for use by the public other than as a result of Executive's
acts or omissions. Except in the course of Executive's duties to the Company or
as may be compelled by law or appropriate legal process, Executive will not,
during his employment by the Company, or permanently thereafter, directly or
indirectly use, divulge, disseminate, disclose, lecture upon, or publish any
Confidential Information, without having first obtained written permission from
the Board to do so. Executive shall deliver to the Company at the termination or
expiration of the Employment Period, or at any other time the Company may
reasonably request, all memoranda, notes, plans, records, reports, computer
files, disks and tapes, printouts and software and other documents and data (and
copies thereof) embodying or relating to Third Party Information, Confidential
Information or the business of the Company, or its affiliates which he may then
possess or have under his control.

                  (b) Executive shall be prohibited from using or disclosing any
confidential information or trade secrets that Executive may have learned
through any prior employment. If at any time during his employment with the
Company or any of its affiliates, Executive believes he is being asked to engage
in work that will, or will be likely to, jeopardize any confidentiality or other
obligations Executive may have to former employers, Executive shall immediately
advise the Board so that Executive's duties can be modified appropriately.
Executive represents and warrants to the Company that Executive took nothing
with him which belonged to any former employer when Executive left his prior
position and that Executive has nothing that contains any information which
belongs to any former employer. If at any time Executive discovers this is
incorrect, Executive shall promptly return any such materials to Executive's
former employer. The Company does not want any such materials, and Executive
shall not be permitted to use or refer to any such materials in the performance
of Executive's duties hereunder.

                  11. Intellectual Property, Inventions and Patents.
         Intellectual Property, Inventions and Patents. Executive acknowledges
         that all discoveries, concepts, ideas, inventions, innovations,
         improvements, developments, methods, trade secrets, designs, analyses,
         drawings, reports, patent applications, copyrightable work and mask
         work (whether or not including any confidential information) and all
         registrations or applications related thereto, all other proprietary
         information and all similar or related information (whether or not
         patentable) which may relate to the Company's or any of its affiliates'
         actual or anticipated business, research and development or existing or
         future products or services and which are conceived, developed or made
         by Executive (whether alone or jointly with others) while employed by
         the Company and its affiliates ("Work Product"), belong to the Company
         or such affiliate. Executive shall promptly disclose such Work Product
         to the Board and, at the Company's expense, perform all actions
         reasonably requested by the Board (whether during or after the
         Employment Period) to establish and confirm such ownership (including,
         without

                                       13

<PAGE>

         limitation, assignments, consents, powers of attorney and other
         instruments). Executive acknowledges that all applicable Work Product
         shall be deemed to constitute "works made for hire" under the U.S.
         Copyright Act of 1976, as amended. To the extent any Work Product is
         not deemed a work made for hire, then Executive hereby assigns to the
         Company or such affiliate all right, title and interest in and to such
         Work Product, including all related intellectual property rights.

                  In accordance with Minnesota Statutes Section 181.78,
         Executive is hereby advised that this paragraph 9 regarding the
         Company's and its affiliates' ownership of Work Product does not apply
         to any invention for which no equipment, supplies, facilities or trade
         secret information of the Company or any affiliate was used and which
         was developed entirely on Executive's own time, unless (i) the
         invention relates to the business of the Company or any affiliate or to
         the Company's or any affiliate's actual or demonstrably anticipated
         research or development or (ii) the invention results from any work
         performed by Executive for the Company or any affiliate.

                  12. Non-Compete, Non-Solicitation.

                  (a) In further consideration of the compensation to be paid to
Executive hereunder, Executive acknowledges that during the course of his
employment with the Company and its affiliates he shall become familiar with the
Company's trade secrets and with other Confidential Information concerning the
Company and its affiliates and that his services shall be of special, unique and
extraordinary value to the Company and its affiliates, and therefore, Executive
agrees that, during the Employment Period and for one (1) year thereafter (the
"Noncompete Period"), he shall not directly or indirectly own any interest in,
manage, control, participate in, consult with, render services for, be employed
in an executive, managerial or administrative capacity by, or in any manner
engage in any company engaged in the business of wholesale power generation
which competes with the businesses of the Company or its affiliates, as such
businesses exist or are in process during the Employment Period or on the date
of the termination or expiration of the Employment Period, within any
geographical area in which the Company or its affiliates engage or have
definitive plans to engage in such businesses. Nothing herein shall prohibit
Executive from being a passive owner of not more than 2% of the outstanding
stock of any class of a corporation which is publicly traded, so long as
Executive has no active participation in the business of such corporation.
Notwithstanding the foregoing, the provisions of this Section 12(a) shall not
apply in the case of termination of Executive's employment pursuant to Section 5
of this Agreement, nor shall such provision apply following any material breach
of the Company's obligations under Section 7 or Section 8 which remains uncured
for more than twenty (20) days after notice is received from Executive of such
breach, which such notice shall include a detailed description of the grounds
constituting such breach.

                  (b) During the Noncompete Period, Executive shall not directly
or indirectly through another person or entity (i) induce or attempt to induce
any employee of the Company or any of its affiliates to leave the employ of the
Company or such affiliate, or in any way interfere with the relationship between
the Company or any affiliate and any employee thereof, (ii) hire any person who
was an employee of the Company or any affiliate during the last six months of
the Employment Period; or (iii) induce or attempt to induce any customer,
supplier, licensee,

                                       14

<PAGE>

licensor, franchisee or other business relation of the Company or any affiliate
to cease doing business with the Company or such affiliate, or in any way
interfere with the relationship between any such customer, supplier, licensee or
business relation and the Company or any affiliate (including, without
limitation, making any negative or disparaging statements or communications
regarding the Company or its affiliates).

                  (c) If, at the time of enforcement of this Section 12, a court
shall hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. Executive acknowledges that the restrictions
contained in this Section 12 are reasonable and that he has reviewed the
provisions of this Agreement with his legal counsel.

