Document:

exv10w3

Exhibit 10.3

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

INVESTMENT AND OPTION AGREEMENT

BY AND AMONG

NINA INVESTMENTS HOLDINGS LLC,

NUCLEAR INNOVATION NORTH AMERICA LLC,

AND

TEPCO NUCLEAR ENERGY AMERICA LLC

Dated as of May 10, 2010

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I DEFINITIONS
	 	 	2	 
	1.1 Certain Matters of Construction
	 	 	2	 
	1.2 Certain Definitions
	 	 	2	 
	ARTICLE II INITIAL TRANSACTIONS
	 	 	11	 
	2.1 Initial Investment
	 	 	11	 
	2.2 Payment of Initial Closing Payment
	 	 	12	 
	2.3 Use of Proceeds
	 	 	12	 
	2.4 Initial Closing
	 	 	12	 
	2.5 Closing Deliveries
	 	 	13	 
	ARTICLE III Conditions Precedent
	 	 	14	 
	3.1 Conditions Precedent to the Obligations of Each Party
	 	 	14	 
	3.2 Conditions Precedent to Obligation of Investor to Effect the Initial Transactions
	 	 	14	 
	3.3 Conditions Precedent to Obligations of NINA and NINA Holdings to
Effect the Initial Transactions
	 	 	15	 
	ARTICLE IV
	 	 	15	 
	REPRESENTATIONS AND WARRANTIES OF NINA
	 	 	15	 
	4.1 Corporate Existence
	 	 	15	 
	4.2 Authority for Agreement; Non-Contravention
	 	 	16	 
	ARTICLE V Representations and Warranties of NINA HOLDINGS
	 	 	17	 
	5.1 Corporate Existence
	 	 	17	 
	5.2 Authority for Agreement; Non-Contravention
	 	 	17	 
	5.3 Ownership Interests
	 	 	18	 
	5.4 Governmental Approvals
	 	 	20	 
	5.5 Litigation and Audits
	 	 	20	 
	5.6 Broker’s or Finder’s Fees
	 	 	21	 
	5.7 Compliance with Laws
	 	 	21	 
	5.8 Books and Records
	 	 	21	 
	5.9 Financial Statements
	 	 	22	 
	5.10 Absence of Certain Changes and Liabilities
	 	 	22	 
	5.11 Tax Matters
	 	 	22	 
	5.12 Employment-Related Matters
	 	 	23	 
	5.13 Real Property
	 	 	23	 
	5.14 Intellectual Property
	 	 	23	 
	5.15 Agreements, Contracts and Commitments
	 	 	24	 
	5.16 Affiliate Contracts
	 	 	25	 
	5.17 Potential Conflicts of Interest
	 	 	26	 
	5.18 Power Purchase Arrangements
	 	 	26	 
	5.19 DOE Loan Guarantee Application
	 	 	26	 
	5.20 Regulatory Status
	 	 	27	 
	5.21 CPS Settlement
	 	 	27	 

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	5.22 Exclusivity of Representations
	 	 	27	 
	ARTICLE VI Representations And Warranties Of Investor
	 	 	28	 
	6.1 Corporate Status of Investor
	 	 	28	 
	6.2 Authority for Agreement; Non-Contravention
	 	 	28	 
	6.3 Litigation and Audits
	 	 	28	 
	6.4 Broker’s or Finder’s Fees
	 	 	29	 
	6.5 Investment Intent
	 	 	29	 
	6.6 Exclusivity of Representations
	 	 	29	 
	ARTICLE VII Covenants
	 	 	29	 
	7.1 Expenses
	 	 	29	 
	7.2 Interim Period Access of Investor
	 	 	30	 
	7.3 Event Notices
	 	 	30	 
	7.4 Public Announcements
	 	 	30	 
	7.5 Commercially Reasonable Efforts; Further Assurances; Regulatory Approvals
	 	 	30	 
	7.6 Conduct of Business Until Initial Closing Date
	 	 	32	 
	7.7 Pledge of Interests
	 	 	34	 
	7.8 NINA Intellectual Property
	 	 	34	 
	ARTICLE VIII THE OPTION
	 	 	34	 
	8.1 The Option
	 	 	34	 
	8.2 Exercise Period
	 	 	34	 
	8.3 Exercise Notice
	 	 	34	 
	8.4 Additional Investment
	 	 	35	 
	8.5 Option Transactions
	 	 	35	 
	8.6 Option Closing
	 	 	36	 
	ARTICLE IX Termination
	 	 	36	 
	9.1 Termination Prior to the Initial Closing
	 	 	36	 
	9.2 Termination After Initial Closing
	 	 	37	 
	9.3 Effect of Termination
	 	 	37	 
	ARTICLE X Indemnification
	 	 	37	 
	10.1 Survival
	 	 	37	 
	10.2 Indemnification Obligations — NINA
	 	 	38	 
	10.3 Indemnification Obligations — Investor
	 	 	39	 
	10.4 Limitations on Indemnification Obligations; Liability Cap
	 	 	39	 
	10.5 Indemnification Process for Claims
	 	 	41	 
	10.6 Specific Performance
	 	 	42	 
	10.7 Exclusive Remedy
	 	 	42	 
	10.8 No Recourse
	 	 	42	 
	10.9 Adjustments to Initial Investment Amount
	 	 	43	 
	ARTICLE XI Miscellaneous
	 	 	43	 
	11.1 Amendments and Supplements
	 	 	43	 
	11.2 Waiver
	 	 	43	 
	11.3 Governing Law
	 	 	43	 
	11.4 Resolution of Disputes
	 	 	43	 
	11.5 Notice
	 	 	45	 
	11.6 Entire Agreement
	 	 	46	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	11.7 Binding Effect; Assignability
	 	 	46	 
	11.8 Validity
	 	 	46	 
	11.9 Counterparts
	 	 	46	 
	11.10 Time is of the Essence
	 	 	46	 
	11.11 No Relationship.
	 	 	46	 
	11.12 Construction of Agreement.
	 	 	46	 

Exhibits

	 	 	 

	Exhibit A

	 	Form of NRG Parent Guaranty
	Exhibit B-1

	 	TEPCO Initial Guaranty
	Exhibit B-2

	 	Form of TEPCO Option Guaranty
	Exhibit C

	 	Form of NINA Holdings LLC Operating Agreement
	Exhibit D

	 	Form of Officer’s or Manager’s Certificate
	Exhibit E

	 	Form of Secretary’s Certificate

Schedules

	 	 	 

	Schedule 1.2(a)

	 	Permitted Liens
	Schedule 1.2(b)

	 	Tenancy in Common Agreements
	Schedule 1.2(c)

	 	NINA Holdings Knowledge Persons
	Schedule 1.2(d)

	 	Investor Knowledge Persons
	Schedule 4.2(c)

	 	NINA Governmental Approvals and Third-Party Consents
	Schedule 5.1(b)

	 	Foreign Jurisdictions
	Schedule 5.2(c)

	 	NINA Holdings Governmental Approvals and Third-Party Consents
	Schedule 5.3(e)

	 	Assets of the NINA Subsidiaries
	Schedule 5.3(f)

	 	Equity Holdings of the NINA Subsidiaries
	Schedule 5.4(a)

	 	Existing Project Governmental Approvals
	Schedule 5.4(b)

	 	Applications for Governmental Approvals
	Schedule 5.4(c)

	 	Major Permits
	Schedule 5.5(c)

	 	Governmental Investigations of Project
	Schedule 5.10

	 	Changes and Liabilities
	Schedule 5.11

	 	Tax Disclosure
	Schedule 5.13

	 	Real Property
	Schedule 5.14

	 	Liens on and Infringements of Intellectual Property
	Schedule 5.14(b)

	 	Allocation of Intellectual Property
	Schedule 5.15(a)

	 	Major Contracts
	Schedule 5.15(b)

	 	Breaches and Defaults Relating to Major Contracts
	Schedule 5.15(c)

	 	Other Agreements
	Schedule 5.16

	 	Affiliate Contracts
	Schedule 5.17

	 	Potential Conflicts of Interest
	Schedule 5.18

	 	Power Purchase Agreements
	Schedule 5.21

	 	CPS Settlement Documents
	Schedule 6.2(c)

	 	Investor Governmental Approvals and Third-Party Consents
	Schedule 7.6

	 	Permitted Interim Actions

iii

 

INVESTMENT AND OPTION AGREEMENT

     This Investment and Option Agreement (this “Agreement”), dated as of May 10, 2010 (the
“Agreement Date”), by and among NINA Investments Holdings LLC, a Delaware limited liability
company (“NINA Holdings”), Nuclear Innovation North America LLC, a Delaware limited
liability company (“NINA”) (solely for purposes of Section 2.5, Section
3.1, Section 3.3, Sections 7.1 through 7.5, Section 7.8, Article
I, Article IV, Article IX, Article X, and Article XI), and
TEPCO Nuclear Energy America LLC, a Delaware limited liability company (“Investor”).
Investor, NINA, and NINA Holdings are referred to individually herein as a “Party” and
collectively as the “Parties.”

WITNESSETH

     WHEREAS, NINA Holdings is a direct, wholly owned subsidiary of NINA;

     WHEREAS, NINA Holdings directly owns one hundred percent (100%) of the limited liability
company interests of Nuclear Innovation North America Investments LLC, a Delaware limited liability
company (“NINA Investments”);

     WHEREAS, NINA Investments directly owns one hundred percent (100%) of the limited liability
company interests of NINA Texas 3 LLC, a Delaware limited liability company (“NINA Texas
3”) and of NINA Texas 4 LLC, a Delaware limited liability company (“NINA Texas 4”);

     WHEREAS, NINA Texas 3 has, or has the right to obtain, an undivided ninety two and
three-eighths percent (92.375%) interest as a tenant-in-common in the South Texas 3 project (as
further defined below, the “South Texas Unit 3”), and NINA Texas 4 has, or has the right to
obtain, an undivided ninety two and three-eighths percent (92.375%) interest as a tenant-in-common
in the South Texas 4 project (as further defined below, the “South Texas Unit 4”);

     WHEREAS, Investor desires to make an investment in NINA Holdings in return for ten percent
(10.0%) of the limited liability company interests of NINA Holdings, all on the terms and subject
to the conditions set forth in this Agreement;

     WHEREAS, Investor desires to purchase, and NINA Holdings desires to grant to Investor, an
option to make an additional investment in NINA Holdings, in return for additional limited
liability company interests of NINA Holdings, all on the terms and subject to the conditions set
forth in this Agreement; and

     WHEREAS, NINA will receive direct and indirect benefits from Investor entering into and
performing its obligations under this Agreement and, accordingly, NINA is willing to enter into
this Agreement, solely for the purposes of Section 2.5, Section 3.1, Section
3.3, Sections 7.1 through 7.5, Section 7.8, Article I, Article
IV, Article IX, Article X, and Article XI.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

 

 

ARTICLE I

DEFINITIONS

          1.1 Certain Matters of Construction. A reference to an Article, Section, Exhibit or Schedule means
an Article of, a Section in, or Exhibit or Schedule to, this Agreement unless otherwise expressly
stated. Unless the context requires otherwise, the words “this Agreement,” “hereof,” “hereunder,”
“herein,” “hereby” or words of similar import refer to this Agreement as a whole and not to a
particular Article, Section, subsection, clause or other subdivision hereof. The titles and
headings herein are for convenience of reference only and shall not in any manner affect the
meaning or construction of this Agreement. The words “include,” “includes” and “including” when
used herein shall be deemed in each case to be followed by the words “without limitation.”
Whenever the context requires, the words used herein include the masculine, feminine and neuter
gender, and the singular and the plural. The word “Dollar” and the symbol “$” mean United States
Dollars. A reference to any legislation or to any provision of any legislation shall include any
amendment to, any modification or re-enactment thereof, any legislative provision substituted
therefor and all regulations and statutory instruments issued thereunder or pursuant thereto.
References to “this Agreement” or any other agreement or document shall be construed as a reference
to such agreement or document, including any exhibits, appendices and schedules thereto, as
amended, amended and restated, modified or supplemented and in effect from time to time and shall
include a reference to any document which amends, modifies or supplements it, or is entered into,
made or given pursuant to or in accordance with its terms. References to a Person shall be
construed as a reference to such Person and its successors and permitted assigns.

          1.2 Certain Definitions. As used herein, the following terms shall have the following meanings:

     “1997 Participation Agreement” means that certain Amended and Restated South Texas Project
Participation Agreement, effective as of November 17, 1997, among CPS, NRG South Texas LP (as
successor in interest to Houston Lighting & Power Company), City of Austin and Central Power and
Light Company.

     “ABWR” is defined in the definition of COL Application.

     “Action” means any suit, claim, proceeding, arbitration, audit or investigation by or before
any Governmental Entity or arbitral tribunal.

     “Additional Investor Interests” is defined in Section 8.1.

     “Affiliate” means, with respect to any Person, any Person which, directly or indirectly,
Controls, is Controlled by, or is under common Control with, such Person. For avoidance of doubt,
NRG shall be deemed to be an Affiliate of NINA, and STPNOC is not an Affiliate of NINA.

     “Agreement” is defined in the Preamble.

     “Agreement Date” is defined in the Preamble.

2

 

     “Arbitration Notice” is defined in Section 11.4(b).

     “Arbitrator” is defined in Section 11.4(c)(i).

     “Assets” of any Person means all assets, properties, rights and interests of such Person of
every kind, nature, character and description (whether real, personal or mixed, whether tangible or
intangible, and wherever situated), including the goodwill related thereto, operated, owned or
leased by such Person or that such Person has a contractual right to use.

     “Business” means the business of developing, permitting, engineering, procuring, constructing,
owning, financing, and operating the Project including, in the case of NINA Holdings, the direct or
indirect ownership of NINA Investments and the Project Companies.

     “Business Day” means a day other than a Saturday, a Sunday or a U.S. federal holiday.

     “Business Plan” means the business plan, with annual operating budgets and capital expenditure
budgets (including sources and uses of funds) for the NINA Subsidiaries and the Project, which is
set forth as Exhibit C to the Operating Agreement.

     “Catch-Up Contributions” is defined in Section 8.4(a).

     “Charter Documents” means the organizational documents that govern a corporation, limited
liability company, association, partnership or any other entity or organization, pursuant to the
Laws of its jurisdiction of formation, including as applicable, certificates or articles of
incorporation or organization, certificates or articles of formation, bylaws, limited liability
company operating agreements, partnership agreements, and similar instruments.

     “Claim” is defined in Section 10.5(a).

     “Code” means the Internal Revenue Code of 1986, as amended.

     “COL Application” means that certain application for a combined license (“COL”) filed
by STPNOC under Part 52 of the NRC’s regulations (10 CFR Part 52) on September 20, 2007, as amended
and supplemented, for combined construction permit and operating licenses for two Advanced Boiling
Water Reactors (ABWR) designated as South Texas Unit 3 and South Texas Unit 4 in such application.

     “Collateral Source” is defined in Section 10.4(d).

     “Commercial Operation Date” means the date on which the later of the Units to achieve
“Substantial Completion” under and as defined in the EPC Contract achieves Substantial Completion
in accordance with the terms thereof.

     “Confidentiality Agreement” means that certain Confidentiality Agreement, dated as of February
9, 2009, between NINA and TEPCO.

3

 

     “Contract” means any legally binding agreement, instrument, lease, license (other than a
Governmental Approval), evidence of Indebtedness, mortgage, indenture, security agreement, lease,
or other contract, arrangement, understanding, or commitment, whether written or oral.

     “Control” means the possession, directly or indirectly, through one or more intermediaries, of
either of the following with respect to another Person: (a) the right to more than fifty percent
(50%) of the distributions from such Person (including liquidating distributions) or more than
fifty percent (50%) of the economic or beneficial interest in such Person, and (b) the power or
authority, through ownership of voting securities, by contract or otherwise, to exercise a
controlling influence over the management of the entity, and “Controls” and “Controlled” have the
correlative meanings.

     “CPS” means The City of San Antonio, acting through the City Public Service Board of San
Antonio.

     “CPS Settlement” means the settlement and dismissal with prejudice of the litigation between
CPS, as plaintiff and counterclaim defendant, and NINA and each Project Company, as defendants and
counterclaim plaintiffs, in Cause Number 2009-CI-19492 in the 37th Judicial District
Court of Bexar County, Texas.

     “CPS Settlement Documents” means the Project Agreement, the Owners Agreement, and the other
documents listed on Schedule 5.21.

     “De Minimis Amount” is defined in Section 10.4(a).

     “Development and Construction Costs” means third-party costs incurred by the Project Companies
for the development, permitting, engineering, procurement, construction, or third-party debt
financing of the Project pursuant to the Business Plan. For avoidance of doubt, the payments to be
made by NRG to CPS by and for the benefit of the Project Companies pursuant to Section 3.1 of the
Project Agreement, or any reimbursement of that amount made by the Project Companies to NRG, shall
be deemed to be Development and Construction Costs, but the contribution to be made by NRG to REAP,
Inc. pursuant to Section 3.2 of the Project Agreement shall be solely for the account of NRG and
shall not be deemed to be a Development and Construction Cost.

     “Dispute” is defined in Section 11.4(a).

     “DOE” means the United States Department of Energy.

     “DOE Loan Guarantee Application” means the application of NINA to the DOE for a loan guarantee
from the DOE pursuant to Energy Policy Act of 2005, 42 U.S.C. §§ 16511-16516 with respect to the
construction and permanent debt financing by the United States Federal Financing Bank for both
Units of the Project, including the Part I application submitted by NINA on July 31, 2008, the Part
II application submitted by NINA on October 14, 2008, and all supporting materials or information
submitted in writing to DOE in connection therewith.

     “Draft EIS” means the Draft Environmental Impact Statement issued by or for the NRC on March
19, 2010, in connection with the COL Application.

4

 

     “Draft PPA” is defined in Section 5.18.

     “EPC Contract” means the EPC Contract listed on Schedule 5.15(a).

     “Equitable Qualifications” is defined in Section 4.2(a).

     “ERCOT” means the Electric Reliability Council of Texas.

     “Exercise Notice” is defined in Section 8.3(a).

     “Exercise Price” is defined in Section 8.4(a).

     “Federal Power Act” means 16 U.S.C. § 791a et seq.

     “GAAP” means generally accepted accounting principles in the United States of America
consistently applied, as in effect from time to time.

     “Governmental Approval” means all permits, consents, licenses, qualifications, exemptions,
franchises, concessions (other than Tax abatements), certificates, grants of authority, approvals,
variances, and authorizations issued or granted by, and all notices to, any Governmental Entity.

     “Governmental Entity” means any United States or foreign governmental or public body or
authority, including any national, state, provincial, regional, municipal or local authority, body,
agency, ministry, court, judicial or administrative body, taxing authority or other governmental
organization.

     “Holdings Closing Breach” is defined in Section 10.4(a).

     “Indebtedness” of any Person means (a) indebtedness created, issued or incurred by such Person
for borrowed money (whether by loan or the issuance and sale of debt securities or the sale of
property of such Person to another Person subject to an understanding or agreement, contingent or
otherwise, to repurchase such property of such Person), (b) obligations of such Person to pay the
deferred purchase or acquisition price for any property of such Person, (c) any indebtedness of
others secured by a Lien on any property of such Person, whether or not the respective indebtedness
so secured has been assumed by it, (d) obligations of such Person in respect of letters of credit
or similar instruments issued or accepted by banks and other financial institutions for account of
such Person, (e) obligations of such Person in respect of surety bonds or similar instruments, (f)
the obligations of such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) any property of such Person to the extent such obligations are required
to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP,
and (g) indebtedness of others as described in clauses (a) through (f) above in any manner
guaranteed by such Person or for which it is or may become contingently liable; provided,
that Indebtedness shall not include accounts payable to trade creditors, or accrued expenses
arising in the ordinary course of business consistent with past practice, in each case, that are
not yet due and payable, or are being disputed in good faith, and the endorsement of negotiable
instruments for collection in the ordinary course of business.

5

 

     “Indemnitee” is defined in Section 10.5(a).

     “Indemnitor” is defined in Section 10.5(a).

     “Indemnity Cap” is defined in Section 10.4(a).

     “Indemnity Threshold” is defined in Section 10.4(a).

     “Initial Closing” is defined in Section 2.4.

     “Initial Closing Date” is defined in Section 2.4.

     “Initial Closing Payment” is defined in Section 2.2.

     “Initial Investment” is defined in Section 2.1(a)(ii).

     “Initial Investment Amount” is defined in Section 2.1(a)(ii).

     “Initial Investor Interests” is defined in Section 2.1(a)(i).

     “Initial Transactions” means the transactions contemplated to occur at the Initial Closing in
accordance with Article II.

     “Intellectual Property” means the patents, patent applications, registered trademarks,
trademark applications, registrations, copyrights, computer programs, databases, industrial
designs, service marks, schematics, technology, know-how, trade secrets, algorithms, computer
software programs or applications and tangible or intangible proprietary information or material.

     “Investor” is defined in the Preamble.

     “Investor Aggregate Investment Amount” means an amount equal to the sum of (a) the Initial
Investment Amount, plus (b) the Option Premium, and plus (c) the Option Closing Payment (but solely
to the extent actually paid by Investor to NINA Holdings at the Option Closing).

     “Investor Interests” means the Initial Investor Interests and the Additional Investor
Interests.

     “JBIC” is defined in Section 7.5(c).

     “Key Assets” is defined in Section 5.3(e).

     “Key Tangible Assets” is defined in Section 5.3(e).

     “Knowledge” means, in the case of NINA Holdings, the actual knowledge of the Persons listed on
Schedule 1.2(c) (after due inquiry of their respective direct reports) and, in the case of
Investor, the actual knowledge of the Persons listed on Schedule 1.2(d) (after due inquiry
of their respective direct reports).

6

 

     “Laws” means all applicable foreign, federal, state and local statutes, laws, ordinances,
regulations, rules, resolutions, orders, tariffs, determinations, writs, injunctions, awards
(including awards of any arbitrator), Governmental Approvals, and Orders.

     “Letter of Intent” means that certain Confidential Memorandum of Understanding, dated as of
February 9, 2009, between TEPCO and NINA, as confirmed and clarified by that certain Agreement,
dated as of February 5, 2009, between TEPCO and NRG.

     “Liabilities” means any and all debts, liabilities and obligations, whether accrued, fixed, or
otherwise, and whether known or unknown, absolute or contingent, matured or unmatured, or
determined or determinable.

     “Lien” means any mortgage, pledge, assessment, security interest, lease, lien, adverse claim,
levy, charge or other encumbrance of any kind, or any conditional sale Contract, title retention
Contract or other Contract to give any of the foregoing.

     “Losses” means all demands, losses, claims, Actions or causes of action, assessments, damages,
amounts paid in settlement, Liabilities, Taxes, costs and expenses, including interest, penalties
and reasonable attorneys’ fees and disbursements.

     “Major Contract” is defined in Section 5.15(a).

     “Major Permit” is defined in Section 5.4(c).

     “Material Adverse Effect” means any change or effect having a material adverse change or
effect on (a) the business, operations, assets, properties, or financial condition of the Business
of NINA and the NINA Subsidiaries, taken as a whole, of STPNOC (solely as it may relate to the
Project), or of the Project, in each case excluding (i) any such change or effect resulting from
the announcement, pendency or consummation of the Transactions, (ii) any changes in general United
States economic conditions or any changes in capital markets that in each case do not
disproportionately affect the NINA Subsidiaries or the Business as compared to the effect on other
companies engaged in any business similar to the Business, (iii) changes in Laws or interpretations
thereof or changes in accounting requirements or principles that in each case do not
disproportionately affect the NINA Subsidiaries or the Business as compared to the effect on other
companies engaged in any business similar to the Business, (iv) changes affecting the nuclear power
industry in the United States or the electric power markets in the ERCOT region that in each case
do not disproportionately affect the NINA Subsidiaries or the Business as compared to the effect on
other companies engaged in any business similar to the Business, (v) conduct by NINA Holdings or
any of the NINA Subsidiaries prohibited under Section 7.6 for which Investor gave its prior
written consent, (vi) any action required to be taken under any Law or Order or any existing
Contract made available to Investor prior to the Agreement Date by which NINA Holdings or any of
the NINA Subsidiaries (or any of their respective properties) is bound as of the Agreement Date, or
(vii) any failure by NINA Holdings or any of the NINA Subsidiaries in and of itself to meet any
internal projections or forecasts, or (b) the ability of either NINA Party to consummate the
Transactions on a timely basis and otherwise to perform its obligations hereunder.

     “NEXI” is defined in Section 7.5(c).

7

 

     “NINA” is defined in the Preamble.

     “NINA Companies” means NINA and the NINA Subsidiaries.

     “NINA Entities” means the NINA Companies and their respective Affiliates.

     “NINA Financial Statements” is defined in Section 5.9.

     “NINA Group” is defined in Section 10.3.

     “NINA Holdings” is defined in the Preamble.

     “NINA Investments” is defined in the Recitals.

     “NINA Party” means NINA or NINA Holdings.

     “NINA Subsidiaries” means NINA Holdings, NINA Investments, and the Project Companies.

     “NINA Texas 3” is defined in the Recitals.

     “NINA Texas 4” is defined in the Recitals.

     “NRC” means the United States Nuclear Regulatory Commission.

     “NRG” means NRG Energy, Inc., a Delaware corporation.

     “NRG Parent Guaranty” means the NRG Limited Guaranty, to be executed and delivered on or prior
to the Initial Closing Date, by NRG in favor of Investor, in the form attached hereto as
Exhibit A.

     “Operating Agreement” means the Limited Liability Company Agreement of NINA Holdings,
substantially in the form of Exhibit C.

     “Option” is defined in Section 8.1.

     “Option Closing” is defined in Section 8.6.

     “Option Closing Date” is defined in Section 8.6.

     “Option Closing Payment” is defined in Section 8.5(a).

     “Option Expiration Date” is defined in Section 8.2.

     “Option Premium” is defined in Section 2.1(a)(iii).

     “Option Transactions” means the transactions contemplated to occur at the Option Closing in
accordance with Article VIII.

8

 

     “Order” means any writ, judgment, decree, injunction, restraint or similar order of any
Governmental Entity or arbitrator (in each such case whether preliminary or final).

     “Outside Initial Closing Date” means **.

     “Owners Agreement” means that certain STP 3 & 4 Owners Agreement, dated March 1, 2010, by and
among CPS, NINA, NINA Texas 3, and NINA Texas 4.

     “Party” is defined in the Preamble.

     “Permitted Liens” means (a) any statutory Liens for Taxes not yet due and payable or that are
being contested in good faith by appropriate proceedings and for which adequate reserves have been
established in accordance with GAAP, (b) any mechanics’, carriers’, workmen’s, repairmen’s or other
like Liens, including statutory Liens, arising in the ordinary course of business by operation of
Law with respect to Liabilities that are not yet due and payable, (c) any (i) servitudes, permits,
licenses, surface leases, ground leases to utilities, municipal agreements, railway siding
agreements and other similar rights, easements for streets, alleys, highways, telephone lines, gas
pipelines, power lines and railways, and other similar easements and rights-of-way of public record
on, over or in respect of the real property on which the Project is situated, (ii) conditions,
covenants or other similar restrictions on the real property on which the Project is situated, or
(iii) encroachments and other matters that would be shown in an accurate survey or physical
inspection of such real property, or (d) other minor imperfection in title that would not,
individually or in the aggregate taking into account any other imperfections in title permitted in
accordance with this clause (d) materially affect the value or intended use of or otherwise
materially impair the property or asset in question, and (e) any Lien described as a Permitted Lien
with respect to the applicable Person in Schedule 1.2(a).

     “Person” means an individual, a corporation, a limited liability company, an association, a
partnership, an estate, a trust and any other entity or organization, including any Governmental
Entity.

     “Power Purchase Agreement” is defined in Section 5.18.

     “Project” means the two additional electric generating units, South Texas Unit 3 and South
Texas Unit 4, which are currently contemplated to be constructed by TANE employing ABWR technology,
at the Sites, pursuant to the COL Application.

     “Project Agreement” means the Project Agreement, Settlement Agreement and Mutual Release,
dated March 1, 2010, by and among CPS, NINA, NINA Texas 3 and NINA Texas 4.

     “Project Company” means NINA Texas 3 or NINA Texas 4, as applicable.

     “PUCT” means the Texas Public Utility Commission.

 

			
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     “Related Agreements” means the NRG Parent Guaranty, the TEPCO Initial Guaranty, the TEPCO
Option Guaranty, the Operating Agreement, and the certificates to be executed and delivered
pursuant to Section 2.5(a) and Section 2.5(b).

     “Representatives” means, with respect to a Party, the respective directors, officers,
employees, agents, investment bankers, attorneys, accountants and advisors of such Party and its
Affiliates.

     “Rules” is defined in Section 11.4(a).

     “Securities Act” means the United States Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

     “SEO” is defined in Section 11.4(b).

     “Signing Balance Sheet” is defined in Section 5.9.

     “Site” means with respect to each Unit or the Project, as the case may be, the real property
on which such Unit or the Project is to be located, as described in the COL Application.

     “South Texas Unit 3” means the electric generating unit, described as the third unit to be
constructed at the South Texas Project (as defined in the COL Application) in the COL Application.

     “South Texas Unit 4” means the electric generating unit, described as the fourth unit to be
constructed at the South Texas Project (as defined in the COL Application) in the COL Application.

     “STPNOC” means STP Nuclear Operating Company.

     “Subsidiary” means a corporation, limited liability company, partnership, joint venture or
other entity of which any Person owns, directly or indirectly, any of the outstanding securities or
other interests the holders of which are generally entitled to vote for the election of the board
of directors or other governing body or otherwise exercise Control of such entity.

     “TANE” means Toshiba America Nuclear Energy Corporation, the “Contractor” under the EPC
Contract.

     “Tax Authority” means any Governmental Entity having jurisdiction over the assessment,
determination, collection, administration, or imposition of any Tax.

     “Tax Return” means any report, form, return, statement, information return, declaration,
certificate, bill, document, claim for refund, or other information (including any amendments)
supplied to or required to be supplied to a Governmental Entity with respect to Taxes, including
any amendments thereof or schedule or attachment thereto and any documents with respect to or
accompanying requests for the extension of time in which to file any such report, return, document,
declaration or other information.

10

 

     “Taxes” means any and all taxes, levies and other assessments, including any and all income,
sales, use, gross receipts, goods and services, value added, ad valorem, alternative minimum,
franchise, estimated, capital, capital gains, margin, net worth, transfer, profits, business and
occupation, social security, ad valorem, stamp, withholding, payroll, employer health, excise, real
property and personal property taxes and any other taxes, fees, duties, customs, tariffs, imposts,
obligations, assessments or similar charges in the nature of a tax including unemployment insurance
payments and workers compensation premiums, together with any installments with respect thereto,
and any interest, fines, additions, and penalties, imposed by any Governmental Entity (including
U.S. federal, state, municipal and non-U.S. Governmental Entities), whether disputed or not.

     “Tenancy in Common Agreements” means the Contracts listed on Schedule 1.2(b).

     “TEPCO” means The Tokyo Electric Power Company, Incorporated.

     “TEPCO Group” is defined in Section 10.2.

     “TEPCO Initial Guaranty” means the TEPCO Limited Guaranty, dated as of the Agreement Date, by
TEPCO in favor of NINA Holdings, attached hereto as Exhibit B-1.

     “TEPCO Option Guaranty” means the TEPCO Limited Guaranty, by TEPCO in favor of NINA Holdings,
to be executed and delivered by TEPCO to NINA Holdings in connection with the delivery of the
Exercise Notice by Investor, in the form attached hereto as Exhibit B-2.

     “Third-Party Claims” is defined in Section 10.5(b).

     “Toshiba” means Toshiba Corporation.

     “Toshiba Credit Agreement” means that certain Credit Agreement, dated as of February 24, 2009,
by NINA, NINA Investments, NINA Texas 3, NINA Texas 4, the lenders party thereto and TANE as
collateral agent and administrative agent.

     “Toshiba Security Agreement” means that certain Security and Pledge Agreement, dated as of
February 24, 2009, by and among NINA, NINA Investments, NINA Texas 3, NINA Texas 4 and TANE.

     “Transactions” means the transactions contemplated by this Agreement, including the Initial
Transactions and the Option Transactions.

     “Treasury Regulations” means the regulations promulgated under the Code.

     “Tribunal” is defined in Section 11.4(c)(i).

     “Unit” means South Texas Unit 3 or South Texas Unit 4.

ARTICLE II

INITIAL TRANSACTIONS

          2.1 Initial Investment.

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           (a) Initial Closing Transactions. Upon the terms and subject to the conditions set forth in
this Agreement, at the Initial Closing, the Parties agree that the following transactions shall
occur:

          (i) NINA Holdings shall issue to Investor ten percent (10.0%) of the limited liability
company interests of NINA Holdings, free and clear of all Liens (other than Liens created by
Investor, Liens under the Operating Agreement, and Liens arising under the Toshiba Security
Agreement, as applicable) (the “Initial Investor Interests”);

          (ii) In consideration of the Initial Investor Interests, Investor shall contribute to
NINA Holdings, pursuant to this Agreement (the “Initial Investment”), an amount
equal to One Hundred Twenty-Five Million Dollars ($125,000,000) (the “Initial Investment
Amount”); and

          (iii) In consideration of the Option, Investor shall pay to NINA Holdings the sum equal
to Thirty Million Dollars ($30,000,000) (the “Option Premium”).

          (b) TEPCO Initial Guaranty. The Parties acknowledge that Investor has delivered to NINA
Holdings, in conjunction with its execution of this Agreement, the duly executed TEPCO Initial
Guaranty in favor of NINA Holdings.

          2.2 Payment of Initial Closing Payment. At the Initial Closing, upon the terms and subject to the
conditions set forth in this Agreement, Investor shall pay to NINA Holdings the sum of the Initial
Investment Amount plus the Option Premium (such payment, the “Initial Closing Payment”) by
wire transfer of immediately available funds to an account designated in writing by NINA Holdings.

          2.3 Use of Proceeds. The proceeds of the Initial Closing Payment shall be held by NINA Holdings
and, upon request of NINA Investments, contributed to NINA Investments by NINA Holdings as a
contribution to capital or an intercompany loan, and shall be used by NINA Investments and the
Project Companies only to pay Development and Construction Costs as set forth in the Business Plan
and, for avoidance of doubt, shall not be distributed or paid to any member of NINA Holdings or
distributed or paid to any Affiliate of such member (other than a NINA Subsidiary) except, in each
case, as expressly set forth in the Business Plan.

          2.4 Initial Closing. Subject to the terms and conditions of this Agreement, the closing of the
Initial Transactions (the “Initial Closing”) will take place at 10:00 a.m. local time at
the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036 on
the date ** after the satisfaction or waiver of each of the conditions
precedent to the Initial Investment set forth in Article III (other than those conditions
to be satisfied at the Initial Closing) or such other time or place as the Parties may agree. The date on which the Initial Closing occurs is hereinafter
referred to as the “Initial Closing Date.” All

 

			
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proceedings to be taken and all documents
to be executed and delivered by the Parties at the Initial Closing shall be deemed to have been
taken and executed simultaneously, and no proceedings shall be deemed taken nor any documents
executed or delivered until all have been taken, executed and delivered.

          2.5 Closing Deliveries.

          (a) Deliveries by NINA Parties. At the Initial Closing, NINA or NINA Holdings, as applicable,
shall deliver, or cause to be delivered, to Investor the following:

          (i) an original counterpart of the Operating Agreement, duly executed and delivered by
NINA;

          (ii) a unit certificate representing the Initial Investor Interests, duly executed by
an authorized officer of NINA Holdings, in the form of Exhibit D to the Operating Agreement;

          (iii) the certificates of formation of each of NINA and NINA Holdings, respectively, as
amended, modified or supplemented to the Initial Closing Date, certified to be true, correct
and complete by the Delaware Secretary of State, together with a certificate of good
standing (long form with tax status) for each such NINA Party issued by the Delaware
Secretary of State, and a certificate of qualification to do business as a foreign limited
liability company for each such NINA Party, issued by the Texas Secretary of State, each as
of a date not more than ten (10) Business Days prior to the Initial Closing Date;

          (iv) any other Charter Documents of each of NINA or NINA Holdings, respectively, as
amended, modified or supplemented to the Initial Closing Date, certified to be true, correct
and complete by the Secretary or Managing Member of such NINA Party as of a date not more
than five (5) days prior to the Initial Closing Date;

          (v) certificates, dated as of the Initial Closing Date and executed in the name and on
behalf of NINA and NINA Holdings, respectively, by its authorized officer, substantially in
the form attached hereto as Exhibit D;

          (vi) certificates, dated as of the Initial Closing Date and executed by the Secretary
or the appropriate Person of each of NINA and NINA Holdings, respectively, substantially in
the form attached hereto as Exhibit E; and

          (vii) an original counterpart of the NRG Parent Guaranty, duly executed and delivered
by NRG in favor of Investor.

          (b) Deliveries by Investor. At the Initial Closing, Investor shall deliver, or cause to be delivered,
to NINA Holdings the following:

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          (i) an original counterpart of the Operating Agreement, duly executed and delivered by
Investor;

          (ii) the certificate of formation of Investor, as amended, modified or supplemented to
the Initial Closing Date, certified to be true, correct and complete by the Delaware
Secretary of State, together with a certificate of good standing (long form with tax status)
issued by the Delaware Secretary of State, each as of a date not more than ten (10) Business
Days prior to the Initial Closing Date;

          (iii) a certificate, dated as of the Initial Closing Date and executed in the name and
on behalf of Investor by its authorized officer, substantially in the form attached hereto
as Exhibit D; and

          (iv) a certificate, dated as of the Initial Closing Date and executed by the Secretary
or the appropriate Person of Investor, substantially in the form of Exhibit E.

ARTICLE III

CONDITIONS PRECEDENT

          3.1 Conditions Precedent to the Obligations of Each Party. The obligations of the Parties to
effect the Initial Transactions shall be subject to the fulfillment at or prior to the Initial
Closing of the following conditions, any of which may be waived (in full or in part) only in
writing by each Party:

          (a) No Injunction. No Order issued by a court of competent jurisdiction that prohibits or
restricts the consummation of any of the Transactions shall be in effect (each Party agreeing to
use all commercially reasonable efforts to have any injunction or other order immediately lifted),
and no action or proceeding shall have been commenced or threatened in writing seeking any
injunction or restraining or other order that seeks to prohibit, restrain, invalidate or set aside
consummation of the Transactions or any of the other transactions contemplated hereby.

          (b) Illegality. There shall not have been any action taken, and no statute, rule or
regulation shall have been enacted by any state or federal government agency that would prohibit or
restrict the consummation of the Transactions or the other transactions contemplated hereby.

          3.2 Conditions Precedent to Obligation of Investor to Effect the Initial Transactions. The
obligation of Investor to effect the Initial Transactions shall be subject to the fulfillment at or
prior to the Initial Closing of the following additional conditions, any of which may only be
waived (in full or in part) only in writing by Investor:

          (a) Representations and Warranties. Each of the representations and warranties made by NINA
Holdings in Article V that are qualified as to materiality (or words of similar effect) and
by NINA in Section 4.1 or Section 4.2 or by NINA Holdings in Section 5.1,
Section 5.2, Section 5.3 (a), Section 5.3(b), or Section 5.3(c)
shall be true and correct in all

14

 

respects, and each other representation or warranty made by NINA Holdings in Article V
shall be true and correct in all material respects, in each case on and as of the Initial Closing
Date, as though made on and as of the Initial Closing Date or, in the case of representations and
warranties expressly made as of a specified date earlier than the Initial Closing Date, on and as
of such earlier date.

          (b) Performance. Each NINA Party and NRG shall have performed and complied in all material
respects with the respective agreements, covenants and obligations required by this Agreement or
any other Related Agreement to which it is a party to be so performed or complied with by it at or
before the Initial Closing.

          (c) Material Adverse Effect. Since the Agreement Date, there shall not have occurred a
Material Adverse Effect.

          (d) DOE Loan Guarantee. Investor shall have received a true, correct and complete copy of a
fully executed conditional loan guarantee commitment from the DOE in favor of NINA Investments with
respect to the construction and permanent debt financing by the United States Federal Financing
Bank for both Units of the Project, and such commitment (i) shall have been formally accepted by
NINA Investments in writing to DOE (and a true, correct and complete copy thereof and of such
acceptance shall have been provided to Investor), and (ii) shall be in full force and effect.