                  (d) In the event of the breach or a threatened breach by
Executive of any of the provisions of this Section 12, the Company would suffer
irreparable harm, and in addition and supplementary to other rights and remedies
existing in its favor, the Company shall be entitled to specific performance
and/or injunctive or other equitable relief from a court of competent
jurisdiction in order to enforce or prevent any violations of the provisions
hereof (without posting a bond or other security). In addition, in the event of
a breach or violation by Executive of Section 12(a), the Noncompete Period shall
be automatically extended by the amount of time between the initial occurrence
of the breach or violation and when such breach or violation has been duly
cured.

                  13. Executive's Representations. Executive hereby represents
and warrants to the Company that (i) the execution, delivery and performance of
this Agreement by Executive do not and shall not conflict with, breach, violate
or cause a default under any contract, agreement, instrument, order, judgment or
decree to which Executive is a party or by which he is bound which has not been
waived, (ii) Executive is not a party to or bound by any employment agreement,
noncompete agreement or confidentiality agreement with any other person or
entity which has not been waived, and (iii) on the Commencement Date, this
Agreement shall be the valid and binding obligation of Executive, enforceable in
accordance with its terms. Executive hereby acknowledges and represents that he
has consulted with independent legal counsel regarding his rights and
obligations under this Agreement and that he fully understands the terms and
conditions contained herein.

                  14. Survival. Sections 5 through 29, inclusive, shall survive
and continue in full force in accordance with their terms notwithstanding the
expiration or termination of the Employment Period.

                  15. Notices. Any notice, communication or request provided for
in this Agreement shall be in writing and shall be either personally delivered
(with a written acknowledgement of receipt), sent by nationally recognized
overnight courier service (with a written acknowledgement of receipt by the
overnight courier) or mailed by certified or registered mail, return receipt
requested, to the recipient at the address below indicated:

                                       15

<PAGE>

                  Notices to Executive:

                  The Address on File with the Company

                  Notices to the Company:

                           Chairman, Board of Directors
                           NRG Energy, Inc.
                           901 Marquette Avenue
                           Minneapolis, Minnesota 55402

or such other address or to the attention of such other person as the recipient
party shall have specified by ten (10) days prior written notice to the sending
party. Any notice under this Agreement shall be deemed to have been given when
(i) when personally delivered, (ii) two (2) days after being sent by overnight
courier or (iii) three (3) days after mailing by certified or registered mail.

                  16. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement or any action in any other jurisdiction,
but this Agreement shall be reformed, construed and enforced in such
jurisdiction as if such invalid, illegal or unenforceable provision had never
been contained herein.

                  17. Complete Agreement. This Agreement, those documents
expressly referred to herein and other documents of even date herewith embody
the complete agreement and understanding among the parties and supersede and
preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in
any way.

                  18. No Strict Construction. The language used in this
Agreement shall be deemed to be the language chosen by the parties hereto to
express their mutual intent, and no rule of strict construction shall be applied
against any party.

                  19. Counterparts. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

                  20. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the beneficiaries, heirs and representatives of
Executive and the successors and assigns of the Company. The Company shall
require any successor (whether direct or indirect,

                                       16

<PAGE>

by purchase, merger, reorganization, consolidation, acquisition of property or
stock, liquidation, or otherwise) to all or a majority of its assets, by
agreement in form and substance satisfactory to Executive, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform this Agreement if no such
succession had taken place. Regardless whether such agreement is executed, this
Agreement shall be binding upon any successor of the Company in accordance with
the operation of law and such successor shall be deemed the "Company" for
purposes of this Agreement. Executive may not assign his rights (except by will
or the laws of descent and distribution) or delegate his duties or obligations
hereunder. Except as provided by this Section 20, this Agreement is not
assignable by any party and no payment to be made hereunder shall be subject to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
other charge.

                  21. Choice of Law. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement and the
exhibits and schedules hereto shall be governed by, and construed in accordance
with, the laws of the State of Minnesota, without giving effect to any choice of
law or conflict of law rules or provisions (whether of the State of Minnesota or
any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Minnesota.

                  22. Amendment and Waiver. The provisions of this Agreement may
be amended, modified or waived only with the prior written consent of the
Company and Executive, and no course of conduct or course of dealing or failure
or delay by any party hereto in enforcing or exercising any of the provisions of
this Agreement (including, without limitation, the Company's right to terminate
the Employment Period for Cause) shall affect the validity, binding effect or
enforceability of this Agreement or be deemed to be an implied waiver of any
provision of this Agreement.

                  23. Insurance. The Company may, at its discretion, apply for
and procure in its own name and for its own benefit life and/or disability
insurance on Executive in any amount or amounts considered advisable. Executive
agrees to cooperate in any medical or other examination, supply any information
and execute and deliver any applications or other instruments in writing as may
be reasonably necessary to obtain and constitute such insurance. Executive
hereby represents that he has no reason to believe that his life is not
insurable at rates now prevailing for healthy men of his age.

                  24. Indemnification and Reimbursement of Payments on Behalf of
Executive. The Company and its affiliates shall be entitled to deduct or
withhold from any amounts owing from the Company or any of its affiliates to
Executive any federal, state, local or foreign withholding taxes, excise tax, or
employment taxes ("Taxes") imposed with respect to Executive's compensation or
other payments from the Company or any of its affiliates or Executive's
ownership interest in the Company (including, without limitation, wages,
bonuses, dividends, the receipt or exercise of equity options and/or the receipt
or vesting of restricted equity). In the event the Company or any of its
affiliates does not make such deductions or withholdings at the written request
of the Executive, Executive shall indemnify the Company and its affiliates for
any amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

                                       17

<PAGE>

                  25. Consent to Jurisdiction. EACH OF THE PARTIES IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT
FOR THE EIGHTH CIRCUIT LOCATED IN MINNESOTA, FOR THE PURPOSES OF ANY SUIT,
ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED AGREEMENT
OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY. EACH OF THE PARTIES HERETO
FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S.
REGISTERED MAIL TO SUCH PARTY'S RESPECTIVE ADDRESS SET FORTH ABOVE SHALL BE
EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT OR PROCEEDING WITH RESPECT TO
ANY MATTERS TO WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS SECTION 25. EACH
OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO
THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS
AGREEMENT, ANY RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY IN THE UNITED STATES DISTRICT COURT FOR THE EIGHTH CIRCUIT LOCATED IN
MINNESOTA, AND HEREBY AND THEREBY FURTHER IRREVOCABLY AND UNCONDITIONALLY WAIVES
AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR
PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

                  26. Waiver of Jury Trial. As a specifically bargained for
inducement for each of the parties hereto to enter into this Agreement (after
having the opportunity to consult with counsel), each party hereto expressly
waives the right to trial by jury in any lawsuit or proceeding relating to or
arising in any way from this Agreement or the matters contemplated hereby.