          3.3 Conditions Precedent to Obligations of NINA and NINA Holdings to Effect the Initial
Transactions. The obligation of NINA and NINA Holdings to effect the Initial Transactions shall be
subject to the fulfillment at or prior to the Initial Closing of the following additional
conditions, any of which may be waived (in full or in part) only in writing by NINA Holdings:

          (a) Representations and Warranties. Each of the representations and warranties made by
Investor in Article VI that are qualified as to materiality (or words of similar effect)
and in Section 6.1 and Section 6.2 shall be true and correct in all respects, and
each other representation or warranty made by Investor in Article VI shall be true and
correct in all material respects, in each case on and as of the Initial Closing Date, as though
made on and as of the Initial Closing Date or, in the case of representations and warranties
expressly made as of a specified date earlier than the Initial Closing Date, on and as of such
earlier date.

          (b) Performance. TEPCO and Investor shall have performed and complied in all material
respects with the respective agreements, covenants and obligations required by this Agreement or
any other Related Agreement to which it is a party to be so performed or complied with by it at or
before the Initial Closing.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF NINA

          NINA hereby makes the following representations and warranties to Investor:

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          4.1 Corporate Existence.

          (a) NINA is a limited liability company duly organized, validly existing and in good standing
under the laws of the State of Delaware. NINA has the requisite limited liability company or
partnership power (as the case may be) to own, operate and lease its properties and to carry on its
business as now being conducted.

          (b) NINA is duly qualified or licensed to do business and is in good standing in the State of
Delaware and the State of Texas and, and, except for such jurisdictions where the failure to be so
qualified or licensed and in good standing would not be reasonably expected to have, individually
or in the aggregate, a material adverse effect, all other jurisdictions in which the character of
the properties owned or held under lease by it or the nature of the business transacted by it makes
qualification necessary.

          (c) True, complete and correct copies, as of the Agreement Date, of the Charter Documents of
NINA have been delivered or made available to Investor prior to the Agreement Date.

          4.2 Authority for Agreement; Non-Contravention.

          (a) Authority. NINA has the requisite power and authority to enter into this Agreement and to
consummate the Transactions. The execution and delivery of this Agreement and the consummation of
the Transactions have been duly and validly authorized by all necessary company action and no other
corporate or member proceedings or actions (or their equivalents) are necessary on the part of NINA
to authorize and consummate this Agreement and the Transactions. This Agreement has been duly
executed and delivered by NINA, and constitutes the legal, valid and binding obligations of NINA,
enforceable against NINA in accordance with its terms, subject to the qualifications that
enforcement of the rights and remedies created hereby are subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance, moratorium and other laws of general application affecting
the rights and remedies of creditors, and (ii) general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law) (the “Equitable
Qualifications”).

          (b) No Conflict. Neither the execution and delivery by NINA of this Agreement nor the
performance by NINA of its obligations hereunder, nor the consummation by NINA of the Transactions,
will (i) violate any provision of the Charter Documents of NINA, (ii) conflict with, or result in a
breach of any term, covenant, condition or provision of, or constitute a default (with or without
notice or lapse of time or both) under, or result in a penalty or in the creation or imposition of
any Lien (other than a Permitted Lien) upon any material Assets of NINA pursuant to the terms of,
or give rise to any right of termination, purchase, cancellation or acceleration under, any
material Contract to which NINA is a party or by which its material Assets are bound, (iii)
conflict with or result in a material violation or breach of any term or provision of any Law
applicable to NINA or its material Assets, or (iv) require the consent or approval of, filing with,
or notice to any Person which, if not obtained, would prevent or impair in any material respect its
performance of its obligations under this Agreement.

          (c) Approvals for Transaction. Except as set forth on Schedule 4.2(c), no
Governmental Approval and no consent, approval, authorization, or permit of, or filing with or

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notification to, any Person is required in connection with the execution and delivery by NINA
of this Agreement or for or in connection with the consummation of the Transactions and performance
by NINA of the terms and conditions contemplated by this Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF NINA HOLDINGS

     NINA Holdings hereby makes the following representations and warranties to Investor:

          5.1 Corporate Existence.

          (a) Each NINA Subsidiary is a limited liability company duly organized, validly existing and
in good standing under the laws of the State of Delaware. Each NINA Subsidiary has the requisite
limited liability company or partnership power (as the case may be) to own, operate and lease its
properties and to carry on its business as now being conducted.

          (b) Each NINA Subsidiary is duly qualified or licensed to do business and is in good standing
in the State of Delaware and the State of Texas and, and, except for such jurisdictions where the
failure to be so qualified or licensed and in good standing would not be reasonably expected to
have, individually or in the aggregate, a material adverse effect, all other jurisdictions in which
the character of the properties owned or held under lease by it or the nature of the business
transacted by it makes qualification necessary. All jurisdictions in which each NINA Subsidiary is
qualified to do business as a foreign business entity and all names under which each NINA
Subsidiary is authorized to conduct its business in such jurisdictions as of the Agreement Date are
set forth on Schedule 5.1(b).

          (c) NINA Holdings is a newly formed, special-purpose limited liability company created for the
purpose of holding, directly or indirectly, membership interests in NINA Investments and the
Project Companies, and has engaged in no operations or activities other than those in connection
therewith or contemplated hereby.

          (d) True, complete and correct copies, as of the Agreement Date, of the Charter Documents of
each NINA Subsidiary have been delivered or made available to Investor prior to the Agreement Date.

          5.2 Authority for Agreement; Non-Contravention.

          (a) Authority. NINA Holdings has the requisite power and authority to enter into this
Agreement and to consummate the Transactions. The execution and delivery of this Agreement and the
consummation of the Transactions have been duly and validly authorized by all necessary company
action and no other corporate or member proceedings or actions (or their equivalents) are necessary
on the part of NINA Holdings to authorize and consummate this Agreement and the Transactions. This
Agreement has been duly executed and delivered by NINA Holdings, and constitutes the legal, valid
and binding obligations of NINA Holdings, enforceable against NINA Holdings in accordance with its
respective terms, subject to the qualifications that enforcement of the rights and remedies created
hereby are subject to the Equitable Qualifications.

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          (b) No Conflict. Neither the execution and delivery by NINA Holdings of this Agreement nor
the performance by NINA Holdings of its obligations hereunder, nor the consummation by NINA
Holdings of the Transactions, will (i) violate any provision of the Charter Documents of any NINA
Subsidiary, (ii) conflict with, or result in a breach of any term, covenant, condition or provision
of, or constitute a default (with or without notice or lapse of time or both) under, or result in a
penalty or in the creation or imposition of any Lien (other than a Permitted Lien) upon any
material Assets of any NINA Subsidiary pursuant to the terms of, or give rise to any right of
termination, purchase, cancellation or acceleration under, any material Contract to which any NINA
Subsidiary is a party or by which any NINA Subsidiary or its respective material Assets are bound,
(iii) conflict with or result in a material violation or breach of any term or provision of any Law
applicable to any NINA Subsidiary or its respective material Assets, or (iv) require the consent or
approval of, filing with, or notice to any Person which, if not obtained, would prevent or impair
in any material respect any NINA Subsidiary from performing its obligations under this Agreement.

          (c) Approvals for Transaction. Except as set forth on Schedule 5.2(c), no
Governmental Approval and no consent, approval, authorization, or permit of, or filing with or
notification to, any Person is required in connection with the execution and delivery of this
Agreement by NINA Holdings or for or in connection with the consummation of the Transactions and
performance of the terms and conditions contemplated by this Agreement by any NINA Subsidiary.

          5.3 Ownership Interests.

          (a) Ownership Interests of the NINA Subsidiaries. NINA holds of record and owns beneficially
one hundred percent (100%) of the limited liability company interests of NINA Holdings, NINA
Holdings holds of record and owns beneficially one hundred percent (100%) of the limited liability
company interests of NINA Investments, and NINA Investments holds of record and owns beneficially
one hundred percent (100%) of the limited liability company interests of NINA Texas 3 and NINA
Texas 4.

          (b) Issuance of Investor Interests. At the Initial Closing, NINA Holdings will issue to
Investor legal and beneficial title to the Initial Investor Interests, free and clear of any Liens
(other than any Liens created by Investor, Liens under the Operating Agreement, and Liens arising
under the Toshiba Security Agreement, as applicable). At the Option Closing, if the Option is
exercised by Investor, NINA Holdings will issue to Investor legal and beneficial title to the
Additional Investor Interests, free and clear of any Liens (other than any Liens created by
Investor, Liens under the Operating Agreement, and Liens arising under the Toshiba Security
Agreement, as applicable). All such outstanding limited liability company interests shall be duly
authorized and validly issued, shall not have been issued in violation of any Person’s preemptive
rights and shall be fully paid and non-assessable.

          (c) Options and Convertible Securities of the NINA Subsidiaries. Except for the Option:

          (i) there are no outstanding subscriptions, options, warrants, conversion rights or
other rights, securities or commitments obligating NRG, NINA, or

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any of their Affiliates to create, issue, sell or otherwise dispose of, purchase,
repurchase, redeem or acquire limited liability company interests, partnership interests, or
other equity interests in any NINA Subsidiary, or any securities or obligations convertible
into, or exercisable or exchangeable for, any such equity interests; and

          (ii) there are no voting trusts or other agreements or understandings to which NRG,
NINA, or any of their Affiliates or any other Person is a party with respect to the voting
of the limited liability company or partnership interests of any of the NINA Subsidiaries.

          (d) Ownership of Assets. Pursuant to the Tenancy in Common Agreements and the CPS Settlement
Documents, (i) NINA Texas 3 holds of record and owns beneficially, or has the right to obtain, an
undivided ninety two and three-eighths percent (92.375%) interest as a tenant in common in South
Texas Unit 3, and NINA Texas 4 holds of record and owns beneficially, or has the right to obtain,
an undivided ninety two and three-eighths percent (92.375%) interest as a tenant in common in South
Texas Unit 4.

          (e) Key Assets. Set forth on Schedule 5.3(e) is a complete and accurate list as of
the Agreement Date of Assets that are tangible personal property owned by each NINA Subsidiary,
organized by Project with a depreciated book value in excess of One Million Dollars ($1,000,000)
(the “Key Tangible Assets,” and together with the Major Contracts and the Major Permits,
the “Key Assets”). Except as set forth on Schedule 5.3(e):

          (i) each NINA Subsidiary holds of record and owns beneficially, and has good and
marketable title to, all of the Key Assets, in each case free and clear of any Lien, except
for Permitted Liens;

          (ii) prior to the Agreement Date, NINA transferred, or caused NINA Holdings and its
other Affiliates to transfer, to the applicable Project Company all of the material Assets
owned by the NINA Companies relating to the Project (including any Key Assets) and (B) to
the Knowledge of NINA Holdings, NRG transferred or caused its Affiliates (other than the
NINA Companies) to transfer, to the applicable Project Company all of the material Assets
owned by NRG or its Affiliates (other than the NINA Companies) primarily relating to the
Project (including any Key Assets); and

          (iii) to the Knowledge of NINA Holdings, (A) no material Assets necessary for the
Project or contemplated to be used by the Project are owned or controlled by NINA or any
NINA Affiliate (other than NRG and its Affiliates (other than the Project Companies)), and
(B) no material Assets primarily relating to the Project are owned or controlled by NRG or
any of its Affiliates (other than the Project Companies).

     (f) Subsidiaries. None of the NINA Subsidiaries have any Subsidiaries or investments in any
Person, other than the other NINA Subsidiaries as set forth in Section 5.3. As of the
Agreement Date, each NINA Subsidiary is wholly owned by NINA, directly or indirectly, as set forth
in Section 5.3. Except as set forth on Schedule 5.3(f), neither NINA nor any of
its Affiliates owns any interest in any other Person engaged in the Business other than the NINA

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Subsidiaries. None of the NINA Subsidiaries has engaged in any business other than the
Business.

          5.4 Governmental Approvals.

          (a) Existing Governmental Approvals. Each NINA Company and, to the Knowledge of NINA
Holdings, STPNOC (as it relates to the Project), has obtained and validly holds all material
Governmental Approvals necessary for its participation in the Business as currently conducted, and
is in compliance in all material respects with such Governmental Approvals. NINA Holdings has made
available to Investor, prior to the Agreement Date (and will have made available to Investor, prior
to the Initial Closing Date), true and complete copies of such Governmental Approvals, as currently
in effect as of such respective dates. Schedule 5.4(a) identifies all such material
Governmental Approvals as of the Agreement Date.

          (b) Applications for Governmental Approvals. Schedule 5.4(b) contains a list as of
the Agreement Date of all other material Governmental Approvals applied for by any NINA Company
with respect to the Business or, to the Knowledge of NINA Holdings, STPNOC, with respect to the
Project. NINA Holdings has provided or made available to Investor, prior to the Agreement Date
(and will have made available to Investor, prior to the Initial Closing Date), true and complete
copies of all applications and all other material documents submitted prior to such respective
dates to any Governmental Entity in connection with all such Governmental Approvals that have been
applied for.

          (c) Major Permit. To the Knowledge of NINA Holdings, Schedule 5.4(c) contains, for
each Unit or the Project (as the case may be), a list of all other material Governmental Approvals
that (i) are necessary under Laws as in effect on the Agreement Date for the development or
construction of such Unit or the Project (as the case may be), and (ii) if delayed or not obtained,
reasonably would be expected to delay or impair the ability to achieve the Commercial Operation
Date when contemplated by the Business Plan, or otherwise reasonably would be expected to have a
material adverse effect (a “Major Permit”).

          (d) No Actions. There is no Action pending or, to the Knowledge of NINA Holdings, threatened
by or before any Governmental Entity which has resulted or would reasonably be expected to result
in the revocation, cancellation, suspension, or any materially adverse modification of any
Governmental Approval identified in Schedule 5.4(a) or, to the Knowledge of NINA Holdings,
in the denial of any Governmental Approval identified in Schedule 5.4(b), and no NINA
Entity or, to the Knowledge of NINA Holdings, STPNOC, has received any written communication from a
Governmental Entity indicating that any application for any such Governmental Approval is not
likely to be granted, nor does any NINA Entity or, to the Knowledge of NINA Holdings, STPNOC, have
any reason to believe as of the Agreement Date that any such application should not be expected to
be granted.

          5.5 Litigation and Audits.

          (a) No Investigations. Except as would not, individually or in the aggregate, be reasonably
expected to have a material adverse effect, there is no investigation by any Governmental Entity
with respect to (i) NRG or any of its Affiliates (other than the NINA Companies) relating to NINA
(with respect to the Business), the NINA Subsidiaries, the Project,

20

 

or the Transactions, (ii) NINA relating to the Business, the Project, or the Transactions,
(iii) any of the NINA Subsidiaries, or their respective material Assets, the Project, or the
Transactions, or (iv) to the Knowledge of NINA Holdings, STPNOC (with respect to the Project), that
is pending or, to the Knowledge of NINA Holdings, threatened, nor has any Governmental Entity
indicated in writing to any of the NINA Entities or, to the Knowledge of NINA Holdings, STPNOC with
respect to the Project, an intention to conduct the same.

          (b) No Actions. Except as would not, individually or in the aggregate, be reasonably expected
to have a material adverse effect, there is no Action pending or, to the Knowledge of NINA
Holdings, threatened against or involving (i) NRG or any of its Affiliates (other than the NINA
Companies) relating to NINA (with respect to the Business), the NINA Subsidiaries, the Project, or
the Transactions, (ii) NINA relating to the Business, the Project, or the Transactions, (iii) any
of the NINA Subsidiaries, or their respective material Assets, the Project, or the Transactions, or
(iv) to the Knowledge of NINA Holdings, STPNOC (with respect to the Project), at law or in equity,
before any arbitrator or Governmental Entity.

          (c) No Orders. Except as set forth in Schedule 5.5(c), to the Knowledge of NINA
Holdings, no Governmental Entity has any plans, proposals, studies or investigations that would
reasonably expected to materially adversely affect the continued development of either Unit or the
Project. Except as would not, individually or in the aggregate, be reasonably expected to have a
material adverse effect, there are no Orders outstanding against (i) NRG or any of its Affiliates
(other than the NINA Companies) relating to NINA (with respect to the Business), the NINA
Subsidiaries, the Project, or the Transactions, (ii) NINA relating to the Business, the Project, or
the Transactions, (iii) any of the NINA Subsidiaries, or their respective material Assets, the
Project, or the Transactions, or (iv) to the Knowledge of NINA Holdings, STPNOC (with respect to
the Project).

          5.6 Broker’s or Finder’s Fees(a) . No NINA Entity has either retained, or otherwise has any
Liability to, any broker, finder, financial advisor or intermediary in connection with the
Transactions that would obligate any NINA Company or Investor to incur any Liability as a result of
retaining such broker, finder, financial advisor or intermediary.

          5.7 Compliance with Laws. Each of the NINA Companies and, to the Knowledge of NINA Holdings,
STPNOC (with respect to the Project), is and has been in compliance in all material respects with
all applicable Laws. No NINA Entity or, to the Knowledge of NINA Holdings, STPNOC has received any
written notice or allegations of any material violations of Laws relating to the Transactions, NINA
(with respect to the Business, the Project, or the Transactions), or any of the NINA Subsidiaries
or any of their material Assets, the Project, or the Units.

          5.8 Books and Records. The respective minute books of each NINA Company, as previously made
available to Investor prior to the Agreement Date (and that will have been made available to
Investor, prior to the Initial Closing Date), are true, complete and correct in all material
respects and contain accurate records of all meetings of, and limited liability company action
taken by (including action taken by written consent) the respective equity holders and managers of
each NINA Company as may exist or be in effect as of such respective dates.

21

 

          5.9 Financial Statements. NINA Holdings has made available to Investor, prior to the
Agreement Date, accurate and complete copies of the audited consolidated balance sheets, statements
of income, changes in stockholders’ equity and cash flows for the NINA Companies as of and for the
fiscal years ended December 31, 2008 and December 31, 2009, and the unaudited consolidated balance
sheet (the “Signing Balance Sheet”) and an unaudited consolidated statement of income for
the NINA Companies as of and for the fiscal quarter ended March 31, 2010. Collectively, the
foregoing financial statements (including for the avoidance of doubt the Signing Balance Sheet) are
referred to herein as the “NINA Financial Statements.” The NINA Financial Statements
(including any related notes thereto, if any) have been prepared from, are in accordance with and
accurately reflect the books and records of NINA and the other NINA Companies. The NINA Financial
Statements (including any related notes thereto, if any) have been prepared on a consistent basis
through the periods covered thereby and fairly present in all material respects the financial
position of the NINA Companies as of their date, and the other statements included in the NINA
Financial Statements (including any related notes, if any) fairly present in all material respects
the results of operations, cash flows and members’ equity of the NINA Companies for the periods
therein set forth, as applicable.

          5.10 Absence of Certain Changes and Liabilities. Except as set forth on Schedule 5.10:

          (a) Changes. Since the date of the Signing Balance Sheet, to the Agreement Date, (i) there
has not occurred any Material Adverse Effect, (ii) except as expressly required or contemplated by
this Agreement, the NINA Companies have conducted the operations of the Business in the ordinary
course of business consistent with past practices in all material respects, and (iii) none of the
NINA Companies has taken or agreed to take any action that would be prohibited by clauses (b), (d),
(e), (i), (k), (l), (o), (q), or (r) of Section 7.6 if taken after the Agreement Date.

          (b) Absence of Undisclosed Liabilities of NINA Companies. The NINA Companies do not have any
Liabilities that are required to be set forth on an audited consolidated balance sheet or the notes
thereto prepared in accordance with GAAP, except (i) Liabilities reflected on the NINA Financial
Statements or the notes thereto, (ii) Liabilities incurred in the ordinary course of business since
the date of the Signing Balance Sheet, (iii) liabilities that would not result in a material
Liability to the NINA Companies, (iv) Liabilities incurred under this Agreement, and (v)
Liabilities arising from performance obligations under any Major Contract or other Contract set
forth on the Schedules attached hereto.

          (c) Indebtedness. None of the NINA Subsidiaries have any Indebtedness, other than
Indebtedness owed to another NINA Subsidiary.

          5.11 Tax Matters. Except as set forth on Schedule 5.11:

          (a) All Tax Returns of any of the NINA Subsidiaries have been filed with the appropriate Tax
Authorities, and such Tax Returns are true, correct, and complete in all respects, except to the
extent it would not reasonably be expected to result in a material adverse effect. All Taxes shown
as due on such Tax Returns have been paid to the appropriate Tax Authorities.

          (b) There are currently no effective waivers of any statute of limitations in respect of
material Taxes of any of the NINA Subsidiaries.

22

 

          (c) NINA is not a “foreign person” as defined in Code Section 1445.

          (d) At all times since the date of their formation, each of NINA Investments and the Project
Companies have qualified as, and been treated as, disregarded as an entity separate from its owner
for United States federal income Tax purposes. At all times since the date of its formation until
the Initial Closing, NINA Holdings has qualified as, and has been treated as, disregarded as an
entity separate from its owner for United States federal income Tax purposes.

          (e) There are no material audits, claims, assessments, levies, administrative, or judicial
proceedings pending by any Tax Authority against, or with respect to the Assets or activities of,
any of the NINA Subsidiaries.

          (f) There are no material Liens, other than Permitted Liens, for Taxes on any Assets of any of
NINA Subsidiaries.

          (g) None of the NINA Subsidiaries has participated in, or is currently participating in, a
“listed transaction” within the meaning of Treasury Regulation Section 1.6011-4(b)(2).

The representations and warranties in this Section 5.11 are the sole and exclusive
representations and warranties of NINA Holdings concerning tax matters.

          5.12 Employment-Related Matters(a) . No NINA Subsidiary has or ever had any employees.

          5.13 Real Property.

          (a) Pursuant to the Tenancy in Common Agreements and the CPS Settlement Documents, each
Project Company owns or has the right to obtain, a ninety two and three-eighths percent (92.375%)
undivided direct interest as a tenant-in-common in each Site, including the Unit 3 and Unit 4
proportionate share of the Common Station Facilities (under and as defined in the 1997
Participation Agreement), as a result of the development of South Texas Unit 3 and South Texas Unit
4.

          (b) The Tenancy in Common Agreements and the CPS Settlement Documents provide all of material
real property interests (other than water rights) necessary for the Project Companies to develop,
construct, finance, own, and operate the Project in accordance with the Business Plan and to
conduct the Business as contemplated to be conducted by the Business Plan.

          (c) Except as set forth on Schedule 5.13, such real property interests are held or
will be held by the Project Companies as tenants-in-common free and clear of any Liens other than
Permitted Liens.

          5.14 Intellectual Property.

          (a) Use of Intellectual Property. Except as set forth on Schedule 5.14, each of the
NINA Subsidiaries and, to the Knowledge of NINA Holdings, STPNOC, owns free and

23

 

clear of all Liens other than Permitted Liens, is licensed to or otherwise possesses
sufficient legally enforceable rights to use, the Intellectual Property that is needed to conduct
the Business of the NINA Subsidiaries as currently conducted;

          (b) NINA Intellectual Property. To the Knowledge of NINA Holdings, set forth on Schedule
5.14(b) is a list of all of the material Intellectual Property owned by or licensed to NINA or
its direct or indirect Subsidiaries (other than the NINA Subsidiaries) that has not been assigned
to the NINA Subsidiaries;

          (c) Intellectual Property of NINA Subsidiaries. The material Intellectual Property owned by
or licensed to any NINA Subsidiary is set forth on Schedule 5.14;

          (d) No Infringement. Except as set forth on Schedule 5.14, to the Knowledge of NINA
Holdings, the Business of each of the NINA Subsidiaries does not infringe upon or misappropriate in
any material respect Intellectual Property of any Person; and

          (e) Compliance. Except as set forth on Schedule 5.14, to the Knowledge of NINA
Holdings, the use by each NINA Subsidiary of its respective Intellectual Property is in accordance
in all material respects with any and all applicable grants, licenses, agreements, instruments or
other arrangements pursuant to which such NINA Subsidiary acquired the right to use such
Intellectual Property.

The representations and warranties in this Section 5.14 are the sole and exclusive
representations and warranties of NINA Holdings concerning Intellectual Property matters.

          5.15 Agreements, Contracts and Commitments.

          (a) Major Contracts. Set forth on Schedule 5.15(a) is a complete and accurate listing
as of the Agreement Date of all (i) Contracts that if suspended or terminated, would reasonably be
expected to materially delay or materially impair the ability to achieve the Commercial Operation
Date as contemplated by the Business Plan, and (ii) Contracts evidencing Indebtedness, mortgages,
indentures, security agreements and other Contracts, involving existing payment obligations of any
Person party thereto in excess of One Million Dollars ($1,000,000) in any year, to which any NINA
Company (in the case of NINA, solely to the extent such Contract primarily relates to either Unit
or the Project) or, to the Knowledge of NINA Holdings, STPNOC, as agent for any of the NINA
Companies, is a party (collectively, the “Major Contracts”). True, complete and correct
copies of the Major Contracts have been made available to Investor, prior to the Agreement Date
(and will have been made available to Investor, prior to the Initial Closing Date), as such may
exist or be in effect as of such respective dates.

          (b) Validity. Each Major Contract was duly authorized by each NINA Company party to it
(either directly or through STPNOC acting as its agent) and, to the Knowledge of NINA Holdings, by
each other party thereto and is valid and in full force and effect and enforceable in accordance
with its terms against such NINA Company and, to the Knowledge of NINA Holdings, by each other
party thereto, except to the extent that its enforceability may be subject to the Equitable
Qualifications. Except as set forth on Schedule 5.15(b), neither any NINA Company nor, to
the Knowledge of NINA Holdings, STPNOC or any other party thereto, has breached any provision of,
or defaulted (with or without notice or lapse

24

 

of time or both) under the terms of, and to the Knowledge of NINA Holdings no event has
occurred that with notice or lapse of time would permit termination, exercise of any purchase or
similar right by the counterparty to, or any modification or acceleration of, any Major Contract,
including any failure to achieve milestones or conditions precedent required to be met under any
agreement to supply power, turbine supply agreement, or warranty, maintenance or service agreement,
if any.

          (c) No Other Agreements. Except as set forth on Schedule 5.15(a) and Schedule
5.15(c), as of the Agreement Date, no NINA Subsidiary (either directly or through STPNOC acting
as its agent) is a party to nor bound by any currently effective:

               (i) Contract under which any NINA Subsidiary has created, incurred, assumed or
guaranteed any material outstanding Indebtedness, or under which it has imposed a material
Lien (other than Permitted Liens) on any of its material Assets, tangible or intangible,
which Lien secures outstanding Indebtedness;

               (ii) Contract of guaranty, surety or indemnification, direct or indirect, by any NINA
Subsidiary relating to the obligations of another Person;

               (iii) Contract containing a covenant limiting or purporting to limit the freedom of any
NINA Subsidiary to compete with any Person in any geographic area or to engage in any line
of business;

               (iv) joint venture or profit-sharing Contract;

               (v) shareholder, partnership or limited liability company operating agreement;

               (vi) license or royalty Contract;

               (vii) swaps, exchanges, commodity options, or hedging Contracts;

               (viii) Contract entitling a third party to the most favorable price or other terms for
any product or service any NINA Subsidiary offer to any other third party; or

               (ix) any Contract not described above that was not made in the ordinary course of
business consistent with past practice and that is material to the financial condition,
business, operations, assets, results of operations or prospects of any NINA Subsidiary.

          5.16 Affiliate Contracts. Except as set forth on Schedule 5.15(a) or Schedule
5.16:

          (a) Affiliate Contracts. No NINA Subsidiary nor, to the Knowledge of NINA Holdings, STPNOC
(as it relates to the Project), is a party to nor bound by any currently

25

 

effective Contract to which any NINA Entity (other than a NINA Subsidiary) or employees,
managers, directors, officers, consultants or agents of a NINA Entity (other than a NINA
Subsidiary) are also parties.

          (b) Liabilities. No NINA Subsidiary nor, with respect to the Project, STPNOC (as it relates
to the Project), has any Liability to Toshiba, NRG, NINA, or any Affiliate or Representative of
Toshiba (other than TANE under the EPC Contract), NRG, or NINA (other than a NINA Subsidiary).

          5.17 Potential Conflicts of Interest.

          (a) Commercial Relationships. Except as set forth on Schedule 5.17, none of the NINA
Entities owns, directly or indirectly, any interest in (excepting not more than five percent (5%)
stock holdings for investment purposes in securities of publicly held and traded companies) or is
an executive, officer, director, manager, employee, consultant or agent of any Person that is a
significant lessor, lessee, subcontractor, customer or supplier of any NINA Company or TANE, except
for a NINA Subsidiary.

          (b) Payments to Officials. No NINA Company nor, to the Knowledge of NINA Holdings, any other
NINA Entity or STPNOC, has engaged in, or used any funds, directly or indirectly, for any illegal
payments or activities under the laws of the United States of America or the State of Texas or of
any other jurisdiction in connection with the Project, and no payment made by any NINA Company nor,
to the Knowledge of NINA Holdings, any other NINA Entity or STPNOC, to any Person in connection
with the Project has been used for any unlawful purpose, including any form of commercial bribe,
kickback or influence payment. Without limiting the generality of the foregoing, neither any NINA
Company nor, to the Knowledge of NINA Holdings, any other NINA Entity or STPNOC, has, directly or
indirectly, given, paid, offered, promised, or authorized the giving of payment of, any money or
any thing of value to any officer or employee of any Governmental Entity, to any Person acting in
an official capacity for or on behalf of any Governmental Entity, to any political party official,
or to any candidate for political office, for the purpose of influencing any act or decision in
connection with the Project.

          5.18 Power Purchase Arrangements. Schedule 5.18 contains a true and complete list as of
the Agreement Date of all power purchase agreements or similar Contracts for the disposition of the
electrical capacity, electrical energy, or other products generated by or associated with the
generating capacity or output of each Unit (collectively, “Power Purchase Agreement”), and
all draft power purchase agreements, term sheets, letters of intent, memoranda of understanding, or
similar documents setting forth agreed or proposed power purchase, power sales, or similar
arrangements that would, if fully negotiated and entered into, constitute Power Purchase Agreements
(“Draft PPAs”). True, correct, and complete copies of each such Power Purchase Agreement
and the latest version of each Draft PPA has been made available to Investor, prior to the
Agreement Date (and will have been made available to Investor, prior to the Initial Closing Date),
as such may exist or be in effect as of such respective dates.

          5.19 DOE Loan Guarantee Application. NINA Holdings has made available to Investor, prior to the
Agreement Date (and will have made available to Investor, prior to the Initial Closing Date), a
true, correct, and complete copy of the DOE Loan Guarantee Application

26

 

and all material submissions and correspondence between any NINA Entity and the DOE in connection
therewith, as such may exist or be in effect as of such respective dates. Such application is
pending before the DOE, and no NINA Entity has received any written communication from DOE or the
United States Government indicating that such application is not likely to be granted, nor does any
NINA Entity have any reason to believe as of the Agreement Date that such application should not be
expected to be granted.

          5.20 Regulatory Status.

          (a) Energy Regulatory Status. None of the NINA Companies (i) has filed a rate, or been
granted authority under, Section 205 of the Federal Power Act, to make wholesale sales or to
transmit electric energy at wholesale, including having applied for or been granted market based
rate authority under Section 205 of the Federal Power Act, or (ii) is subject to regulation by the
PUCT under the Texas Utilities Code. No Assets owned or controlled by the NINA Companies has (x)
generated electric energy or been used to generate electric energy or (y) other than for
distribution of purchased construction power, transmitted or been used to transmit electric energy.

          (b) COL Application. NINA Holdings has made available to Investor, prior to the Agreement
Date (and will have made available to Investor, prior to the Initial Closing Date), a true,
correct, and complete copy of the COL Application and all material submissions and correspondence
between any NINA Entity (or STPNOC) and the NRC in connection therewith, including the Draft EIS,
as such may exist or be in effect as of such respective dates. Such application is pending before
the NRC, and neither any NINA Entity nor STPNOC has received any written communication from the NRC
or the United States Government indicating that such application is not likely to be granted, nor
does any NINA Entity or STPNOC have any reason to believe as of the Agreement Date that such
application should not be expected to be granted.

          5.21 CPS Settlement. NINA Holdings has made available to Investor, prior to the Agreement Date, a
true, correct, and complete copy of the CPS Settlement Documents. The CPS Settlement Documents
listed on Schedule 5.21 constitute all of the legally effective Contracts or other
instruments executed or delivered by the parties to the CPS Settlement or their respective
Affiliates, or any of their respective Representatives in connection with the CPS Settlement.

          5.22 Exclusivity of Representations. The representations and warranties made by NINA Holdings in
this Article V or in the certificates to be delivered at the Initial Closing pursuant to
Section 2.5(a) are the exclusive representations and warranties made by NINA Holdings with
respect to NINA Holdings and the NINA Subsidiaries. NINA Holdings hereby disclaims any other
express or implied representations or warranties with respect to itself or any of its Subsidiaries.
Except as expressly set forth herein, the condition of the tangible assets of NINA Holdings or any
of the NINA Subsidiaries shall be “as is” and “where is” and NINA Holdings makes no warranty of
merchantability, suitability, fitness for a particular purpose or quality with respect to any of
the tangible assets of NINA Holdings or as to the condition or workmanship thereof or the absence
of any defects therein, whether latent or patent.

27

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF INVESTOR

     Investor hereby makes the following representations and warranties to NINA:

          6.1 Corporate Status of Investor. Investor is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Delaware, with the requisite company
power to own, operate and lease its properties and to carry on its business as now being conducted.

          6.2 Authority for Agreement; Non-Contravention.

          (a) Authority. Investor has the requisite power and authority to enter into this Agreement
and to consummate the Transactions. The execution and delivery of this Agreement and the
consummation of the Transactions have been duly and validly authorized by all necessary company
action and no other corporate or member proceedings or actions (or their equivalents) are necessary
on the part of Investor to authorize and consummate this Agreement and the Transactions. This
Agreement has been duly executed and delivered by Investor, and constitutes the legal, valid and
binding obligations of Investor, enforceable against Investor in accordance with their respective
terms, subject to the qualifications that enforcement of the rights and remedies created hereby are
subject to Equitable Qualifications.

          (b) No Conflict. Neither the execution and delivery by Investor of this Agreement nor the
performance by Investor of its obligations hereunder, nor the consummation by Investor of the
Transactions will (i) violate any provision of the Charter Documents of Investor, (ii) conflict
with, or result in a breach of any term, covenant, condition or provision of, or constitute a
default (with or without notice or lapse of time or both) under, or result a penalty or in the
creation or imposition of any Lien (other than a Permitted Lien) upon any material Assets of
Investor pursuant to, or give rise to any right of termination, cancellation or acceleration under,
the terms of any material Contract to which Investor is a party or by which Investor or any of its
material Assets are bound, which would reasonably be expected to adversely affect Investor’s
ability to carry out its obligations under this Agreement, (iii) conflict with or result in a
material violation or breach of any term or provision of any Laws applicable to Investor or any of
its respective material Assets, or (iv) require the consent or approval of, filing with, or notice
to any Person which, if not obtained, would prevent Investor from performing its obligations under
this Agreement.

          (c) Approvals for Transaction. Except as set forth on Schedule 6.2(c), no
Governmental Approval and no consent, approval, authorization or permit of, or filing with or
notice to, any Person is required in connection with the execution and delivery of this Agreement
by Investor or for or in connection with the consummation of the Transactions and the performance
of the terms and conditions contemplated by this Agreement by Investor.

          6.3 Litigation and Audits. In each case as it relates to the Transactions, and except as it would
not reasonably be expected to result in a material adverse effect on Investor’s ability to perform
its obligations hereunder, (i) there is no investigation by any Governmental Entity with respect to
Investor that is pending or, to the Knowledge of Investor, threatened, nor

28

 

has any Governmental Entity indicated to Investor an intention to conduct the same; (ii) there is
no Action pending or, to the Knowledge of Investor, threatened against or involving Investor or any
of its material Assets, at law or in equity, before any arbitrator or Governmental Entity; and
(iii) there are no Orders outstanding against Investor.

          6.4 Broker’s or Finder’s Fees. Investor has neither retained, nor otherwise has any Liability to,
any broker, finder, financial advisor or intermediary in connection with the Transactions that
would obligate any NINA Company to incur any Liability as a result of retaining such broker,
finder, financial advisor or intermediary.

          6.5 Investment Intent.

          (a) Investment Purposes. Investor is buying the Investor Interests for its own account, for
investment purposes only and not with a view toward, or for sale in connection with, any
distribution thereof, nor with any present intention of distributing or selling the Investor
Interests, in violation of the federal securities Laws or any applicable foreign or state
securities Law.

          (b) Accredited Investor. Investor qualifies as an “accredited investor”, as such term is
defined in Rule 501(a) promulgated pursuant to the Securities Act.

          (c) Experience. Investor understands that the acquisition of the Investor Interests to be
issued to it pursuant to the terms of this Agreement involves substantial risk. Investor and its
officers have experience as an investor in securities and equity interests of companies such as the
ones being issued pursuant to this Agreement, and Investor can bear the economic risk of its
investment (which may be for an indefinite period) and has such knowledge and experience in
financial or business matters that Investor is capable of evaluating the merits and risks of its
investment in the Investor Interests to be acquired by it pursuant to the Transactions.

          (d) Registration of Securities. Investor understands that the Investor Interests to be
acquired by it pursuant to this Agreement have not been registered under the Securities Act.
Investor acknowledges that such securities may not be transferred, sold, offered for sale, pledged,
hypothecated or otherwise disposed of without registration under the Securities Act and any other
provision of applicable state securities Laws or pursuant to an applicable exemption therefrom.
Investor acknowledges that there is no public market for the Investor Interests and that there can
be no assurance that a public market will develop.

          6.6 Exclusivity of Representations(a) . The representations and warranties made by Investor
in this Article VI or in the certificates to be delivered at the Initial Closing pursuant
to Section 2.5(b) are the exclusive representations and warranties made by Investor.
Investor hereby disclaims any other express or implied representations or warranties.

ARTICLE VII

COVENANTS

          7.1 Expenses. Whether or not the Transactions are consummated, and except as otherwise provided in
any other provision herein or in the Related Agreements, all costs and

29

 

expenses (including attorneys’ and consultants’ fees, costs and expenses) incurred in connection
herewith, with the Transactions or with the Related Agreements shall be paid by the Party incurring
such expenses.

          7.2 Interim Period Access of Investor. Until the Initial Closing Date, the NINA Parties shall
provide Investor and its Representatives reasonable access, upon reasonable prior notice and during
normal business hours, to the offices and Assets of the NINA Companies, and to the Representatives
of the NINA Companies and shall consult with Investor in connection with Contracts of the type
described in Section 5.15 that may be entered into prior to the Initial Closing (it being
understood that the failure to consult shall not constitute a breach of this Section 7.2),
but in each case only to the extent that such access or consultation does not unreasonably
interfere with the business or operations of the NINA Companies and that such access is reasonably
related to Investor’s rights and obligations hereunder; provided, that the NINA Parties
shall have the right to impose reasonable restrictions and requirements for safety and
confidentiality purposes. Investor shall be entitled, at its sole cost and expense, to conduct
physical inspections of the Assets of the NINA Subsidiaries. Investor shall provide the NINA
Parties with not less than three (3) Business Days’ prior written notice of the date and time on
which any entry upon the property of the NINA Companies shall occur.

          7.3 Event Notices. Until the Initial Closing, each Party will promptly notify the other Parties of
the occurrence or nonoccurrence of any event, the occurrence or nonoccurrence of which would be
likely to cause any condition to the obligations of the other Parties to effect the transactions
contemplated by this Agreement not to be satisfied. No delivery of any notice pursuant to this
Section 7.3 will cure any breach of any representation or warranty, covenant, condition or
agreement of such Party contained in this Agreement or otherwise limit or affect any of the rights
or remedies available hereunder to the Parties receiving such notice.

          7.4 Public Announcements. No Party to this Agreement shall issue any press release or make any
public announcement relating to the terms or existence of this Agreement prior to the Initial
Closing Date without the prior approval of the other Parties (which approval shall not be
unreasonably withheld); provided, that any Party to this Agreement may make any public
disclosure that, in the opinion of counsel, is required by applicable Law or any listing agreement
concerning its publicly-traded securities (in which case the disclosing Party, to the extent
legally permissible and reasonably practicable, shall advise the other Parties prior to making the
disclosure).