                  27. Corporate Opportunity. During the Employment Period,
Executive shall submit to the Board all business, commercial and investment
opportunities or offers presented to Executive that relate to the business of
power companies ("Corporate Opportunities"), if Executive wishes to accept or
pursue, directly or indirectly, such Corporate Opportunities on Executive's own
behalf. This Section 27 shall not apply to purchases of publicly traded stock by
Executive.

                  28. Legal Costs. Except as otherwise agreed to by the parties,
the Company shall pay the Executive for costs of litigation or other disputes
including, without limitation, reasonable attorneys' fees incurred by Executive
in asserting any claims or defenses under this Agreement, except that Executive
shall bear his own costs of such litigation or disputes (including, without
limitation attorneys' fees) if the court (or arbitrator) finds in favor of the
Company with respect to any claims or defenses asserted by the Executive.

                  29. Executive's Cooperation. During the Employment Period and
thereafter, Executive shall cooperate with the Company and its affiliates, upon
the Company's reasonable

                                       18

<PAGE>

request, with respect to any internal investigation or administrative,
regulatory or judicial proceeding involving matters within the scope of
Executive's duties and responsibilities to the Company during the Employment
Period (including, without limitation, Executive being available to the Company
upon reasonable notice for interviews and factual investigations, appearing at
the Company's reasonable request to give testimony without requiring service of
a subpoena or other legal process, and turning over to the Company all relevant
Company documents which are or may come into Executive's possession during the
Employment Period); provided, however, that any such request by the Company
shall not be unduly burdensome or interfere with Executive's personal schedule
or ability to engage in gainful employment. In the event the Company requires
Executive's cooperation in accordance with this Section 29, the Company shall
reimburse Executive for reasonable out-of-pocket expenses (including travel,
lodging and meals) incurred by Executive in connection with such cooperation,
subject to reasonable documentation. In addition, the Company shall compensate
Executive at a rate of $500 per hour for the time in excess of one business day,
per occurrence or event, that Executive reasonably spends complying with his
obligations under this Section after the expiration of the Employment Period.

                                       19

<PAGE>

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

                                          NRG ENERGY, INC.

                                          By: __________________________________

                                          Its: _________________________________

                                          ______________________________________
                                          DAVID CRANE

                                       20

<PAGE>

                                    EXHIBIT A

                                 GENERAL RELEASE

     In consideration of the payments and benefits (the "Severance Payment")
paid or to be paid to me pursuant to and in accordance with the terms of my
Employment Agreement with NRG Energy, Inc. dated _____, 2003 (the "Agreement"),
on behalf of myself, my heirs, executors, administrators, successors, and
assigns, I hereby fully and forever RELEASE and DISCHARGE NRG ENERGY, INC., its
affiliates and their officers, directors, agents, employees, representatives,
successors and assigns (hereinafter, collectively called the "Company"), from
any and all claims and causes of action arising out of or relating in any way to
my employment with the Company, including, but not limited to, the offer of
employment and termination of my employment, and I agree that I will not in any
manner institute, prosecute or pursue any complaints, claims, charges,
liabilities, claims for relief, demands, suits, actions or causes of action
against the Company that are covered by this RELEASE.

     Notwithstanding the foregoing, expressly excluded from this RELEASE are any
claims or causes of action which I may have (i) seeking enforcement of my rights
under the Agreement, including, without limitation, Sections 5, 7, 8, 9 and 28
thereof, or any other plan, policy or arrangement of the Company (ii) seeking to
obtain contribution as permitted by applicable law in the event of the entry of
judgment against me as a result of any act or failure to act for which both I
and the Company are held to be jointly liable, (iii) arising out of or relating
in any way to acts or omissions after the date of this RELEASE or otherwise not
covered by this RELEASE, and (iv) which cannot be waived by law. I shall also
retain the right to seek indemnification from the Company, to the extent
permitted under applicable law and Section 8 of the Agreement.

1. I understand and agree that, except as specifically provided above, this
RELEASE is a full and complete waiver of all claims relating to my employment
with the Company, including, but not limited to, claims of wrongful discharge,
breach of contract, breach of the covenant of good faith and fair dealing,
violation of public policy, defamation, personal injury and emotional distress,
claims under Title VII of the Civil Rights Act of 1964, as amended, the Civil
Rights Act of 1991, the Age Discrimination in Employment Act of 1967, as amended
by the Older Workers Benefit Protection Act of 1990, the Americans With
Disabilities Act, the Rehabilitation Act of 1973, as amended, the Equal Pay Act
of 1963, Section 1981 of the Civil Rights Act of 1866, any of the Minnesota
State employment laws, the Fair Labor Standards Act of 1938, as amended, the
Family and Medical Leave Act of 1993, and the Employee Retirement Income
Security Act of 1974, as amended, and claims arising from any legal restrictions
on the Company's right to terminate employees (including, without limitation,
claims arising under various contract, tort, public policy or wrongful discharge
theories under any federal, state or local law, or under the federal Worker
Adjustment and Retraining Notification Act of 1988, as amended, or any similar
state or local law).

2. I understand that I have received or will receive, regardless of the
execution of this RELEASE, all amounts due to me pursuant to Sections 7(d), 8
and 9 of the Agreement. I further understand and agree that the Company will not
provide me with any additional payments or benefits under the Agreement
(including, without limitation, payments under Section 5 or Section 7(a) of the
Agreement ) unless I execute this RELEASE. In consideration of the execution of
this RELEASE, I will receive additional payments and benefits specified in
[Section 5/Section 7(a)] of the Agreement.