          7.5 Commercially Reasonable Efforts; Further Assurances; Regulatory Approvals.

          (a) Subject to this Section 7.5, each of the Parties agrees to use commercially
reasonable efforts to consummate and make effective, as soon as reasonably practicable, the Initial
Transactions. Each Party shall use commercially reasonable efforts to cause each of the conditions
precedent in Section 3.1, NINA Holdings shall use commercially reasonable efforts to cause
each of the conditions precedent in Section 3.2, and Investor shall use commercially
reasonable efforts to cause each of the conditions precedent in Section 3.3, to occur as
soon as practicable after the Agreement Date, and prior to the Outside Initial Closing Date, in
each case taking into account the degree of control of such Party over such conditions precedent.
In so doing, Investor and NINA Holdings shall exert their commercially reasonable efforts to obtain

30

 

the consents, authorizations and approvals of all private parties and all Governmental Approvals
necessary to effectuate the Transactions or required to be obtained by this Agreement or the
Related Agreements, including all necessary filings with any Governmental Entity, if any, Investor
and NINA Holdings shall cooperate in good faith to obtain the Governmental Approvals and other
consents, approvals, authorizations, permits, filings and notifications set forth on Schedules
4.2(c), 5.2(c), and 6.2(c), if any, or as may be required to effectuate the
Option Closing, if any; provided, that in no event shall such cooperation require any Party
to expend any funds, agree to alter, supplement or amend any of the terms of this Agreement or the
Related Agreements, or agree to any additional conditions or obligations.

          (b) All appearances, presentations, briefs, applications, filings, notices, petitions and
proposals made or submitted by or on behalf of any Party before any Governmental Entity, if any, in
connection with the approval of this Agreement, the Related Agreements or the Transactions shall be
subject to the joint approval or disapproval in advance and the joint control of the Parties,
acting with the advice of their respective counsel, and the NINA Parties, on the one hand, and
Investor, on the other hand, will consult and fully cooperate with each other, and consider in good
faith the views of each other, in connection with any such appearance, presentation, brief, or
proposal; provided, that nothing will prevent a Party from responding to a subpoena or
other legal process as required by law or submitting factual information in response to a request
therefor. To the extent permitted by applicable Law, each Party will promptly provide the other
with copies of all material written communications from Governmental Entities relating to the
Transactions.

          (c) Investor shall use its commercially reasonably efforts to support and assist NINA Holdings
and NINA Investments in NINA Investments’ efforts to obtain a conditional financing commitment from
the Japan Bank for International Cooperation (“JBIC”) and buyer’s credit insurance from
Nippon Export & Investment Insurance (“NEXI”), including by making a request to JBIC and
NEXI to commence as soon as practicable its due diligence process with respect to NINA Holdings;
provided, that in no event shall such commercially reasonable efforts require Investor or
any Affiliate of Investor to expend any funds, agree to alter, supplement or amend any of the terms
of this Agreement or the Related Agreements, or agree to any additional conditions or obligations.
The Parties acknowledge and agree that JBIC and NEXI are separate entities that are not controlled
by Investor, and there can be no guaranty that such efforts by Investor will result in such a
conditional commitment or a financing by JBIC, or such credit insurance from NEXI, on terms or
conditions or at a time satisfactory to the Parties or NINA Investments or otherwise, and Investor
shall have no liability hereunder if such commitment, financing, or credit insurance is not timely
provided by JBIC or NEXI on satisfactory terms and conditions or otherwise is not provided.

          (d) At any time and from time to time, to the extent reasonably requested by a Party, each
Party agrees, subject to the terms and conditions of this Agreement, to take such commercially
reasonable actions and to execute and deliver such documents as may be necessary to effectuate the
purposes of this Agreement and the Related Agreements at the earliest practicable time, including
such actions and the execution and delivery of such documents after the Initial Closing as may be
necessary or appropriate to transfer more effectively, assign,convey, grant, deliver and confirm to Investor or to perfect or record Investor’s title to or
interest in the Initial Investor Interests and the Additional Investor Interests.

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          7.6 Conduct of Business Until Initial Closing Date. Until the Initial Closing Date, NINA Holdings
shall, and shall cause each NINA Subsidiary to, unless otherwise expressly permitted by this
Agreement or consented to in writing by Investor (which consent will not be unreasonably withheld)
or as set forth on Schedule 7.6, carry on the business of each NINA Subsidiary only in the
ordinary course consistent with past practice, use its commercially reasonable efforts to preserve
intact each NINA Subsidiary’s business organization and material Assets (including maintaining
rights and franchises, retaining the services of managers, executives, consultants, officers,
directors, and agents, and keeping in full force and effect liability insurance and bonds
comparable in amount and scope of coverage to that currently maintained). Without limiting the
generality of the foregoing and in addition to the other obligations set forth in this Agreement,
except as expressly permitted by this Agreement or consented to in writing by Investor (which
consent will not be unreasonably withheld) or as set forth in Schedule 7.6, NINA Holdings
shall not, and shall take all necessary actions to ensure that, until the Initial Closing Date, no
NINA Subsidiary shall:

          (a) incur any Indebtedness in excess of ** (but not including (i)
requirements for parent support of project companies that are customary in limited recourse project
financings or (ii) any borrowings under the Toshiba Credit Agreement) or enter into any swap or
other derivative transaction, in each case, other than in the ordinary course of business or as set
forth in the Business Plan;

          (b) make or declare dividends or distributions to the members of NINA Holdings other than
distributions as may be permitted under the Operating Agreement and the Toshiba Credit Agreement,
except as provided in the Business Plan;

          (c) create a new security interest over all or substantially all of the assets of any NINA
Subsidiary, except as provided in the Business Plan;

          (d) approve a lease, acquisition or disposition of assets, or investment (including the
acquisition of any material equity interest in another entity) in excess of one percent (1%) of the
annual budget for the applicable year, except as provided in the Business Plan;

          (e) approve a merger, acquisition, corporate split or any other similar transaction of any
NINA Subsidiary with or into another Person or any sale of all or substantially all of the assets
of any NINA Subsidiary or the conversion of any NINA Subsidiary from a limited liability company to
any other business entity;

          (f) approve any changes to the tax status of any NINA Subsidiary as a disregarded entity for
U.S. federal income tax purposes;

 

			
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          (g) commence any material litigation involving any NINA Subsidiary or settle any litigation
involving any NINA Subsidiary for cash in excess of **;

          (h) form any new Subsidiary;

          (i) directly or indirectly, including through its Subsidiaries, carry on any business other
than the business as may be permitted under the Operating Agreement, or acquire or agree to
acquire, by merging or consolidating with, by purchasing an equity interest in or a material
portion of the assets of, or by any other manner, any business or any Person;

          (j) approve any Business Plan or Multi-Year Budget (as defined in the Operating Agreement) or
any increase in costs identified in the Business Plan or such Multi-Year Budget that amount to
variations in the Business Plan or such Multi-Year Budget in excess of **;

          (k) make a charitable donation to any Person in excess of one hundred thousand dollars
($100,000) except as set forth in the Business Plan;

          (l) make any material modification to the financial or tax accounting methods, practices,
policies and procedures adopted by any NINA Subsidiary, including any change to its annual
accounting or period, except as may be required by a change in GAAP or applicable Law;

          (m) incur any Indebtedness from any member of such NINA Subsidiary or any Affiliate of such
member (other than intercompany Indebtedness among the NINA Subsidiaries);

          (n) conduct an initial public offering of the equity interests any NINA Subsidiary or any
successor entity to such Person (including by conversion);

          (o) issue, sell, grant, repurchase or redeem any membership units or any securities or rights
convertible into, exchangeable or exercisable for any membership units (except in accordance with
capital calls);

          (p) enter into any Contract with an Affiliate, including for any acquisition by any NINA
Subsidiary of another entity or any equity interest in another entity that is an Affiliate of any
member of NINA Holdings, that is not either (i) expressly permitted by this Agreement or (ii) on
terms and conditions no less favorable to such NINA Subsidiary than those that would be applicable
in comparable transactions between independent parties acting at arm’s length, or amend any such
Contract in a manner that is not consistent with arm’s length terms; provided, that this
Section 7.6(p) shall not apply to any Contract with an Affiliate of NINA or Investor that
becomes a subcontractor to TANE under the EPC Contract so long as (x) such Affiliate becomes a
subcontractor pursuant to a transparent and competitive bidding process under the EPC Contract, and
(y) there is full disclosure of any Affiliate relationship among the parties;

 

			
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          (q) liquidate or dissolve, except following the sale of all or substantially all of such
Person’s assets, or wind up, liquidate, dissolve or cancel any material project or material line of
business;

          (r) institute or cause to be instituted any proceeding for a voluntary bankruptcy or approve
any such proceeding by any third party;

          (s) other than in connection with routine waivers or change orders, engage, amend, modify in
any material respect, or terminate any Major Contract other than the EPC Contract and other than in
the ordinary course of business consistent with past practice or as provided in the Business Plan;

          (t) propose or adopt any amendments to any of its Charter Documents (other than as expressly
contemplated by this Agreement or the Operating Agreement); or

          (u) authorize, commit, or agree to do any of the foregoing.

          
7.7 Pledge of Interests. If, at the time of the Initial Closing or the Option Closing, the Toshiba
Credit Agreement has not been terminated, Investor shall, promptly upon its receipt of the Initial
Investor Interests or the Additional Investor Interest, as applicable, pledge such interests, and
any other membership interest in NINA Holdings acquired by TEPCO or any of its Affiliates, to TANE
in accordance with the Toshiba Credit Agreement and the other Loan Documents (as defined in the
Toshiba Credit Agreement). In connection with such pledges, Investor shall execute and deliver to
TANE the documents described in the Toshiba Credit Agreement and the other Loan Documents (as
defined in the Toshiba Credit Agreement) and such other documents as may be customary in such
transactions and as reasonably may be requested by TANE.

NINA Intellectual Property. The Parties acknowledges that the Intellectual Property described on
Schedule 5.14(b) is not Intellectual Property related to the Project.

ARTICLE VIII

THE OPTION

          8.1 The Option. In consideration for the payment of the Option Premium, effective as of the
Initial Closing, NINA Holdings hereby irrevocably grants and conveys to Investor, as of the Initial
Closing Date, the exclusive option to acquire, at Investor’s sole discretion, a ten percent (10%)
limited liability company interest in NINA Holdings, free and clear of all Liens (other than Liens
created by Investor, Liens under the Operating Agreement, and Liens arising under the Toshiba
Credit Agreement, as applicable) (the “Additional Investor Interest”) in accordance with
the other provisions of this Article VIII (collectively, the “Option”).

          8.2 Exercise Period. The Option shall be exercisable by Investor during the period beginning on
the Initial Closing Date, if it occurs, and continuing through and including the first anniversary
of the Agreement Date (the “Option Expiration Date”).

          8.3 Exercise Notice.

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          (a) The Option may be exercised by Investor by delivery of a notice (the “Exercise
Notice”) from Investor to NINA Holdings on or prior to the Option Expiration Date and the
contemporaneous delivery by TEPCO to NINA Holdings of a duly executed TEPCO Option Guaranty. Upon
delivery of the Exercise Notice and such TEPCO Option Guaranty, each Party shall use its
commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to
be done, all things necessary, proper or advisable to effect the Option Closing as soon as
practicable after the date of the Exercise Notice.

          (b) Once delivered, the Exercise Notice shall be irrevocable; provided, that Investor
may revoke its Exercise Notice at any time prior to the Option Closing if any Governmental Approval
required under Law for the Option Transactions is not obtained, despite the cooperation of the
Parties as contemplated by Section 7.5, prior to the Option Closing Date (as such date may
be extended pursuant to Section 8.6).

          8.4 Additional Investment. Upon the terms and subject to the conditions set forth in this
Agreement, at the Option Closing, the Parties agree that the following transactions shall occur:

          (a) Investor shall contribute to NINA Holdings, the sum equal to (i) One Hundred Twenty-Five
Million Dollars ($125,000,000) (the “Exercise Price”), plus (ii) an amount (the
“Catch-Up Contributions”) equal to ten percent (10%) of the aggregate amount of all of the
cash contributions made to NINA Holdings by its members with respect to Capital Calls (as defined
in the Operating Agreement) issued by NINA Holdings after the Initial Closing pursuant to Section
6.2 of the Operating Agreement.

          (b) In consideration of the payment of the Exercise Price, NINA Holdings shall issue to
Investor the Additional Investor Interest of NINA Holdings, free and clear of all Liens (other than
Liens created by Investor, Liens under the Operating Agreement, and Liens arising under the Toshiba
Credit Agreement, as applicable), pursuant to this Agreement.

          8.5 Option Transactions.

          (a) Option Closing Payment. At the Option Closing, upon the terms and subject to the
conditions set forth in this Agreement, Investor shall pay to NINA Holdings, by wire transfer of
immediately available funds to an account designated in writing by NINA Holdings, an amount (the
“Option Closing Payment”) equal to the sum of (i) the Exercise Price, plus (ii) the
Catch-Up Contributions.

          (b) Membership Certificate and Schedule. At the Option Closing, NINA Holdings shall deliver
to Investor:

               (i) a unit certificate representing the Additional Investor Interest, duly executed by
an authorized officer or the Managing Member of NINA Holdings, in the form of Exhibit D to
the Operating Agreement; and

               (ii) an updated Exhibit A to the Operating Agreement reflecting the Additional Investor
Interest.

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          (c) Use of Proceeds. The proceeds of the Option Closing Payment shall be held by NINA
Holdings and, upon request of NINA Investments, contributed to NINA Investments by NINA Holdings as
a contribution to capital or an intercompany loan, and shall be used by NINA Investments and the
Project Companies only to pay Development and Construction Costs as set forth in the Business Plan
and, for avoidance of doubt, shall not be distributed or paid to NINA or distributed or paid to any
NINA Affiliate except, in each case, as expressly set forth in the Business Plan.

          8.6 Option Closing. Subject to the terms and conditions of this Agreement, the closing of the
Option Transactions (the “Option Closing”) will take place at 10:00 a.m. local time at the
offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036 on the
date that is thirty (30) days after the delivery of the Exercise Notice, or such other time or
place as the Parties may agree; provided, that any Party may extend such date by notice to
the other Parties to the extent additional time is required to obtain Governmental Approvals, or
third-party consents, required for the Option Transactions, such extension not to exceed
**. The date on which the Option Closing occurs is hereinafter referred to
as the “Option Closing Date.” All proceedings to be taken and all documents to be executed
and delivered by the Parties at the Option Closing shall be deemed to have been taken and executed
simultaneously, and no proceedings shall be deemed taken nor any documents executed or delivered
until all have been taken, executed and delivered.

ARTICLE IX

TERMINATION

          9.1 Termination Prior to the Initial Closing. This Agreement may be terminated at any time before
the Initial Closing:

          (a) by mutual written consent of the Parties;

          (b) by Investor upon written notice to the NINA Parties, if Investor is not in material breach
of any of its obligations under this Agreement, and if either NINA Party has materially breached
any of its representations or warranties contained in this Agreement or failed to perform in any
material respect any of its covenants or other obligations contained in this Agreement, which
breach or failure to perform would render unsatisfied any condition contained in Section
3.2 and (i) is incapable of being cured, or (ii) if capable of being cured, is not cured prior
to the earlier of (A) the Business Day prior to the Outside Initial Closing Date or (B) 5:00 p.m.,
Eastern prevailing time, on the date that is thirty (30) days after written notice thereof from
Investor;

          (c) by the NINA Parties upon prior written notice to Investor, if no NINA Party is in material
breach of any of its obligations under this Agreement, and if Investor has materially breached any of its representations or warranties contained in this Agreement or
failed

 

			
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to perform in any material respect any of its covenants or other obligations contained in
this Agreement, which breach or failure to perform would render unsatisfied any condition contained
in Section 3.3 and (i) is incapable of being cured, or (ii) if capable of being cured, is
not cured prior to the earlier of (A) the Business Day prior to the Outside Initial Closing Date,
or (B) 5:00 p.m., Eastern prevailing time, on the date that is thirty (30) days after written
notice thereof from NINA Holdings;

          (d) by either the NINA Parties, upon written notice to the Investor, or by Investor upon
written notice to the NINA Parties, if the Initial Closing shall not have occurred on or before the
Outside Initial Closing Date; provided, that the right to terminate this Agreement under
this Section 9.1(d) shall not be available to a Party whose failure to fulfill any material
obligation under this Agreement has been the cause of, or resulted in, the failure of the Initial
Transactions to have been consummated on or before such date; or

          (e) by NINA Parties, upon written notice to Investor, or by Investor upon written notice to
the NINA Parties, if a court of competent jurisdiction or other Governmental Entity shall have
issued an Order, or shall have taken any other action, for which the period for appeal or rehearing
shall have run without any appeal or request for rehearing having been made and which has the
effect of restraining, enjoining or otherwise prohibiting any of the Transactions.

          9.2 Termination After Initial Closing. This Agreement may be terminated after the Initial Closing
only by mutual written consent of the Parties.

          9.3 Effect of Termination. In the event of termination of this Agreement in accordance with
Section 9.1 or Section 9.2, this Agreement shall forthwith become of no further
force or effect and there shall be no liability or obligation hereunder on the part of any Party or
any of their respective Affiliates or Representatives; provided, that nothing in this
Article IX shall relieve any Person from liability for (a) any breach of this Agreement or
any Related Agreement prior to the effective date of such termination, (b) any breach of any
obligation hereof or thereof which survives such termination, or (c) fraud. The provisions of
Section 7.1, Section 7.4, and Article I, Article X, and Article
XI, shall remain in full force and effect and survive any termination of this Agreement.

ARTICLE X

INDEMNIFICATION

          10.1 Survival.

          (a) All of the representations and warranties of the Parties shall survive the Initial Closing
and the Option Closing, if any, shall continue in force and effect until and including the date
that is ** after the Initial Closing Date, at which time they shall expire,
except with respect to (a) the representations and warranties contained in Section 5.11,
which shall survive until ** after the applicable statute of limitations expires (taking into
account any

 

			
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extensions or waivers thereof), and (b) the representations and warranties contained in
Section 4.1(a), Section 4.1(c), Section 4.2, Section 5.1(a),
Section 5.1(d), Section 5.2, Section 5.3(a), Section 5.3(b),
Section 5.3(c), Section 5.3(d), Section 5.6, Section 6.1,
Section 6.2, and Section 6.4, all of which shall survive until
**. Upon the expiration of the survival period applicable to a
representation or warranty, such representation or warranty shall terminate and have no further
force and effect; provided, that any representation or warranty that is the subject of a
Claim asserted in writing prior to the expiration of the applicable period set forth above shall
survive solely with respect to such Claim until the final resolution thereof.

          (b) Each of the covenants and agreements of the Parties contained in this Agreement shall
survive in accordance with its terms; provided, that if the Initial Closing occurs, NINA
Holdings’ liability for breach, prior to the Initial Closing Date, of its obligations under
Section 7.6 with respect to the period between the Agreement Date and the Initial Closing
Date, if any, shall expire on the date that is ** after the Initial Closing Date,
provided, that any covenant or agreement that is the subject of a Claim asserted in writing
prior to the expiration of the applicable period set forth above shall survive solely with respect
to such Claim until the final resolution thereof.

          10.2 Indemnification Obligations — NINA.

     Subject to the terms and conditions of this Article X, from and after the Initial
Closing, NINA shall indemnify and hold harmless Investor and its Subsidiaries, officers and
directors, agents and Affiliates (individually and collectively, the “TEPCO Group”) against
all Losses resulting from, imposed upon or incurred by any member of the TEPCO Group directly or
indirectly arising out of any of the following:

          (a) any failure of any of the representations or warranties of NINA contained in Article
IV or NINA Holdings contained in Article V to be true and correct at and as of the
Agreement Date and the Initial Closing Date, or of any of the representations or warranties of
either NINA Party contained in any certificate delivered to Investor at the Initial Closing
pursuant to Section 2.5(a), except for such representations and warranties that are made at
and as of an earlier date, in which case at and as of such earlier date;

          (b) any breach of any of the covenants, obligations or agreements of NINA Holdings contained
in Section 7.6; or

          (c) any breach of any of the covenants, obligations or agreements of either NINA Party
contained in this Agreement (other than Section 7.6).

NINA hereby fully and forever waives and relinquishes any right it may have (i) to be subrogated to
the rights of Investor against NINA Holdings in respect of any amounts paid or obligation performed
by NINA pursuant to this Article X, and (ii) against NINA Holdings for reimbursement, indemnity, contribution, or any similar legal or equitable right with respect to

 

			
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any
such amount or obligation. The indemnification obligations of NINA under this Article X
are primary obligations of NINA, and not those of a guarantor or surety, and are absolute and
independent of those of NINA Holdings, and Investor may maintain a separate action or actions
against NINA to enforce its indemnification obligation under this Article X. NINA
expressly waives (i) diligence, presentment, and protest, (ii) notice of acceptance of this
indemnity by Investor, (iii) demand for payment of any of such obligations, and (iv) any claim or
defense that Investor shall have impaired any right of NINA against NINA Holdings, any other
guarantor of any such obligations, or any other Person, by way of reimbursement, subrogation or
otherwise. Without limiting the generality of the foregoing, it is agreed that the occurrence of
any one or more of the following shall not affect the liability of Indemnitor hereunder: (a) any
dissolution of either of the NINA Parties, or the combination or consolidation of either of the
NINA Parties into or with another entity or any transfer or disposition of any assets of either of
the NINA Parties, (b) any bankruptcy, insolvency, reorganization, dissolution, liquidation or other
similar proceeding relating to either of the NINA Parties; (c) either of the NINA Parties ceasing
to be a person or entity controlled by, controlling or under common control with NRG, (d) the
absence of any notice to, or knowledge by, NINA of the existence or occurrence of any of the
matters set forth in the foregoing clauses, or (e) any other circumstance whatsoever that might
otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a
guarantor.

          10.3 Indemnification Obligations — Investor.

Subject to the terms and conditions of this Article X, from and after the Initial
Closing Investor shall indemnify and hold harmless NINA, NINA Holdings and their respective
Subsidiaries, officers and directors, agents and Affiliates (individually and collectively, the
“NINA Group”; provided, in no event shall any member of the TEPCO Group be deemed a
member of the NINA Group) against all Losses resulting from, imposed upon or incurred by any member
of the NINA Group directly or indirectly arising out of any of the following:

          (a) any failure of any of Investor’s representations or warranties contained in Article
VI of this Agreement to be true and correct at and as of the Agreement Date and the Initial
Closing Date, or of any of the representations or warranties of Investor contained in any
certificate delivered to NINA Holdings at the Initial Closing pursuant to Section 2.5(b),
except for such representations and warranties that are made at and as of an earlier date, in which
case at and as of such earlier date; or

          (b) any breach of any of Investor’s covenants, obligations or agreements contained in this
Agreement.

          10.4 Limitations on Indemnification Obligations; Liability Cap.

          (a) By NINA. Except as set forth below, NINA shall not be required to indemnify any member of
the TEPCO Group with respect to any claim for indemnification resulting from or arising out of
matters described in Section 10.2(a) or Section 10.2(b) except to the extent that (i) any such claim is in an amount in excess of ** (the
“De Minimis Amount”),

 

			
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and (ii) the aggregate amount of all claims by members of the TEPCO
Group in excess of the De Minimis Amount exceeds ** (the “Indemnity Threshold”),
and then the TEPCO Group will be entitled to recover all Losses except for Losses from claims that
may not be asserted under Section 10.4(a)(i); provided, that NINA’s aggregate
liability under Section 10.2(a) and Section 10.2(b) shall not exceed (x) if the
Option Closing does not occur, other than as a result of a breach of NINA Holdings’ obligation to
consummate the Option Closing under Section 8.6 (a “Holdings Closing Breach”),
**, or (y) if the Option Closing occurs, or if the Option Closing does not
occur as a result of a Holdings Closing Breach, ** (the “Indemnity Cap”);
provided, further, that NINA’s liability under Section 10.2(a) for breaches
of representations and warranties contained in Section 4.1(a), Section 4.1(c),
Section 4.2, Section 5.1(a), Section 5.1(d), Section 5.2,
Section 5.3(a), Section 5.3(b), Section 5.3(c), Section 5.3(d),
Section 5.6 or Section 5.11 shall not be subject to any of the foregoing
limitations and shall not count toward any such limitations. For the avoidance of doubt, any claims
by the TEPCO Group for Losses arising from the matters specified in Section 10.2(c) shall
not be subject to any of the limitations set forth in the preceding sentence. Notwithstanding
anything herein to the contrary, NINA’s aggregate liability under this Agreement shall not exceed
the Investor Aggregate Investment Amount.

          (b) By Investor. Except as set forth below, Investor shall not be required to indemnify any
member of the NINA Group with respect to any claim for indemnification resulting from or arising
out of matters described in Section 10.3(a) except to the extent that (i) any such claim is
in an amount in excess of the De Minimis Amount, and (ii) the aggregate amount of all claims by
members of the NINA Group in excess of the De Minimis Amount exceeds the Indemnity Threshold, and
then the NINA Group will be entitled to recover all Losses except for Losses from claims that may
not be asserted under Section 10.4(b)(i); provided, that Investor’s maximum
aggregate liability under Section 10.3(a) shall not exceed the Indemnity Cap;
provided, further, that Investor’s liability under Section 10.3(a) for
breaches of representations and warranties contained in Section 6.1, Section 6.2 or
Section 6.4 shall not be subject to or count toward the De Minimis Amount or the Indemnity
Threshold. For the avoidance of doubt, any claims by the NINA Group for Losses arising from the
matters specified in Section 10.3(b) shall not be subject to any of the limitations set
forth in the preceding sentence. Notwithstanding anything herein to the contrary, Investor’s
aggregate liability under this Agreement shall not exceed the Investor Aggregate Investment Amount.

          (c) No Consequential or Punitive Damages. Notwithstanding any other provision of this
Agreement, neither NINA nor Investor shall by way of indemnification for Losses or otherwise be
liable to any of the TEPCO Group or the NINA Group, respectively, for any consequential, exemplary,
special, incidental or punitive damages claimed by any of such TEPCO Group or NINA Group (as
applicable) under the terms of or due to any breach of this Agreement, including, but not limited
to, loss of revenue, income, or profits, cost of capital, or loss of business reputation or opportunity, except that this limitation shall not apply to any
Third-Party Claims for consequential, exemplary, special, incidental or punitive damages.

 

			
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          (d) Losses Net of Insurance. The amount of any Loss for which indemnification is provided
under Section 10.2 or Section 10.3 shall be net of (i) any amounts recovered by the
Indemnitee pursuant to any indemnification by or indemnification agreement with any other Person,
and (ii) any insurance proceeds or other cash receipts or sources of reimbursement received by the
Indemnitee as an offset against such Loss (each source of recovery referred to in clauses (i) and
(ii), a “Collateral Source”). If the amount to be netted hereunder in connection with a
Collateral Source from any payment required under Section 10.2 or Section 10.3 is
received after payment by the Indemnitee of any amount otherwise required to be paid to an
Indemnitee pursuant to this Article X, the Indemnitee shall repay to the Indemnitor,
promptly after such receipt, any amount that the Indemnitee would not have had to pay pursuant to
this Article X had such receipt occurred at the time of such payment.

          10.5 Indemnification Process for Claims.

          (a) Notice to Collect. To collect the amount of any claim for which a member of the TEPCO
Group or the NINA Group seeks indemnification under this Article X, including
indemnification for claims that are brought by third parties against any such Person (a
“Claim”), the indemnified Person (the “Indemnitee”) shall give the indemnifying
Party (the “Indemnitor”) notice of such Claim. Such notice shall contain a summary of the
basis for the Claim and a reasonable estimate of the amount of Losses suffered or likely to be
suffered by the Indemnitee as a consequence thereof. If the Indemnitor does not dispute the basis
or amount of any Claim within thirty (30) days of receiving notice thereof, the Indemnitee shall
have the right to recover the applicable indemnity amount through a wire transfer of funds to such
account as may be designated by such Indemnitee. If any Indemnitor disagrees in good faith with
the basis of the Indemnitee’s Claim or the amount of Losses suffered by the Indemnitee in
connection therewith, then within twenty (20) days of receiving notice thereof, such Indemnitor, as
applicable, shall give notice to the Indemnitee of such disagreement.

          (b) Third-Party Claims. With respect to each third-party Claim for which a member of the NINA
Group or the TEPCO Group seeks indemnification under this Article X (collectively,
“Third-Party Claims”), the Indemnitee shall give written notice to the Indemnitor of the
Third-Party Claim within thirty (30) days of the first receipt by the Indemnitee of notice of such
Third-Party Claim; provided, that failure to give such notice promptly to the Indemnitor shall not
relieve or limit the obligations of the Indemnitor except to the extent that the Indemnitor shall
have been materially prejudiced by such failure to give such notice, in which case the Indemnitor
shall be relieved of its obligations under this Article X to the extent of such material
prejudice. The Indemnitor shall have the right to assume the defense of any such Third-Party Claim
at its own cost and expense; provided, that counsel for the Indemnitor conducting the
defense of such Third-Party Claim shall be subject to the approval of Indemnitee (whose approval
shall not be unreasonably withheld). If the Indemnitor chooses to defend or prosecute a
Third-Party Claim, the Indemnitee shall cooperate in the defense or prosecution thereof, which
cooperation shall include, to the extent reasonably requested by the Indemnitor and at the cost of
the Indemnitor, (i) the retention, and the provision to the Indemnitor, of records and information
reasonably relevant to such Third-Party Claim, and (ii) making directors, officers, managers,
executives, employees, consultants and agents of the Indemnitee and its Affiliates available
on a mutually convenient basis to provide additional information and explanation of any materials
provided hereunder. The Indemnitee may participate in, but not control, such defense at its own

41

 

expense; provided, that the Indemnitor shall pay such expense if the Indemnitee shall have
reasonably concluded that there is a substantial probability of a conflict between the positions of
the Indemnitor and the Indemnitee in conducting the defense of any such Third-Party Claim or that
there may be legal defenses available to the Indemnitee that are different from or additional to
those available to the Indemnitor. No Indemnitee shall settle any Third-Party Claim without the
consent of the Indemnitor, which consent shall not be unreasonably withheld or delayed. If the
Indemnitor wishes to enter into a settlement with respect to a Third-Party Claim, the Indemnitee
shall cooperate in such settlement; provided, that such settlement (x) does not provide for
injunctive relief or similar equitable remedies against the Indemnitee, and (y) includes, as an
unconditional term thereof, the giving by the third party to the Indemnitee of a release from all
liability in respect of such Third-Party Claim. If the Indemnitor elects not to control or conduct
the defense or prosecution of a Third-Party Claim, the Indemnitor nevertheless shall have the right
to participate in the defense or prosecution of any Third-Party Claim and, at its own expense, to
employ counsel of its own choosing for such purpose.

          10.6 Specific Performance. In addition to any other remedies which the Parties may have at law or
in equity, the Parties hereby acknowledge that the transactions contemplated under this Agreement
are unique, and that the harm to Investor on the one hand, or the NINA Parties, on the other hand,
resulting from breaches by the NINA Parties or Investor, respectively, of their obligations cannot
be adequately compensated by damages. Accordingly, the Parties agree that Investor and the NINA
Parties shall have the right to have all obligations, undertakings, agreements, covenants and other
provisions of this Agreement specifically performed by the NINA Parties, on the one hand, or by
Investor, on the other hand, as the case may be, and that Investor or the NINA Parties, as the case
may be, shall have the right to obtain an order or decree of such specific performance in any of
the courts of the United States of America or any state or other political subdivision thereof;
provided, that neither the NINA Parties, on the one hand, nor Investor, on the other hand,
shall be required to post any guaranty, letter of credit, bond or other security to obtain an order
or decree of such specific performance.

          10.7 Exclusive Remedy. Notwithstanding any other provision of this Agreement to the contrary or
any remedies that might otherwise be available under Law (other than claims based on fraud) the
remedies set forth in this Article X shall constitute the sole and exclusive remedies of
the Parties after the Initial Closing for any claims arising under this Agreement or the
certificates to be delivered at the Initial Closing (i) for breach of the representations and
warranties set forth herein or therein, or (ii) for breach prior to the Initial Closing of the
covenants set forth in Section 7.6.

          10.8
No Recourse. No Person other than the Parties shall be liable for the payment of any amount
due hereunder or for the performance of any other obligation (including the breach of any
representation or warranty or any indemnification obligation) hereunder, and the sole recourse of
(i) the NINA Parties for satisfaction of such obligations of Investor shall be against Investor and
its assets and not against any other Person, and (ii) of Investor for the satisfaction of such
obligations of the NINA Parties shall be against the NINA Party undertaking such obligation and its
assets and not against any other Person; provided, that nothing in this Section
10.8 shall limit or otherwise prejudice in any way the right of any Party to proceed
against any Person with respect to the enforcement of such Person’s obligations (or the enforcement
of such Party’s rights) under any other agreement to which it is a party, including any Related
Agreement.

42

 

          10.9 Adjustments to Initial Investment Amount. The Parties hereby agree that any and all indemnity
payments made pursuant to this Article X shall, to the maximum extent permitted by
applicable Law, be treated for all Tax purposes as an adjustment to the Initial Investment Amount.

ARTICLE XI

MISCELLANEOUS

          11.1 Amendments and Supplements. This Agreement may be amended or supplemented only by an
instrument in writing signed by each Party.

          11.2 Waiver. The terms and conditions of this Agreement may be waived only by a written instrument
signed by the Party waiving compliance. The failure of any Party hereto to enforce at any time any
of the provisions of this Agreement shall in no way be construed to be a waiver of any such
provision, nor in any way to affect the validity of this Agreement or any part hereof or the right
of such Party thereafter to enforce each and every such provision. No waiver of any breach of or
non-compliance with this Agreement shall be held to be a waiver of any other or subsequent breach
or non-compliance. Except as otherwise expressly provided in this Agreement, the rights and
remedies herein provided are cumulative and are not exclusive of any rights or remedies that any
Party may otherwise have at law or in equity.

          11.3 Governing Law. This Agreement shall be governed by, and construed and enforced in accordance
with, the substantive laws of the State of New York, without regard to its principles of conflicts
of laws other than Section 5-1401 of the New York General Obligations Law.

          11.4 Resolution of Disputes.

          (a) Disputes. Any and all claims, counterclaims, demands, causes of action, disputes,
controversies, and other matters in question arising out of or relating to this Agreement, or to
the alleged breach hereof, or in any way relating to the subject matter of this Agreement or the
relationship among the Parties created by this Agreement (whether extra-contractual in nature,
sounding in contract, tort or otherwise, or provided for by federal or state statute, common law or
otherwise) (hereafter a “Dispute”) shall be finally resolved by binding arbitration under
the Non-Administered Arbitration Rules of the International Institute for Conflict Prevention and
Resolution (the “Rules”) then in effect except as modified herein.

          (b) Negotiation to Resolve Disputes. If a Dispute arises out of or relates to this Agreement,
either the NINA Parties, on the one hand, or Investor, on the other hand, shall give notice to the
other Parties that it intends to initiate the dispute resolution procedures set forth herein.
Promptly upon receipt of such notice, each Party shall refer such Dispute to a senior executive
officer (“SEO”) of such Party. The SEOs will meet in person or by teleconference as soon
as mutually practicable in order to try and resolve the Dispute. If the SEOs of the NINA Parties,
on the one hand, and Investor, on the other hand, are unable to resolve the Dispute on or before
the thirtieth (30th) day after such notice, either the NINA Parties, on the one hand, or
Investor, on the other hand, may commence arbitration under this Section 11.4 by
notifying the other Parties (an “Arbitration Notice”).

          (c) Selection of Arbitrators.

43

 

               (i) Any arbitration conducted under this Section 11.4 shall be heard by three
(3) arbitrators (each an “Arbitrator” and collectively the “Tribunal”)
selected in accordance with this Section 11.4. Each Party and any proposed
Arbitrator shall, as soon as practicable, disclose to the other Parties any business,
personal or other relationship or affiliation that may exist between a Party and the
proposed Arbitrators. The Parties may then object to any of the proposed Arbitrators on the
basis of such relationship or affiliation. The validity of any such objection shall be
determined according to the Rules.

               (ii) Except as provided for in this Section 11.4, the Tribunal shall be
appointed according to the Rules. In the Arbitration Notice, the Party or Parties (whether
Investor or the NINA Parties, as applicable) requesting arbitration shall nominate one
Arbitrator. The Parties or Party (whether the NINA Parties or Investor, as applicable)
named as respondent by the claimant shall nominate one Arbitrator. Within thirty (30) days
of the appointment of the second Arbitrator, the two (2) Party-appointed Arbitrators shall
appoint a third Arbitrator who shall chair the arbitration. Within seven (7) Days of
receiving this list, each Party shall provide to CPR a ranking of the potential Arbitrators
on such list showing such Party’s order of preference among such proposed Arbitrators, with
the NINA Parties submitting one common ranked list. The CPR shall then appoint all three (3)
Arbitrators as it shall determine in its discretion but taking into account to the extent
practical the preferences of the Parties.

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

 

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

44

 

consent, the Parties may nevertheless seek interim or injunctive relief from any court of competent
jurisdiction.

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

          11.5 Notice. Except as expressly set forth to the contrary in this Agreement, all notices,
requests, consents, or other communications provided for or permitted to be given under this
Agreement must be in writing and must be delivered to the recipient in person, by courier, mail,
electronic mail (with receipt confirmed personally by the recipient (and not by automatic
confirmation of receipt)) or facsimile (if followed by courier or mail). A notice, request,
consent, or communication given under this Agreement is effective on receipt by the Party to
receive it; provided, that a notice, request, consent, or communication given by electronic
mail shall be deemed effective upon being sent in the local jurisdiction from which such electronic
mail is being sent, subject to confirmation of receipt by the recipient as set forth in the
preceding sentence. All notices, requests, consents, or other communications to be sent to a Party
must be sent to or made at the addresses, electronic mail address or fax number given set forth
below, or such other address, electronic mail address or fax number as that Party may specify by
notice to each of the other Parties.

          (a) If to Investor:

**

          (b) If to NINA or NINA Holdings:

**

               with a copy to:

**

               with a copy (which shall not constitute notice) to:

**

 

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

45

 

          11.6 Entire Agreement. This Agreement (including the Schedules and Exhibits attached hereto), the
Confidentiality Agreement, and the Related Agreements constitute the entire agreement among the
Parties with respect to the subject matter hereof and supersede all other prior agreements and
understandings, both written and oral, among the Parties with respect to the subject matter hereof,
including the Letter of Intent but excluding the Confidentiality Agreement, which shall survive
until the Initial Closing.

          11.7 Binding Effect; Assignability. This Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns. This Agreement is not
intended to confer upon any Person other than the Parties (and such Parties’ respective successors
and permitted assigns) any rights or remedies hereunder, except as otherwise expressly provided
herein. No Party shall assign any of its rights or delegate any of its obligations under this
Agreement to any Person (other than, in the case of Investor, to its Wholly Owned Affiliate (as
defined in the Operating Agreement) who is at least as creditworthy as the Investor (as reasonably
determined by the NINA Parties)) without the prior written consent of the other Parties. Any
purported assignment of rights or delegation of obligations in contravention of this Section
11.7 shall be void ab initio.

          11.8 Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement, each of which shall
remain in full force and effect.

          11.9 Counterparts. This Agreement may be executed and delivered in one or more counterparts, all
of which together shall constitute one and the same agreement. This Agreement may be delivered by
facsimile transmission.

          11.10 Time is of the Essence. The Parties acknowledge that time is of the essence with respect to
this Agreement. If any date specified in this Agreement or the Related Agreements for giving any
notice or taking any action is not a Business Day (or if the period during which any notice is
required to be given or any action taken expires on a date which is not a Business Day), then the
date for giving such notice or taking such action (and the expiration date of such period during
which notice is required to be given or action taken) shall be the next day which is a Business
Day.

          11.11 No Relationship. Nothing in this Agreement or the Related Agreements creates or is intended
to create an association, trust, partnership, joint venture, joint-employer, or any other entity or
similar legal relationship among the Parties, or impose a trust, partnership or fiduciary duty,
obligation, or liability on or with respect to the NINA Parties or Investor. None of the NINA
Parties, on the one hand, nor Investor, on the other hand, is or shall act as or be the agent or
Representative of Investor or either of the NINA Parties, respectively.

          11.12 Construction of Agreement. This Agreement and the Related Agreements shall be construed
without regard to the identity of the Person who drafted the various provisions of the same. Each
and every provision of this Agreement and the Related
Agreements shall be construed as though the Parties participated equally in the drafting of the
same. Consequently, the Parties acknowledge and agree that any rule of construction that a
document is to be construed against the drafting party shall not be applicable either to this
Agreement or the Related Agreements.

[Remainder of page intentionally left blank]

46

 

     IN WITNESS WHEREOF, the Parties have caused this Investment and Option Agreement to be
executed and delivered as of the date first above written.