3. In addition, and in further consideration of the foregoing, I acknowledge and
agree that if I hereafter discover facts different from or in addition to those
which I now know or believe to be true that this RELEASE shall be and remain
effective in all respects notwithstanding such different or additional facts

                                       21

<PAGE>

or the discovery thereof. I understand that this RELEASE does not waive or
release any rights or claims that I may have under the Age Discrimination in
Employment Act of 1967, as amended, which arise after the date I sign this
RELEASE.

4. As part of my existing and continuing obligation to the Company, I have
returned or, within seven (7) days of my termination will return to the Company
all Confidential Information and Third Party Information (as such terms are
defined in the Agreement) in accordance with the terms of the Agreement. I
affirm my obligation to keep all Confidential Information confidential and not
to disclose it to any third party as required by Section 10 of the Agreement.

5. I agree not to disclose, either directly or indirectly, any information
whatsoever regarding (i) any of the terms or the existence of this RELEASE and
my benefits under the Agreement or (ii) any other claim I may have against the
Company, to any person or organization, including but not limited to members of
the press and media, present and former employees of the Company, companies who
do business with the Company, or other members of the public. Notwithstanding
the preceding sentence, I may reveal such terms of this RELEASE and the
Severance Payment to my spouse, accountants or attorneys or as are necessary to
comply with a request made by the Internal Revenue Service, as otherwise
compelled by a court or agency of competent jurisdiction, as allowed and/or
required by law.

6. This RELEASE shall be governed by the laws of the State of Minnesota.

7. This RELEASE contains the entire agreement between the Company and me with
respect to any matters referred to in the RELEASE and shall supersede any all
other agreements, whether written or oral, with respect to such matters. I
understand and agree that this RELEASE shall not be deemed or construed at any
time as an admission of liability or wrongdoing by either myself or the Company.
Notwithstanding the foregoing, it is understood and agreed that my termination
will be treated for all purposes as a termination [without Cause/for Good
Reason/under Section 5] under the Agreement and that I shall be entitled to all
payments and benefits under the Agreement consistent with such a termination.

8. If any one or more of the provisions contained in this RELEASE is, for any
reason, held to be unenforceable, that holding will not affect any other
provision of this RELEASE, but, with respect only to the jurisdiction holding
the provision to be unenforceable, this RELEASE shall then be construed as if
such unenforceable provision or provisions had never been contained therein.

9. Before executing this RELEASE, I obtained sufficient information to
intelligently exercise my own judgment about the terms of the RELEASE. The
Company has informed me in writing to consult an attorney before signing this
RELEASE, if I wish.

I also understand for a period of fifteen (15) days after I sign this RELEASE, I
may revoke this RELEASE and that the RELEASE will not become effective until
fifteen (15) days after I sign it, and only then if I do not revoke it. In order
to revoke this RELEASE, I must deliver, or cause to be delivered, to [INSERT
TITLE] at NRG Energy, Inc., 901 Marquette Avenue, Suite 2300, Minneapolis,
Minnesota, 55402, by First Class mail or facsimile [INSERT NUMBER],by no later
than fifteen (15) days after I execute this RELEASE, a letter stating that I am
revoking it.

10. My severance and other benefits under the Agreement will be paid in
accordance with the terms of the Agreement. If I choose to revoke this RELEASE
within fifteen (15) days after I sign it, such benefits will not be due and
payable, and the RELEASE will have no effect.

11. A failure to comply with the terms of this RELEASE (except as set forth
below), including, but not limited to, my agreement not to institute, prosecute
or pursue any complaints, claims, charges, liabilities, claims for relief,
demands suits or causes of actions against the Company

                                       22

<PAGE>

(except as set forth in paragraph 2 above, including, without limitation, any
claims or causes of actions I may have as a result of any acts or omissions that
occur after the date of this Release) or a material and willful failure to
comply with the terms of Section 4 and 5 of this RELEASE will, result in my
forfeiture of the additional payments and benefits due under the Agreement.

                        EMPLOYEE'S ACCEPTANCE OF RELEASE

BEFORE SIGNING MY NAME TO THIS RELEASE, I STATE THAT: I HAVE READ IT; I
UNDERSTAND IT AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS; I AM AWARE OF MY
RIGHT TO CONSULT WITH AN ATTORNEY BEFORE SIGNING IT; AND I HAVE SIGNED IT
KNOWINGLY AND VOLUNTARILY. EXCEPT FOR THE MATTERS EXPRESSLY STATED IN THIS
RELEASE, THE COMPANY HAS NEITHER MADE ANY REPRESENTATION NOR OFFERED ME ANY
INDUCEMENT TO SIGN THIS RELEASE.

                                          By: __________________________________

                                              David Crane

                                          Date: ________________________________

Agreed to and accepted:

NRG ENERGY, INC.

By: ______________________________

Name:

Title:

                                       23<PAGE>

                                                                    EXHIBIT 10.9

                                                                         ANNEX A

           AMENDED AND RESTATED KEY EXECUTIVE RETENTION, RESTRUCTURING
                                     BONUS

                             AND SEVERANCE AGREEMENT

                                     BETWEEN
                                NRG ENERGY, INC.
                                       AND
                                 SCOTT J. DAVIDO

<PAGE>

                                TABLE OF CONTENTS

<Table>
<S>                                                                                                              <C>
Article 1.        Establishment, Term and Purpose.................................................................1

Article 2.        Definitions.....................................................................................1

Article 3.        Restructuring Bonus.............................................................................4

Article 4.        Severance Benefits..............................................................................4

Article 5.        Excise Tax......................................................................................6

Article 6.        Outplacement Assistance.........................................................................7

Article 7.        The Company's Payment Obligation................................................................7

Article 8.        Withholding.....................................................................................8

Article 9.        Non-Competition Other Than Upon Change in Control...............................................8

Article 10.       Non-Disparagement..............................................................................10

Article 11.       Successors and Assignment......................................................................10

Article 12.       Miscellaneous..................................................................................11
</Table>

                                       i
<PAGE>

SEVERANCE AGREEMENT

Article 1.        Establishment, Term and Purpose

         1.1 Establishment of the Agreement. NRG Energy, Inc., hereby enters
into this Key Executive Retention, Restructuring Bonus and Severance Agreement
with Scott J. Davido (the "Participant") as of July 1, 2003.