	 	 	 	 	 
	 	NINA INVESTMENTS HOLDINGS LLC

 	 
	 	By:  	
/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	Chief Executive Officer and President 	 
	 

	 	 	 	 	 
	 	NUCLEAR INNOVATION NORTH AMERICA LLC

(solely for purposes of Section 2.5,
Section 3.1, Section 3.3, Sections 7.1 through 7.5, Section 7.8,
Article I, Article IV, Article IX, Article X, and Article XI)

 	 
	 	By:  	
/s/ Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	TEPCO NUCLEAR ENERGY AMERICA LLC

 	 
	 	By:  	
/s/ Toshiro Kudama	 
	 	 	Name:  	Toshiro Kudama 	 
	 	 	Title:  	President 	 
	 

 

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

Exhibit A

to Investment and Option Agreement

[FORM OF]

NRG LIMITED GUARANTY

     THIS LIMITED GUARANTY (“Guaranty”) dated as of                     , 2010 is executed and
delivered by NRG Energy, Inc., a Delaware corporation (“NRG” or “Guarantor”), in
favor of TEPCO Nuclear Energy America LLC, a Delaware limited liability company
(“Beneficiary”).

     WHEREAS, NRG indirectly owns a majority of the limited liability company interests of Nuclear
Innovation North America LLC, a Delaware limited liability company (“NINA”);

     WHEREAS, NINA directly owns one hundred percent (100%) of the limited liability company
interests of NINA Investments Holdings LLC, a Delaware limited liability company (“NINA
Holdings”, and together with NINA, the “NINA Parties”);

     WHEREAS, Beneficiary, NINA, and NINA Holdings have entered into an Investment and Option
Agreement, dated as of May 10, 2010 (the “Investment Agreement”), relating to an investment
by Beneficiary in NINA Holdings and a related option to make an additional investment in NINA
Holdings; and

     WHEREAS, Guarantor acknowledges that it will receive direct and indirect benefits from
Beneficiary entering into and performing its obligations under the Investment Agreement and,
accordingly, Guarantor is willing to guarantee certain obligations of NINA to Beneficiary under the
Investment Agreement, subject to the terms, conditions and limitations contained herein.

     NOW, THEREFORE, to induce Beneficiary to enter into and perform its obligations under the
Investment Agreement, and for other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the parties hereto hereby agree as follows:

          Section 1. Guaranty. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to
Beneficiary, as primary obligor and not merely as surety, the due and punctual payment and
performance of the obligations of NINA under Section 10.2(a) and 10.5 of the Investment Agreement,
but only with respect to those representations and warranties of NINA contained in Article IV of
the Investment Agreement and NINA Holdings contained in Sections 5.1, 5.2, 5.3, 5.5, 5.6, 5.9,
5.10, 5.11, 5.13(a), 5.13(c), 5.14(a), 5.14(d), 5.14(e), 5.16, 5.17(a) and 5.21 of the Investment
Agreement (which representations and warranties, for purposes of this Limited Guaranty, shall be
deemed to exclude any representation and warranty
regarding STPNOC (as defined in the Investment Agreement), except with respect to the
representations and warranties in Sections 5.5 and 5.16) (such obligations, the “Guaranteed
Obligations”); provided, that Guarantor’s liability under this Guaranty shall not
exceed the sum

 

 

**; provided, further, that the obligations
of Guarantor under this Guaranty are conditioned on the occurrence of the Initial Closing under and
as defined in the Investment Agreement, and in the event the Investment Agreement is terminated in
accordance with its terms, this Guaranty shall automatically terminate and be of no further force
and effect. This Guaranty is a guaranty of payment and performance and not merely of collection.

          Section 2. Guaranty Absolute and Independent. Guarantor’s obligations under this Guaranty are
absolute and are independent of those of the NINA Parties and Beneficiary may maintain a separate
action or actions against Guarantor to enforce this Guaranty. Accordingly, Beneficiary shall not be
obligated or required before enforcing this Guaranty against Guarantor to: (i) commence any suit or
other proceeding against either of the NINA Parties or any other person, or any other security for
the Guaranteed Obligations, in any court or other tribunal, or (ii) make any claim in any
bankruptcy, insolvency, reorganization, liquidation, dissolution, or similar proceedings affecting
either of the NINA Parties (whether voluntary or involuntary); and the failure of Beneficiary to so
act or so file shall not affect or impair Guarantor’s obligations hereunder.

          Section 3. Continuing Guaranty. This Guaranty is a continuing guarantee and shall apply to all
Guaranteed Obligations whenever arising, and shall remain in full force and effect until such time
as all the Guaranteed Obligations have been discharged finally and in full.

          Section 4. Waivers. Guarantor expressly waives (i) diligence, presentment, and protest, (ii) notice of
acceptance of this Guaranty by Beneficiary, and all other notices whatsoever, (iii) demand for
payment or performance of any of the Guaranteed Obligations, and (iv) any claim or defense that
Beneficiary shall have impaired any right of Guarantor against either of the NINA Parties, any
other guarantor of any of the Guaranteed Obligations, or any other person or entity, by way of
reimbursement, subrogation or otherwise. Without limiting the generality of the foregoing, it is
agreed that the occurrence of any one or more of the following shall not affect the liability of
Guarantor hereunder: (a) any dissolution of either of the NINA Parties, or the combination or
consolidation of either of the NINA Parties into or with another entity or any transfer or
disposition of any assets of either of the NINA Parties, (b) any bankruptcy, insolvency,
reorganization, dissolution, liquidation or other similar proceeding relating to either of the NINA
Parties; (c) either of the NINA Parties ceasing to be a person or entity controlled by, controlling
or under common control with Guarantor, (d) the absence of any notice to, or knowledge by,
Guarantor of the existence or occurrence of any of the matters set forth in the foregoing clauses,
or (e) any other circumstance whatsoever that might otherwise constitute a legal or equitable
defense available to, or discharge of, a surety or a guarantor.

          Section 5. Effect of Amendments. Guarantor agrees that Beneficiary and the NINA Parties may modify,
amend and supplement the Investment Agreement and that Beneficiary may delay or extend the date on
which any payment must be made pursuant to the

 

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

2

 

Investment Agreement or delay or extend the date on
which any act must be performed by Beneficiary thereunder, all without notice to or further assent
by Guarantor.

          Section 6. Reinstatement. This Guaranty shall remain in full force and effect or shall be reinstated
(as the case may be) if at any time any payment guaranteed hereunder, in whole or in part, is
rescinded or must otherwise be returned by Beneficiary upon the insolvency, bankruptcy or
reorganization of either of the NINA Parties or otherwise, all as though such payment had not been
made.

          Section 7. Subrogation; Subordination. Guarantor hereby fully and forever waives and relinquishes any
right it may have (i) to be subrogated to the rights of Beneficiary against either of the NINA
Parties in respect of any amounts paid or obligation performed by Guarantor pursuant to this
Guaranty, and (ii) against either of the NINA Parties for reimbursement, indemnity, contribution,
or any similar legal or equitable right with respect to any such amount or obligation.

          Section 8. Representations and Warranties. Guarantor hereby represents and warrants to Beneficiary as
follows:

               (a) Organization, Power and Authority. It is a corporation, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation and has the
corporate power and authority to carry on its business. It is duly qualified or licensed to do
business and is in good standing in all jurisdictions in which the character of the properties
owned or held under lease by it or the nature of the business transacted by it makes qualification
necessary.

               (b) Authorization. It has the corporate power and authority to execute, deliver and
perform this Guaranty in accordance with its terms. The execution, delivery, and performance of
Guaranty have been duly and validly authorized by all necessary corporate action and no other
corporate or shareholder proceedings or actions (or their equivalents) are necessary on its part to
authorize and consummate this Guaranty. This Guaranty has been duly executed and delivered by it,
and constitutes its legal, valid and binding obligation enforceable against it in accordance with
its terms except as the same may be limited by bankruptcy, insolvency, and other similar laws
affecting the rights of creditors generally and the availability of equitable remedies for the
enforcement of certain obligations.

               (c) Compliance with Laws, etc. The execution, delivery and performance of this
Guaranty in accordance with its terms does not and will not, by the passage of time, the giving of
notice, or both: (i) require any governmental approval or violate any applicable law relating to
Guarantor; (ii) conflict with, result in a breach of or constitute a default under the
organizational documents or material contract of Guarantor; or (iii) result in or require the
creation or imposition of any lien upon or with respect to any of its material property.

          Section 9. Expenses. Guarantor shall pay all costs, expenses and fees, including all reasonable
attorneys’ fees, which may be incurred by Beneficiary in enforcing this Guaranty, to the extent
Beneficiary is the prevailing party.

3

 

          Section 10. Governing Law; Dispute Resolution.

               (a) This Guaranty shall be governed by, and construed and enforced in accordance with,
the substantive laws of the State of New York, without regard to its principles of conflicts of
laws other than Section 5-1401 of the New York General Obligations Law.

               (b) Section 11.4 of the Investment Agreement shall apply mutatis mutandis to this Guaranty in
the event of any dispute arising out of or relating to this Guaranty or the interpretation hereof
or any arrangements relating hereto or contemplated herein or the validity, breach or termination
hereof.

          Section 11. Assignment and Benefit of Guaranty. Neither the Guarantor nor Beneficiary may assign its
rights, interests or obligations hereunder to any other person (except by operation of law) without
the prior written consent of Beneficiary (in the case of an assignment by the Guarantor) or the
Guarantor (in the case of an assignment by Beneficiary). This Guaranty shall be binding upon and
inure to the benefit of Guarantor and Beneficiary and their respective successors and permitted
assigns. This Guaranty is not intended to confer upon any Person other than Beneficiary (and its
respective successors and permitted assigns) any rights or remedies hereunder.

          Section 12. Amendments and Waivers. This Guaranty may be amended or supplemented only by an instrument
in writing signed by Beneficiary and Guarantor. Compliance by the Guarantor with any term or
provision of this Guaranty may be waived only by an instrument in writing signed by Beneficiary.
Any waiver by Beneficiary of a breach of any provision of this Guaranty shall not be construed as a
waiver of any subsequent breach or the breach of any other provision.

          Section 13. Validity. The invalidity or unenforceability of any provision of this Guaranty shall not
affect the validity or enforceability of any other provision of this Guaranty, each of which shall
remain in full force and effect.

          Section 14. Counterparts. This Guaranty may be executed and delivered in one or more counterparts, all
of which together shall constitute one and the same agreement. This Guaranty may be delivered by
facsimile transmission.

          Section 15. Interpretation and Rules of Construction. This Guaranty shall not be construed against
Beneficiary or Guarantor, and no consideration shall be given or presumption made, on the basis of
who drafted this Guaranty or any particular provision hereof or who supplied the form of Guaranty.
In construing this Guaranty:

               (a) examples shall not be construed to limit, expressly or by implication, the matter they
illustrate;

               (b) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative expressions;

4

 

               (c) a defined term has its defined meaning throughout this Guaranty regardless of whether it
appears before or after the place where it is defined; and

               (d) the headings and titles herein are for convenience only and shall have no significance in
the interpretation hereof.

          Section 16. Notices. All notices and other communications provided for hereunder shall be given in
accordance with the notice requirements of the Investment Agreement, and if to Guarantor, at the
address specified below the space for its execution of this Guaranty.

[Signatures to follow on next page.]

5

 

     IN WITNESS WHEREOF, Guarantor has duly executed and delivered this Guaranty as of the
date and year first written above.

	 	 	 	 	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	David Crane 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	Notice details:

**

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

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

[Signature Page to NRG Limited Guaranty]

6

 

	 	 	 	 	 
	 	This Guaranty is acknowledged and accepted

as of this                      day of                     , 20___:

TEPCO NUCLEAR ENERGY AMERICA LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Toshiro Kudama 	 
	 	 	Title:  	President 	 
	 

[Signature Page to NRG Limited Guaranty]

-7-

 

Exhibit B-1

to Investment and Option Agreement

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

TEPCO LIMITED GUARANTY

(INITIAL)

     THIS LIMITED GUARANTY (“Guaranty”) dated as of May 10, 2010 is executed and delivered
by The Tokyo Electric Power Company, Incorporated, a Japanese corporation (“TEPCO” or
“Guarantor”), in favor of NINA Investments Holdings LLC, a Delaware limited liability
company (“Beneficiary”).

     WHEREAS, TEPCO directly or indirectly owns all of the limited liability company interests in
TEPCO Nuclear Energy America LLC, a Delaware limited liability company (“Investor”);

     WHEREAS, Investor, Beneficiary, and Nuclear Innovation North America LLC (“NINA”) have
entered into an Investment and Option Agreement, dated as of the date hereof (the “Investment
Agreement”), relating to an investment by Investor in Beneficiary and a related option to make
an additional investment in Beneficiary; and

     WHEREAS, Guarantor acknowledges that it will receive direct and indirect benefits from
Beneficiary entering into and performing its obligations under the Investment Agreement and,
accordingly, Guarantor is willing to guarantee certain obligations of Investor to Beneficiary under
the Investment Agreement, subject to the terms, conditions and limitations contained herein.

     NOW, THEREFORE, to induce Beneficiary to enter into and perform its obligations under the
Investment Agreement, and for other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the parties hereto hereby agree as follows:

     Section 1. Guaranty. Guarantor hereby absolutely, irrevocably and unconditionally guarantees to
Beneficiary, as primary obligor and not merely as surety, the due and punctual payment and
performance of the obligations of Investor under the Investment Agreement to be performed at or
prior to the Initial Closing (as defined in the Investment Agreement) (the “Guaranteed
Obligations”); provided, that Guarantor’s liability under this Guaranty shall not
exceed the sum of **; provided, further, that in the event
the Investment Agreement is terminated in accordance with its terms, other than pursuant to Section
9.1(c) thereof, this Guaranty shall terminate automatically and be of no further force and effect.
This Guaranty is a guaranty of payment and performance and not merely of collection.

     Section 2. Guaranty Absolute and Independent. Guarantor’s obligations under this Guaranty
are absolute and are independent of those of Investor and Beneficiary may maintain a

 

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

 

 

separate action or actions against Guarantor to enforce this Guaranty. Accordingly, Beneficiary
shall not be obligated or required before enforcing this Guaranty against Guarantor to: (i)
commence any suit or other proceeding against Investor or any other person, or any other security
for the Guaranteed Obligations, in any court or other tribunal, or (ii) make any claim in any
bankruptcy, insolvency, reorganization, liquidation, dissolution, or similar proceedings affecting
Investor (whether voluntary or involuntary); and the failure of Beneficiary to so act or so file
shall not affect or impair Guarantor’s obligations hereunder.

Section 3. Continuing Guaranty. This Guaranty is a continuing guarantee and shall apply to all
Guaranteed Obligations whenever arising, and shall remain in full force and effect until such time
as all the Guaranteed Obligations have been discharged finally and in full.

     Section 4. Waivers. Guarantor expressly waives (i) diligence, presentment, and protest, (ii)
notice of acceptance of this Guaranty by Beneficiary, and all other notices whatsoever, (iii)
demand for payment or performance of any of the Guaranteed Obligations, and (iv) any claim or
defense that Beneficiary shall have impaired any right of Guarantor against Investor, any other
guarantor of any of the Guaranteed Obligations, or any other person or entity, by way of
reimbursement, subrogation or otherwise. Without limiting the generality of the foregoing, it is
agreed that the occurrence of any one or more of the following shall not affect the liability of
Guarantor hereunder: (a) any dissolution of Investor, or the combination or consolidation of
Investor into or with another entity or any transfer or disposition of any assets of Investor, (b)
any bankruptcy, insolvency, reorganization, dissolution, liquidation or other similar proceeding
relating to Investor; (c) Investor ceasing to be a person or entity controlled by, controlling or
under common control with Guarantor, (d) the absence of any notice to, or knowledge by, Guarantor
of the existence or occurrence of any of the matters set forth in the foregoing clauses, or (e) any
other circumstance whatsoever that might otherwise constitute a legal or equitable defense
available to, or discharge of, a surety or a guarantor.

     Section 5. Effect of Amendments. Guarantor agrees that Beneficiary, NINA, and Investor may
modify, amend and supplement the Investment Agreement and that Beneficiary may delay or extend the
date on which any payment must be made pursuant to the Investment Agreement or delay or extend the
date on which any act must be performed by Beneficiary thereunder, all without notice to or further
assent by Guarantor.

     Section 6. Reinstatement. This Guaranty shall remain in full force and effect or shall be reinstated
(as the case may be) if at any time any payment guaranteed hereunder, in whole or in part, is
rescinded or must otherwise be returned by Beneficiary upon the insolvency, bankruptcy or
reorganization of Investor or otherwise, all as though such payment had not been made.

     Section 7. Subrogation; Subordination. Guarantor hereby fully and forever waives and relinquishes any
right it may have (i) to be subrogated to the rights of Beneficiary against Investor in respect of
any amounts paid or obligation performed by Guarantor pursuant to this Guaranty, and (ii) against
Investor for reimbursement, indemnity, contribution, or any similar legal or equitable right with
respect to any such amount or obligation.

2

 

     Section 8. Representations and Warranties. Guarantor hereby represents and warrants to Beneficiary as
follows:

               (a) Organization, Power and Authority. It is a corporation, duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation and has the
corporate power and authority to carry on its business. It is duly qualified or licensed to do
business and is in good standing in all jurisdictions in which the character of the properties
owned or held under lease by it or the nature of the business transacted by it makes qualification
necessary.

               (b) Authorization. It has the corporate power and authority to execute, deliver and
perform this Guaranty in accordance with its terms. The execution, delivery, and performance of
Guaranty have been duly and validly authorized by all necessary corporate action and no other
corporate or shareholder proceedings or actions (or their equivalents) are necessary on its part to
authorize and consummate this Guaranty. This Guaranty has been duly executed and delivered by it,
and constitutes its legal, valid and binding obligation enforceable against it in accordance with
its terms except as the same may be limited by bankruptcy, insolvency, and other similar laws
affecting the rights of creditors generally and the availability of equitable remedies for the
enforcement of certain obligations.

               (c) Compliance with Laws, etc. The execution, delivery and performance of this
Guaranty in accordance with its terms does not and will not, by the passage of time, the giving of
notice, or both: (i) require any governmental approval or violate any applicable law relating to
Guarantor; (ii) conflict with, result in a breach of or constitute a default under the
organizational documents or material contract of Guarantor; or (iii) result in or require the
creation or imposition of any lien upon or with respect to any of its material property.

     Section 9. Expenses. Guarantor shall pay all costs, expenses and fees, including all reasonable
attorneys’ fees, which may be incurred by Beneficiary in enforcing this Guaranty, to the extent
Beneficiary is the prevailing party.

     Section 10. Governing Law; Dispute Resolution.

          (a) This Guaranty shall be governed by, and construed and enforced in accordance with, the
substantive laws of the State of New York, without regard to its principles of conflicts of laws
other than Section 5-1401 of the New York General Obligations Law.

          (b) Section 11.4 of the Investment Agreement shall apply mutatis mutandis to this Guaranty in
the event of any dispute arising out of or relating to this Guaranty or the interpretation hereof
or any arrangements relating hereto or contemplated herein or the validity, breach or termination
hereof.

     Section 11. Assignment and Benefit of Guaranty. Neither the Guarantor nor Beneficiary may assign its
rights, interests or obligations hereunder to any other person (except by operation of law) without
the prior written consent of Beneficiary (in the case of an assignment by the Guarantor) or the
Guarantor (in the case of an assignment by Beneficiary). This Guaranty shall be binding upon and
inure to the benefit of Guarantor and Beneficiary and their respective successors and permitted
assigns. This Guaranty is not intended to confer upon

3

 

any Person other than Beneficiary (and its respective successors and permitted assigns) any rights
or remedies hereunder.

     Section 12. Amendments and Waivers. This Guaranty may be amended or supplemented only by an instrument
in writing signed by Beneficiary and Guarantor. Compliance by the Guarantor with any term or
provision of this Guaranty may be waived only by an instrument in writing signed by Beneficiary.
Any waiver by Beneficiary of a breach of any provision of this Guaranty shall not be construed as a
waiver of any subsequent breach or the breach of any other provision.

     Section 13. Validity. The invalidity or unenforceability of any provision of this Guaranty shall not
affect the validity or enforceability of any other provision of this Guaranty, each of which shall
remain in full force and effect.

     Section 14. Counterparts. This Guaranty may be executed and delivered in one or more counterparts, all
of which together shall constitute one and the same agreement. This Guaranty may be delivered by
facsimile transmission.

     Section 15. Interpretation and Rules of Construction. This Guaranty shall not be construed against
Beneficiary or Guarantor, and no consideration shall be given or presumption made, on the basis of
who drafted this Guaranty or any particular provision hereof or who supplied the form of Guaranty.
In construing this Guaranty:

          (a) examples shall not be construed to limit, expressly or by implication, the matter they
illustrate;

          (b) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative expressions;

          (c) a defined term has its defined meaning throughout this Guaranty regardless of whether it
appears before or after the place where it is defined; and

          (d) the headings and titles herein are for convenience only and shall have no significance in
the interpretation hereof.

     Section 16. Notices. All notices and other communications provided for hereunder shall be given in
accordance with the notice requirements of the Investment Agreement, and if to Guarantor, at the
address specified below the space for its execution of this Guaranty.

[Signatures to follow on next page.]

4

 

     IN WITNESS WHEREOF, Guarantor has duly executed and delivered this Guaranty as of the date and
year first written above.

	 	 	 	 	 
	 	TOKYO ELECTRIC POWER

COMPANY,

INCORPORATED

 	 
	 	By:  	/s/
Masataka
Shimizu	 
	 	 	Name:  	Masataka Shimizu 	 
	 	 	Title:  	President 	 
	 
	 	Notice details:

**

 	 
	 	 	 
	 	 	 
	 	 	 
	 

Signature page to TEPCO Limited Guaranty (Initial)

 

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

 

 

	 	 	 	 	 
	 	This Guaranty is acknowledged and accepted as

of this 10th day of May, 2010:

NINA INVESTMENTS HOLDINGS
LLC

 	 
	 	By:  	/s/
Steve Winn	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	Chief Executive Officer and
President 	 
	 

Signature page to TEPCO Limited Guaranty (Initial)

 

 

Exhibit B-2

to Investment and Option Agreement

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

[FORM OF]

TEPCO LIMITED GUARANTY

(OPTION)

     THIS LIMITED GUARANTY
(“Guaranty”) dated as of 
                  
  , 20___ is executed and
delivered by The Tokyo Electric Power Company, Incorporated, a Japanese corporation
(“TEPCO” or “Guarantor”), in favor of NINA Investments Holdings LLC, a Delaware
limited liability company (“Beneficiary”).

     WHEREAS, TEPCO directly or indirectly owns all of the limited liability company interests in
TEPCO Nuclear Energy America LLC, a Delaware limited liability company (“Investor”);

     WHEREAS, Investor, Beneficiary, and Nuclear Innovation North America LLC (“NINA”) have
entered into an Investment and Option Agreement, dated as of May 10, 2010 (the “Investment
Agreement”), relating to an investment by Investor in Beneficiary and a related option to make
an additional investment in Beneficiary; and

     WHEREAS, Guarantor acknowledges that it will receive direct and indirect benefits from
Beneficiary entering into and performing its obligations under the Investment Agreement and,
accordingly, Guarantor is willing to guarantee certain obligations of Investor to Beneficiary under
the Investment Agreement, subject to the terms, conditions and limitations contained herein.

     NOW, THEREFORE, to induce Beneficiary to enter into and perform its obligations under the
Investment Agreement, and for other good and valuable consideration, the receipt and sufficiency of
which hereby are acknowledged, the parties hereto hereby agree as follows:

     Section 1. Guaranty. Guarantor hereby absolutely, irrevocably and
unconditionally guarantees to Beneficiary, as primary obligor and not merely as surety, the due and
punctual payment and performance of the obligations of Investor under Article VIII of the
Investment Agreement to be performed at the Option Closing (as defined in the Investment Agreement)
(the “Guaranteed Obligations”); provided, that Guarantor’s liability under this
Guaranty shall not exceed the sum of **; provided,
further, that in the event the Exercise Notice (as defined in the Investment Agreement) is
revoked by Investor pursuant to Section 8.3(b) of the Investment Agreement, or the Investment
Agreement is terminated in accordance with Section 9.2 thereof, this Guaranty shall terminate
automatically and be of no further force and effect. This Guaranty is a guaranty of payment and
performance and not merely of collection.

 

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

 

 

     Section 2. Guaranty Absolute and Independent. Guarantor’s obligations under this
Guaranty are absolute and are independent of those of Investor and Beneficiary may maintain a
separate action or actions against Guarantor to enforce this Guaranty. Accordingly, Beneficiary
shall not be obligated or required before enforcing this Guaranty against Guarantor to: (i)
commence any suit or other proceeding against Investor or any other person, or any other security
for the Guaranteed Obligations, in any court or other tribunal, or (ii) make any claim in any
bankruptcy, insolvency, reorganization, liquidation, dissolution, or similar proceedings affecting
Investor (whether voluntary or involuntary); and the failure of Beneficiary to so act or so file
shall not affect or impair Guarantor’s obligations hereunder.

     Section 3. Continuing Guaranty. This Guaranty is a continuing guarantee and shall
apply to all Guaranteed Obligations whenever arising, and shall remain in full force and effect
until such time as all the Guaranteed Obligations have been discharged finally and in full.

     Section 4. Waivers. Guarantor expressly waives (i) diligence, presentment, and
protest, (ii) notice of acceptance of this Guaranty by Beneficiary, and all other notices
whatsoever, (iii) demand for payment or performance of any of the Guaranteed Obligations, and (iv)
any claim or defense that Beneficiary shall have impaired any right of Guarantor against Investor,
any other guarantor of any of the Guaranteed Obligations, or any other person or entity, by way of
reimbursement, subrogation or otherwise. Without limiting the generality of the foregoing, it is
agreed that the occurrence of any one or more of the following shall not affect the liability of
Guarantor hereunder: (a) any dissolution of Investor, or the combination or consolidation of
Investor into or with another entity or any transfer or disposition of any assets of Investor, (b)
any bankruptcy, insolvency, reorganization, dissolution, liquidation or other similar proceeding
relating to Investor; (c) Investor ceasing to be a person or entity controlled by, controlling or
under common control with Guarantor, (d) the absence of any notice to, or knowledge by, Guarantor
of the existence or occurrence of any of the matters set forth in the foregoing clauses, or (e) any
other circumstance whatsoever that might otherwise constitute a legal or equitable defense
available to, or discharge of, a surety or a guarantor.

     Section 5. Effect of Amendments. Guarantor agrees that Beneficiary, NINA, and
Investor may modify, amend and supplement the Investment Agreement and that Beneficiary may delay
or extend the date on which any payment must be made pursuant to the Investment Agreement or delay
or extend the date on which any act must be performed by Beneficiary thereunder, all without notice
to or further assent by Guarantor.

     Section 6. Reinstatement. This Guaranty shall remain in full force and effect or
shall be reinstated (as the case may be) if at any time any payment guaranteed hereunder, in whole
or in part, is rescinded or must otherwise be returned by Beneficiary upon the insolvency,
bankruptcy or reorganization of Investor or otherwise, all as though such payment had not been
made.

     Section 7. Subrogation; Subordination. Guarantor hereby fully and forever waives and
relinquishes any right it may have (i) to be subrogated to the rights of Beneficiary against
Investor in respect of any amounts paid or obligation performed by Guarantor pursuant to this
Guaranty, and (ii) against Investor for reimbursement, indemnity, contribution, or any similar
legal or equitable right with respect to any such amount or obligation.

2

 

     Section 8. Representations and Warranties. Guarantor hereby represents and warrants to
Beneficiary as follows:

               (a) Organization, Power and Authority. It is a corporation, duly organized,
validly existing and in good standing under the laws of the jurisdiction of its incorporation and
has the corporate power and authority to carry on its business. It is duly qualified or licensed to
do business and is in good standing in all jurisdictions in which the character of the properties
owned or held under lease by it or the nature of the business transacted by it makes qualification
necessary.

               (b) Authorization. It has the corporate power and authority to execute, deliver and
perform this Guaranty in accordance with its terms. The execution, delivery, and performance of
Guaranty have been duly and validly authorized by all necessary corporate action and no other
corporate or shareholder proceedings or actions (or their equivalents) are necessary on its part to
authorize and consummate this Guaranty. This Guaranty has been duly executed and delivered by it,
and constitutes its legal, valid and binding obligation enforceable against it in accordance with
its terms except as the same may be limited by bankruptcy, insolvency, and other similar laws
affecting the rights of creditors generally and the availability of equitable remedies for the
enforcement of certain obligations.

               (c) Compliance with Laws, etc. The execution, delivery and performance of this
Guaranty in accordance with its terms does not and will not, by the passage of time, the giving of
notice, or both: (i) require any governmental approval or violate any applicable law relating to
Guarantor; (ii) conflict with, result in a breach of or constitute a default under the
organizational documents or material contract of Guarantor; or (iii) result in or require the
creation or imposition of any lien upon or with respect to any of its material property.

     Section 9. Expenses. Guarantor shall pay all costs, expenses and fees, including
all reasonable attorneys’ fees, which may be incurred by Beneficiary in enforcing this Guaranty, to
the extent Beneficiary is the prevailing party.

     Section 10. Governing Law; Dispute Resolution.

               (a) This Guaranty shall be governed by, and construed and enforced in accordance with, the
substantive laws of the State of New York, without regard to its principles of conflicts of laws
other than Section 5-1401 of the New York General Obligations Law.

               (b) Section 11.4 of the Investment Agreement shall apply mutatis mutandis to this Guaranty in
the event of any dispute arising out of or relating to this Guaranty or the interpretation hereof
or any arrangements relating hereto or contemplated herein or the validity, breach or termination
hereof.

     Section 11. Assignment and Benefit of Guaranty. Neither the Guarantor nor
Beneficiary may assign its rights, interests or obligations hereunder
to any other person (except by operation of law) without the prior written consent of Beneficiary
(in the case of an assignment by the Guarantor) or the Guarantor (in the case of an assignment by
Beneficiary). This Guaranty shall be binding upon and inure to the benefit of Guarantor and Beneficiary and

3

 

their respective successors and permitted assigns. This Guaranty is not intended
to confer upon any Person other than Beneficiary (and its respective successors and permitted
assigns) any rights or remedies hereunder.

     Section 12. Amendments and Waivers. This Guaranty may be amended or supplemented
only by an instrument in writing signed by Beneficiary and Guarantor. Compliance by the Guarantor
with any term or provision of this Guaranty may be waived only by an instrument in writing signed
by Beneficiary. Any waiver by Beneficiary of a breach of any provision of this Guaranty shall not
be construed as a waiver of any subsequent breach or the breach of any other provision.

     Section 13. Validity. The invalidity or unenforceability of any provision of this
Guaranty shall not affect the validity or enforceability of any other provision of this Guaranty,
each of which shall remain in full force and effect.

     Section 14. Counterparts. This Guaranty may be executed and delivered in one or more
counterparts, all of which together shall constitute one and the same agreement. This Guaranty may
be delivered by facsimile transmission.

     Section 15. Interpretation and Rules of Construction. This Guaranty shall not be
construed against Beneficiary or Guarantor, and no consideration shall be given or presumption
made, on the basis of who drafted this Guaranty or any particular provision hereof or who supplied
the form of Guaranty. In construing this Guaranty:

               (a) examples shall not be construed to limit, expressly or by implication, the matter
they illustrate;

               (b) the word “includes” and its derivatives means “includes, but is not limited to” and
corresponding derivative expressions;

               (c) a defined term has its defined meaning throughout this Guaranty regardless of whether it
appears before or after the place where it is defined; and

               (d) the headings and titles herein are for convenience only and shall have no significance in
the interpretation hereof.

     Section 16. Notices. All notices and other communications provided for hereunder shall be given in accordance with the
notice requirements of the Investment Agreement, and if to Guarantor, at the address specified
below the space for its execution of this Guaranty.

[Signatures to follow on next page.]

4

 

          IN WITNESS WHEREOF, Guarantor has duly executed and delivered this Guaranty as of the date and
year first written above.

	 	 	 	 	 
	 	TOKYO ELECTRIC POWER
COMPANY,
INCORPORATED

 	 
	 	By:  	 	 
	 	 	Name:  	Masataka Shimizu 	 
	 	 	Title:  	President 	 
	 
	 	Notice details:

**

 	 
	 	 	 
	 	 	 

[signature page to TEPCO Limited Guaranty (Option)]

 

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

 

 

	 	 	 	 	 
	 	This Guaranty is acknowledged and accepted as of this                      day
of                     , 20___:

NINA INVESTMENTS HOLDINGS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	Chief Executive Officer and President 	 
	 

[signature page to TEPCO Limited Guaranty (Option)]

 

 

Exhibit C to the

Investment and Option Agreement

Portions
of this exhibit have been redacted and are the subject of a
confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

 

 

Amended and Restated

Operating Agreement

of

NINA Investments Holdings LLC

a Delaware Limited Liability Company

dated
as of

[•], 2010

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	Article I	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Definitions and Construction
	 	 	 	 
	 	1.1	 	 	Definitions
	 	 	1	 
	 	1.2	 	 	Construction
	 	 	2	 
	 	 	 	 	 
	 	 	 	 
	Article II	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Organization
	 	 	 	 
	 	2.1	 	 	Formation
	 	 	2	 
	 	2.2	 	 	Name
	 	 	2	 
	 	2.3	 	 	Registered Office and Agent; Offices
	 	 	2	 
	 	2.4	 	 	Purposes
	 	 	2	 
	 	2.5	 	 	Foreign Qualification
	 	 	3	 
	 	2.6	 	 	Term
	 	 	3	 
	 	2.7	 	 	Company Property; Membership Units
	 	 	3	 
	 	2.8	 	 	No State-Law Partnership
	 	 	3	 
	 	 	 	 	 
	 	 	 	 
	Article III	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Membership Units; Members
	 	 	 	 
	 	3.1	 	 	Membership Units
	 	 	3	 
	 	3.2	 	 	Members as of the Effective Date
	 	 	4	 
	 	3.3	 	 	Creation of Additional Membership Units
	 	 	4	 
	 	3.4	 	 	Ceasing to Be a Member
	 	 	4	 
	 	3.5	 	 	Representations and Warranties of the Members
	 	 	4	 
	 	3.6	 	 	Additional Terms Relating to Members
	 	 	5	 
	 	3.7	 	 	Action by Members
	 	 	6	 
	 	3.8	 	 	Right of First Offer
	 	 	6	 
	 	3.9	 	 	Business of the Subsidiaries of the Company
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	Article IV	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Dispositions of Membership Units
	 	 	 	 
	 	4.1	 	 	Requirements for Dispositions
	 	 	8	 
	 	4.2	 	 	Certain Restrictions on Disposition
	 	 	10	 
	 	4.3	 	 	Preferential Purchase Right
	 	 	12	 
	 	4.4	 	 	IPO
	 	 	14	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	4.5	 	 	Remedies
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	Article V	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Management
	 	 	 	 
	 	5.1	 	 	Managers
	 	 	14	 
	 	5.2	 	 	Officers
	 	 	21	 
	 	5.3	 	 	Multi-Year Budget
	 	 	21	 
	 	5.4	 	 	Limitation on Authority
	 	 	22	 
	 	5.5	 	 	Waiver of Fiduciary Duties; Discretion of Managers
	 	 	22	 
	 	5.6	 	 	Limitation of Liability of Managers and Officers; Indemnity
	 	 	22	 
	 	5.7	 	 	Other Business Ventures; Non-Compete
	 	 	22	 
	 	5.8	 	 	Enforcement of NINA Contribution Agreement and TEPCO Investment Agreement
	 	 	23	 
	 	5.9	 	 	Indemnification for Breach of Agreement
	 	 	23	 
	 	5.10	 	 	Termination of Management Rights
	 	 	23	 
	 	5.11	 	 	Enforcement of Affiliate Contracts
	 	 	23	 
	 	5.12	 	 	Corporate Opportunities
	 	 	24	 
	 	5.13	 	 	Non-Solicitation
	 	 	24	 
	 	5.14	 	 	Non-Discrimination Policy
	 	 	24	 
	 	 	 	 	 
	 	 	 	 
	Article VI	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Capital Contributions
	 	 	 	 
	 	6.1	 	 	Initial Capital Contributions
	 	 	24	 
	 	6.2	 	 	Subsequent Capital Contributions
	 	 	24	 
	 	6.3	 	 	Failure to Contribute Capital Contributions
	 	 	25	 
	 	6.4	 	 	Return of Contributions
	 	 	26	 
	 	6.5	 	 	Capital Accounts
	 	 	26	 
	 	 	 	 	 
	 	 	 	 
	Article VII	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Distributions and Allocations
	 	 	 	 
	 	7.1	 	 	Tax Distributions
	 	 	27	 
	 	7.2	 	 	Distributions
	 	 	28	 
	 	7.3	 	 	Allocations
	 	 	28	 
	 	7.4	 	 	Tax Allocations
	 	 	30	 
	 	7.5	 	 	Varying Interests
	 	 	31	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	 	 	 	 
	 	 	 	 
	Article VIII	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Taxes
	 	 	 	 
	 	8.1	 	 	Tax Returns
	 	 	31	 
	 	8.2	 	 	Tax Elections
	 	 	31	 
	 	8.3	 	 	Tax Matters Member
	 	 	31	 
	 	 	 	 	 
	 	 	 	 
	Article IX	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Books, Records, Reports and Bank Accounts
	 	 	 	 
	 	9.1	 	 	Maintenance of Books
	 	 	32	 
	 	9.2	 	 	Reports; Access
	 	 	32	 
	 	9.3	 	 	Bank Accounts
	 	 	34	 
	 	 	 	 	 
	 	 	 	 
	Article X	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Dispute Resolution
	 	 	 	 
	 	10.1	 	 	Disputes
	 	 	34	 
	 	10.2	 	 	Negotiation to Resolve Disputes
	 	 	34	 
	 	10.3	 	 	Selection of Arbitrators
	 	 	34	 
	 	10.4	 	 	Conduct of Arbitration
	 	 	35	 
	 	10.5	 	 	Arbitration Costs and Expenses
	 	 	36	 
	 	 	 	 	 
	 	 	 	 
	Article XI	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	Dissolution, Winding-Up and Termination
	 	 	 	 
	 	11.1	 	 	Dissolution
	 	 	36	 
	 	11.2	 	 	Winding-Up and Termination
	 	 	36	 
	 	11.3	 	 	Deficit Capital Accounts
	 	 	37	 
	 	11.4	 	 	Certificate of Cancellation
	 	 	37	 
	 	 	 	 	 
	 	 	 	 
	Article XII	 	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 	General Provisions
	 	 	 	 
	 	12.1	 	 	Confidential Information
	 	 	37	 
	 	12.2	 	 	Public Announcements
	 	 	38	 
	 	12.3	 	 	Notices
	 	 	38	 
	 	12.4	 	 	Entire Agreement; Superseding Effect
	 	 	39	 
	 	12.5	 	 	Effect of Waiver or Consent
	 	 	39	 
	 	12.6	 	 	Amendment or Restatement
	 	 	39	 
	 	12.7	 	 	Binding Effect
	 	 	39	 
	 	12.8	 	 	Governing Law; Severability
	 	 	39	 
	 	12.9	 	 	Further Assurances
	 	 	40	 

iii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	 	12.10	 	 	Waiver of Certain Rights
	 	 	40	 
	 	12.11	 	 	Parties in Interest; No Third-Party Beneficiaries
	 	 	40	 
	 	12.12	 	 	Fees and Expenses
	 	 	40	 
	 	12.13	 	 	Limitation on Liability
	 	 	40	 
	 	12.14	 	 	Counterparts
	 	 	40	 

Exhibits:

	 	 	 	 	 

	Exhibit A

	 	—
	 	Members and Parents
	Exhibit B

	 	—
	 	Definitions
	Exhibit C

	 	—
	 	Initial Multi-Year Budget
	Exhibit D

	 	—
	 	Form of Unit Certificate

Schedules:

	 	 	 	 	 

	Schedule 6.2(b)

	 	—
	 	Material Contracts

iv

 

Amended and Restated Operating Agreement

of

NINA Investments Holdings LLC

A Delaware Limited Liability Company

     This Amended and Restated Operating Agreement of NINA INVESTMENTS HOLDINGS
LLC (the “Company”), dated effective as of [•], 2010 (the “Effective Date”), is entered into by and
among the Members (as defined below).

Recitals

     Whereas, the Company was organized as a Delaware limited liability company by the
filing of a Certificate of Formation (the “Certificate”) on April 9, 2010 (the “Formation Date”),
with the Secretary of State of Delaware pursuant to the Act;

     Whereas, the initial member of the Company, Nuclear Innovation North America LLC
(f/k/a NRG Nuclear Development Company LLC) (“NINA”), has entered into the Operating Agreement of
the Company, dated April 9, 2010 (the “Original Agreement”);

     Whereas, pursuant to the NINA Contribution Agreement, dated April 19, 2010, by and
between NINA and the Company (the “NINA Contribution Agreement”), NINA has contributed or caused to
be contributed to the Company the NINA Initial Contribution;

     Whereas, as of the Effective Date, pursuant to the Investment and Option Agreement,
dated May 10, 2010, by and among the Company, NINA and TEPCO Nuclear Energy America LLC, a Delaware
limited liability company (the “TEPCO Member”) (the “TEPCO Investment Agreement”), the TEPCO Member
has contributed the TEPCO Contribution and paid the Option Premium to the Company, as more
particularly set forth in the TEPCO Investment Agreement, and will have the right to make
additional Capital Contributions subject to the terms set forth therein and herein; and

     Whereas, NINA now desires to amend and restate the Original Agreement to reflect the
admission of the TEPCO Member as a Member and to provide for the joint ownership and operation of
the Company.

     Now, therefore, the Members hereby agree as follows:

ARTICLE I

DEFINITIONS AND CONSTRUCTION

          1.1 Definitions. Capitalized terms used in this Agreement shall have the meanings given to them in
Exhibit B. Other terms defined herein have the meanings so given them.

 

 

          1.2 Construction. A reference to an Article, Section, Exhibit or Schedule means an Article of, a
Section in, or Exhibit or Schedule to, this Agreement unless otherwise expressly stated. Unless
the context requires otherwise, the words “this Agreement,” “hereof,” “hereunder,” “herein,”
“hereby” or words of similar import refer to this Agreement as a whole and not to a particular
Article, Section, subsection, clause or other subdivision hereof. The titles and headings herein
are for convenience of reference only and shall not in any manner affect the meaning or
construction of this Agreement. The words “include,” “includes” and “including” when used herein
shall be deemed in each case to be followed by the words “without limitation.” Whenever the
context requires, the words used herein include the masculine, feminine and neuter gender, and the
singular and the plural. The word “dollar” and the symbol “$” mean United States dollars. A
reference to any legislation or to any provision of any legislation shall include any amendment to,
any modification or re-enactment thereof, any legislative provision substituted therefor and all
regulations and statutory instruments issued thereunder or pursuant thereto. References to “this
Agreement” or any other agreement or document shall be construed as a reference to such agreement
or document, including any exhibits, appendices and schedules thereto, as amended, amended and
restated, modified or supplemented and in effect from time to time and shall include a reference to
any document which amends, modifies or supplements it, or is entered into, made or given pursuant
to or in accordance with its terms. References to a Person shall be construed as a reference to
such Person and its successors and permitted assigns.

ARTICLE II

ORGANIZATION

          2.1 Formation. The Company was organized as a Delaware limited liability company by the filing of the
Certificate with the Delaware Secretary of State as of the Formation Date. The Members hereby
continue the Company pursuant to the terms and conditions of this Agreement.

          2.2 Name. Pursuant to the Certificate, the name of the Company is “NINA Investments Holdings LLC”, and
all Company business must be conducted in that name or such other names that comply with Law as the
Board may select. In the event that the Board changes the name of the Company, it shall notify
each of the Members.

          2.3 Registered Office and Agent; Offices. The registered office of the Company required by the Act to
be maintained in the State of Delaware shall be the office of the initial registered agent named in
the Certificate or such other office (which need not be a place of business of the Company) as the
Board may designate in the manner provided by Law. The registered agent of the Company in the
State of Delaware shall be the initial registered agent named in the Certificate or such other
Person or Persons as the Board may designate in the manner provided by Law. The principal office
of the Company in the United States shall be at such place as the Board may designate, which need
not be in the State of Delaware, and the Company shall maintain records there or at such other
place as the Board shall designate. The Company may have such other offices as the Board may
designate.

          2.4 Purposes. The purposes of the Company are, directly or indirectly, through one or more
subsidiaries, to engage in the business of the development, ownership, and operation of STP 3 and 4
and to engage in any other business or activity that now or in the future

2

 

may be necessary, incidental, proper, advisable, or convenient to accomplish the foregoing purposes
and that is not forbidden by applicable Law.

          2.5 Foreign Qualification. At the request of the Board, each Member shall execute, acknowledge, swear
to, and deliver all certificates and other instruments not inconsistent with this Agreement that
are necessary or appropriate to permit the Company to conduct business in other jurisdictions as a
foreign limited liability company or to qualify the Company as a foreign limited liability company
in such jurisdiction and to continue and, when appropriate, terminate such qualification.

          2.6 Term. The period of existence of the Company (the “Term”) commenced on the Formation Date and
shall continue perpetually, unless and until its business and affairs are wound up in accordance
with the terms of this Agreement or the Act and a certificate of cancellation is filed with the
Secretary of State of Delaware in accordance with Section 11.4.

          2.7 Company Property; Membership Units. No real or other property of any kind, tangible or intangible,
of the Company or any of its Subsidiaries shall be deemed to be owned by any Member individually,
but shall be owned by, and title shall be vested solely in, the Company or such applicable
Subsidiary, as the case may be. Without limiting the foregoing, all Intellectual Property and
other business assets used or developed by the Company or its Subsidiaries are and shall be owned
and controlled only by the Company or its Subsidiaries, as applicable, and not by the Members
individually. The Membership Units shall constitute personal property.

          2.8 No State-Law Partnership. For any purposes other than federal and state tax purposes, the Members
intend that the Company not be a partnership (including a limited partnership) or joint venture and
that no Member be a partner or joint venturer of any other Member, and this Agreement may not be
construed to suggest otherwise.

ARTICLE III

MEMBERSHIP UNITS; MEMBERS

          3.1 Membership Units. The Company shall have one class of membership units (the “Membership Units”).
The Membership Units represent a Member’s share of the income, gains, deductions, credits, profits
and similar items, and such Member’s right to receive distributions, from, associated with or
allocable to the Company’s investment in NINA Investments LLC and the STP Entities and all
liabilities, losses, costs and expenses from, associated with or allocable to such investment
and/or to the development, permitting, engineering, procurement, construction, ownership, financing
and operation of the Project (the “Business”). Each Membership Unit shall be a “security” for
purposes of, as defined in, and governed by, Article 8 of the Uniform Commercial Code and shall be
evidenced by a Membership Unit certificate in the form of Exhibit D. Each such certificate shall
bear a legend substantially in the following form:

“THIS CERTIFICATE EVIDENCES MEMBERSHIP UNITS REPRESENTING A MEMBERSHIP INTEREST IN NINA INVESTMENTS
HOLDINGS LLC AND SHALL BE A

3

 

SECURITY WITHIN THE MEANING OF, AND GOVERNED BY, ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE.”

The Membership Units shall be adjusted, and new or additional certificates shall be issued,
including to reflect any adjustments made pursuant to Section 6.3(a) to Membership Units held by
the Members, as necessary from time to time so that such Membership Units are owned by the Members
in proportion to their Capital Contributions.

          3.2 Members as of the Effective Date. Each Member executing this Agreement as of the Effective Date
has been admitted as a Member on or prior to the Effective Date. Each Member has been issued the
number of Membership Units, and has the Membership Percentage as of the Effective Date (rounded to
the nearest 1/1,000th of a percent), as set forth opposite its name on Exhibit
A. If and when the Company issues additional Membership Units or a Member Disposes of all or a
portion of its Membership Units or any Person ceases to be a Member pursuant to, and in accordance
with, the terms and conditions of this Agreement, then upon such issuance, Disposition or cessation
of membership, as applicable, the Company shall amend Exhibit A and the records of the
Company, as appropriate, to reflect such issuance, Disposition or cessation of membership and
deliver to each Member, within a reasonable time thereafter, a copy of Exhibit A, as
amended.

          3.3 Creation of Additional Membership Units. Additional Membership Units may be created and issued to
Persons other than the Members, and such other Persons may be admitted to the Company as Members,
with the prior approval of the Board and subject to Sections 3.8 and 4.1(e), on terms and
conditions approved by the Board. Any admission of a new Member will be effective only after such
new Member has executed and delivered to the other Members an agreement in form and substance
satisfactory to the Board containing the notice address of such new Member and, if such new Member
has a Parent, the name of the Parent, such new Member’s ratification of this Agreement and
agreement to be bound by it, and its confirmation that the representations and warranties in
Section 3.5 are true and correct with respect to it as of the date it is admitted as a Member.
The provisions of this Section 3.3 shall not apply to Dispositions of Membership Units or
admissions of Assignees in connection therewith, such matters being governed by Article IV.

          3.4 Ceasing to Be a Member. Any Person admitted as a Member pursuant to Section 3.2 or 3.3 or
Article IV shall cease to be a Member, and shall cease to have the rights of a Member, under this
Agreement at such time such Person no longer owns, beneficially and of record, any Membership
Units, but such Person shall remain bound by the terms of Article X and Article XII and shall
remain liable under this Agreement to the extent expressly set forth herein.

          3.5 Representations and Warranties of the Members. Each Member hereby represents and warrants to the
Company and to each other Member that the following statements are true and correct as of the
Effective Date:

          (a) Organization; Power and Authority. Such Member is duly formed (as applicable), validly
existing, and (if applicable) in good standing under the Law of the jurisdiction of its formation.
If required by applicable Law, such Member is duly qualified and

4

 

in good standing in the
jurisdiction of its principal place of business, if different from its
jurisdiction of formation, and such Member has full power and authority to execute and deliver
this Agreement and to perform its obligations hereunder, and all necessary actions by the board of
directors, shareholders, managers, members, partners, trustees, beneficiaries, or other applicable
Persons necessary for the due authorization, execution, delivery and performance of this Agreement
by such Member have been duly taken. In the case of any Member other than NINA, such Member is
Completely Controlled by its Parent as set forth opposite its name on Exhibit A, and in the
case of NINA, such Member is Controlled by its Parent as set forth opposite its name on Exhibit
A.

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

          (c) Non-Contravention. Such Member’s authorization, execution, delivery, and performance of
this Agreement does not and will not (i) conflict with, or result in a breach, default or violation
of, (A) the organizational documents of such Member, (B) any contract or agreement to which such
Member is a party or is otherwise subject or (C) any Law, order, judgment, decree, writ, injunction
or arbitral award to which such Member is subject or (ii) require any consent, approval or
authorization from, filing or registration with, or notice to, any Governmental Authority or other
Person, unless such requirement has already been satisfied.

          (d) Investment Purpose. Such Member is acquiring its Membership Units for its own account,
for investment purposes only and with no current intention or plan to distribute, sell or otherwise
dispose of the Membership Units and does not have any contract, undertaking, agreement or
arrangement with any Person to distribute, sell or otherwise dispose of the Membership Units.

          (e) No Litigation. There are no actions, suits or proceedings pending or, to the best of such
Member’s knowledge, threatened against or affecting such Member before any court or administrative
body or arbitral tribunal that would reasonably be expected to materially adversely affect the
ability of such Member to perform its obligations under this Agreement.

          (f) Finders and Brokers. Such Member has not authorized or dealt with any agent, broker,
Person or firm acting on behalf of such Member or the Company, who is, or shall be, entitled to any
broker’s fees, finder’s fees or commissions in connection with this Agreement or any of the
transactions contemplated hereby.

          3.6 Additional Terms Relating to Members. No Member has the right or power to withdraw or resign from
the Company without the prior written consent of each Member having or deemed as having the Minimum
Threshold Percentage (other than in the event that such Member ceases to hold any Membership
Units); no Member shall be liable for the debts, obligations or liabilities of the Company; and no
Member may be expelled from the Company (other than in the event that such Member ceases to hold
any Membership Units).

5

 

          3.7 Action by Members.

          (a) Voting. Each Member shall have the right to vote ratably in proportion to its respective
Membership Percentage on all matters to be submitted to the Members.

          (b) Meetings. The Members may vote on or approve a matter or take any action at a meeting, in
person or by proxy. The Board may call a meeting of the Members solely for the purpose of voting
on any matter requiring Required Member Approval. The business transacted at any such meeting
shall be limited to that stated in the notice of meeting. All notices of a meeting must state the
time and place of the meeting and be given on or before the fifth (5th) Business Day
before the meeting, or, in the case of an emergency, such shorter period as the Board may determine
appropriate under the circumstances. All notices must specify, as applicable, the purpose of the
meeting or the matter requiring the Required Member Approval to be considered at the meeting.
Meetings of the Members may be held telephonically or using any other medium in which each meeting
participant can hear the other meeting participants. On any matter that is to be voted on,
consented to or approved by the Members, the Members may take such action without a meeting,
without prior notice and without a vote if a consent or consents in writing, setting forth the
action so taken, are signed by the Members having not less than the minimum voting percentage that
would be necessary to authorize or take such action at a meeting at which all Members entitled to
vote thereon were present and voted; provided, that the non-consenting Members shall be
given prompt notice after the requisite number of Members sign such consent.

          3.8 Right of First Offer. Subject to the terms and conditions specified in this Section 3.8, the
Company hereby grants to each Member having or deemed as having the Minimum Threshold Percentage a
right of first offer with respect to future sales by the Company of its Membership Units or other
debt or equity securities of the Company convertible into or exchangeable or exercisable for any
Membership Units (collectively, “New Securities”). Each time the Company proposes to offer any New
Securities, the Company shall first make an offering of such New Securities to each Member in
accordance with the following provisions:

          (a) Issuance Notice. The Company shall deliver a notice (the “Issuance Notice”) to the
Members stating (i) its bona fide intention to offer such New Securities, (ii) the number of such
New Securities to be offered, and (iii) the price and terms upon which it proposes to offer such
New Securities.

          (b) Election. Each Member may elect, by notice to the Company on or before the
** Day after the Issuance Notice (the “Election Notice”), to purchase or
obtain, at the price and on the terms specified in the Issuance Notice, all or any portion of the
New Securities. In the event that the Company shall have received Election Notices which
collectively offer to purchase more New Securities than the Company is proposing to sell, then the
New Securities shall be allocated among the Members electing to purchase or obtain New Securities
pro-rata in accordance with their respective Membership Percentages (such pro-rata share to be
determined by including only the Membership Percentages of such electing Members).

 

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

6

 

          (c) Expiration. If all New Securities that Members are entitled to purchase or obtain
pursuant to Section 3.8(b) are not elected to be purchased or obtained as provided in Section
3.8(b), the Company may, during the ** Day period following the expiration
of the period provided in Section 3.8(b), offer the unsubscribed portion, if any, of such New
Securities to any Person or Persons at a price not less than and upon terms not materially more
favorable to the offeree than the price and terms, respectively, that were specified in such
Issuance Notice. If the Company does not enter into an agreement for the sale of the New
Securities within such period, or if such agreement is not consummated within ** Days of
the execution thereof (or if regulatory approvals are required, such as the prior written consent
of the NRC or the DOE, within ** Days after the date on which all such approvals are
obtained), the right provided hereunder shall be deemed to be revived and such New Securities shall
not be offered unless first reoffered to the Members by delivery of an Issuance Notice in
accordance with this Section 3.8.

          (d) Exceptions. The right of first offer in this Section 3.8 shall not be applicable to (i)
the issuance or sale of Membership Units pursuant to the TEPCO Investment Agreement, including the
issuance of Membership Units in connection with the TEPCO Member’s exercise of the Option pursuant
to the TEPCO Investment Agreement, (ii) the issuance or sale of Membership Units to new Members
admitted to the Company to satisfy any shortfalls in Capital Calls pursuant to and in accordance
with Section 6.3, (iii) the issuance or sale of New Securities in an IPO or (iv) Dispositions of
Membership Units as a result of TANE exercising its rights under the Toshiba Credit Agreement and
the other Loan Documents.

          (e) Transfer of Rights. The right of first offer set forth in this Section 3.8 may not be
assigned or transferred as a right separate from the Membership Units, except that such right is
assignable by each Member to any Wholly Owned Affiliate of such Member that is as creditworthy as
such Member (as reasonably determined by each other Member).

          3.9 Business of the Subsidiaries of the Company. Concurrently with the execution of this Agreement,
the Company shall cause the limited liability company agreement of: (a) Nuclear Innovation North
America Investments LLC, a Delaware limited liability company (“NINA Investments LLC”), to be
amended to provide that NINA Investments LLC shall not conduct any business other than the Business
and any other business or activity that now or in the future may be necessary, incidental, proper,
advisable, or convenient to conduct such Business; and (b) each of NINA Texas 3 LLC, a Delaware
limited liability company (“NINA Texas 3”) and NINA Texas 4 LLC, a Delaware limited liability
company (“NINA Texas 4”), to be amended to provide that NINA Texas 3 and NINA Texas 4 shall not
conduct any business other than business related to the development, permitting, engineering,
procurement, construction, ownership, financing and operation of STP 3 or STP 4, respectively, and
any other business or activity that now or in the future may be necessary, incidental, proper,
advisable, or convenient to conduct such business.

 

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

7

 

ARTICLE IV

DISPOSITIONS OF MEMBERSHIP UNITS

          4.1 Requirements for Dispositions.

          (a) Compliance with Article IV. A Member may not Dispose of all or any portion of its
Membership Units except in accordance with this Article IV. Any attempted Disposition of any
Membership Units, other than in accordance with this Article IV, shall be, and is hereby declared,
null and void ab initio.

          (b) General Requirements for Dispositions of Membership Units. Any Member Disposing of all or
any portion of its Membership Units (a “Disposing Member”) and its Assignee, if applicable, shall
cause the requirements in this Article IV to be met in connection with such Disposition and, if
applicable, the admission of such Assignee as a Member, and such Disposition (and admission, if
applicable) shall not be effective unless such requirements are complied with.

          (i) The following documents must be delivered to the Company and each Member other than
the Disposing Member (each, a “Nondisposing Member”) and must be satisfactory, in form and
substance, to the Board in its reasonable discretion:

          (A) a copy of the instrument pursuant to which the Disposition is to be
effected;

          (B) an instrument, executed by the Disposing Member and its Assignee,
containing the following information and agreements, to the extent they are not
contained in the instrument described above: (1) the notice address of the
Assignee; (2) if the Assignee has a Parent, the name of the Parent; (3) the
Assignee’s ratification of this Agreement and agreement to be bound by it, the
Assignee’s assumption of all obligations of the Disposing Member from and after the
date of the Disposition and the Assignee’s confirmation that the representations and
warranties in Section 3.5 are true and correct with respect to it; (4)
representations and warranties by the Disposing Member and its Assignee that (a) the
Disposition and admission are being made in accordance with all applicable Laws
(including that the Disposition does not require any approval of the NRC or any
other Governmental Authority or that the Disposing Member or its Assignee has
obtained any such approval at their own cost and expense without imposing any
material regulatory burden or adverse regulatory or other consequences on the
Company or the Nondisposing Members) and (b) the matters covered in the legal
opinions described in subsections 4.1(b)(i)(C) and 4.1(b)(i)(D) are true and
correct;

          (C) unless the Membership Units subject to the Disposition are registered under
the Securities Act and any applicable state securities Law, a favorable opinion of
the Company’s legal counsel, or of other legal counsel acceptable to the Board in
its reasonable discretion, to the effect that the

8

 

Disposition and admission are being made pursuant to a valid exemption from
registration under those Laws and in accordance with those Laws; and

          (D) a favorable opinion of the Company’s legal counsel, or of other legal
counsel acceptable to the Board in its reasonable discretion, to the effect that the
Disposition would not result in the Company’s being considered to have terminated
within the meaning of Code Section 708;

provided, however, that the Board, in its sole and absolute discretion, may
waive the foregoing subsections 4.1(b)(i)(C) and 4.1(b)(i)(D); and provided,
further, that if such Disposition is a result of a Change of Control, the Disposing
Member shall only be required to provide the Company and each Nondisposing Member with (1)
the name of the Disposing Member’s Parent after such Change of Control is consummated, (2) a
summary of the material terms of the instrument pursuant to which the Disposition is to be
effected and (3) an instrument executed by the Disposing Member containing representations
and warranties by the Disposing Member that the Disposition is being made in accordance with
all applicable Laws (including that the Disposition does not require any approval of the NRC
or any other Governmental Authority or that the Disposing Member or its new Parent and/or
Affiliates have obtained any such approval at their own cost and expense without imposing
any material regulatory burden or adverse regulatory or other consequences on the Company or
the Nondisposing Members); provided, further, however, that the
Board, in its sole and absolute discretion, may waive compliance with the requirements
applicable to Dispositions resulting from a Change of Control in the immediately preceding
proviso.

          (ii) The Disposing Member and its Assignee, if applicable, shall pay, or reimburse the
Company for, all reasonable costs and expenses incurred by the Company in connection with
the Disposition and admission, if applicable, including the legal fees incurred in
connection with the legal opinions referred to in Sections 4.1(b)(i)(C) and (D), on or
before the tenth (10th) Business Day after the receipt by that Person of the
Company’s invoice for the amount due. If payment is not made by the date due, the Person
owing that amount shall pay interest on the unpaid amount from the date due until paid at a
rate per annum equal to the Default Rate (as determined on the date such amount became due
and payable).

          (c) Release of Disposing Member. Except as otherwise provided in Sections 3.4 or 4.2(b) or
if such Disposition results from a Change in Control, from and after the Disposition of any
Membership Units in accordance with this Article IV, the Disposing Member shall be released from
all obligations and liabilities arising hereunder on or after the date of the Disposition to the
extent of the Membership Units Disposed of; provided, however, that no Disposition
hereunder shall release the Disposing Member from any liability or obligation it may have hereunder
with respect to liabilities or obligations incurred prior to the date of such Disposition or with
respect to Membership Units that it continues to own after the date of such Disposition.

          (d) Admission of Assignee as a Member. An Assignee has the right to be admitted to the
Company as a Member, with the Membership Units so transferred to such

9

 

Assignee, only if the Disposition complies with this Article IV and either the Disposing
Member making the Disposition has expressly granted such right to the Assignee or the Board
otherwise approves.

          (e) Compliance with Sections 103 & 184 of the Atomic Energy Act. Section 103 of the Atomic
Energy Act of 1954, as amended (the “AEA”), prohibits the NRC from issuing a license to any entity
that is owned, controlled or dominated by a foreign entity or person, and Section 184 of the AEA
requires NRC’s prior written consent to any direct or indirect transfer of control of a NRC
license. Thus, any change in Membership Units, including (i) a Disposition; (ii) a creation or
issuance of additional Membership Units and admission of a new Member pursuant to Section 3.3; or
(iii) an exercise by a Member of its right of first offer pursuant to Section 3.8 (collectively,
each of (i), (ii) and (iii) a “Change in Membership Units”), (x) could impact the NRC’s review of
the pending application for NRC licenses for STP 3 and STP 4 and (y) after issuance of any NRC
license for STP 3 or STP 4 to any Subsidiary of the Company, could involve a direct or indirect
transfer of control of the Company that would require NRC’s prior written consent. Moreover, if a
Change in Membership Units involves any increased ownership by foreign-owned entities, this may
require mitigation measures to assure that the foreign-owned Members do not exercise control or
domination over the Company as prohibited by the AEA, and such measures may need to take into
account any foreign-owned Member’s rights to acquire increased ownership of Membership Units. This
Agreement shall be construed in light of these requirements and in a manner that facilitates
compliance with these requirements. In addition, to the extent required under the AEA and the
NRC’s implementing regulations, orders and license conditions, the Members will negotiate in good
faith to agree on amendments to Article V to assure that the Company and the conduct of the
Company’s business involving any NRC license continues to remain controlled and dominated by U.S.
citizens and/or U.S. controlled entities, as necessary to facilitate any Change in Membership
Units.

          (f) Notwithstanding anything herein to the contrary, this Section 4.1 (other than Section
4.1(e)) shall not apply to Dispositions of Membership Units as a result of TANE exercising its
rights under the Toshiba Credit Agreement and the other Loan Documents.

          4.2 Certain Restrictions on Disposition.

          (a) Creditworthiness Standards. A Member may not Dispose of all or any portion of its
Membership Units to any Person without the approval of the Board (acting by the affirmative vote or
written consent of one or more Managers, other than the Manager appointed by the Disposing Member
(the “Disposing Manager”), having a majority of the aggregate Voting Percentages in accordance with
Section 5.1(c)) unless **.

          (b) Assignments of Membership Units to Wholly Owned Affiliates. Notwithstanding Section
4.2(a), a Member may assign all or any portion of its Membership Units to a Wholly Owned
Affiliate of such Member that is as creditworthy as such Member (as reasonably determined by each
Nondisposing Member); provided, however, that the Disposing Member shall not be
released from its obligations under this Agreement without the approval of

 

			
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10

 

the Board (acting by the affirmative vote or written consent of one or more Managers, other
than the Disposing Manager, having a majority of the aggregate Voting Percentages in accordance
with Section 5.1(c)).

          (c) Nonstrategic Purchasers. A Member may not Dispose of all or any portion of its Membership
Units to a Nonstrategic Purchaser unless such Disposition (i) complies with all other relevant
restrictions on Dispositions in this Article IV and (ii) does not result in one or more
Nonstrategic Purchasers having a Membership Percentage, in the aggregate, equal to or greater than
**; provided, however, that a Disposition that results in
one or more Nonstrategic Purchasers having a Membership Percentage, in the aggregate, equal to or
greater than ** shall be permitted with the prior approval of the Board (acting by the
affirmative vote or written consent of one or more Managers, other than the Disposing Manager,
having a majority of the aggregate Voting Percentages in accordance with Section 5.1(c)).

          (d) Energy Regulatory Matters. A Member may not Dispose of all or any portion of its
Membership Units if the Board (acting by the affirmative vote or written consent of one or more
Managers, other than the Disposing Manager, having a majority of the aggregate Voting Percentages
in accordance with Section 5.1(c)) reasonably determines that such proposed Disposition requires
the Company to obtain approval of or make notification to any Governmental Authority (including,
for the avoidance of doubt, the DOE) unless the relevant Governmental Authority shall have (i)
issued an order approving such proposed Disposition or accepting any such required notification (or
otherwise indicating that no further action will be taken with respect to any required
notification) or (ii) determined that approval or notification is not required. Notwithstanding
any decision by the Company pursuant to the immediately preceding sentence that no approval is
required for a given Disposition, such Disposition will not be effective from the date of any
determination by any Governmental Authority that the approval of such Governmental Authority is
required to effect such Disposition until such approval is obtained. If any Person acquiring
Membership Units in connection with a Disposition shall have a Membership Percentage equal to or
greater than five percent (5%) following such Disposition, such Person shall deliver to the Company
a certificate, in a form and substance prescribed by the Board, certifying that it does not and
shall not cause NINA Texas 3 or NINA Texas 4, or their affiliates pursuant to applicable affiliate
attribution regulations, to violate Section 39.154 of the Texas Public Utility Regulatory Act and
Section 25.401 of the Texas Public Utility Commission Substantive Rules.

          (e) Exercise of Cure Rights In Connection with a Failure to Contribute Capital Contributions.
Notwithstanding Section 4.2(a), a Member shall Dispose of all of the Membership Units issued to
it in exchange for its Capital Contributions pursuant to Section 6.3(a)(i) to the Nonfunding Member
that cures its failure to make such Capital Contributions in accordance with Section 6.3(a)(i).

          (f) Encumbrances of Membership Units. A Member may Encumber its Membership Units to a Bona Fide
Secured Party, and such secured party in respect of such Encumbrance may foreclose such Encumbrance
and exercise other legal remedies in respect of

 

			
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such Encumbrance, free of any right of consent of
any Member and free of the Preferential Right described in Section 4.3; provided,
however, that such secured party and/or any Person that acquires such Membership Units as a
consequence of such foreclosure or other exercise of remedies, shall not be entitled to become a
Member hereunder with rights under Sections 5.1 and 5.2, unless and until approved by all of the
other Members, and any further Disposition of such Membership Units shall thereafter be fully
subject to the provisions of this Article IV; provided, further, however,
that notwithstanding anything to the contrary in this Agreement, any such secured party and/or
Person that acquires such Membership Units as a consequence of foreclosure or other exercise of
remedies with respect to an Encumbrance thereon that secures indebtedness under the Toshiba Credit
Agreement shall become a Member hereunder with rights under Sections 5.1 and 5.2, without the need
for notice or approval of the other Members.

          (g) Notwithstanding anything herein to the contrary, this Section 4.2 (other than Sections
4.2(d) and 4.2(f)) shall not apply to Dispositions of Membership Units as a result of TANE
exercising its rights under the Toshiba Credit Agreement and the other Loan Documents.

          4.3 Preferential Purchase Right.

          (a) Preferential Purchase Right. Except for Dispositions of Membership Units permitted in
accordance with Section 4.2(b) or as a result of a Change of Control or TANE exercising its rights
under the Toshiba Credit Agreement and the other Loan Documents, if a Member at any time proposes
to Dispose of all or any portion of its Membership Units in a transaction that complies with the
requirements of Section 4.2, then such Member shall promptly give notice of such proposed
transaction (the “Disposition Notice”) to the Company and each other Member. The Disposition
Notice shall set forth all material terms of the proposed Disposition, including the name and
address of the prospective acquirer, the fact that the prospective acquirer has agreed to purchase
all or a specified part of the Membership Units owned by the Disposing Member, the price to be paid
for such Membership Units, and the other material terms and conditions of the proposed Disposition.
Each other Member shall have the preferential right (the “Preferential Right”), exercisable by
notice (the “Exercise Notice” and each exercising Member, a “Purchasing Member”) to each other
Member on or before the ** Day after the Disposition Notice is given, to
acquire, for the same purchase price and on the same terms and conditions as are set forth in the
Disposition Notice, such Purchasing Member’s pro-rata portion, based on the Membership Percentages
of each Purchasing Member (for purposes of determining such pro-rata portion, including only the
Membership Units of the Purchasing Member(s)), of the Membership Units included in such proposed
Disposition in accordance with this Section 4.3. If the Purchasing Members fail to exercise their
Preferential Right to purchase all of the Membership Units included in such proposed Disposition
within
such ** Days, the Disposing Member shall give the Purchasing Members a second
notice of the proposed Disposition of the Membership Units which were not subscribed for. Unless
on or before the ** Day after such second notice, the Purchasing Members have either (i)
each elected, by notice to the Disposing Member, to purchase its respective pro-rata share of all
of the Membership Units not subscribed for by such other Members or (ii) collectively elected, by

 

			
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12

 

notice delivered by all Purchasing Members to the Disposing Member, to purchase all of the
Membership Units not subscribed for by such other Members, allocated among the Purchasing Members
as set forth in such notice, then the Nondisposing Members shall be deemed to have elected not to
acquire any Membership Units of the Disposing Member. For purposes of the second election under
this Section 4.3(a), the pro-rata share of the Purchasing Members shall be determined including
only the Membership Percentages of the Purchasing Member(s) participating in such second election.
A Member that fails to exercise a Preferential Right during the applicable periods set forth in
this Section 4.3(a) shall be deemed to have waived such Preferential Right with respect to the
Disposition described in such Disposition Notice, but not any future Preferential Right with
respect to any other Disposition described in any other Disposition Notice.

          (b) Closing following Exercise Notice. If the Purchasing Members exercise the Preferential
Right to acquire all of the Membership Units described in the Disposition Notice, the closing of
the purchase of the Membership Units of the Disposing Member specified in such Disposition Notice
shall occur at the principal place of business of the Company on or before the
** Day after the date on which the Disposition Notice is given (or if
regulatory approvals are required, such as the prior written consent of the NRC or the DOE, on or
before the ** Day after the date on which all such approvals are obtained), unless the
Disposing Member and the Purchasing Members agree upon a different place or date. At the closing,
(i) the Disposing Member shall execute and deliver to each Purchasing Member (A) an assignment of
the Membership Units being transferred to such Purchasing Member, in form and substance reasonably
acceptable to such Purchasing Member, containing a general warranty of title as to such Membership
Units (including that such Membership Units are free and clear of all Encumbrances) and (B) any
other instruments reasonably requested by such Purchasing Member to give effect to the purchase;
and (ii) such Purchasing Member shall deliver to the Disposing Member in immediately available
funds its pro-rata portion, based on the Membership Units actually being purchased by each
Purchasing Member, of the purchase price for the Membership Units included in such proposed
Disposition as set forth in the Disposition Notice.

          (c) Failure to Exercise. If no Member timely delivers an Exercise Notice (or if the
Purchasing Members do not exercise the Preferential Right to acquire all of the Membership Units
described in the Disposition Notice), then the Disposing Member shall have the right, subject to
compliance with the provisions of this Article IV, to Dispose of all of its Membership Units or the
portion thereof specified in the Disposition Notice on or before the ** Day after the
date the Disposition Notice was given to the proposed Assignee strictly in accordance with the
terms of the Disposition Notice (or if regulatory approvals are required, such as the prior written
consent of the NRC or the DOE, on or before the ** Day after the date on which all such
approvals are obtained). If, however, the Disposing Member fails to so Dispose
of such Membership Units on or before such ** Day (or if regulatory approvals are
required, such as the prior written consent of the NRC or the DOE, on or before the **
Day after the date on which all such approvals are obtained), the proposed Disposition shall again
become subject to the Preferential Right.

 

			
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          4.4 IPO. The Members agree to cooperate in all reasonable respects to effect an IPO if duly approved
by a Required Manager Approval, including executing such documents and agreements as shall
reasonably be required to restructure or convert the Company in anticipation of an IPO.

          4.5 Remedies. The Members agree that a breach of the provisions of this Article IV may cause
irreparable injury to the Company and to the other Members for which monetary damages (or other
remedy at law) are inadequate in view of (a) the complexities and uncertainties in measuring the
actual damages that would be sustained by reason of the failure of a Member to comply with such
provisions and (b) the uniqueness of the Company business and the relationship between the Members.
Accordingly, the Members agree that the provisions of this Article IV may be enforced by specific
performance.

ARTICLE V

MANAGEMENT

          5.1 Managers.

          (a) Delegation of Authority. Except with respect to matters that this Agreement expressly
requires be decided by the Members, the management of the Company is fully vested in and is hereby
delegated to a board (the “Board”) of managers appointed by the Members in accordance with this
Section 5.1 (each, a “Manager”). Decisions or actions taken by the Board in accordance with the
provisions of this Agreement shall constitute decisions or actions by the Company and shall be
binding on each Member and the Company. In addition to the powers that now or hereafter can be
granted under the Act and to all other powers granted under any other provision of this Agreement,
the Board shall have, and each Member hereby delegates to the Board, full power and authority to do
all things on such terms as it may deem necessary or appropriate to conduct, or cause to be
conducted, the business and affairs of the Company and to operate, or cause to be operated, the
properties and assets of the Company, including: (i) the making of any expenditures, the lending or
borrowing of money, the assumption or guarantee of, or other contracting for, Indebtedness for
Borrowed Money and other liabilities, the issuance of evidences of indebtedness and the incurring
of any other obligations; (ii) the making of tax, regulatory and other filings, or rendering of
periodic or other reports to governmental or other agencies having jurisdiction over the business
or assets of the Company; (iii) the use of the assets of the Company (including cash on hand) for
any purpose consistent with the terms of this Agreement and the repayment of obligations of the
Company; (iv) the negotiation, execution and performance of any contracts, conveyances or other
instruments; (v) the distribution of Company cash or other property; (vi) the selection, engagement
and dismissal of Officers or employees, if any, and agents, attorneys, accountants, engineers,
consultants and contractors and the determination of their compensation and other terms of
employment or hiring; (vii) the maintenance of insurance for the benefit of the Company; (viii) the
acquisition or disposition of assets in the ordinary course of business; (ix)
the formation of, or acquisition of an interest in, or the contribution of property to, any
Person; (x) the control of any matters affecting the rights and obligations of the Company,
including the commencement, prosecution and defense of actions at law or in equity and otherwise
engaging in the conduct of litigation and the incurring of legal expense and the settlement of
claims and litigation; (xi) the indemnification of any Person against liabilities and

14

 

contingencies
to the extent permitted by Law and this Agreement; (xii) the voting of equity interests of the
Company in any other Person; and (xiii) the approval of operating budgets and capital expenditure
budgets.

          (b) Appointment; Authority.

          (i) Each Member shall have the right to appoint one (1) Manager, but only for so long
as such Member has or is deemed to have the Minimum Threshold Percentage, and shall have the
right to remove, replace, and/or reappoint each such Manager appointed by it at any time and
from time to time by notice to the other Members, which appointment, removal, replacement,
or reappointment may be effective simultaneously with the giving of such notice, or
prospectively (but not retroactively).

          (ii) Each Manager shall be duly constituted as the authorized representative and agent
of its appointing Member for purposes of exercising the rights, power and duties of such
Member hereunder and each Manager shall have the right to vote and take action by written
consent on behalf of the Member that nominated such Manager.

          (iii) Notwithstanding anything else herein to the contrary, no Manager shall be deemed
to be a “manager” for purposes of or pursuant to Sections 18-305(a) or (c) of the Act.

          (c) Voting. (i) The Manager appointed by a Member shall have a voting percentage (“Voting
Percentage”) on the Board equal to the Membership Percentage of the Member that appointed such
Manager. Except as specified in Article IV, Section 5.1(e) or Section 5.1(f), all decisions of the
Board shall only require the affirmative vote or written consent of one (1) or more Managers having
** of the aggregate Voting Percentages. Upon the exclusion of a Manager
from a vote or written consent of the Board pursuant to Sections 4.2(a), 4.2(b), 4.2(c), 4.2(d),
5.1(f), 5.8 or 6.3(b), the Voting Percentage of such excluded Manager shall be disregarded and a
majority of the aggregate Voting Percentages necessary for an affirmative vote or written consent
shall be determined solely based on the Voting Percentages of the Manager(s) not excluded
therefrom.

          (d) **.

          (i) Notwithstanding anything in this Agreement to the contrary, the Board shall not
take or cause the Company to take any of the following actions unless such action shall have
been approved by **:

          (A) incur, or permit any Subsidiary to incur, any Indebtedness for Borrowed
Money from any Member or any Affiliate of a Member (other than intercompany
borrowings among NINA Investments LLC, NINA Texas 3 or NINA Texas 4), unless all
Members are offered the option to provide such

 

			
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Indebtedness for Borrowed Money
pro-rata in accordance with their Membership Percentages;

          (B) (1) other than pursuant to Section 3.2 or in connection with an IPO
approved pursuant to Section 5.1(e)(i)(A), amend this Agreement or any other
organizational document of the Company defining the rights and obligations of the
Members, including with respect to voting rights, management or Control rights and
dispute resolution, in a manner that adversely and disproportionately impacts any
Member or (2) permit any Subsidiary to amend any comparable organization document of
such Subsidiary in a manner that adversely and disproportionately impacts any
Member;

          (C) change the rights of the Board to approve items set forth in Section
5.1(e);

          (D) change the rights of the Members to appoint Managers to the Board;

          (E) permit any Subsidiary to issue, award, grant or sell, or authorize the
issuance, award, grant or sale of, any equity interests, any securities or interests
convertible into or exercisable or exchangeable for any such equity interests, or
any rights, warrants or options to acquire, any such equity interests, except for
any pledge of any equity interests of any Subsidiary in connection with any
Indebtedness for Borrowed Money permitted or approved under Section 5.1.(e)(ii)(B)
or not otherwise precluded under this Agreement; and

          (F) permit any Subsidiary to, directly or indirectly, Dispose of all or any
portion of its ownership or equity interests in another Subsidiary.

          (ii) The requirement for the approval of the Members of the matters specified in
Section 5.1(d)(i) is herein referred to as the “Required Member Approval”.

          (e) Required Manager Approval.