         1.2 Term of the Agreement. This Agreement shall be effective on the
date indicated above and shall remain in effect until the earlier of: (a) a
Restructuring Event or (b) termination of the Participant's employment with the
Company.

         1.3 Purpose of the Agreement. The purpose of the Agreement is to
provide an executive officer and key person of the Company (i) compensation for
contributing to a Restructuring Event and (ii) financial security in the event
of a termination of employment from the Company. This Agreement shall supercede
any other restructuring incentive, severance or severance-related plan or
agreement in which the Participant had participated. The Board has determined
that Scott J. Davido is eligible to participate in the Agreement as of the
Effective Date.

Article 2.        Definitions

         Whenever used in this Agreement, the following terms shall have the
meanings set forth below:

         2.1 "Agreement" means this Amended and Restated Key Executive
Retention, Restructuring Bonus and Severance Agreement between the Company and
Scott J. Davido.

         2.2 "Bankruptcy Code" means title 11 of the United States Code, 11
U.S.C. Sections 101-1330.

         2.3 "Base Salary" means an amount equal to the Participant's base
annual salary as of the date of his termination of employment or the Effective
Date, as applicable. As of July 1, 2003, Participant's Base Salary shall be
$500,000.00. Subsequent to the Effective Date and payment of any Restructuring
Bonus, Participant's Base Salary shall be $300,000.00. For this purpose, "Base
Salary" shall not include bonuses, long-term incentive compensation, or any
remuneration other than base annual salary.

         2.4 "Beneficial Owner" shall have the meaning ascribed to such term in
Rule 13d-3 of the General Rules and Regulations under the Exchange Act.

         2.5 "Beneficiary" means the persons or entities designated or deemed to
be designated by the Participant.

         2.6 "Board" means the Board of Directors of the Company.

         2.7 "Cause" means the occurrence of any one or more of the following
events:

                                       1
<PAGE>

                  (a)      The continued failure by the Participant to
                           substantially and effectively perform his normal
                           duties (other than any such failure resulting from
                           the Participant's Disability), after a written demand
                           for substantial performance, signed by the CEO or the
                           Participant's immediate supervisor, is delivered to
                           the Participant, that identifies the manner in which
                           the Participant has not substantially and effectively
                           performed his duties, and the Participant has failed
                           to remedy the situation within thirty (30) business
                           days of receiving such notice;

                  (b)      The Participant's conviction or guilty plea for
                           committing an act of fraud, embezzlement, theft, or
                           other act constituting a felony; or the Participant's
                           violation of the Company Code of Conduct; or

                  (c)      The engaging by the Participant in willful, reckless
                           or grossly negligent conduct materially and
                           demonstrably injurious to the Company. However, no
                           act, or failure to act on the Participant's part,
                           shall be considered "willful" unless done, or omitted
                           to be done, by the Participant not in good faith and
                           without reasonable belief that his action or omission
                           was in the best interest of the Company.

         2.8 "Code" means the United States Internal Revenue Code of 1986, as
amended.

         2.9 "Company" means NRG Energy, Inc., a Delaware corporation or any
successor thereto as provided in Article 12 herein.

         2.10 "Disability" means the definition provided in the Company's long
term disability plan.

         2.11 "Effective Date" shall have the meaning ascribed to it in the
Plan.

         2.12 "Effective Date of Termination" means the date on which
Participant's employment termination occurs that triggers the payment of
Severance Benefits hereunder.

         2.13 "Exchange Act" means the United States Securities Exchange Act of
1934, as amended.

         2.14 "Good Reason" means, without the Participant's express written
consent, the occurrence of any one or more of the following:

                  (a)      Any reduction in the Participant's Base Salary or
                           target annual bonus below the amount in effect
                           immediately preceding the reduction (including all
                           increases following July 1, 2003), except in the case
                           of a reduction that similarly applies to all
                           executives on a nondiscriminatory basis.

                                       2
<PAGE>

                  (b)      Any significant and material reduction in the
                           Participant's benefits package, except in the case of
                           a reduction that similarly applies to all executives
                           on a nondiscriminatory basis.

                  (c)      Any assignment of new duties that requires the
                           Participant to relocate his domicile more than fifty
                           (50) miles from the Participant's current work
                           location.

                  (d)      Any significant and material reduction or diminution
                           in the duties, responsibilities, or position of the
                           Participant from that in effect immediately prior to
                           such reduction or diminution, provided that the sale
                           of a Company division or sale of a division of a
                           subsidiary company will not automatically be deemed
                           to result in the significant reduction or diminution
                           in the duties, responsibilities, or position of the
                           Participant without a specific showing of such
                           reduction or diminution.

                  (e)      Any significant increase in responsibility without
                           corresponding compensation (with "responsibility"
                           defined as those responsibilities as in effect as of
                           the Effective Date).

                  The Participant's right to terminate employment for Good
                  Reason shall not be affected by the Participant's incapacity
                  due to Disability. The Participant's continued employment for
                  fewer than 30 days after any event or change giving rise to a
                  significant and material reduction or diminution shall not
                  constitute consent to, or a waiver of rights with respect to,
                  any circumstance constituting Good Reason herein.

         2.15 "Notice of Termination" means a written notice that indicates the
specific termination provision in this Agreement relied upon, and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Participant's employment under the provision so
indicated.

         2.16 "Participant" means Scott J. Davido, an executive officer and key
person of the Company.

         2.17 "Person" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d).

         2.18 "Plan" means the Company's chapter 11 plan of reorganization
currently filed with the United States Bankruptcy Court for the Southern
District of New York, as such plan may be subsequently amended.

         2.19 "Restructuring Bonus" means the payment described in Section 3.2
herein.

                                       3
<PAGE>

         2.20 "Retirement" means retirement as defined in the applicable NRG
Energy, Inc. retirement program in which the Participant is eligible, which may
be amended from time to time as directed by the Board.

         2.21 "Severance Benefits" means the payment of severance compensation
as provided in Article 4 herein.

         2.22 "Xcel" shall mean Xcel Energy, Inc, a Minnesota corporation, or
any successor thereto.