          (i) Notwithstanding anything in this Agreement to the contrary (subject to Section
5.1(f)), the Company shall not take any of the following actions unless such action shall
have been approved by the affirmative vote or written consent of each Manager representing a
Member having or deemed as having **:

          (A) conduct, or permit any Subsidiary to conduct, an initial public offering
(an “IPO”) of the equity interests of such Person or any successor entity to such
Person (including by conversion);

          (B) other than in connection with an IPO, approve a merger, acquisition,
corporate split or any other similar transaction of the Company with

 

			
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or into another
Person or any sale of all or substantially all of the Company’s or any Subsidiary’s
assets or the conversion of the Company or any Subsidiary from a limited liability
company to any other business entity;

          (C) directly or indirectly, including through any Subsidiary, carry on any
business other than the business permitted by Section 2.4;

          (D) increase the Capital Account of any Member without a contribution of a
proportionate amount of cash or property by such Member, except as provided in
Section 6.5 and 7.3;

          (E) approve any capital transaction with any Member or any other Person
including accepting any Capital Contributions or issuing, selling, granting,
repurchasing or redeeming any Membership Units or any securities or rights
convertible into, exchangeable or exercisable for any Membership Units (except in
accordance with Capital Calls);

          (F) enter into, or permit any Subsidiary to enter into, any Affiliate Contract,
including for any acquisition by the Company or any Subsidiary of another entity or
any equity interest in another entity that is an Affiliate of any Member, that is
not either (1) expressly permitted by this Agreement or the TEPCO Investment
Agreement or (2) on terms and conditions no less favorable to the Company or such
Subsidiary than those that would be applicable in comparable transactions between
independent parties acting at arm’s length, or amend any such Affiliate Contract in
a manner that is not consistent with arm’s length terms; provided,
however, that this Section 5.1(e)(i)(F) shall not apply to any Affiliate
Contract with an Affiliate of NINA or the TEPCO Member that becomes a subcontractor
to TANE under the EPC Contract so long as (x) such Affiliate becomes a subcontractor
pursuant to a transparent and competitive bidding process under the EPC Contract and
(y) there is full disclosure of any Affiliate relationship among the Members;

          (G) approve any changes to the tax status of the Company as a partnership for
U.S. federal income tax purposes other than in connection with an IPO approval under
Section 5.1(e)(i)(A);

          (H) (1) other than in any non-public communication with any Governmental
Authority, announce, or permit any of its Subsidiaries to announce, that such Person
is no longer pursuing the development of STP 3 or STP 4, (2) cease, or permit any
Subsidiary to cease, to be actively engaged in pursuing the development of the
Project for a period of one (1) year in the absence of the
exercise of a suspension right under the EPC Contract or for a period of one
(1) year after the expiration of any suspension period under the EPC Contract; or
(3) terminate, or permit any Subsidiary to terminate, the EPC Contract other than
due to a default by TANE;

17

 

          (I) liquidate or dissolve the Company or any Subsidiary, except following the
sale of all or substantially all of such Person’s assets, or wind up, liquidate,
dissolve or cancel any material project or material line of business of the Company
or any Subsidiary; and

          (J) (1) other than pursuant to Section 3.2 or in connection with an IPO
approved pursuant to Section 5.1(e)(i)(A), amend this Agreement or any other
organizational document of the Company defining the rights and obligations of the
Members, including with respect to voting rights, management or Control rights and
dispute resolution, or (2) permit any Subsidiary to amend any comparable
organization document of such Subsidiary.

          (ii) Notwithstanding anything in this Agreement to the contrary, the Company shall not
take any of the following actions unless such action shall have been approved by
**:

          (A) appoint and remove the independent auditors of the Company;

          (B) incur, or permit any Subsidiary to incur, any Indebtedness for Borrowed
Money in excess of ten million dollars ($10,000,000) per borrowing (but not
including requirements for parent support of project companies that are customary in
limited recourse project financings) or enter into any swap or other derivative
transaction, in each case, other than in the ordinary course of business or as set
forth in the then applicable Multi-Year Budget or in connection with any financing
commitment or financing by JBIC or loan guarantee commitment by DOE or credit
insurance from NEXI;

          (C) other than in connection with any Indebtedness for Borrowed Money permitted
or approved pursuant to Section 5.1(e)(ii)(B) or not otherwise precluded under this
Agreement, create, or permit any Subsidiary to create, security over all or
substantially all of the assets of the Company or such Subsidiary, except as
provided in the then applicable Multi-Year Budget;

          (D) approve, or permit any Subsidiary to approve, a lease, acquisition or
disposition of assets, or investment (including the acquisition or disposition of
any material equity interest in another entity) by the Company or such Subsidiary in
excess of ** of the total gross expenditures in the annual budget for the
applicable year, except as provided in the then applicable Multi-Year Budget;

          (E) commence any material litigation involving the Company or settle any
litigation involving the Company for cash in excess of ten million dollars
($10,000,000) or settle any material litigation involving the Company for a

 

			
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18

 

non-cash
settlement or cause the same with respect to any litigation involving any
Subsidiary;

          (F) form any new Subsidiary;

          (G) approve any Multi-Year Budgets or any increase in costs identified in the
Multi-Year Budget that amount to a variation in the Initial Multi-Year Budget or the
then applicable Multi-Year Budget in excess of **;

          (H) make, or permit any Subsidiary to make, a charitable donation to any Person
in excess of one hundred thousand dollars ($100,000) except as set forth in the then
applicable Multi-Year Budget;

          (I) make, or permit any Subsidiary to make, any material modification to the
financial or tax accounting methods, practices, policies and procedures adopted by
the Company or such Subsidiary, including any change to the Company’s or such
Subsidiary’s annual accounting or period, except as may be required by a change in
GAAP or applicable Law;

          (J) make any Capital Calls, except as provided in the then applicable
Multi-Year Budget and other than in respect of any increase in costs identified in
the Multi-Year Budget that amount to a variation in the then applicable Multi-Year
Budget in excess of **;

          (K) other than in connection with routine waivers or change orders, engage,
amend, modify in any material respect or terminate any contract of the Company or
any Subsidiary involving **;

          (L) make or declare dividends or distributions to the Members, other than as
provided in the then applicable Multi-Year Budget;

          (M) adopt or materially amend, or permit any Subsidiary to adopt or materially
amend, any plans or policies in respect of the Company’s or such Subsidiary’s
employee or director remuneration, employment terms, incentive arrangements or
retirement benefits; and

          (N) institute or cause to be instituted any proceeding for a voluntary
bankruptcy or approve any such proceeding by any third party, of the Company or any
Subsidiary.

          (iii) The requirement for the approval of the Managers of the matters specified in
Sections 5.1(e)(i) and 5.1(e)(ii) is herein referred to as the “Required Manager Approval”.

 

			
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          (f) Voting Regarding Nuclear Safety, Security and Reliability. The Manager(s) appointed by
the U.S. owned and controlled Member(s) shall have a casting (deciding) vote (acting by the
affirmative vote or written consent of one or more Managers, other than the Manager(s) appointed by
the non-U.S. owned or controlled Member(s), having a majority of the aggregate Voting Percentages
in accordance with Section 5.1(c)) on the following matters:

          (i) any matter that, in view of U.S. laws or regulations, requires or makes it
reasonably necessary to assure U.S. control;

          (ii) any matter relating to nuclear safety, security or reliability, including, but not
limited to, the following matters:

          (A) implementation or compliance with any NRC generic letter, bulletin, order,
confirmatory order or similar requirement issued by the NRC;

          (B) prevention or mitigation of a nuclear event or incident or the unauthorized
release of radioactive material;

          (C) placement of the plant in a safe condition following any nuclear event or
incident;

          (D) compliance with the AEA, the Energy Reorganization Act, or any NRC rule;

          (E) the obtaining of or compliance with a specific license issued by the NRC
and its technical specifications; and

          (F) compliance with a specific Final Safety Analysis Report, or other licensing
basis document;

          (iii) any decision relating to NRC regulatory strategy or the relationship with the NRC
which concerns matters covered under subsections 5.1(f)(i) or 5.1(f)(ii);

          (iv) any other issue reasonably determined by the Manager(s) appointed by the U.S.
owned and controlled Member(s), in their prudent exercise of discretion to be an exigent
nuclear safety, security or reliability issue; and

          (v) staffing of key executive officer positions of the Company.

          (g) Meetings. The Board shall use reasonable efforts to have quarterly meetings on or about
the same date as the quarterly board meetings held by NINA, and NINA will provide the other Members
with notice of any quarterly Board meeting not less than five (5) Business Days prior to the date
of such Board meeting. Special meetings of the Board may be
called by any Manager on five (5) Business Days’ notice to each Member. Meetings of the Board
may be held telephonically or using any other medium in which each meeting participant can hear the
other meeting participants. On any matter that is to be voted on, consented to or approved by the
Board, the Board may take such action without a meeting, without prior notice

20

 

and without a vote if
a consent or consents in writing, setting forth the action so taken, are signed by the Managers
having not less than the minimum Voting Percentage that would be necessary to authorize or take
such action at a meeting at which all Managers entitled to vote thereon were present and voted;
provided, that the non-consenting Managers shall be given prompt notice after the requisite
number of Managers sign such consent.

          5.2 Officers.

          (a) The Board shall designate a chief executive officer (the “Chief Executive Officer”), who
shall have the authority and perform duties customarily associated with such title. The Chief
Executive Officer may designate one or more other natural persons to be other Officers of the
Company, subject to Board approval, and any such Officers so designated shall have such titles and,
subject to the other provisions of this Agreement, have such authority and perform such duties as
the Chief Executive Officer may delegate to them and shall serve at the pleasure of the Board. In
addition to or in lieu of Officers, the Board may authorize any person to take any action or
perform any duties on behalf of the Company (including any action or duty reserved to any
particular Officer) and any such person may be referred to as an “authorized person.” An employee
or other agent of the Company shall not be an authorized person unless specifically appointed as
such by the Board.

          (b) The TEPCO Member shall have the right to designate, and the Board shall appoint such
designees, Officers or other management personnel of the Company (other than key executive officer
positions to be approved in accordance with Section 5.1(f)(v)) as reasonably requested by the TEPCO
Member.

          5.3 Multi-Year Budget.

          (a) The Members of the Company acknowledge and agree to the multi-year budget attached hereto
as Exhibit C (the “Initial Multi-Year Budget”).

          (b) No later than ** Days prior to the end of the Fiscal Year which is
the last year in the then current budget, the Board shall prepare (or cause to be prepared) a
multi-year budget **; provided, however, that if such end of the Fiscal
Year occurs prior to STP 3 and 4 COD, then the Board shall prepare (or cause to be prepared) a
multi-year budget for **. Such multi-year budget shall be approved by Required Manager
Approval under Section 5.1(e)(ii); provided, that if a multi-year budget is not approved by
Required Manager Approval, the current multi-year budget shall remain in effect pending resolution
of the matter pursuant to Article X. The multi-year budget shall be updated on a quarterly basis
or at such other times as may be determined by the Board. Each multi-year budget shall include the
information set forth in Exhibit C attached hereto. Each multi-year budget approved by the
Board, as the same may be amended from time to time pursuant to this paragraph, is referred to herein as a “Multi-Year
Budget”.

          (c) The Company and the Subsidiaries may make any expenditures that are consistent with the
Multi-Year Budget.

 

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

21

 

          5.4 Limitation on Authority. No Member or Manager in its capacity as such shall have the authority or
power to bind the Company or to take any action on behalf of the Company, or to incur any
expenditures, debt, liabilities or obligations on behalf of the Company. No Officer shall have the
authority to bind the Company or to take any action on behalf of the Company except pursuant to
authorization granted by the Board.

          5.5 Waiver of Fiduciary Duties; Discretion of Managers. No Member in its capacity as such shall owe
any fiduciary or other similar duties under applicable Law (including any duty of loyalty, duty of
care, or duty of good faith and fair dealing) to the Company or the other Members. The Members
acknowledge and agree that the foregoing is intended to comply with the provisions of the Act
(including Section 18-1101 of the Act) permitting members of a limited liability company to
eliminate fiduciary duties. Each Manager shall be entitled to exercise his or her voting and other
rights as a Manager in his or her sole discretion and shall be free to consider solely the
interests of the Member appointing such Manager in exercising such rights. The Company and each
Member hereby expressly and irrevocably waives, to the fullest extent permitted by applicable Law,
all fiduciary and other similar duties under applicable Law of each other Member with respect to
its exercise or failure to exercise any voting or other rights hereunder or under the Certificate,
and agrees that it shall not raise any claim or action against any such other Member based on a
breach or alleged breach of any fiduciary or other similar duties under applicable Law. Except as
expressly provided herein, no conflict of interest with the Company shall prevent a Member from
exercising its voting rights under this Agreement or under the Certificate. Each Member hereby
agrees to ratify, in its capacity as holder of Membership Units, any action or inaction resulting
from such exercise of, or failure to exercise, such voting or other rights.

          5.6 Limitation of Liability of Managers and Officers; Indemnity. To the fullest extent permitted under
the Act and applicable Law, the Managers and Officers shall not be liable to the Company or any
Member for any act or omission, and the Company shall indemnify the Managers and Officers against
and save each Manager and Officer harmless from any liability incurred by such Manager or Officer,
in connection with (a) the performance by such person of his or her duties as a Manager or Officer
of the Company or (b) any action based on any act performed or omitted to be performed by any such
person in connection with the business of the Company, including attorneys’ fees incurred by such
person in connection with the defense of any action based on any such act or omission, which
attorneys’ fees may be paid as incurred, including all such liabilities under federal and state
securities laws; provided, however, that no Manager or Officer shall be exculpated
or indemnified from any liability for fraud, intentional misconduct, bad faith or gross negligence.
The Company’s payment of such attorney’s fees as incurred shall be subject to the Manager’s or
Officer’s obligation to repay all such amounts if such Manager or Officer is ultimately determined
not to be entitled thereto pursuant to this Section 5.6.

          5.7 Other Business Ventures; Non-Compete.

          (a) Non-Compete. **.

 

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

22

 

          (b) Enforcement; Remedies. The Members agree that the provisions of this Section 5.7 are
necessary (i) to further the purposes, business and activities of the Company and (ii) to protect
confidential and proprietary information regarding the Company to which the Members will have
access pursuant to this Agreement. The Members agree that no adequate remedy at law exists for a
breach of any of the provisions of this Section 5.7, the continuation of which unremedied will
cause the Company and the other Members to suffer irreparable harm. Accordingly, the Members agree
that the Company and the other Members shall be entitled, in addition to other remedies that may be
available to them, to immediate injunctive relief from any breach or threatened breach of any of
the provisions of this Section 5.7 and to specific performance of their rights hereunder, as well
as to any other remedies available at Law or in equity.

          5.8 Enforcement of NINA Contribution Agreement and TEPCO Investment Agreement. Notwithstanding
anything to the contrary in this Agreement, the Members agree that the Members other than (i) NINA,
with respect to the NINA Contribution Agreement and (ii) the TEPCO Member, with respect to the
TEPCO Investment Agreement, acting by majority vote based on their respective Membership
Percentages, shall have the right **. Such right shall include
**.

          5.9 Indemnification for Breach of Agreement. Each Member (a “Breaching Member”) shall indemnify,
protect, defend, release and hold harmless each other Member and its Affiliates and each of their
respective officers, directors, employees, representatives, attorneys and agents (the “Indemnified
Persons”) from and against any Claims asserted by or on behalf of any Person (including another
Member) that arise out of, relate to or are otherwise attributable to, directly or indirectly, a
breach by such Breaching Member of this Agreement.

          5.10 Termination of Management Rights. Notwithstanding anything in this Agreement to the contrary, no
Member shall have the right to appoint any Managers pursuant to Section 5.1 unless such Member has
or is deemed to have the Minimum Threshold Percentage. If at any time a Member no longer has or is
deemed to no longer have the Minimum Threshold Percentage, any Managers appointed by such Member
shall be automatically removed from their positions without further notice or procedure, and any
further actions of such Managers shall be null and void.

          5.11 Enforcement of Affiliate Contracts. In the event that the Company or any Subsidiary, on the one
hand, is party to an agreement (an “Affiliate Contract”) with a Member or an Affiliate thereof (not
including the Company or any Subsidiary), on the other hand, the Company shall, and shall cause
such Subsidiary to, take all actions necessary to enforce its
rights under such Affiliate Contract and otherwise administer the terms of such Affiliate Contract
as if such Affiliate Contract was an agreement entered into by independent parties acting at arm’s
length, including with respect to such matters as consent to assignment, declaration of defaults
and termination events, declarations of early termination dates, suspension of performance,
enforcement of remedies, termination and material amendments.

 

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

23

 

          5.12 Corporate Opportunities. Neither the Company nor any Member shall have any expectation or interest
in any business opportunity that is presented to any of the Members or any of their respective
officers, directors or employees or the Manager appointed thereby, unless, in the case of any such
Person who is a Manager or Officer, such business opportunity is expressly offered to such Person
in his or her capacity as a Manager or Officer.

          5.13 Non-Solicitation. From and after the Effective Date through the date such Member no longer owns
any Membership Units, no Member shall, directly or indirectly, solicit, induce, encourage or
attempt to persuade any employee of the Company, any Subsidiary or the Members (a) to leave his or
her employment with the Company, any Subsidiary or the Members in order to become an employee,
consultant or independent contractor to or for any other Person or (b) to terminate or adversely
modify such employee’s relationship with the Company, any Subsidiary or the Members
provided, however, that this Section 5.13 shall not restrict an employer from
publishing or posting open positions in the course of normal hiring practices that are not
specifically sent to, or do not specifically target, employees of the Company, the Subsidiaries or
the Members.

          5.14 Non-Discrimination Policy. The Members acknowledge that U.S. law and policy may require that
certain future activities of the Company and the Subsidiaries remain under the control and
management of U.S. citizens and direct that the Company at all times comply with such foreign
ownership, control or influence limitations as have been established by U.S. law, regulation or
agreement with any Governmental Authority. Without in any way diminishing the foregoing, it shall
be the policy of the Company to endeavor, to the maximum extent possible consistent with the
foregoing, to permit the involvement of Officers and other personnel (who may all be Japanese
nationals) appointed, seconded, assigned or nominated by the TEPCO Member or any of its Affiliates,
in accordance with this Agreement, to a position with the Company or any Subsidiary, without regard
to race, nationality or citizenship.

ARTICLE VI

CAPITAL CONTRIBUTIONS

          6.1 Initial Capital Contributions. Pursuant to the NINA Contribution Agreement, NINA has contributed
to the Company the NINA Initial Contribution. On or prior to the Effective Date, pursuant to the
TEPCO Investment Agreement, the TEPCO Member has contributed to the Company the TEPCO Contribution
and paid the Option Premium to the Company.

          6.2 Subsequent Capital Contributions.

          (a) In General. Other than pursuant to Capital Calls (defined below) or as specified in the
NINA Contribution Agreement or the TEPCO Investment Agreement, no Member shall be entitled to or
obligated to make any contributions to the capital of the Company or to provide any guarantees of
the Company’s or any Subsidiary’s obligations.

          (b) Capital Calls. The Company will have the right from time to time and at any time by
notice to the applicable Members to call for the Members to make contributions to

24

 

the capital of
the Company in a stated amount (each such call, a “Capital Call”); provided,
however, that, if (i) subject to Section 5.1(e)(ii)(J), the Company fails to issue or make
a Capital Call as a result of which the Company breaches or is in default under any of the
contracts set forth on
Schedule 6.2(b)1 or other contracts approved in
accordance with Section 5.1(e)(ii)(K) or fails or is unable to meet its payment or other
obligations under any such contract or (ii) the Majority Member or any of its Affiliates announces
that it will no longer fund or pursue the development of STP 3 or STP 4 and thereafter the Company
ceases making Capital Calls with respect to such Unit, then the Members other than the Majority
Member shall have the right to cause the Company to issue or make a Capital Call. Capital Calls
shall be made to all Members, and each Member may (but shall not be obligated to), on or before the
** Day after such Capital Call, pay to the Company in cash such Member’s
Membership Percentage of the amount for which the Capital Call is made. For the avoidance of
doubt, no new Membership Units shall be issued in connection with a Capital Call if all Members
elect to make their respective pro-rata share of contributions in response to a Capital Call
pursuant to this Section 6.2(b).

          6.3 Failure to Contribute Capital Contributions.

          (a) Dilution. If any Member (including the Majority Member) elects not to make a contribution
in response to a Capital Call by the ** Day after such Capital Call (such Member, a
“Nonfunding Member”), then the other Members shall have the right:

          (i) to make, or to cause their respective Wholly Owned Affiliates that are as
creditworthy as the applicable Member (as reasonably determined by each other Member) to
make, such contribution pro-rata in accordance with their respective Membership Percentages
to the capital of the Company (with the result that the Membership Units of the Members will
be proportionately adjusted based on the Capital Contributions); provided,
however, that such Nonfunding Member shall have the right to cure any failure to
contribute at any point prior to the contribution by the other Members or their respective
Wholly Owned Affiliates described in this clause (i) or thereafter by repaying in full the
other Members or their respective Wholly Owned Affiliates who have made contributions
pursuant to this clause (i) by the earlier of (x) the date of issuance of the next Capital
Call and (y) the admission of a new Member to the Company pursuant to Section 6.3(a)(ii),
and upon such cure the rights described in this clause (i) shall be of no
further effect unless and until a subsequent failure to make a contribution in response
to a Capital Call occurs; and

          (ii) subject to the restrictions on Dispositions in Section 4.2, on or after the
** day after such Capital Call, to admit any third-party Person(s) to the Company
as a new Member(s) to make a contribution in response to such Capital Call (with the result
that the Membership Units of the Members will be proportionately adjusted based on the
Capital Contributions) and upon such admission, the Nonfunding Member shall lose any

 

			
	1	 	Note to draft: Schedule to include the Major
Contracts set forth on Schedule 5.15(a) of the Investment Agreement and the
Toshiba Credit Agreement.
	 
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

25

 

right
to cure such failure to contribute; provided, however, that any such
contribution by such Person shall only be to the extent of the shortfall in the Capital Call
resulting from the election by the Nonfunding Member not to make a contribution in response
to such Capital Call and in the event such Person elects to make a contribution to the
capital of the Company in excess of such shortfall, any Membership Units issued or sold in
respect of such excess shall be subject to the provisions of Section 3.8.

          (b) Voting Rights. In addition to Section 6.3(a), if a Nonfunding Member does not cure a
failure to make a contribution in response to a Capital Call within the time period set forth in
Section 6.3(a)(i), then unless and until such time as such Nonfunding Member elects to make or
resumes making contributions in response to a subsequent Capital Call (in which case all of the
voting rights of the Manager appointed by such Nonfunding Member removed pursuant to this Section
6.3(b) shall be restored, subject to any dilution in Voting Percentages that may have been effected
in accordance with this Agreement), the Manager(s) appointed by such Nonfunding Member shall not
have the right to direct the Company with respect to (i) all actions and decisions of the Company
requiring the affirmative vote or written consent of one (1) or more Managers having a majority of
the aggregate Voting Percentages pursuant to Section 5.1(c) and (ii) the matters specified in
Sections 5.1(e)(i) and Section 5.1(e)(ii), and the Manager appointed by such Nonfunding Member
shall be excluded from any vote or written consent of the Board on such actions, decisions or
matters; provided, however, that the Manager appointed by such Nonfunding Member
shall not be excluded from voting on the matters specified in Section 5.1(e)(i) for so long as such
Nonfunding Member has a Membership Percentage equal to or greater than **;
and provided, further, that the Manager appointed by such Nonfunding Member shall
not be excluded from voting on the matters specified in Section 5.1(e)(ii) for so long as such
Nonfunding Member has a Membership Percentage greater than **; and provided,
further, however, the Manager appointed by the Majority Member shall not be
excluded from voting on the matters specified in Section 5.1(e)(ii) for so long as the Membership
Percentage of such Majority Member is greater than **. For the avoidance of doubt, such
Nonfunding Member shall not be excluded from voting on the matters specified in Section 5.1(d)(i)
at any time for so long as such Nonfunding Member owns any Membership Units and remains a Member of
the Company.

          
6.4 Return of Contributions. Except as provided in Section 7.2, a Member is not entitled to the return
of any part of its Capital Contributions or to be paid interest in respect of either its Capital
Accounts or its Capital Contributions. An unrepaid Capital Contribution is not a liability of the
Company or of any Member. A Member is not required to contribute or to
lend any cash or property to the Company to enable the Company to return any Member’s Capital
Contributions.

          
6.5 Capital
Accounts.2 A Capital Account shall be established and maintained for each Member
owning Membership Units in accordance with current and

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.
	 
	2	 	Note to draft: Capital Account balances to
be confirmed. To initially be in a 90:10 ratio at the Initial Closing.

26

 

proposed Treasury Regulation Section
1.704-1(b)(2)(iv). In connection with the contribution by NINA to the Company of the NINA Initial
Contribution, NINA’s Capital Account has been credited with a contribution to the capital of the
Company equal to $[•]. In connection with the contribution by the TEPCO Member to the Company of
the TEPCO Contribution, the TEPCO Member’s Capital Account has been credited with a contribution to
the capital of the Company equal to $[•]. Each Member’s Capital Account shall be increased by the
amount of money contributed by that Member to the Company, the fair market value of property
contributed by that Member to the Company (net of liabilities secured by such contributed property
that the Company is considered to assume or take subject to under Section 752 of the Code), and
allocations to that Member of income and gain (or items thereof) of the Company, including income
and gain exempt from tax and income and gain described in Treasury Regulation Section
1.704-1(b)(2)(iv)(g), but excluding income and gain described in Treasury Regulation Section
1.704-1(b)(4)(i), and shall be decreased by the amount of money distributed to that Member by the
Company, the fair market value of property distributed to that Member by the Company (net of
liabilities secured by such distributed property that such Member is considered to assume or take
subject to under Section 752 of the Code), allocations to that Member of expenditures of the
Company described (or treated as described) in Section 705(a)(2)(B) of the Code, and allocations
of Company loss and deduction (or items thereof), including loss and deduction described in
Treasury Regulation Section 1.704-1(b)(2)(iv)(g), but excluding items of loss or deduction
described in Treasury Regulation Sections 1.704-1(b)(4)(i) or 1.704-1(b)(4)(iii). The Members’
Capital Accounts shall also be maintained and adjusted (and the items allocated pursuant to Section
7.4 will be calculated) as permitted by the provisions of Treasury Regulation Section
1.704-1(b)(2)(iv)(f) (including in connection with each issuance of Membership Units) and as
required by the other provisions of Treasury Regulation Sections 1.704-1(b)(2)(iv) and
1.704-1(b)(4), including adjustments to reflect the allocations to the Members of depreciation,
depletion, amortization, and gain or loss as computed for book purposes rather than the allocation
of the corresponding items as computed for tax purposes, as required by Treasury Regulation Section
1.704-1(b)(2)(iv)(g). A Member shall have a single Capital Account that reflects all Membership
Units held by such Member, regardless of the time or manner in which such Membership Units were
acquired. Upon the Disposition of all or a portion of the Membership Units owned by a Member, the
Capital Account of the Disposing Member that is attributable to such Membership Units shall carry
over to the Assignee in accordance with the provisions of Treasury Regulation Section
1.704-1(b)(2)(iv)(l).

ARTICLE
VII

DISTRIBUTIONS AND ALLOCATIONS

          7.1 Tax Distributions. Prior to making distributions pursuant to Section 7.2, on each Tax
Distribution Date, the Company shall, subject to the availability of funds as determined by the
Board, distribute to each Member in cash an amount equal to such Member’s Assumed Tax Liability, if
any. “Tax Distribution Date” means any date that is two (2) Business Days prior to the date on
which estimated income tax payments are required to be made by a U.S. corporate calendar year
taxpayer and each due date for the income tax return of a U.S. corporate calendar year taxpayer
(without regard to extensions). “Assumed Tax Liability” means an amount calculated with respect to
each Member (or in the case of a pass-through entity for U.S. federal income tax purposes, such
Member’s beneficial owners) equal to (a) the cumulative amount of federal, state and local income
taxes (including any applicable estimated taxes)

27

 

, determined taking into account the character of
income and loss allocated as it affects the applicable tax rate, that the Board estimates would be
due from such Member (or in the case of a pass-through entity for U.S. federal income tax purposes,
such Member’s beneficial owners) as of such Tax Distribution Date, (i) assuming such Member (or in
the case of a pass-through entity for U.S. federal income tax purposes, such Member’s beneficial
owners) earned solely the items of income, gain, deduction, loss, and/or credit allocated to such
Member (or in the case of a pass-through entity for U.S. federal income tax purposes, such Member’s
beneficial owners) pursuant to Section 7.3, (ii) after taking proper account of loss carryforwards
resulting from losses allocated to the Members (or in the case of a pass-through entity for U.S.
federal income tax purposes, such Member’s beneficial owners) by the Company, to the extent not
taken into account in prior periods, and (iii) assuming that such Member (or in the case of a
pass-through entity for U.S. federal income tax purposes, such Member’s beneficial owners) is
subject to tax at the highest income tax rates applicable to such Member (or in the case of a
pass-through entity for U.S. federal income tax purposes, such Member’s beneficial owners), reduced
by (b) all previous distributions made to such Member pursuant to this Section 7.1. If on a Tax
Distribution Date there are not sufficient funds on hand to distribute to each Member the full
amount of such Member’s (or in the case of a pass-through entity for U.S. federal income tax
purposes, such Member’s beneficial owners’) Assumed Tax Liability, such distributions shall be made
pro-rata basis among the Members in accordance with their Membership Percentages. Distributions
pursuant to this Section 7.1 shall be treated as an advance distribution under Section 7.2 and
shall offset future distributions that such Member would otherwise be entitled to receive pursuant
to Section 7.2.

          7.2 Distributions. The Board may from time to time distribute to the Members such amounts as the Board
may determine from the funds on hand of the Business, after the payment of all then-due obligations
of the Company relating to the Business and the establishment of reasonable reserves for such
Business’s liabilities, obligations, working capital and other anticipated needs, to the extent the
Board determines that the Company is not restricted by contract or Law from making a distribution
to the Members from such funds. Such funds shall be distributed pro-rata among the Members in
accordance with their Membership Percentages.

          7.3 Allocations. For purposes of maintaining Capital Accounts, income, gain, loss and deduction of the
Company shall be allocated as follows:

          (a) General Allocations. For each taxable year of the Company (including the taxable year in
which the dissolution or liquidation of the Company occurs), items of income, gain, loss and
expense shall be allocated among the Members during such taxable year in a manner that will, as
nearly as possible, cause the Capital Account balance of each Member at the end of such taxable
year to equal:

          (i) the distribution (if any) that such Member would receive if, on the last day of the
taxable year, (x) all the assets were sold for cash equal to their Book Values, taking into
account any adjustments thereto for such taxable year, (y) all liabilities were satisfied in
cash according to their terms (limited, with respect to each Nonrecourse Liability, to the
Book Value of the assets securing such liability), and (z) the

28

 

net proceeds thereof (after
satisfaction of such liabilities) and any cash on hand were distributed pursuant to Section
7.2, minus

          (ii) the sum of (x) the amount, if any, which such Member is obligated to contribute to
the capital of the Company, (y) such Member’s share of the Company Minimum Gain determined
pursuant to Treasury Regulation Section 1.704-2(g), and (z) such Member’s share of Member
Nonrecourse Debt Minimum Gain determined pursuant to Treasury Regulation Section
1.704-2(i)(5).

          (b) Special Allocations. Notwithstanding any other provisions of Section 7.3(a), the
following special allocations shall be made for each taxable period:

          (i) Notwithstanding any other provision of this Section 7.3, if there is a net
decrease in Company Minimum Gain during any Company taxable period, each Member shall be
allocated items of income and gain for such period (and, if necessary, subsequent periods)
in the manner and amounts provided in Treasury Regulation Section 1.704-2(f)(6), (g)(2), and
(j)(2)(i). For purposes of this Section 7.3(b)(i), the Capital Account of each Member shall
be determined and the allocation of income or gain required hereunder shall be effected,
prior to the application of any other allocations pursuant to this Section 7.3 with respect
to such taxable period. This Section 7.3(b)(i) is intended to comply with the minimum gain
chargeback requirement in Treasury Regulation Section 1.704-2(f) and shall be interpreted
consistently therewith.

          (ii) Notwithstanding the other provisions of this Section 7.3 (other than 7.3(b)(i)
above), if there is a net decrease in Member Nonrecourse Debt Minimum Gain during any
Company taxable period, any Member with a share of Member Nonrecourse Debt Minimum Gain at
the beginning of such taxable period shall be allocated items of income and gain for such
period (and, if necessary, subsequent periods) in the manner and amounts provided in
Treasury Regulation Section 1.704-2(i)(4) and (j)(2)(ii). For purposes of this Section
7.3(b)(ii), the balance of each Member’s Adjusted Capital Account shall be determined, and
the allocation of income and gain required hereunder shall be effected, prior to the
application of any other allocations pursuant to this Section 7.3(b)(ii), other than Section
7.3(b)(i) with respect to such taxable period. This Section 7.3(b)(ii) is intended to
comply with the Member Nonrecourse Debt Minimum Gain chargeback requirement in Treasury
Regulation Section 1.704-2(i)(4) and shall be interpreted consistently therewith.

          (iii) Except as provided in Section 7.3(b)(i) and Section 7.3(b)(ii), in the event
that any Member unexpectedly receives any adjustments, allocations or distributions
described in Treasury Regulation Section 1.704-1(b)(2)(ii)(d)(4), (5), or (6) in respect of
its Membership Units, items of income and gain shall be specially allocated to such Member
in an amount and manner sufficient to eliminate, to the extent required by such Treasury
Regulation, the deficit balance, if any, in its Adjusted Capital Account created by such
adjustments, allocations or distributions as quickly as possible unless such deficit balance
is otherwise eliminated pursuant to Section 7.3(b)(i) and Section 7.3(b)(ii).

29

 

          (iv) If any Member has a deficit balance in its Adjusted Capital Account at the end of
any Company taxable period, such Member shall be specially allocated items of gross income
and gain in the amount of such excess as quickly as possible; provided, that an
allocation pursuant to this Section 7.3(b)(iv) shall be made only if and to the extent that
such Member would have a deficit balance in its Adjusted Capital Account after all other
allocations provided in this Section 7.3(b)(iv) have been tentatively made as if this
Section 7.3(b)(iv) were not in this Agreement.

          (v) Nonrecourse Deductions attributable to the Company for any taxable period shall be
allocated to the Members in accordance with their Membership Percentages.

          (vi) Member Nonrecourse Deductions relating to the Company for any taxable period shall
be allocated one hundred percent (100%) to the Member that bears the Economic Risk of Loss
with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are
attributable in accordance with Treasury Regulation Section 1.704-2(i). If more than one
Member bears the Economic Risk of Loss with respect to a Member Nonrecourse Debt, Member
Nonrecourse Deductions attributable thereto shall be allocated between or among such Members
in accordance with the ratios in which they share such Economic Risk of Loss. This Section
7.3(b)(vi) is intended to comply with the provisions of Treasury Regulation 1.704-2(i) and
shall be interpreted consistently therewith.

          (vii) To the extent an adjustment to the adjusted tax basis of any Company asset
pursuant to Sections 734(b) or 743(b) of the Code is required, pursuant to Treasury
Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital
Accounts, the amount of such adjustment to the Capital Accounts shall be treated as an item
of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis), and such item of gain or loss shall be specially allocated to the
Members in a manner consistent with the manner in which their Capital Accounts are required
to be adjusted pursuant to such provisions.

          (c) Allocations Following Exercise of Option. If the Option is exercised by the TEPCO Member,
then the Company shall comply with the allocation rules described in proposed Treasury Regulation §
1.704-1(b)(2)(iv)(s) and shall make subsequent corrective allocations among the Members of income,
gain, loss or deduction, described in proposed Treasury Regulation § 1.704-1(b)(4)(x), solely to
the extent necessary to take into account any
reallocations of Company capital that were required by proposed Treasury Regulation §
1.704-1(b)(2)(iv)(s) (if any).

          7.4 Tax Allocations. For income tax purposes, income, gain, loss, and deduction with respect to
property contributed to the Company by a Member or revalued pursuant to Treasury Regulation Section
1.704-1(b)(2)(iv)(f) shall be allocated among the Members in a manner that takes into account the
variation between the adjusted tax basis of such property and its book value, as required by
Section 704(c) of the Code and Treasury Regulation Section 1.704-1(b)(4)(i), using an allocation
method determined by the Tax Matters Member.

30

 

          7.5 Varying Interests. All items of income, gain, loss, deduction or credit allocable to any
Membership Units that may have been transferred shall be allocated between the transferor and the
transferee based on the portion of the calendar year during which each was recognized as owning
those Membership Units; provided, however, that this allocation must be made in
accordance with a method permissible under Section 706 of the Code and the regulations under it.

ARTICLE
VIII

TAXES

          8.1 Tax Returns. By April 1 of each year, or as soon thereafter as is practicable, the Company shall
furnish each Member for its review an Internal Revenue Service Schedule K-1 and any similar form
required for the filing of state or local income tax returns for such Member for such fiscal year.
The Company shall prepare and timely file all federal, state and local tax returns required to be
filed by the Company. Each Member shall furnish to the Company all pertinent information in its
possession relating to the Company’s operations that is reasonably necessary to enable the
Company’s tax returns to be timely prepared and filed. The Company shall bear the costs of the
preparation and filing of its tax and information returns.

          8.2 Tax Elections. The Company shall make the following elections on the appropriate tax returns: to
adopt the calendar year as the Company’s fiscal year; to adopt the accrual method of accounting;
if a distribution of the Company’s property as described in Code Section 734 occurs or upon a
transfer of Membership Units as described in Code Section 743 occurs, on request by notice from any
Member, to elect, pursuant to Code Section 754, to adjust the basis of the Company’s properties;
and any other election the Board may deem necessary or appropriate that is otherwise consistent
with the provisions of this Agreement. Neither the Company nor any Member shall make an election
for the Company to be excluded from the application of the provisions of subchapter K of chapter 1
of subtitle A of the Code or any similar provisions of applicable state law and no provision of
this Agreement (including Section 2.8) shall be construed to sanction or approve such an election.

          8.3 Tax Matters Member.

          (a) Appointment; Duties. NINA shall be the “tax matters partner” of the Company pursuant to
Section 6231(a)(7) of the Code (the “Tax Matters Member”). The Tax Matters Member shall take such
action as may be necessary to cause, to the extent possible, each other Member to become a “notice
partner” within the meaning of Section 6223 of the Code.
The Tax Matters Member shall inform the Board of all significant matters that may come to its
attention in its capacity as Tax Matters Member by giving notice thereof on or before the fifth
(5th) Business Day after becoming aware thereof and, within that time, shall forward to
the Board copies of all significant written communications it may receive in that capacity. Any
cost or expense incurred by the Tax Matters Member in connection with its duties, including the
preparation for or pursuance of administrative or judicial proceedings, shall be paid by the
Company.

          (b) Settlements. The Tax Matters Member shall not bind any Member to a settlement agreement
without obtaining the consent of such Member, which consent shall not be

31

 

unreasonably conditioned,
withheld or delayed. Any Member that enters into a settlement agreement with respect to any
Company item (as described in Code Section 6231(a)(3)) shall notify the other Member of such
settlement agreement and its terms within fifteen (15) Days from the date of the settlement.

          (c) Administrative Adjustments. No Member shall file a request pursuant to Code Section 6227
for an administrative adjustment of Company items for any taxable year without first notifying the
other Members. If the Board consents to the requested adjustment, the Tax Matters Member shall
file the request for the administrative adjustment on behalf of the Members. If such consent is
not obtained within thirty (30) Days from such notice, or within the period required to timely file
the request for administrative adjustment, if shorter, any Member, including the Tax Matters
Member, may file a request for administrative adjustment on its own behalf. Any Member intending
to file a petition under Code Sections 6226, 6228 or other Code Section with respect to any item
involving the Company shall notify the other Members of such intention and the nature of the
contemplated proceeding. In the case where the Tax Matters Member is the Member intending to file
such petition on behalf of the Company, such notice shall be given within a reasonable period of
time to allow the other Members to participate in the choosing of the forum in which such petition
will be filed.

          (d) Notice of Inconsistent Treatment. If any Member intends to file a notice of inconsistent
treatment under Code Section 6222(b), such Member shall give reasonable notice under the
circumstances to the other Members of such intent and the manner in which the Member’s intended
treatment of an item is (or may be) inconsistent with the treatment of that item by the other
Members.

ARTICLE
IX

BOOKS, RECORDS, REPORTS AND BANK ACCOUNTS

          9.1 Maintenance of Books. The Company shall keep or cause to be kept at the principal office of the
Company, or at such other location approved by the Board, complete and accurate books and records
of the Company, supporting documentation of the transactions with respect to the conduct of the
Company’s business and minutes of the proceedings of its Members and the Board, and any other books
and records that are required to be maintained by applicable Law. The books of account of the
Company shall be maintained on the basis of a fiscal year that is the calendar year, maintained on
an accrual basis in accordance with GAAP, consistently applied.

          9.2 Reports; Access. The Company shall deliver to each Member the reports and information set forth in
this Section 9.2; provided that the Company may refuse to deliver to any such Member any
of the reports or other information otherwise required by this Section 9.2 if such Member violates
the confidentiality obligations set forth in Section 12.1.

          (a) Annual Reports. As soon as available, and in any event within one hundred twenty (120)
Days after the end of each fiscal year, the Company shall deliver (i) a balance sheet of the
Company as of the end of such fiscal year and the related statements of operations, members’ equity
and cash flows for such fiscal year, setting forth in each case in comparative form the figures for
the previous fiscal year, audited by independent public

32

 

accountants of national recognized standing
selected by the Board as fairly presenting the financial condition and results of operations of the
Company and as having been prepared in accordance with GAAP applied on a consistent basis and (ii)
a written report prepared by the Chief Executive Officer and the Company’s chief financial officer,
principal accounting officer or similar accounting officer analyzing the operating and financial
results for the Company’s prior year and reporting on any material developments in respect of the
ongoing business, operations and prospects of the Company.