Article 3.        Restructuring Bonus

         3.1 Right to Restructuring Bonus.

           Subject to the provisions herein, upon the occurrence of the
Effective Date, the Participant shall be entitled to receive from the Company a
Restructuring Bonus, as described in Section 3.2 herein, to be paid to the
Participant in a lump sum within 30 days following the Effective Date. Payment
of the Restructuring Bonus shall be conditioned upon the Effective Date
occurring by the date specified in the Plan, unless the conditions to the
Effective Date contained in the Plan regarding occurrence by a specified date
shall have been waived under the Plan in accordance with its terms.

         3.2 Description of Restructuring Bonus.

           If the Participant is entitled to receive a Restructuring Bonus, the
amount of the Restructuring Bonus shall equal one and one-half (1.5) times the
Participant's Base Salary.

         3.3 Termination of Participant

           The Participant shall not be entitled to a Restructuring Bonus if he
is terminated for Cause, or if his employment with the Company ends due to
Disability, Retirement, or due to a voluntary termination of employment by the
Participant without Good Reason.

Article 4.        Severance Benefits

         4.1 Right to Severance Benefits. Subject to the provisions herein, the
Participant shall be entitled to receive from the Company Severance Benefits as
described in Section 4.2 herein, if the Participant's employment with the
Company is terminated by the Company without Cause or the Participant terminates
employment for Good Reason.

         The Participant shall not be entitled to receive Severance Benefits
under Section 4.2 herein if he is terminated for Cause, or if his employment
with the Company ends due to Disability, Retirement, or due to a voluntary
termination of employment by the Participant without Good Reason.

                                       4
<PAGE>

         4.2 Description of Severance Benefits. If the Participant becomes
entitled to receive Severance Benefits, as provided in Section 4.1 herein, the
Participant shall receive the following Severance Benefits:

                  (a)      Two (2) times the sum of: (i) the Participant's Base
                           Salary; and (ii) the greater of : (a) the
                           Participant's average annual bonus earned over the
                           two (2) most recent full fiscal years prior to the
                           Effective Date of Termination; or (b) the
                           Participant's target annual bonus established for the
                           bonus plan year in which the Participant's Effective
                           Date of Termination occurs.

                  (b)      An Amount equal to the Participant's unpaid targeted
                           annual incentive, established for the plan year in
                           which the Participant's Effective Date of Termination
                           occurs, multiplied by a fraction, the numerator of
                           which is the number of days completed in the then
                           existing fiscal year through the Effective Date of
                           Termination, and the denominator of which is three
                           hundred sixty-five (365).

                  (c)      A net cash payment equivalent to the COBRA premiums
                           as in effect as of the Participant's termination of
                           employment of the medical insurance and dental
                           insurance for a period of eighteen (18) months. This
                           cash payment shall be made in one lump sum (net of
                           applicable withholding).

                           COBRA election and continuation shall be the
                           responsibility of the participant and/or qualified
                           beneficiaries.

                           In the event the COBRA premium shall change for all
                           employees of the Company, the premium, likewise,
                           shall change for the Participant in a corresponding
                           manner.

                  (d)      A cash payment of vacation and/or paid time off time
                           earned prior to the Effective Date of Termination,
                           but not taken by the Participant.

         4.3 Termination due to Disability. If the Participant's employment is
terminated due to Disability during the term of this Agreement, the Participant
shall receive his Base Salary and accrued vacation and/or paid time off through
his termination of employment and continuation of the medical insurance, dental
insurance and group term life insurance shall be subject to the terms under the
applicable disability plan of the Company.

         4.4 Termination Due to Retirement or Death. If the Participant's
employment is terminated by reason of Retirement or death, the Participant or,
where applicable, the Participant's Beneficiaries, shall receive the
Participant's Base Salary and accrued vacation/paid time off through his
termination of employment, and continuation of the welfare benefits of medical
insurance, dental insurance, and group term life insurance shall be subject to
the treatment provided under the applicable retirement or health and welfare
plan of the Company. If the Participant's employment is terminated by reason of
death the amounts to be paid under this Agreement shall be paid to the
Participant's estate.

                                       5
<PAGE>

         4.5 Termination for Cause or by the Participant Other Than for Good
Reason. If the Participant's employment is terminated either: (a) by the Company
for Cause; or (b) by the Participant without Good Reason, the Company shall pay
the Participant his unpaid Base Salary and accrued vacation/paid time off
through his termination of employment, at the rate then in effect, plus all
other amounts to which the Participant is entitled under any compensation plans
of the Company, at the time such payments are due; and the Company shall have
not further obligations to the Participant under this Agreement.

         4.6 Notice of Termination. Any termination by the Company for Cause or
by the Participant for Good Reason shall be communicated to the other party at
least one hundred twenty (120) days prior to the date on which such termination
shall be effective. The Company can terminate the employment of the Participant
with no notice in which case the Company shall provide the Participant with
continuation of pay of one hundred twenty (120) days.

         4.7 Form and Timing of Severance Benefits. At the discretion of the
Company, all cash payments set forth in Section 4.2 shall be made in 30 equal
monthly installments, net of appropriate withholdings, or in one (1) lump sum,
net of appropriate withholdings, within a reasonable period of time, commencing
or paid at a time not to exceed one hundred twenty (120) days after the
Effective Date of Termination.

Article 5.        Excise Tax

         5.1 Excise Tax Equalization Payment. If the Participant becomes
entitled to severance benefits or any other payment or benefit under this
Agreement, or under any other agreement or plans of the Company (in the
aggregate, the "Total Payments"), and any of the Total Payments will be subject
to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or any
similar tax that may hereafter be imposed), the Company shall pay to the
Participant in cash an additional amount (the "Gross-Up Payment") such that the
net amount retained by the Participant after deduction of any Excise Tax upon
the Total Payments and any federal, state and local income tax and Excise Tax
upon the Gross-Up Payment provided for by this Section 5.1 (including FICA and
FUTA), shall be equal to the Total Payments. Such payment shall be made by the
Company to the Participant as soon as practicable following the effective date
of termination, but in no event beyond forty-five (45) days from such date.