          (b) Quarterly Financial Reports. As soon as available, but in any event within sixty (60)
Days after the end of each of the first three fiscal quarters of each fiscal year of the Company,
the Company shall deliver (i) a balance sheet of the Company as of the end of and for such fiscal
quarter and the then elapsed portion of the fiscal year and the related statements of operations,
members’ equity and cash flows for such fiscal quarter, setting forth in each case in comparative
form the figures for the corresponding period or periods of (or, in the case of the balance sheet,
as of the end of) the previous fiscal year, all certified by the Chief Executive Officer and the
Company’s chief financial officer as fairly presenting the financial condition and results of
operations of the Company and as having been prepared in accordance with GAAP applied on a
consistent basis and (ii) a written report prepared by the Chief Executive Officer and the
Company’s chief financial officer, principal accounting officer or similar accounting officer
analyzing the operating and financial results for the Company’s prior quarter and reporting on any
material developments in respect of the ongoing business, operations and prospects of the Company.

          (c) Monthly Reports. As soon as available, but in any event on or before the last calendar
day of each month, the Company shall deliver a written report prepared by the Chief Executive
Officer and Company’s chief financial officer, principal accounting officer or similar accounting
officer covering the immediately preceding calendar month and reporting on any material
developments in respect of the ongoing business and operations of the Company occurring in such
immediately preceding calendar month. In addition, on such day the Company shall also deliver a
written report comparing actual general and administrative expenses for such immediately preceding
calendar month to budgeted general and administrative expenses for such month as set forth in the
Multi-Year Budget.

          (d) Other Reports. The Company shall deliver to each Member the following additional reports:
(i) a report of any material accidents resulting in losses to or liabilities of the Company in
excess of one million dollars ($1,000,000), as soon as reasonably practicable after the occurrence
of each such accident, (ii) a report of any substantial delays in the licensing or
construction of STP 3 and 4, (iii) as soon as available, but in any event within forty-five
(45) Days after the end of the second and fourth quarters of each Fiscal Year, a report detailing
the projected capital requirements for the subsequent six (6) month period and (iv) a report of any
changes, events, circumstances or other matters that, individually or in the aggregate, would or
would reasonably be expected to have a material adverse effect on the Business, as soon as
reasonably practicable after the occurrence of such change, event, circumstance or other matter.

          (e) Access. The Company shall afford, and shall cause the Subsidiaries and its and their
respective officers, directors, employees, auditors, counsel and agents to afford, each Member (and
the Member’s employees and agents) reasonable access during regular business

33

 

hours and upon
reasonable advance notice to the Company’s and the Subsidiaries’ respective officers, directors,
employees, auditors, counsel (subject to the preservation of any applicable attorney-client
privilege) and agents and to all of the Company’s and the Subsidiaries’ respective properties,
books and records, and shall furnish (including the right to copy at such Member’s expense) the
Member (and the Member’s respective employees and agents) with all financial, operating and other
data and information as such Member may reasonably request for any legitimate business purposes.

          (f) Communication with Lenders. The Company shall cause NINA Investments LLC to use its
commercially reasonable efforts to report to each Member all material communications between NINA
Investments LLC and its lenders.

          9.3 Bank Accounts. Funds of the Company shall be deposited in such banks or other depositories as
shall be designated from time to time by the Board. All withdrawals from any such depository shall
be made only as authorized by the Board or an authorized Officer and shall be made only by check,
wire transfer, debit memorandum or other written instruction.

ARTICLE X

DISPUTE RESOLUTION

          10.1 Disputes. Any and all claims, counterclaims, demands, causes of action, disputes, controversies,
and other matters in question arising out of or relating to this Agreement, or to the alleged
breach hereof, or in any way relating to the subject matter of this Agreement or the relationship
between the Members created by this Agreement (whether extra-contractual in nature, sounding in
contract, tort or otherwise, or provided for by federal or state statute, common law or otherwise)
(hereafter a “Dispute”) shall be finally resolved by binding arbitration under the Non-Administered
Arbitration Rules of the International Institute for Conflict Prevention and Resolution (the
“Rules”) then in effect except as modified herein.

          10.2 Negotiation to Resolve Disputes. If a Dispute arises out of or relates to this Agreement, a
Member may give notice to all other Members that it intends to initiate the dispute resolution
procedures set forth herein. Promptly upon receipt of such notice, each Member that is a party to
the Dispute (each, a “Disputing Member”) shall refer such Dispute to a senior executive officer
(“SEO”) of such Disputing Member. The SEOs will meet in person or by teleconference as soon as
mutually practicable in order to try and resolve the Dispute. If the SEOs are unable to resolve
the Dispute on or before the thirtieth (30th) Day after such notice, any
Disputing Member may commence an arbitration under this Article X by notifying each other
Member (an “Arbitration Notice”).

          10.3 Selection of Arbitrators.

          (a) Three Arbitrators. Any arbitration conducted under this Article X shall be heard by three
arbitrators (each an “Arbitrator” and collectively the “Tribunal”) selected in accordance with this
Section 10.3. Each Disputing Member and any proposed Arbitrator shall, as soon as practicable,
disclose to the other Disputing Members any business, personal or other relationship or affiliation
that may exist between any Member and the proposed Arbitrators. The Disputing Members may then
object to any of the proposed Arbitrators on the basis of such

34

 

relationship or affiliation. The
validity of any such objection shall be determined according to the Rules.

          (b) Selection of Arbitrators. Except as provided for in this Section 10.3, the Tribunal shall
be appointed according to the Rules. In the Arbitration Notice, the Disputing Member requesting
arbitration shall nominate one Arbitrator. The Disputing Member named as respondent by the
claimant shall nominate one Arbitrator. Within thirty (30) Days of the appointment of the second
Arbitrator, the two (2) party-appointed Arbitrators shall appoint a third Arbitrator who shall
chair the arbitration. Where the Dispute at issue involves more than two (2) Disputing Members,
the International Institute for Conflict Prevention and Resolution (“CPR”) shall provide a list of
potential Arbitrators. Within seven (7) Days of receiving this list, each Disputing Member shall
provide to CPR a ranking of the potential Arbitrators on such list showing such Disputing Member’s
order of preference among such proposed Arbitrators, with any one or more Disputing Members who are
Affiliates of one another submitting one common ranked list. The CPR shall then appoint all three
Arbitrators as it shall determine in its discretion but taking into account to the extent practical
the Disputing Members’ preferences.

          10.4 Conduct of Arbitration. The Tribunal shall expeditiously (and, if practicable, consistent
with the Tribunal’s primary responsibility to justly adjudicate the dispute before it, within
** Days after the appointment of the third Arbitrator or as soon thereafter
as practicable) hear and decide all matters concerning the Dispute. Any arbitration hearing shall
be held in Washington, D.C. The arbitration shall be governed by the Federal Arbitration Act, 9
U.S.C. §§1 et. seq. Except as expressly provided to the contrary in this Agreement, the Tribunal
shall have the power to gather such materials, information, testimony and evidence as it deems
relevant to the Dispute before it (and each Member will provide such materials, information,
testimony and evidence requested by the Tribunal, subject to such protective orders as the Tribunal
determines necessary for the protection of any information so requested that is proprietary,
subject to a third-party confidentiality restriction or to an attorney-client or other privilege)
and to grant injunctive relief and enforce specific performance. The Tribunal shall not have the
power to award punitive or any other form of indirect or non-compensatory damages, even if such are
available under the governing Law and even if a court would otherwise be empowered to avoid this
limitation on damages to make such an award. If it deems necessary, the Tribunal may propose to
the Disputing Members that one or more other experts be
retained to assist it in resolving the Dispute. The retention of such other experts shall
require the unanimous consent of the Disputing Members, which shall not be unreasonably withheld.
The decision of the Tribunal (which shall be rendered in writing) shall be final, nonappealable and
binding upon the Members and may be entered and enforced in any court of competent jurisdiction.
Each Member hereby consents to the non-exclusive personal jurisdiction and venue of the Washington,
D.C. courts for any proceedings in aid of arbitration under this Section 10.4, including any
request for interim or injunctive relief. Notwithstanding the foregoing consent, the Members may
nevertheless seek interim or injunctive relief from any court of competent jurisdiction.

 

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

35

 

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

ARTICLE
XI

DISSOLUTION, WINDING-UP AND TERMINATION

          11.1 Dissolution. The Company shall dissolve and its affairs shall be wound up on the first to occur of
the following events (each a “Dissolution Event”): the approval by the Required Manager Approval
and the entry of a decree of judicial dissolution of the Company under Section 18-802 of the Act.
No other event shall cause the dissolution of the Company.

          11.2 Winding-Up and Termination.

          (a) Actions of Liquidator. On the occurrence of a Dissolution Event, the Board shall act as
liquidator. The liquidator shall proceed diligently to wind up the affairs of the Company and make
final distributions as provided herein and in the Act. The costs of winding up shall be borne as a
Company expense. Until final distribution, the liquidator shall continue to operate the Company
and its properties with all of the power and authority of the Members. The steps to be
accomplished by the liquidator are as follows:

          (i) as promptly as possible after dissolution and again after final winding up, the
liquidator shall cause a proper accounting to be made by a recognized firm of certified
public accountants of the Company’s assets, liabilities, and operations through the last
calendar Day of the month in which the dissolution occurs or the final winding up is
completed, as applicable;

          (ii) the liquidator shall discharge from the Company funds all of the indebtedness and
other debts, liabilities and obligations of the Company (including all expenses incurred in
winding up) or otherwise make adequate provision for payment and discharge thereof
(including the establishment of a cash escrow fund for contingent
liabilities in such amount and for such term as the liquidator may reasonably
determine); and

          (iii) all remaining assets of the Company shall be distributed to the Members as
follows:

          (A) the liquidator may sell any or all property of the Company, including to
Members, and any resulting gain or loss from each sale shall be computed and
allocated to the Capital Accounts of the Members pursuant to Section 7.3;

36

 

          (B) with respect to all property of the Company that has not been sold, the
fair market value of that property shall be determined and the Capital Accounts of
the Members shall be adjusted to reflect the manner in which the unrealized income,
gain, loss, and deduction inherent in property that has not been reflected in such
Capital Accounts previously would be allocated between the Members if there were a
taxable disposition of that property for the fair market value of that property on
the date of distribution in the manner described in Section 7.3; and

          (C) property (including cash) of the Company shall be distributed to the
Members in accordance with each Member’s positive Capital Account and such
distributions shall be made by the end of the taxable year of the Company during
which the liquidation of the Company occurs (or, if later, ninety (90) Days after
the date of the liquidation).

          (b) Return on Capital Contributions. The distribution of cash or property to a Member in
accordance with the provisions of this Section 11.2 constitutes a complete return to the Member of
its Capital Contributions and a complete distribution to the Member of its Membership Units and all
the Company’s property and constitutes a compromise to which all Members have consented pursuant to
Section 18-502(b) of the Act. To the extent that a Member returns funds to the Company, it has no
claim against the other Members for those funds.

          11.3 Deficit Capital Accounts. No Member will be required to pay to the Company, to any other Member or
to any third party any deficit balance that may exist from time to time in any Capital Account of a
Member.

          11.4 Certificate of Cancellation. On completion of the distribution of Company assets as provided
herein, the Board (or such other Person or Persons as the Act may require or permit) shall file a
certificate of cancellation with the Secretary of State of Delaware, cancel any other filings made
pursuant to Section 2.5, and take such other actions as may be necessary to terminate the
existence of the Company. Upon the filing of such certificate of cancellation, the existence of
the Company shall terminate (and the Term shall end), except as may be otherwise provided by the
Act or other applicable Law.

ARTICLE
XII

GENERAL PROVISIONS

          12.1 Confidential Information.

          (a) Non-Disclosure; Non-Use. Each Member shall keep confidential (and shall not disclose to
any Person) all Confidential Information that is furnished by any other Member or its Affiliates,
except that the foregoing restrictions shall not apply to any Confidential Information that (i) is
in the public domain at the time of its disclosure or thereafter, other than as a result of a
disclosure directly or indirectly by a Member or its Affiliates in contravention of this Agreement,
(ii) as to any Member, was known, free of any obligation of confidentiality, by such Member or its
Affiliates prior to the execution of this Agreement, (iii) has been independently acquired or
developed by a Member or its Affiliates without violating any of the obligations of

37

 

such Member or
its Affiliates under this Agreement or (iv) was developed by or on behalf of the receiving Member
without reliance on Confidential Information received hereunder. A Member may disclose
Confidential Information to the extent (x) that it relates to the Company to its financial and
other advisors, lenders or potential acquirers who need to know such Confidential Information for
the purpose of evaluating any proposed financing or Disposition (it being understood that such
Persons shall be informed by such Member of the confidential nature of the Confidential Information
and shall be directed to treat such Confidential Information confidentially and in accordance with
this Section 12.1) or (y) a Member is requested pursuant to, or required by, applicable Law or by
legal or regulatory process to disclose any Confidential Information (including any request made by
the NRC and/or DOE); provided, that such Member will, to the extent legally permissible and
reasonably practicable, provide the Company with prompt notice of such request or requirement to
enable the Company to seek an appropriate protective order or other remedy, and, at the Company’s
sole expense, cooperate with the Company to obtain such protective order and consult with the
Company with respect to taking of steps to resist or narrow the scope of such disclosure or legal
process; provided, further that if such protective order is not obtained or the
Company waives compliance with the provisions hereof, such Member will furnish only that portion of
the Confidential Information which, in the opinion of its counsel, is legally required or requested
to be disclosed and use its commercially reasonable efforts to ensure that all Confidential
Information that is so disclosed will be accorded confidential treatment.

          (b) Specific Performance. The Members agree that no adequate remedy at law exists for a
breach of any of the provisions of this Section 12.1, the continuation of which unremedied will
cause the furnishing Member to suffer irreparable harm. Accordingly, the Members agree that the
furnishing Member shall be entitled, in addition to other remedies that may be available to it, to
immediate injunctive relief from any breach or threatened breach of any of the provisions of this
Section 12.1 and to specific performance of its rights hereunder, as well as to any other remedies
available at law or in equity.

          (c) Survival. The obligations of the Members under this Section 12.1 shall terminate on the
second (2nd) anniversary of the end of the Term.

          12.2 Public Announcements. Without the prior written consent of each Member having or deemed as having
the Minimum Threshold Percentage, no Member shall
make any public statements with respect to the transactions contemplated by this Agreement, except
as may be required by applicable Law or regulation or by obligations pursuant to any listing
agreement with any national securities exchange. Prior to issuing a press release or other public
announcement required pursuant to the preceding sentence, the Members shall, to the extent legally
permissible and reasonably practicable, consult with each other and each Member shall have a
reasonable opportunity to comment on such press release or announcement.

          12.3 Notices. Except as expressly set forth to the contrary in this Agreement, all notices, requests,
consents, or other communications provided for or permitted to be given under this Agreement must
be in writing and must be delivered to the recipient in person, by courier, mail, electronic mail
(with receipt confirmed personally by the recipient (and not by automatic confirmation of receipt))
or facsimile (if followed by courier or mail). A notice, request, consent, or communication given
under this Agreement is effective on receipt by the

38

 

Member to receive it; provided, that a
notice, request, consent, or communication given by electronic mail shall be deemed effective upon
being sent in the local jurisdiction from which such electronic mail is being sent, subject to
confirmation of receipt by the recipient as set forth in the preceding sentence. All notices,
requests, consents, or other communications to be sent to a Member must be sent to or made at the
addresses, electronic mail address or fax number set forth on Exhibit A, or such other
address, electronic mail address or fax number as that Member may specify by notice to each other
Member.

          12.4 Entire Agreement; Superseding Effect. This Agreement, the NINA Contribution Agreement and the
TEPCO Investment Agreement constitute the entire agreement of the Members relating to the Company
and the transactions contemplated hereby and supersede all provisions and concepts contained in all
prior contracts or agreements between the Members or any of their respective Affiliates with
respect to the Company and STP 3 and 4 (including the Original Agreement) and the transactions
contemplated hereby, whether oral or written.

          12.5 Effect of Waiver or Consent. Except as otherwise provided in this Agreement, a waiver or consent,
express or implied, to or of any breach or default by any Member in the performance by that Member
of its obligations with respect to the Company is not a consent or waiver to or of any other breach
or default in the performance by that Member of the same or any other obligations of that Member
with respect to the Company. Except as otherwise provided in this Agreement, failure on the part
of a Member to complain of any act of any other Member or to declare any other Member in default
with respect to the Company, irrespective of how long that failure continues, does not constitute a
waiver by that Member of its rights with respect to that default until the applicable
statute-of-limitations period has run.

          12.6 Amendment or Restatement. Other than pursuant to Section 3.2, this Agreement or the Certificate
may be amended or restated only after approval by the Board and, in the event of an amendment
referenced in Section 5.1(d)(i)(B), by Required Member Approval, or in the event of an amendment
referenced in Section 5.1(e)(i)(J), by Required Manager Approval.

          12.7 Binding Effect. Subject to the restrictions on Dispositions set forth in this Agreement, this
Agreement is binding on and shall inure to the benefit of the Members and their
respective successors and permitted assigns. The Members acknowledge that their respective
obligations hereunder are unconditional and absolute without right of set-off or counterclaim.

          12.8 Governing Law; Severability. This Agreement is governed by and shall be construed in accordance
with the law of the State of Delaware, excluding any conflict-of-laws rule or principle that might
refer the governance or the construction of this Agreement to the law of another jurisdiction. If
there is a direct conflict between the provisions of this Agreement and any mandatory, non-waivable
provision of the Act, such provision of the Act shall control. If any provision of the Act
provides that it may be varied or superseded in a limited liability company agreement (or otherwise
by agreement of the members or managers of a limited liability company), such provision shall be
deemed superseded and waived in its entirety if this Agreement contains a provision addressing the
same issue or subject matter. If any provision of this Agreement or the application thereof to any
Member or circumstance is held invalid or unenforceable to any extent, the remainder of this
Agreement and the application of that

39

 

provision to the other Members or circumstances is not
affected thereby and the Members shall negotiate in good faith to replace that provision with a new
provision that is valid and enforceable and that puts the Members in substantially the same
economic, business and legal position as they would have been in if the original provision had been
valid and enforceable.

          12.9 Further Assurances. In connection with this Agreement and the transactions contemplated hereby,
each Member shall execute and deliver any additional documents and instruments and perform any
additional acts that may be necessary or appropriate to effectuate and perform the provisions of
this Agreement and those transactions.

          12.10 Waiver of Certain Rights. Each Member irrevocably waives any right it may have to maintain any
action for dissolution of the Company or for partition of the property of the Company.

          12.11 Parties in Interest; No Third-Party Beneficiaries. This Agreement shall inure to the benefit of,
and be binding upon, the parties hereto and their respective successors, legal representatives and
permitted assigns. This Agreement is for the sole benefit of the parties hereto and their
successors and permitted assigns and nothing herein expressed or implied shall give or be construed
to give any Person, other than the parties hereto and such permitted successors and assigns, any
legal or equitable rights hereunder.

          12.12 Fees and Expenses. Except as set forth herein, all costs and expenses incurred in connection with
this Agreement and the consummation of the transactions contemplated hereby shall be paid by the
party hereto incurring such costs and expenses.

          12.13 Limitation on Liability. The Members shall not be bound by, or be personally liable for, by reason
of being a Member or Manager, a judgment, decree or order of a court or in any other manner, for
the expenses, liabilities or obligations of the Company or any other Member, and the liability of
each Member shall be limited solely to the amount of such Member’s Capital Contributions as
provided (or deemed provided) under Article VI.

          12.14 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as
if all signing parties had signed the same document. All counterparts shall be construed together
and constitute the same instrument.

[Remainder of Page Intentionally Left Blank]

40

 

     In Witness Whereof, the Members have executed this Agreement effective as of the Effective
Date.

	 	 	 	 	 
	 	Members:

NUCLEAR INNOVATION NORTH AMERICA LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 	TEPCO NUCLEAR ENERGY AMERICA LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Toshiro Kudama 	 
	 	 	Title:  	President 	 

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Signature Page

 

 

	 	 	 	 	 

Schedule 6.2(b)

Major Contracts

 

 

Exhibit A

Members and Parents

	 	 	 	 	 	 	 	 	 
	 	 	Membership	 	 	 	 
	Name/Address of Members	 	Percentage	 	Membership Units	 	Name of Parent
	Nuclear Innovation 

North America LLC

**

	 	**%
	 	**

Membership
 Units
	 	NRG Energy, Inc.
	with a copy to
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Nuclear Innovation 

North America LLC

**
	 	 	 	 	 	 	 	 
	TEPCO Nuclear Energy 

America LLC

**

	 	**%
	 	**

Membership
 Units
	 	The Tokyo Electric

Power Company,

Incorporated
	 
	 	 	 	 	 	 	 	 
	TOTALS

	 	 	100	%	 	**
	 	N/A

 

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

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit A

A-1 

 

Exhibit B

Definitions

     “Act” means the Delaware Limited Liability Company Act.

     “Adjusted Capital Account” means the Capital Account maintained for each Member as of the end
of each fiscal year of the Company, (a) increased by any amounts that such Member is obligated to
restore under the standards set by Treasury Regulation Section 1.704-1(b)(2)(ii)(c) (or is deemed
obligated to restore under Treasury Regulation Sections 1.704-2(g) and 1.704-2(i)(5)) and (b)
decreased by (i) the amount of all losses and deductions that, as of the end of such fiscal year,
are reasonably expected to be allocated to such Member in subsequent years under Section 706(d) of
the Code and Treasury Regulation Section 1.751-1(b)(2)(ii), and (ii) the amount of all
distributions that, as of the end of such fiscal year, are reasonably expected to be made to such
Member in subsequent years in accordance with the terms of this Agreement or otherwise to the
extent they exceed offsetting increases to such Member’s Capital Account that are reasonably
expected to occur during (or prior to) the year in which such distributions are reasonably expected
to be made (other than increases as a result of a minimum gain chargeback pursuant to Section
7.3(b)(i) or 7.3(b)(ii)). The foregoing definition of Adjusted Capital Account is intended to
comply with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d) and shall be
interpreted consistently therewith.

     “AEA” has the meaning assigned to such term in Section 4.1(e).

     “Affiliate” means with respect to any Person, (a) each entity that such Person Controls; (b)
each Person that Controls such Person, including, in the case of a Member, such Member’s Parent;
and (c) each entity that is under common Control with such Person, including, in the case of a
Member, each entity that is Controlled by such Member’s Parent.

     “Affiliate Contract” has the meaning assigned to such term in Section 5.11.

     “Agreement” means this Amended and Restated Operating Agreement of the Company, as amended,
modified, supplemented or restated from time to time.

     “Arbitration Notice” has the meaning assigned to such term in Section 10.2.

     “Arbitrator” has the meaning assigned to such term in Section 10.3(a).

     “Assignee” means any Person that acquires any Membership Units through a Disposition (other
than as a result of a Change of Control); provided, however, that, an Assignee
shall have no right to be admitted to the Company as a Member except in accordance with Article IV.

     “Assumed Tax Liability” has the meaning assigned to such term in Section 7.1.

     “Board” has the meaning assigned to such term in Section 5.1(a).

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-1 

 

     “Bona Fide Secured Party” of any Member means a financial institution, investment
bank, or other Person primarily in the business of lending and who is not an Affiliate, director,
officer, employee or other agent of such Member; provided, that each of the Lenders and
Agents under (and as defined in) the Toshiba Credit Agreement shall be deemed to be Bona Fide
Secured Parties.

     “Book Value” means, with respect to any property, such property’s adjusted basis for federal
income tax purposes, except as follows:

     (a) The initial Book Value of any property contributed by a Member to the Company shall
be the fair market value of such property as reasonably determined by the Board;

     (b) The Book Values of all properties shall be adjusted to equal their respective fair
market values as determined by the Board in connection with any adjustment of the Capital
Accounts pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(f) as provided for in
Section 6.5;

     (c) The Book Values of all properties shall be increased (or decreased) to reflect any
adjustments to the adjusted basis of such property pursuant to Code Section 734(b) or Code
Section 743(b), but only to the extent that such adjustments are taken into account pursuant
to Treasury Regulation Section 1.704-1(b)(2)(iv)(m) or Section 7.3(b)(vii).

Such Book Value shall be adjusted by the depreciation, cost recovery and amortization deductions in
a manner consistent with the Capital Account maintenance provisions of Section 6.5.

     “Breaching Member” has the meaning assigned to such term in Section 5.9.

     “Business” has the meaning assigned to such term in Section 3.1.

     “Business Day” means any Day other than a Saturday, a Sunday, or a U.S. federal holiday.

     “Capital Account” means the Capital Account to be maintained for each Member in respect of the
Business in accordance with Section 6.5.

     “Capital Call” has the meaning assigned to such term in Section 6.2(b).

     “Capital Contribution” means with respect to any Member, the amount of money and the net
agreed value of any property (other than money) contributed to the Company by the Member. For the
avoidance of doubt, with respect to the TEPCO Member, such Capital Contribution also shall include
any money contributed to the Company in connection with the TEPCO Member’s exercise of the
Option pursuant to the TEPCO Investment Agreement. Any reference in this

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-2 

 

Agreement to the Capital Contribution of a Member shall include a Capital Contribution of
its predecessors in interest.

     “Certificate” has the meaning assigned to such term in the Recitals to this Agreement.

     “Change in Membership Units” has the meaning assigned to such term in Section 4.1(e).

     “Change of Control” means, with respect to any Member, **.

     “Chief Executive Officer” has the meaning assigned to such term in Section 5.2(a).

     “Claim” means any judgment, claim, cause of action, demand, lawsuit, suit, proceeding,
investigation or audit, loss, assessment, fine, penalty, administrative order, obligation, cost,
expense, liability or damage (whether actual, consequential or punitive), including interest,
penalties, reasonable attorney’s fees, disbursements and costs of investigations, deficiencies,
levies, duties and imposts.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Company” has the meaning assigned to such term in the Preamble to this Agreement.

     “Company Minimum Gain” means that amount determined in accordance with the principles of
Treasury Regulation Section 1.704-2(d).

     “Complete Control” means the ownership, directly or indirectly, through one or more
intermediaries, of both of the following: (a) (i) in the case of a corporation, all of the
outstanding voting securities thereof; (ii) in the case of a limited liability company,
partnership, limited partnership or joint venture, all of the voting interests thereof; (iii) in
the case of a trust or estate, including a business trust, all of the beneficial interest or the
power of a trustee therein; and (iv) in the case of any other entity, all of the economic and
beneficial interest therein; and (b) in the case of any entity, the power and authority to
completely control the management of the entity, and “Completely Controls” has the correlative
meaning.

     “Confidential Information” means information regarding the business, assets, customers,
processes and methods of a Member or its Affiliates.

     “Control” means **.

     “CPR” has the meaning assigned to such term in Section 10.3(b).

     “Day” means a calendar day; provided, however, that, if any period of Days
referred to in this Agreement shall end on a Day that is not a Business Day, then the expiration of
such period shall be automatically extended until the end of the first succeeding Business Day.

 

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

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-3 

 

     “Default Rate” means a rate per annum equal to the lesser of (a) a varying rate per annum
equal to the sum of (i) the prime rate as published in The Wall Street Journal, with adjustments in
that varying rate to be made on the same date as any change in that rate is so published, plus (ii)
three percent (3%) per annum and (b) the maximum rate permitted by Law.

     “Disposing Manager” has the meaning assigned to such term in Section 4.2(a).

     “Disposing Member” has the meaning assigned to such term in Section 4.1(b).

     “Disposition” means with respect to any asset (including any Membership Units), a sale,
assignment, transfer, conveyance, gift, exchange or other disposition of such asset, whether such
disposition be voluntary, involuntary or by operation of Law, including a disposition in connection
with, or in lieu of, a foreclosure of an Encumbrance (but such terms shall not include the creation
of an Encumbrance), and “Dispose”, “Disposes”, “Disposed” and “Disposing” have the correlative
meanings. Notwithstanding anything herein to the contrary, a Change of Control of any Member shall
be deemed to be a Disposition of all of the Membership Units of such Member for purposes of Article
IV.

     “Disposition Notice” has the meaning assigned to such term in Section 4.3(a).

     “Dispute” has the meaning assigned to such term in Section 10.1.

     “Disputing Member” has the meaning assigned to such term in Section 10.2.

     “Dissolution Event” has the meaning assigned to such term in Section 11.1.

     “DOE” means the U.S. Department of Energy.

     “Economic Risk of Loss” has the meaning set forth in Treasury Regulation Section 1.752-2(a).

     “Effective Date” has the meaning assigned to such term in the Preamble to this Agreement.

     “Election Notice” has the meaning assigned to such term in Section 3.8(b).

     “Encumbrance” means the creation of a security interest, lien, pledge, mortgage or other
encumbrance, whether such encumbrance be voluntary, involuntary or by operation of Law, and
“Encumber” and “Encumbered” have the correlative meanings.

     “EPC Contract” means the Master Engineering Procurement and Construction Agreement (STPNOC
Contract No. B03974), dated as of February 24, 2009, by and among STPNOC, as agent for NINA Texas 3
and NINA Texas 4, and at such time as agent for The City of San Antonio acting by and through the
City Public Service Board, a Texas municipal utility, and by TANE.

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-4 

 

     “ERCOT” means the Electric Reliability Council of Texas.

     “Exercise Notice” has the meaning assigned to such term in Section 4.3(a).

     “Fiscal Year” means each calendar year ending December 31.

     “Formation Date” has the meaning assigned to such term in the Recitals to this Agreement.

     “GAAP” means generally accepted accounting principles in the United States of America as in
effect from time to time.

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

     “Indebtedness for Borrowed Money” of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
notes, debentures, bonds or other similar instruments for the payment of which such Person is
responsible or liable, (c) all obligations of such Person issued or assumed for deferred purchase
price payments, (d) all obligations of such Person under leases required to be capitalized in
accordance with GAAP, as consistently applied by such Person, (e) all obligations of such Person
for the reimbursement of any obligor on any letter of credit, banker’s acceptance, guarantees or
similar credit transaction, in each case, that has been drawn or claimed against, (f) all interest
rate and currency swaps, caps, collars and similar agreements or hedging devices under which
payments are obligated to be made by such Person, whether periodically or upon the happening of a
contingency, (g) all obligations created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even though the rights and
remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (h) all obligations of such Person or another Person
secured by an Encumbrance on any asset of such first Person, whether or not such Indebtedness for
Borrowed Money is assumed by such first Person and (i) any guaranty of any Indebtedness for
Borrowed Money of any other Person.

     “Indemnified Persons” has the meaning assigned to such term in Section 5.9.

     “Initial Closing Date” has the meaning assigned to such term in the TEPCO Investment
Agreement.

     “Initial Investor Interests” has the meaning assigned to such term in the TEPCO Investment
Agreement.

     “Initial Multi-Year Budget” has the meaning assigned to such term in Section 5.3(a).

     “Intellectual Property” means the patents, patent applications, registered trademarks,
trademark applications, registrations, copyrights, computer programs, databases, industrial

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-5 

 

designs, service marks, schematics, technology, know-how, trade secrets, algorithms, computer
software programs or applications and tangible or intangible proprietary information or material
and any other similar rights available in any jurisdiction in the world.

     “IPO” has the meaning assigned to such term in Section 5.1(e)(i)(A).

     “Issuance Notice” has the meaning assigned to such term in Section 3.8(a).

     “JBIC” means the Japan Bank for International Cooperation.

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

     “Loan Documents” has the meaning assigned to such term in the Toshiba Credit Agreement.

     “Majority Member” means any Member that, together with its Affiliates and their permitted
Assignees under Article IV, taken as a whole, has an aggregate Membership Percentage greater than
fifty percent (50%).

     “Manager” has the meaning assigned to such term in Section 5.1(a).

     “Member” means each Person executing this Agreement as of the Effective Date as a member or
admitted to the Company as a member in accordance with this Agreement, but such term does not
include any Person who has ceased to be a member of the Company.

     “Member Nonrecourse Debt” has the meaning of “partner nonrecourse debt” as set forth in
Treasury Regulation Section 1.704-2(b)(4).

     “Member Nonrecourse Debt Minimum Gain” has the meaning set forth in Treasury Regulation
Section 1.704-2(i)(2).

     “Member Nonrecourse Deductions” means any and all items of loss, deduction or expenditure
(including any expenditure described in Section 705(a)(2)(B) of the Code) that, in accordance with
the principles of Treasury Regulation Section 1.704-2(i), are attributable to a Member Nonrecourse
Debt.

     “Membership Percentage” means with respect to each Member a fraction, expressed as a
percentage, the numerator of which is the number of Membership Units owned by such Member, and the
denominator of which is the total number of Membership Units of all Members.

     “Membership Units” has the meaning assigned to such term in Section 3.1.

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-6 

 

     “Minimum Threshold Percentage” means with respect to each Member, a Membership Percentage
equal to or greater than **.

     “Multi-Year Budget” has the meaning assigned to such term in Section 5.3(b).

     “MW” means megawatt.

     “New Securities” has the meaning assigned to such term in Section 3.8.

     “NEXI” means the Nippon Export & Investment Insurance.

     “NINA” has the meaning assigned to such term in the Recitals to this Agreement.

     “NINA Contribution Agreement” has the meaning assigned to such term in the Recitals to this
Agreement.

     “NINA Initial Contribution” means all of the issued and outstanding membership interests in
NINA Investments LLC.

     “NINA Investments LLC” has the meaning assigned to such term in Section 3.9.

     “NINA Texas 3” has the meaning assigned to such term in Section 3.9.

     “NINA Texas 4” has the meaning assigned to such term in Section 3.9.

     “Nondisposing Member” has the meaning assigned to such term in Section 4.1(b)(i).

     “Nonfunding Member” has the meaning assigned to such term in Section 6.3(a).

     “Nonrecourse Deductions” means any and all items of loss, deduction or expenditures (described
in Section 705(a)(2)(B) of the Code) that, in accordance with the principles of Treasury Regulation
Sections 1.704-2(b) and 1.704-2(c), are attributable to a Nonrecourse Liability.

     “Nonrecourse Liability” has the meaning set forth in Treasury Regulation Section
1.752-1(a)(2).

     “Nonstrategic Purchaser” means **.

     “NRC” means the Nuclear Regulatory Commission of the United States or any successor thereto.

     “NRG” means NRG Energy, Inc., a Delaware corporation.

 

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

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-7 

 

     “Officer” means any Person (that is a natural person) designated as an officer of the Company
as provided in Section 5.2, but such term does not include any Person who has ceased to be an
officer of the Company.

     “Option” has the meaning assigned to such term in the TEPCO Investment Agreement.

     “Option Closing Date” has the meaning assigned to such term in the TEPCO Investment Agreement.

     “Option Expiration Date” has the meaning assigned to such term in the TEPCO Investment
Agreement.

     “Option Period” means the period beginning on the Initial Closing Date through and including
the earlier to occur of (x) the Option Expiration Date and (y) the Option Closing Date.

     “Option Premium” means the sum of thirty million dollars ($30,000,000) paid to the Company by
the TEPCO Member on the Effective Date in respect of the Option in accordance with the TEPCO
Investment Agreement.

     “Original Agreement” has the meaning assigned to such term in the Recitals to this Agreement.

     “Parent” means, with respect to any Person, the Person that Controls such Person and that is
not itself Controlled by any other Person. The Parents of all of the Members as of the Effective
Date are set forth on Exhibit A.

     “Person” means the meaning assigned that term in Section 18-101(12) of the Act.

     “Preferential Right” has the meaning assigned to such term in Section 4.3(a).

     “Project” has the meaning assigned to such term in the TEPCO Investment Agreement.

     “Purchasing Member” has the meaning assigned to such term in Section 4.3(a).

     “Required Manager Approval” has the meaning assigned to such term in Section 5.1(e)(iii).

     “Required Member Approval” has the meaning assigned to such term in Section 5.1(d)(ii).

     “Rules” has the meaning assigned to such term in Section 10.1.

     “Securities Act” means the Securities Act of 1933, as amended, of the United States.

     “SEO” has the meaning assigned to such term in Section 10.2.

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-8 

 

     “South Texas Plant Site” means the approximately 11,000 acre parcel of land in Bay City,
Matagorda County, Texas, on which the nuclear operating units doing business as “South Texas
Project” are located and on which STP 3 and 4 will be located.

     “South Texas Project” means the South Texas Plant Site and all interests in property,
facilities and structures used therewith or related thereto on or adjacent to the South Texas Plant
Site.

     “STP 3” means Unit 3 of the South Texas Project.

     “STP 3 and 4” means Units 3 and 4 of the South Texas Project.

     “STP 3 and 4 COD” means the later to occur of the commercial operations date of STP 3 and the
commercial operations date of STP 4.

     “STP 4” means Unit 4 of the South Texas Project.

     “STP Entities” means NINA Texas 3 and NINA Texas 4, of which the sole member of each is NINA
Investments LLC and which hold all of the Company’s interests in STP 3 and 4, respectively.

     “STPNOC” means STP Nuclear Operating Company, a Texas nonprofit company.

     “Subsidiary” means a Person Controlled by the Company.

     “TANE” means Toshiba America Nuclear Energy Corporation, a Delaware corporation.

     “Tax Distribution Date” has the meaning assigned to such term in Section 7.1.

     “Tax Matters Member” has the meaning assigned to such term in Section 8.3(a).

     “TEPCO Contribution” means the sum of one hundred twenty five million dollars ($125,000,000)
contributed to the Company by the TEPCO Member on the Effective Date in accordance with the TEPCO
Investment Agreement.

     “TEPCO Investment Agreement” has the meaning assigned to such term in the Recitals to this
Agreement.

     “TEPCO Member” has the meaning assigned to such term in the Recitals to this Agreement.

     “Term” has the meaning assigned to such term in Section 2.6.

     “Toshiba Credit Agreement” means that certain Credit Agreement, dated as of February 24, 2009,
among NINA, NINA Investments LLC, NINA Texas 3, NINA Texas 4, the lenders party thereto and TANE as
collateral agent and administrative agent.

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-9 

 

     “Treasury Regulations” means the regulations (including temporary regulations) promulgated by
the U.S. Department of the Treasury pursuant to and in respect of provisions of the Code. All
references herein to sections of the Treasury Regulations shall include any corresponding provision
or provisions of succeeding, similar or substitute, temporary or final Treasury Regulations.

     “Tribunal” has the meaning assigned to such term in Section 10.3(a).

     “Unit” means STP 3 or STP 4.

     “Voting Percentage” has the meaning assigned to such term in Section 5.1(c).

     “Wholly Owned Affiliate” means with respect to any Person, (a) each entity that such Person
Completely Controls, (b) each Person that Completely Controls such Person and (c) each entity that
is under common Complete Control with such Person.

Amended and Restated Operating Agreement

NINA Investments Holdings LLC

Exhibit B

B-10 

 

Exhibit C

Initial Multi-Year Budget

**

 

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

Amended and Restated

Operating Agreement

NINA Investments Holdings LLC

Exhibit C

C-1 

 

Exhibit D

Form of Limited Liability Company Unit Certificate

					
	 	 	 	 	 
	Number
	 	Organized Under the Laws

Of the State of Delaware
	 	Units

___

NINA INVESTMENTS HOLDINGS LLC

          This Certifies that [                    ] is the owner of
[                    ] ([                    ]) Membership Units, fully paid and
non-assessable of the above-named Company
transferable only on the books of the Company by the
holder hereof in person or by a duly authorized
Attorney upon surrender of this Certificate properly
endorsed.

          In Witness Whereof, the said Company has caused this
Certificate to be signed by its duly authorized
officers and sealed with the Seal of the Company.

          This [                    ] day of [                    ], 20[___]

	 	 	 

	 
	 	 
	 

	 	 
	Vice President

	 	Assistant Secretary

THIS CERTIFICATE EVIDENCES MEMBERSHIP UNITS REPRESENTING A MEMBERSHIP INTEREST IN NINA INVESTMENTS

HOLDINGS LLC AND SHALL BE A SECURITY WITHIN THE MEANING OF, AND GOVERNED BY, ARTICLE 8 OF THE

UNIFORM COMMERCIAL CODE.