         5.2 Tax Computation. For purposes of determining whether any of the
Total Payments will be subject to the Excise Tax and the amounts of such Excise
Tax:

                  (a)      Any other payments or benefits received or to be
                           received by the Participant in connection with a
                           Restructuring Bonus or the Participant's termination
                           of employment (whether pursuant to the terms of this
                           Agreement or any other plan, arrangement, or
                           agreement with the Company, or with any person (which
                           shall have the meaning set forth in Section 3(a)(9)
                           of the Securities Exchange Act of 1934, including a
                           "group" as defined in Section 13(d) therein) whose
                           actions result in a Change in Control of the Company
                           or any person affiliated with the Company or such
                           persons) shall be treated as "parachute payments"
                           within the meaning of Section 280G(b)(1) of the Code

                                       6
<PAGE>

                           and shall be treated as subject to the Excise Tax,
                           unless in the opinion of tax counsel as supported by
                           the Company's independent auditors and acceptable to
                           the Participant, such other payments or benefits (in
                           whole or in part) do not constitute parachute
                           payments, or unless such excess parachute payments
                           (in whole or in part) represent reasonable
                           compensation for services actually rendered within
                           the meaning of Section 280G(b)(4) of the Code in
                           excess of the base amount within the meaning of
                           Section 280G(b)(3) of the Code, or are otherwise not
                           subject to the Excise Tax;

                  (b)      The amount of the Total Payments which shall be
                           treated as subject to the Excise Tax shall be equal
                           to the lesser of: (i) the total amount of the Total
                           Payments; or (ii) the amount of excess parachute
                           payments within the meaning of Section 280G(b)(3)
                           (after applying clause (a) above); and

                  (c)      The value of any non-cash benefits or any deferred
                           payment or benefit shall be determined by the
                           Company's independent auditors in accordance with the
                           principles of Section 280G(d)(3) and (4) of the Code.

         For purposes of determining the amount of the Gross-Up Payment, the
Participant shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made, and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Participant's residence on the
effective date of termination, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

         5.3 Subsequent Recalculation. If the Internal Revenue Service adjusts
the computation of the Company under Section 5.2 herein so that the Participant
did not receive the greatest net benefit, the Company shall reimburse the
Participant for the full amount necessary to make the Participant whole, plus a
market rate of interest, as determined by the Committee.

Article 6.        Outplacement Assistance

         Following a termination of employment in which Severance Benefits are
payable hereunder, the Participant shall be reimbursed by the Company for the
costs of all outplacement services obtained by the Participant within the two
(2) year period after the Effective Date of Termination; provided, however, that
the total reimbursement shall be limited to $15,000.

Article 7.        The Company's Payment Obligation

         7.1 Payment Obligations Absolute. Except as provided herein, the
Company's obligation to make the payments and the arrangements provided for
herein shall be absolute and unconditional, and shall not be affected by any
circumstances, including, without limitation, any offset, counterclaim,
recoupment, defense, or other right which the Company may have against the
Participant or anyone else; provided that the Company shall retain a setoff and
right to recoupment in the event of any breach by the Participant of his
fiduciary duty at common law or a violation of the provisions of Articles 9.1 or
9.2. All amounts payable by the Company hereunder shall be paid

                                       7
<PAGE>

without notice or demand. Except as provided herein, each and every payment made
hereunder by the Company shall be final, and the Company shall not seek to
recover all or any part of such payment from the Participant or from whomever
may be entitled thereto. Notwithstanding the foregoing, the Company reserves the
right to conduct an independent investigation for the sole purpose of
determining whether "Cause" exists that would negate a payment hereunder. Until
the conclusion of such investigation (which shall be conducted expeditiously)
the Company reserves the right to suspend payment of benefits or alternatively,
to condition any benefits on the results of such investigation. For purposes of
this section, "expeditiously" shall be defined as a reasonable period of time
not to exceed six (6) months. Participant shall be notified within thirty (30)
days of the conclusion of the investigation.

         The Participant shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangement made under any provision of
this Agreement, and the obtaining of any such other employment shall in no event
affect any reduction of the Company's obligations to make the payments and
arrangements required to be made under this Agreement.

         7.2 Contractual Rights to Benefits. This Agreement establishes and
vests in the Participant a contractual right to the benefits to which he is
entitled hereunder. However, nothing herein contained shall required or be
deemed to require, or prohibit or be deemed to prohibit, the Company to
segregate, earmark, or otherwise set aside any funds or other assets, in trust
or otherwise, to provide for any payments to be made or required hereunder.

         7.3 Bankruptcy Court Approval

                  Participant acknowledges that the Company has commenced a
reorganization case under chapter 11 of the Bankruptcy Code in the United States
Bankruptcy Court for the Southern District of New York. At Participant's sole
option, the Company shall promptly move the bankruptcy court for an order
authorizing the assumption of this Agreement under section 365 of the Bankruptcy
Code or such other relief as appropriate to ensure compliance with this
Agreement by the Company and receipt by the Participant of the rights granted
hereunder.

Article 8.        Withholding

         The Company shall be entitled to withhold from any amounts payable
under this Agreement all taxes as legally shall be required (including, without
limitation, any United States federal taxes, and any other state, city, or local
taxes).

Article 9.        Non-Competition Other Than Upon Change in Control

         9.1 Prohibition on Competition. The Participant agrees that during the
course of the Participant's employment with the Company, without the prior
written consent of the Company, and for one (1) year from the date of the
Participant's voluntary or involuntary termination of employment with the
Company, the Participant shall not:

                  (a)      Directly or indirectly own, manage, consult,
                           associate with, operate, join, work for, control or
                           participate in the ownership, management, operation
                           or

                                       8
<PAGE>

                           control of, or be connected in any manner with, any
                           business (whether in corporate, proprietorship, or
                           partnership for or otherwise), as more than a 10%
                           owner in such business or member of a group
                           controlling such business, which is engaged in any
                           activity which competes with the business of the
                           company as conducted one (1) year prior to (and up
                           through) the date of the Participant's involuntary or
                           voluntary termination of employment with the Company
                           or which will compete with any proposed business
                           activity of the Company in the planning stage on such
                           date of involuntary or voluntary termination. The
                           participant and the Company agree that this provision
                           is reasonably enforced as to any geographic area.

                  (b)      Directly or indirectly solicit, service, contract
                           with or otherwise engage any past (one year prior),
                           existing or prospective customer, client or account
                           who then has a relationship with the Company for
                           current or prospective business on behalf of a
                           competitor of the Company, or on the Participant's
                           own behalf for a competing business. The Participant
                           and the Company agree that this provision is
                           reasonably enforced with reference to any geographic
                           area applicable to such relationships with the
                           Company.

                  (c)      Cause or attempt to cause any existing or prospective
                           customer, client, or account, who then has a
                           relationship with the Company for current or
                           prospective business, to divert terminate, limit or
                           in any manner modify, or fail to enter into any
                           actual or potential business relationship with the
                           Company. The Participant and the Company agree that
                           this provision is reasonably enforced with reference
                           to any geographic area applicable to such
                           relationships with the Company.

                  (d)      The Company agrees that the terms "activity", "which
                           competes with the business of the Company",
                           "competitor of the Company", "competing business",
                           and "relationship with the Company" as used in this
                           Agreement shall be reasonably construed and applied.

         9.2 Disclosure of Information. The Participant recognizes that he has
access to and knowledge of certain confidential and proprietary information of
the Company, which is essential to the performance of his duties as an employee
of the Company. The Participant will not, during or after the term of his
employment with the Company, in whole or in part, disclose such information to
any person, firm, corporation, association, or other entity for any reason or
purpose whatsoever, nor shall he make use of any information for his own
purposes.

         9.3 Covenants Regarding Other Employees. During the period ending one
(1) year following the payment of Severance Benefits under this Agreement, the
Participant agrees to not directly or indirectly solicit, employ or conspire
with others to employ any of the Company's employees. The term "employ" for
purposes of this paragraph means to enter into an arrangement for services as a
full-time or part-time employee, independent contractor, consultant, agent or

                                       9
<PAGE>

otherwise. The Participant and the Company agree that this provision is
reasonably enforced as to any geographic area.

Article 10.       Non-Disparagement

         10.1 Disparagement. The Participant and the Company, each agrees not to
make any disparaging or negative statements about the Company or the
Participant, including but not limited to its products, services or management
any person or entity whatsoever, including but not limited to past, present and
prospective employees or employers, customers, clients, analysts, investors,
vendors and suppliers; provided that, following the expiration of the
non-compete period set forth in Article 9, the non-disparagement provisions set
forth herein is shall not restrain the parties from engaging in legitimate
competition with each other, which could include, but would not be limited to,
legitimate but unfavorable comparisons of products, services or management of
each other.

         10.2 Release. In order to receive the benefits provided under the
Agreement (other than accrued vacation and paid time-off), the Participant will
be required to provide the Company with a release in a form to be provided by
the Company, or, if Xcel provides the benefits, the Participant will be required
to provide Xcel and the Company with a release in a form to be provided by Xcel.
Such release shall fully release the Company or Xcel, as applicable, and all of
its officers, agents, directors, employees, and representatives, any affiliated
companies, businesses or entities, and all other persons and entities from each
and every legal claim or demand of any kind that the Participant ever had or
might have arising out of any action, conduct or decision taking place during
the Participant's employment with the Company, or arising out of the
Participant's separation from that employment, whether or not any such claim
known at the time of separation.

Article 11.       Successors and Assignment

         11.1 Successors to the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary thereof that employed the Participant at the time of
Termination of Employment to expressly assume and agree to perform the Company's
obligations under this Agreement in the same manner and to the same extent that
the Company would be required to perform them if no such succession had taken
place. Failure of the Company to obtain such assumption and agreement prior to
the effective date of any such succession shall be a breach of this Agreement
and shall entitle the Participant to compensation from the Company in the same
amount and on the same terms as he would be entitled to hereunder if he had
terminated his employment with the Company voluntarily for Good Reason. Except
for the purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Effective Date of Termination.

         11.2 Assignment by the Participant. This Agreement shall inure to the
benefit of and be enforceable by the Participant's personal or legal
representatives, executors, administrators, successors, heirs, distributes,
devisees, and legatees. If the Participant dies while any amount would still be
payable to him hereunder had he continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement, to the Participant's Beneficiary. If the Participant has not named a
Beneficiary, then such amounts shall be paid to the

                                       10
<PAGE>
Participant's devisee, legatee, or other designee, or if there is not such
designee, to the Participant's estate.

Article 12.       Miscellaneous

         12.1 Beneficiaries. The Participant may designate one or more persons
or entities as the primary and/or contingent beneficiaries of any Severance
Benefits or Change in Control Severance Benefits owing to the Participant under
this Agreement. Such designation must be in the form of a signed writing
acceptable to the Company. The Participant may make or change such designations
at any time.

         12.2 Gender and Number. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
feminine shall include the masculine; the plural shall include the singular, and
the singular shall include the plural.

         12.3 Severability. In the event any provision of this Agreement shall
be held illegal or invalid for any reason, the illegality or invalidity shall
not affect the remaining parts of the Agreement, and the Agreement shall be
construed and enforced as if the illegal or invalid provision had not been
included. Further, the captions of this Agreement are not part of the provisions
hereof and shall have no force and effect.

         12.4 Modification. No provision of this Agreement may be modified,
waived, or discharged unless such modification, waiver, or discharge is agreed
to in writing and signed by the Participant and by an authorized representative
of the Company, or by the respective parties' legal representative and
successors.

         12.5 Applicable Law. To the extent not preempted by the laws of the
United States, the laws of the State of Minnesota, shall be the controlling law
in all matters relating to this Agreement.

                                    /S/ SCOTT J. DAVIDO

                                    --------------------------------------------
                                    Participant's Signature
                                    Date: July 1, 2003

                                    NRG ENERGY, INC.

                                    By: /S/ John R. Boken
                                        ----------------------------------------
                                        John R. Boken

                                    Title: President and Chief Operating Officer
                                           -------------------------------------

                                    Date: July 1, 2003
                                          --------------------------------------

                                       11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]