Amended and Restated

Operating Agreement

NINA Investments Holdings LLC

Exhibit D

D-1 

 

EXHIBIT
D

to Investment and Option Agreement

[FORM OF]

OFFICER’S CERTIFICATE

OF

[NINA INVESTMENTS HOLDINGS LLC / NUCLEAR INNOVATION NORTH

AMERICA LLC / TEPCO NUCLEAR ENERGY AMERICA LLC]

              
      
[•], 20__

          I, [                    ], the [                    ] of [Nuclear Innovation North America LLC, a Delaware limited
liability company (“NINA”), the sole member of NINA Investments Holdings LLC, a Delaware
limited liability company (“NINA Holdings”)] / [Nuclear Innovation North America LLC, a
Delaware limited liability company (“NINA”)] / [TEPCO Nuclear Energy America LLC, a
Delaware limited liability company (“Investor”)], pursuant to [Section 2.5(a)(v)/Section
2.5(b)(iii)] of that certain Investment and Option Agreement, dated as of May 10, 2010 (the
“Agreement”), by and among NINA, [NINA Holdings][NINA Investments Holdings LLC], and
Investor, hereby certify, on behalf of [NINA Holdings / NINA / Investor], solely in my capacity as
[          ] of [NINA, the sole member of NINA Holdings/ NINA / Investor], and not in my individual
capacity, to [NINA Holdings and NINA / Investor], that:

	 	1.	 	[Each of the representations and warranties made by NINA Holdings in
Article V that are qualified as to materiality (or words of similar effect) and
in Section 5.1, Section 5.2, Section 5.3 (a), Section
5.3(b), or Section 5.3(c) is true and correct in all respects, and each
other representation or warranty made by NINA Holdings in Article V is true and
correct in all material respects, in each case as though made on and as of the date
hereof or, in the case of representations and warranties expressly made as of a
specified date earlier than the date hereof, on and as of such earlier date.]
	 
	 	 	 	[Each of the representations and warranties made by NINA in Section 4.1 or
Section 4.2 is true and correct in all respects, as though made on and as of
the date hereof or, in the case of representations and warranties expressly made as
of a specified date earlier than the date hereof, on and as of such earlier date.]
	 
	 	 	 	[Each of the representations and warranties made by Investor in Article VI
that are qualified as to materiality (or words of similar effect) and in Section
6.1 and Section 6.2 is true and correct in all respects, and each other
representation or warranty made by Investor in Article VI is true and
correct in all material respects, in each case as though made on and as of the date
hereof or, in the case of representations and warranties expressly made as of a
specified date earlier than the date hereof, on and as of such earlier date.]

 

 

	 	2.	 	[Each NINA Party and NRG] [Each of TEPCO and Investor] has performed and
complied in all material respects with the respective agreements, covenants and
obligations required by the Agreement or any other Related Agreement to which it is a
party to be so performed or complied with by it at or before the date hereof.

          Capitalized terms used herein but not defined herein have the meaning given to them in the
Agreement.

* * *

2

 

          IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate on the date first
written above.

	 	 	 	 	 
	 	[NINA INVESTMENTS HOLDINGS LLC,

By Nuclear Innovation North America LLC, its

sole member]

[NUCLEAR INNOVATION NORTH AMERICA

LLC]

[TEPCO NUCLEAR ENERGY AMERICA LLC]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Officer’s Certificate]

 

 

EXHIBIT E

to Investment and Option Agreement

[FORM OF]

SECRETARY’S CERTIFICATE

OF

[NINA INVESTMENTS HOLDINGS LLC / NUCLEAR INNOVATION NORTH

AMERICA LLC / TEPCO NUCLEAR ENERGY AMERICA LLC]

                    
[•], 20__

     Pursuant to [Sections 2.5(a)(iii), (iv) and(v)/Sections 2.5(b)(ii) and (iv)] of that certain
Investment and Option Agreement, dated as of May 10, 2010 (the “Agreement”), by and among
Nuclear Innovation North America LLC, a Delaware limited liability company (“NINA”), NINA
Investments Holdings LLC, a Delaware limited liability company (“NINA Holdings”) and TEPCO
Nuclear Energy America LLC, a Delaware limited liability company (“Investor”), the
undersigned solely in [his/her] capacity as the [Secretary or other appropriate person] of [NINA,
the sole member of NINA Holdings/NINA/Investor] and not in [his/her] individual capacity, does
hereby certify on behalf of [NINA Holdings/NINA/Investor] the following:

	 	1.	 	Attached hereto as Exhibit A is a true, correct and complete copy of
the Charter Documents of [NINA/NINA Holdings/Investor] as amended, modified or
supplemented to the date hereof.
	 
	 	2.	 	Attached hereto as Exhibit B is a true, correct and complete copy of
the written consent duly adopted by the [sole member or other appropriate governing
body] of [NINA Holdings/NINA/Investor] authorizing the Agreement and any other
agreements contemplated thereby.
	 
	 	3.	 	Each of the following persons is a duly elected and qualified officer of [NINA,
the sole member of NINA Holdings/NINA/Investor], holding the respective office set
forth opposite [his/her] name below, and the signature set forth opposite [his/her]
name below is [his/her] genuine signature:

	 	 	 	 	 
	Name	 	Office	 	Signature
	 
	 	 	 	 
	[Steve Winn]/

	 	[Chief Executive Officer of NINA, the
sole member of NINA Holdings]/
	 	                                        
	 
	 	 	 	 
	[Steve Winn]/

	 	[Chief Executive Officer of NINA]/
	 	                                        
	 
	 	 	 	 
	[Toshiro Kudama]

	 	[President of Investor]
	 	                                        

 

 

	 	 	 	 	 
	Name	 	Office	 	Signature
	 
	 	 	 	 
	[Bruce Chung]/

	 	[Chief Financial Officer of NINA, the
sole member of NINA Holdings]/
	 	                                        
	 
	 	 	 	 
	[Bruce Chung]/

	 	[Chief Financial Officer of NINA]/
	 	                                        
	 
	 	 	 	 
	[Officer of Investor]

	 	[[                    ] of Investor]
	 	                                        

     Capitalized terms used herein but not defined herein have the meaning given to them in
the Agreement.

*     *     *

2 

 

     IN WITNESS WHEREOF, the undersigned has executed this Secretary’s Certificate on the date
first written above.

	 	 	 	 	 
	 	[NINA INVESTMENTS HOLDINGS LLC,

By Nuclear Innovation North America LLC, its

sole member]

[NUCLEAR INNOVATION NORTH AMERICA

LLC]

[TEPCO NUCLEAR ENERGY AMERICA

LLC]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     The undersigned officer, in the capacity set forth below, does hereby certify that the person
who has signed above is a duly elected officer of [NINA, the sole member of NINA
Holdings/NINA/Investor] holding the office in [NINA, the sole member of NINA
Holdings/NINA/Investor] set forth above, and that the signature set forth above is [his/her] true
and genuine signature.

	 	 	 	 	 
	 	[NINA INVESTMENTS HOLDINGS LLC

By Nuclear Innovation North America LLC, its

sole member]

[NUCLEAR INNOVATION NORTH AMERICA

LLC]

[TEPCO NUCLEAR ENERGY AMERICA LLC]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature
Page to Secretary’s Certificate]

 

 

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

 

 

SCHEDULES

TO THE

INVESTMENT AND OPTION AGREEMENT

BY AND AMONG

NINA INVESTMENTS HOLDINGS LLC,

NUCLEAR INNOVATION NORTH AMERICA LLC,

AND

TEPCO NUCLEAR ENERGY AMERICA LLC

DATED as of May 10, 2010

 

 

 

 

          This document includes the various Schedules (the “Schedules”) referred to in that certain
Investment and Option Agreement (the “Agreement”) dated as of May 10, 2010, by and among Nuclear
Innovation North America LLC (“NINA”), a Delaware limited liability company, NINA Investments
Holdings LLC (“NINA Holdings”), a Delaware limited liability company, and TEPCO Nuclear Energy
America LLC, a Delaware limited liability company. Capitalized terms not defined herein shall have
the meaning ascribed to such terms in the Agreement.

          The Schedules are qualified in their entirety by reference to specific provisions of the
Agreement, and are not intended to constitute, and shall not be construed as constituting,
representations or warranties of NINA and/or NINA Holdings except to the extent expressly provided
in the Agreement.

          Matters reflected in the Schedules are not necessarily limited to matters required by the
Agreement to be reflected in the Schedules. To the extent any such additional matters are included,
they are included for informational purposes and do not necessarily include other matters of a
similar nature. Headings and subheadings have been inserted herein for convenience of reference
only and shall to no extent have the effect of amending or changing the express description hereof
as set forth in the Agreement.

          Any matter set forth in one section of the Schedules shall be deemed set forth on all other
sections of the Schedules to the extent the applicability or relevance of such disclosure on such
other sections of the Schedules is readily apparent.

          Neither the specification of any dollar amount in the representations and warranties contained
in the Agreement nor the inclusion of any specific item in any section of the Schedules is intended
to imply that such amounts, higher or lower amounts, the items so included or other items, are or
are not material or outside the ordinary course of business, and no party shall use the fact of the
setting of such amounts or the fact of the inclusion of any such item in any section of the
Schedules in any dispute or controversy among the Parties as to whether any obligation, item or
matter is or is not material, or may constitute an event or condition which could be considered to
have a Material Adverse Effect.

          Neither NINA nor NINA Holdings assumes any responsibility to any Person that is not a party to
the Agreement for the accuracy of any information herein. The information was not prepared or
disclosed with a view to its potential disclosure to others. Subject to applicable Law, this
information is disclosed in confidence for the purposes contemplated in the Agreement and is
subject to the confidentiality provisions of any other agreements entered into by the parties.
Moreover, in disclosing the information in these Schedules, NINA and NINA Holdings expressly do not
waive any attorney-client privilege associated with such information or any protection afforded by
the work-product doctrine with respect to any of the matters disclosed or discussed herein.

-1-

 

Schedule 1.2(a)

Permitted Liens

	1.	 	Liens under the Loan Documents (as defined in the Toshiba Credit Agreement).

	2.	 	Terms under the Contracts or Permits that constitute Liens.
	 
	 	 	For the purpose of the foregoing “Contracts or Permits” is defined as:

	 	a.	 	Those Contracts specified on Schedule 5.15(a) (Major Contracts).
	 
	 	b.	 	The Governmental Approvals specified on Schedule 5.4(a) (Existing Governmental
Approvals).

-2-

 

Schedule 1.2(b)

Tenancy in Common Agreements

**

 

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

-3-

 

Schedule 1.2(c)

NINA Holdings Knowledge Persons

	1.	 	Steve Winn

	2.	 	Jamey Seely

	3.	 	Bruce Chung

	4.	 	John Bates

	5.	 	Stephen Smith

	6.	 	Mark McBurnett (solely for purposes of Section 5.4 of the Agreement)

	7.	 	Carl Sayko (solely for purposes of Section 5.15(b) of the Agreement)

-4-

 

Schedule 1.2(d)

Investor Knowledge Persons

	1.	 	Satoshi Yajima

	2.	 	Kenji Tateiwa

	3.	 	Eiji Hagio

-5-

 

Schedule 4.2(c)

NINA Governmental Approvals and Third-Party Consents

None.

-6-

 

Schedule 5.1(b)

Foreign Jurisdictions

	1.	 	NINA Investments Holdings LLC — Texas

	2.	 	Nuclear Innovation North America Investments LLC — Texas

	3.	 	NINA Texas 3 LLC — Texas

	4.	 	NINA Texas 4 LLC — Texas

-7-

 

Schedule 5.2(c)

NINA Holdings Governmental Approvals and Third-Party Consents

None.

-8-

 

Schedule 5.3(e)

Assets of the NINA Subsidiaries

Key Tangible Assets: **

Key Assets excluded from Section 5.3(e)(i):

The NINA Subsidiaries are not parties to the below Key Assets.

**

 

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

-9-

 

Assets excluded from Section 5.3(e)(ii) — (iii):

The NINA Subsidiaries are not the sole parties to the below Assets.

**

 

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

-10-

 

Schedule 5.3(f)

Equity Holdings of the NINA Subsidiaries

**

 

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

-11-

 

Schedule 5.4(a)

Existing Project Governmental Approvals

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Date
 Issued/	 	 
	Permitting Agency	 	Permittee	 	Name of Permit	 	Permit Number	 	Completed	 	Date Expires
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**

 

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

-12-

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Date
 Issued/	 	 
	Permitting Agency	 	Permittee	 	Name of Permit	 	Permit Number	 	Completed	 	Date Expires
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**

 

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

-13-

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Date
 Issued/	 	 
	Permitting Agency	 	Permittee	 	Name of Permit	 	Permit Number	 	Completed	 	Date Expires
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**	 	**

 

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

-14-

 

Schedule 5.4(b)

Applications for Governmental Approvals

	 	 	 	 	 	 	 	 	 
	Permitting Agency	 	Permittee	 	Name of Permit	 	Permit Number	 	Date of
 Application
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**
	**
	 	**	 	**	 	**	 	**

 

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

-15-

 

Schedule 5.4(c)

Major Permits

	 	 	 	 	 
	Permitting Agency	 	Permittee	 	Name/Purpose of Permit
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**

 

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

-16-

 

	 	 	 	 	 
	Permitting Agency	 	Permittee	 	Name/Purpose of Permit
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**
	**
	 	**	 	**

 

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

-17-

 

Schedule 5.5(c)

Governmental Investigations of Project

**

 

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

-18-

 

Schedule 5.10

Changes and Liabilities

**

 

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

-19-

 

Schedule 5.11

Tax Disclosure

**

 

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

-20-

 

Schedule 5.13

Real Property

**

 

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

-21-

 

Schedule 5.14

Liens on and Infringements of Intellectual Property

With respect to Sections 5.14(a), (d) and (e): **

With respect to Section 5.14(c):

**

 

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

-22-

 

Schedule 5.14(b)

Allocation of Intellectual Property

**

 

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

-23-

 

Schedule 5.15(a)

Major Contracts

Contracts that if suspended or terminated, would reasonably be expected to materially delay or
materially impair the ability to achieve the Commercial Operation Date as contemplated by the
Business Plan.

**

	*	 	Contracts so designated have been contributed to the Project Companies to the extent they
relate to the development of the Project through the Tenancy in Common Agreements.

 

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

-24-

 

Schedule 5.15(b)

Breaches and Defaults Relating to Major Contracts

**

 

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

-25-

 

Schedule 5.15(c)

Other Agreements

**

 

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

-26-

 

Schedule 5.16

Affiliate Contracts

**

 

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

-27-

 

Schedule 5.17

Potential Conflicts of Interest

**

 

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

-28-

 

Schedule 5.18

Power Purchase Agreements

**

 

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

-29-

 

Schedule 5.21

CPS Settlement Documents

	1.	 	STP 3 & 4 Owners Agreement, dated March 1, 2010, by and among CPS, NINA and the Project
Companies.
	 
	2.	 	Project Agreement, Settlement Agreement and Mutual Release, dated March 1, 2010, by and among
CPS, NINA, the Project Companies, NRG Energy, Inc. (for the purposes of only certain sections
therein), and NRG South Texas LP (for the purposes of only certain sections therein).
	 
	3.	 	The Assignment and Assumption Agreement, dated March 1, 2010, by and among CPS and the
Project Companies.
	 
	4.	 	Bill of Sale, dated March 1, 2010, by and among CPS and the Project Companies.
	 
	5.	 	The Acknowledgement, dated March 1, 2010, by STPNOC.
	 
	6.	 	Ratification Agreement, dated March 1, 2010, by NINA Texas 3.
	 
	7.	 	Ratification Agreement, dated March 1, 2010, by NINA Texas 4.

-30-

 

Schedule 6.2(c)

Investor Governmental Approvals and Third-Party Consents

None.

-31-

 

Schedule 7.6

Permitted Interim Actions

**

 

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

-32-exv10w4

Exhibit 10.4

Portions of this exhibit have been redacted and are the subject of a confidential treatment

request filed with the Secretary of the Securities and Exchange Commission.

PARENT COMPANY AGREEMENT

     This Parent Company Agreement (this “Agreement”), dated as of May 10, 2010, by and
among NRG Energy, Inc., a Delaware corporation (“NRG”), Nuclear Innovation North America
LLC (f/k/a NRG Nuclear Development Company LLC), a Delaware limited liability company
(“NINA”), The Tokyo Electric Power Company, Incorporated, a Japanese corporation
(“TEPCO”), and TEPCO Nuclear Energy America LLC, a Delaware limited liability company
(“Investor”) (NRG, NINA, TEPCO and Investor, collectively, the “Parties”).

WITNESSETH

     WHEREAS, NRG and Toshiba collectively indirectly own all of the limited liability company
interests of NINA;

     WHEREAS, NINA directly owns one hundred percent (100%) of the limited liability company
interests of NINA Investments Holdings LLC, a Delaware limited liability company (“NINA
Holdings”);

     WHEREAS, NINA Holdings directly owns one hundred percent (100%) of the limited liability
company interests of Nuclear Innovation North America Investments LLC, a Delaware limited liability
company (“NINA Investments”);

     WHEREAS, NINA Investments directly owns one hundred percent (100%) of the limited liability
company interests of NINA Texas 3 LLC, a Delaware limited liability company (“NINA Texas
3”) and of NINA Texas 4 LLC, a Delaware limited liability company (“NINA Texas 4”, and
together with NINA Texas 3, the “Project Companies”);

     WHEREAS, NINA Texas 3 has, or has the right to obtain, an undivided ninety-two and
three-eighths percent (92.375%) interest as a tenant-in-common in the South Texas Unit 3, and NINA
Texas 4 has, or has the right to obtain, an undivided ninety-two and three-eighths percent
(92.375%) interest as a tenant-in-common in the South Texas Unit 4;

     WHEREAS, Investor, NINA and NINA Holdings have entered into that certain Investment and Option
Agreement, dated as of the date hereof (the “Investment Agreement”) simultaneously with the
execution and delivery of this Agreement;

     WHEREAS, the Investment Agreement contemplates that, upon the Initial Closing, Investor will
become a member of NINA Holdings, and Investor and NINA will enter into an Amended and Restated
Operating Agreement of NINA Holdings, the form of which is attached to the Investment Agreement as
Exhibit C thereto (the “Operating Agreement”, and together with the Investment Agreement,
the “Transaction Agreements”);

     WHEREAS, the Parties will benefit from the transactions contemplated by the Transaction
Agreements;

     WHEREAS, NRG desires to grant to Investor the option to put all, but not less than all, of its
Membership Units to NRG in connection with any NRG Change of Control occurring after the Initial
Closing Date;

     WHEREAS, NINA desires to grant to TEPCO, Investor, or TEPCO’s designated Wholly-Owned
Affiliate (as defined in the Operating Agreement) (in each case, “TEPCO Acquiror”) the

 

 

option to make an investment in any entity of NINA formed after the Initial Closing Date
for the purpose of engaging in the business of the development, ownership and operation of advanced
boiling water reactors nuclear power generation facilities in North America (collectively,
“Future ABWR Projects”), in each case on the terms and subject to the conditions set forth
in this Agreement; and

     WHEREAS, NINA has agreed to consider permitting (i) TEPCO to exchange its interests in NINA
Holdings for interests in NINA and/or (ii) TEPCO Acquiror to participate after the Initial Closing
Date with NINA and its controlled Affiliates in investments in certain Class B Projects.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, and to induce Investor, NINA, and NINA Holdings to enter into the Transaction
Agreements, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties hereby agree as follows:

ARTICLE I

RULES OF CONSTRUCTION; DEFINITIONS

          1.1 Certain Matters of Construction. The rules of construction set forth in Section
1.1 of the Investment Agreement shall apply to this Agreement as if fully set forth herein.

          1.2 Certain Definitions. Capitalized terms used but not defined herein shall have the meaning
set forth in the Investment Agreement.

          1.3 Certain Definitions. As used herein, the following additional terms shall have the
following meanings:

     “Class B Projects” means certain energy-related projects directly or indirectly owned,
whether on or after the date hereof, by NINA that constitute part of the Class B Business (as
defined in the NINA Operating Agreement), other than any Future ABWR Projects.

     “Commercial Operation Date” means the date on which the later of the Units to achieve
“Substantial Completion” under and as defined in the EPC Contract achieves Substantial Completion
in accordance with the terms thereof.

     “Control” means the possession, directly or indirectly, through one or more
intermediaries, of either of the following with respect to another Person: (a) the right to more
than fifty percent (50%) of the distributions from such Person (including liquidating
distributions) or more than fifty percent (50%) of the economic or beneficial interest in such
Person and (b) the power or authority, through ownership of voting securities, by contract or
otherwise, to exercise a controlling influence over the management of the relevant Person, which
controlling influence shall only be deemed to exist in respect of the relevant Person, if and when
another Person owns more than fifty percent (50%) of the voting stock of such relevant Person, and
“Controls”, “Controlling” and “Controlled” have the correlative meanings.

     “Dispose” and “Disposition” shall have the meaning set forth in the Operating
Agreement.

     “Financial Closing” means the occurrence of (i) the “Closing” for the construction
loan financing under the senior loan documentation contemplated by the DOE loan guarantee

2

 

commitment, (ii) the commitment of all funds with respect thereto under such documentation, and
(iii) the initial drawing thereunder.

     “Membership Units” means the membership units of NINA Holdings.

     “NINA Operating Agreement” means that certain Third Amended and Restated Operating
Agreement of NINA, dated as of May 8, 2009.

     “NRG Change of Control” shall mean any transaction or event or series of related
transactions or events (including any tender offer, stock sale, merger, combination,
reorganization, consolidation or other transaction) the result of which is a Person or “group”
(within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended to date)
that does not Control NRG as of the date hereof Controlling NRG.

ARTICLE II

COVENANTS RELATING TO NINA

          2.1 NRG Covenant. NRG shall not, and shall not permit any of its Affiliates to, take or permit
any action, including consummating any Disposition under the Operating Agreement, that would result
in NRG failing to own and control, directly or indirectly, at least thirty-five percent (35%) of
the net beneficial ownership interests in each Unit (the “NRG Hold Requirement”) until the
earlier of: (a) the fifth (5th) anniversary of the Commercial Operation Date and (b) the date that
Investor ceases to directly or indirectly hold at least ten percent (10%) of the ownership
interests of NINA Holdings; provided, that if Investor and NINA agree to, directly or
indirectly, Dispose of any interests in the Project (whether by a sale of their interests in NINA
Holdings or otherwise) for the purpose of funding an investment in Future ABWR Projects, TEPCO
shall be deemed to have automatically waived the NRG Hold Requirement. Any attempted Disposition by
NRG or its Affiliates of any interests in the Project in violation of this Section 2.1
shall be, and is hereby declared, null and void ab initio.

          2.2 Investor Hold Requirement. Other than in connection with a Disposition under ARTICLE
III of this Agreement, Investor shall not Dispose of all or any portion of its Membership Units
to any Person prior to the Commercial Operation Date without the approval of the board of managers
of NINA Holdings (acting by the affirmative vote or written consent of one or more managers of NINA
Holdings, other than the manager appointed by Investor, having a majority of the aggregate Voting
Percentages (as defined in the Operating Agreement) in accordance with Section 5.1(c) of the
Operating Agreement). Any attempted Disposition by Investor or its Affiliates in violation of this
Section 2.2 shall be, and is hereby declared, null and void ab initio.

          2.3 Investment Preference. The Parties acknowledge and agree that issuances of new equity
interests of NINA Holdings shall be preferred to sales of existing equity interests of NINA
Holdings by NINA and Investor;
provided, however, that nothing in this Section 2.3 shall limit or
otherwise restrict the ability of NINA or Investor to Dispose of equity interests of NINA Holdings
in accordance with the Operating Agreement.

          2.4 Creditworthiness Standards. Notwithstanding anything to the contrary in the Operating
Agreement, none of the Parties hereto shall, nor shall any Party cause its Affiliates to, Dispose
of all or a portion of its Membership Units to any Person without the prior

3

 

written approval of
the other Parties unless such Person’s or such Person’s Parent’s (as defined in the Operating
Agreement) long-term unsecured debt is rated by Standard & Poor’s Corporation as
** (or an equivalent rating by another recognized rating agency);
provided, however, that if such Person’s or such Person’s Parent’s long-term
unsecured debt is not rated by Standard & Poor’s Corporation (or another recognized rating agency),
then such Person’s or such Person’s Parent’s net worth (based on its most recent audited financial
statements) is at least **.

          2.5 No Amendment to Operating Agreement. Neither NINA nor any manager appointed by NINA to the
board of managers of NINA Holdings shall propose any amendment to the Operating Agreement that
would be subject to approval under Section 5.1(d)(i)(B) thereof prior to the admission of a new
member of NINA Holdings pursuant to Section 3.3 or Section 6.3 of the Operating Agreement or in
connection with the issuance or sale of New Securities (as defined in the Operating Agreement) in
an IPO (as defined in the Operating Agreement).

          2.6 Project Contracts. NINA shall exercise any and all of its rights and remedies, and perform
all obligations, under any Contract, Governmental Approval and application for a Governmental
Approval set forth on Schedule 2.6 hereof solely at the direction of NINA Holdings. In the
event that NINA receives any benefit under any such Contract, Governmental Approval or application
for a Governmental Approval, then NINA shall transfer or assign, or cause to be transferred or
assigned, the benefit so received to the NINA Subsidiaries as directed by NINA Holdings (which, for
the avoidance of doubt, shall not constitute a Capital Contribution (as defined in the Operating
Agreement) to NINA Holdings or a capital contribution to any NINA Subsidiary). NINA shall not
assign any Contract, Governmental Approval or application for a Governmental Approval set forth on
Schedule 2.6 hereof to any Person other than a NINA Subsidiary.

          2.7 Exercise of Cure Rights In Connection with a Failure to Contribute Capital Contributions.
Notwithstanding Section 2.1, Section 2.2, or Section 2.4, a Member may
Dispose of all of the Membership Units issued to it in exchange for its Capital Contributions (as
defined in the Operating Agreement) pursuant to Section 6.3(a)(i) of the Operating Agreement to
the Nonfunding Member (as defined in the Operating Agreement) that cures its failure to make
such Capital Contributions in accordance with Section 6.3(a)(i) of the Operating Agreement.

ARTICLE III

NRG CHANGE OF CONTROL

          3.1 NRG Change of Control.

 

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

4

 

          (a) Investor shall have the right (the “NRG Change of Control Put Right”), but not the
obligation, during the ninety (90)-day period from and after the date on which an NRG Change of
Control has occurred (the “NRG Change of Control Exercise Period”) to sell to NRG, and NRG
shall be obligated to purchase from Investor, subject to the provisions of this ARTICLE
III, all, but not less than all, of the Membership Units of Investor for a price equal to the
greater of (x) the sum of (i) the TEPCO Contribution (as defined in the Operating Agreement) plus
(ii) the total Capital Contributions (as defined in the Operating Agreement) made by Investor
through the date of such purchase and (y) the Fair Market Value of the Membership Units as of the
earlier to occur of such NRG Change of Control or NRG entering into a binding agreement to effect
such NRG Change of Control (such amount, the “NRG Change of Control Put Price”). Investor
may exercise the NRG Change of Control Put Right by delivery of written notice to NRG (such notice,
the “NRG Change of Control Put Exercise Notice”) of its exercise of the NRG Change of
Control Put Right. The NRG Change of Control Put Right shall terminate on, if not exercised prior
to, the fifth (5th) anniversary of the Commercial Operation Date. Notwithstanding
anything to the contrary in this ARTICLE III, the consummation of the Put Closing (as
defined below) shall not occur prior to the consummation of the NRG Change of Control.

          (b) Promptly upon Investor’s delivery of a NRG Change of Control Put Exercise Notice, Investor
shall comply with its obligations under Section 4.3 of the Operating Agreement. In the event the
other members of NINA Holdings fail to exercise their Preferential Rights (as defined in the
Operating Agreement) to purchase all of the Membership Units of Investor, then the closing of the
purchase of the remaining Membership Units of Investor by NRG (the “Put Closing”) shall
occur at the principal place of business of NINA Holdings on the later to occur of (x) the date of
the consummation of the NRG Change of Control, (y) the seventy-fifth (75th) day after
the date on which the NRG Change of Control Put Exercise Notice is given (or if regulatory
approvals are required, such as the prior written consent of the NRC or the DOE, on or before the
thirtieth (30th) day after the date on which all such approvals are obtained) and (z)
the final determination of the Fair Market Value of the Membership Units of Investor in accordance
with Section 3.1(d), unless Investor and NRG agree upon a different place or date (any such
date, the “Put Closing Date”). At the Put Closing, (i) Investor shall execute and deliver
to NINA Holdings (A) an assignment of all of Investor’s Membership Units, in form and substance
reasonably acceptable to NRG, containing representations and warranties as to title to such
Membership Units (including that such Membership Units are free and clear of all Encumbrances (as
defined in the Operating Agreement) and no conflicts with law and (B) all unit certificates
representing the Membership Units duly endorsed in blank, accompanied by either unit powers duly
endorsed in blank or such other instruments of transfer as are reasonably requested by NRG to
effect the Put Closing, and (ii) NRG shall deliver to Investor in
immediately available funds an amount equal to the NRG Change of Control Put Price of such
Membership Units.

          (c) Notwithstanding anything contained in this Section 3.1 to the contrary, NRG shall
not be obligated to purchase the Membership Units of Investor which are the subject of a NRG Change
of Control Put Exercise Notice or be obligated to pay the NRG Change of Control Put Price, if the
purchase of such Membership Units and the payment of the NRG Change of Control Put Price at such
time is prohibited by Law; provided, however, if such violation would not result
from the purchase of any number of Membership Units which is less

5

 

than the total number of
Membership Units NRG is obligated to purchase pursuant to such NRG Change of Control Put Exercise
Notice on the Put Closing Date, NRG shall purchase on the Put Closing Date the maximum number of
Membership Units it may so purchase that would not result in such violation; and provided,
further, that NRG shall use its reasonable efforts to cure such violation in a timely
manner.

          (d) For the purpose of this ARTICLE III only, “Fair Market Value” means the
**.

ARTICLE IV

OPTIONS AND FUTURE INVESTMENTS

          4.1 Options.

          (a) In the event that NINA or any of its controlled Affiliates makes an investment or
determines to make an investment in a Future ABWR Project after the Initial Closing Date, upon the
commencement of core borings to support soil studies, NINA shall provide TEPCO with written notice
of such investment or determination (the “Future ABWR Notice”). TEPCO Acquiror shall have
the right, but not the obligation, **, by written notice to NINA, to invest
or participate in such Future ABWR Project at cost (such investment, a “Future ABWR
Investment”), **.

          (b) NINA agrees to consider, at the written request of TEPCO, permitting Investor to exchange
its interests in NINA Holdings for ** in NINA (the “Exchange”), with the number
and class of Membership Units (as defined in the NINA Operating Agreement) in NINA to be acquired
by Investor in the Exchange and other terms and conditions to be agreed by NINA and Investor at the
time NINA permits the Exchange, if ever.

          (c) After the Initial Closing Date, NINA shall consider, at the written request of TEPCO,
permitting TEPCO Acquiror to participate in any Class B Project ** (a “Class B
Investment”), with the terms and conditions of any such Class B Investment (**) to
be mutually agreed upon by NINA and TEPCO Acquiror at the time of such Class B Investment. Upon
request from TEPCO, NINA shall provide a description of such Class B Business to TEPCO, and
NINA and TEPCO Acquiror shall negotiate in good faith the terms of the Class B Investment
(**); provided, that in no event shall (x) TEPCO Acquiror be obligated to
participate in any Class B Investment or (y) NINA be obligated to accept TEPCO Acquiror’s
participation in any Class B Investment.

          4.2 Consideration for Rights under this Agreement. Subject to the provisions of Section
7.8(b), the rights under this ARTICLE IV have been granted as an inducement to Investor
to enter into the Investment Agreement and are fully paid as of the date of this Agreement. No
additional consideration will be required to be paid by Investor or any

 

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

6

 

TEPCO Acquiror with respect
to the grant or exercise of such rights, except for the payments described in ARTICLE III
or this ARTICLE IV, as applicable.

ARTICLE V

GUARANTEES

          5.1 TEPCO. On the Agreement Date, TEPCO has executed and to NINA Holdings the TEPCO Initial
Guaranty in favor of NINA Holdings, in the form of Exhibit B-1 to the Investment Agreement.

          5.2 NRG. On the Initial Closing Date, NRG will execute and deliver to Investor the NRG Parent
Guaranty in favor of Investor, in the form of Exhibit A to the Investment Agreement.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

     Each Party hereby makes the following representations and warranties to the other Parties:

          6.1 Corporate Existence. It is a corporation or limited liability company, as applicable, duly
formed, validly existing and (if applicable) in good standing under the laws of the jurisdiction of
its formation and has the power and authority to own, operate and lease its properties and carry on
its business as presently conducted. It is duly qualified or licensed to do business and is in good
standing in all jurisdictions in which the character of the properties owned or held under lease by
it or the nature of the business transacted by it makes qualification necessary.

          6.2 Authority for Agreement; Enforceability. It has the power and authority to execute,
deliver and perform its obligations under this Agreement in accordance with its terms. The
execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly and validly authorized by all necessary action and no other corporate,
limited liability company, shareholder or member proceedings or actions (or their equivalents) are
necessary on its part to authorize and
consummate this Agreement and the transactions contemplated hereby. This Agreement has been
duly executed and delivered by it, and constitutes its legal, valid and binding obligations,
enforceable against it in accordance with its terms, subject to the Equitable Qualifications.

          6.3 No Conflict. Neither the execution and delivery by it of this Agreement nor the
performance by it of its obligations hereunder, nor the consummation by it of the transactions
contemplated hereby, will (i) violate any provision of its Charter Documents, (ii) conflict with,
or result in a breach of any term, covenant, condition or provision of, or constitute a default
(with or without notice or lapse of time or both) under, or result in a penalty or in the creation
or imposition of any Lien (other than the options and rights granted under ARTICLE IV) upon
any of its material Assets pursuant to the terms of, or give rise to any right of termination,
purchase, cancellation or acceleration under, any material Contract to which it is a party or by
which it or any of its material Assets are bound, (iii) conflict with or result in a violation or

7

 

breach of any term or provision of any Law applicable to it or its material Assets, or (iv) require
the consent or approval of, filing with, or notice to any Person which, if not obtained, would
prevent or impair in any material respect it from performing its obligations under this Agreement.

          6.4 Approvals for Transaction. No Governmental Approval and no consent, approval,
authorization, or permit of, or filing with or notification to, any Person is required in
connection with the execution and delivery of this Agreement by it or for or in connection with its
consummation of the transactions and performance of the terms and conditions contemplated by this
Agreement by it.

          6.5 Litigation and Audits. There is no investigation by any Governmental Entity with respect
to it relating to any of the NINA Companies or their respective material Assets, the Project or the
Transactions, that is pending or, to its knowledge, threatened, nor has any Governmental Entity
indicated in writing to it an intention to conduct the same. There is no Action pending or, to its
knowledge, threatened against or involving it (insofar as it relates to the NINA Companies, the
Project, or the Transactions), at law or in equity, before any arbitrator or Governmental Entity.
There are no Orders outstanding against it with respect to any of the NINA Companies or their
respective material Assets, the Project, or the Transactions.

ARTICLE VII

MISCELLANEOUS

          7.1 Expenses. Except as otherwise provided in any other provision herein, all costs and
expenses (including attorneys’ and consultants’ fees, costs and expenses) incurred in connection
herewith shall be paid by the Party incurring such expenses.

          7.2 Further Assurances. At any time and from time to time, to the extent reasonably requested by the other Party,
each Party agrees, subject to the terms and conditions of this Agreement, to take such commercially
reasonable actions and to execute and deliver such documents as may be necessary to effectuate the
purposes of this Agreement at the earliest practicable time.

          7.3 Amendments and Supplements. This Agreement may be amended or supplemented only by an
instrument in writing signed by each Party.

          7.4 Waiver. The terms and conditions of this Agreement may be waived only by a written
instrument signed by the Party waiving compliance. The failure of any Party hereto to enforce at
any time any of the provisions of this Agreement shall in no way be construed to be a waiver of any
such provision, nor in any way to affect the validity of this Agreement or any part hereof or the
right of such Party thereafter to enforce each and every such provision. No waiver of any breach of
or non-compliance with this Agreement shall be held to be a waiver of any other or subsequent
breach or non-compliance. Except as otherwise expressly provided in this Agreement, the rights and
remedies herein provided are cumulative and are not exclusive of any rights or remedies that any
Party may otherwise have at law or in equity.

          7.5 Governing Law; Binding Arbitration.

8

 

          (a) This Agreement shall be governed by, and construed and enforced in accordance with, the
substantive laws of the State of New York, without regard to its principles of conflicts of laws
other than Section 5-1401 of the New York General Obligations Law.

          (b) Section 11.4 of the Investment Agreement shall apply mutatis mutandis to this Agreement in
the event of any Dispute arising out of or relating to this Agreement or the interpretation hereof
or any arrangements relating hereto or contemplated herein or the validity, breach or termination
hereof.

          7.6 Notice. Except as expressly set forth to the contrary in this Agreement, all notices,
requests, consents, or other communications provided for or permitted to be given under this
Agreement must be in writing and must be delivered to the recipient in person, by courier, mail,
electronic mail (with receipt confirmed personally by the recipient (and not by automatic
confirmation of receipt)) or facsimile (if followed by courier or mail). A notice, request,
consent, or communication given under this Agreement is effective on receipt by the Party to
receive it; provided, that a notice, request, consent, or communication given by electronic
mail shall be deemed effective upon being sent in the local jurisdiction from which such electronic
mail is being sent, subject to confirmation of receipt by the recipient as set forth in the
preceding sentence. All notices, requests, consents, or other communications to be sent to a Party
must be sent to or made at the addresses, electronic mail address or fax number set forth below, or
such other address, electronic mail address or fax number as that Party may specify by notice to
each of the other Parties.

          (a) If to TEPCO:

	 	 	 	**

          (b) If to Investor:

	 	 	 	**

          (c) If to NRG:

	 	 	 	**

          (d) If to NINA:

	 	 	 	**

          7.7 Entire Agreement. This Agreement, the Investment Agreement (including the Schedules and
Exhibits attached hereto), the Confidentiality Agreement and the other Related Agreements
constitute the entire agreement among the Parties with respect to the subject matter hereof and
supersede all other prior agreements and understandings, both written and oral, between the Parties
with respect to the subject matter hereof, including the Letter of Intent but excluding the
Confidentiality Agreement, which shall survive until the Initial Closing.

 

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

9

 

          7.8 Binding Effect; Effectiveness; Assignability.

          (a) Except as otherwise set forth in Section 7.8(b), this Agreement shall be binding
upon and inure to the benefit of the Parties and their respective successors and permitted assigns.
This Agreement is not intended to confer upon any Person other than the Parties (and such Parties’
respective successors and permitted assigns) any rights or remedies hereunder, except for TEPCO
Acquiror as described herein.

          (b) The obligations of the Parties under this Agreement shall be conditioned upon, and the
rights and obligations of the Parties hereunder shall become effective only upon and after, the
occurrence of the Initial Closing Date. In the event that the Investment Agreement is terminated in
accordance with its terms, this Agreement shall automatically terminate and be of no further force
and effect.

          (c) No Party shall assign any of its rights or delegate any of its obligations under this
Agreement to any Person without the prior written consent of the other Party. Any purported
assignment of rights or delegation of obligations in contravention of this Section 7.8(c)
shall be void ab initio.

          7.9 Validity
.. The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, each of which shall remain in
full force and effect.

          7.10 Counterparts. This Agreement may be executed and delivered in one or more counterparts,
all of which together shall constitute one and the same agreement. This Agreement may be delivered
by facsimile transmission.

          7.11 No Relationship. Nothing in this Agreement creates or is intended to create an
association, trust, partnership, joint venture, joint-employer, or any other entity or similar
legal relationship among the Parties, or impose a trust, partnership or fiduciary duty, obligation,
or liability on or with respect to the Parties. No Party is or shall act as or be the agent or
representative of any other Party.

          7.12 No Consequential or Punitive Damages. Notwithstanding any other provision of this
Agreement, no Party shall by way of indemnification for Losses or otherwise be liable to any other
Party for any consequential, exemplary, special, incidental or punitive damages under the terms of
or due to any breach of this Agreement, including loss of revenue or income, cost of capital, or
loss of business reputation or opportunity.

          7.13 Construction of Agreement. This Agreement shall be construed without regard to the
identity of the Person who drafted the various provisions of the same. Each and every provision of
this Agreement shall be construed as though the Parties participated equally in the drafting of the
same. Consequently, the Parties acknowledge and agree that any rule of construction that a document
is to be construed against the drafting party shall not be applicable to this Agreement.

[Remainder of page intentionally left blank]

10

 

     IN WITNESS WHEREOF, the Parties have caused this Parent Company Agreement to be executed and
delivered as of the date first above written.

	 	 	 	 	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	/s/
David Crane 	 
	 	 	Name:  	David Crane 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 	NUCLEAR INNOVATION NORTH AMERICA LLC

 	 
	 	By:  	/s/
Steve Winn 	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 
	 	TOKYO ELECTRIC POWER COMPANY, INCORPORATED

 	 
	 	By:  	/s/
Masataka Shimizu 	 
	 	 	Name:  	Masataka Shimizu 	 
	 	 	Title:  	President 	 
	 
	 	TEPCO NUCLEAR ENERGY AMERICA LLC

 	 
	 	By:  	/s/
Toshiro Kudama 	 
	 	 	Name:  	Toshiro Kudama 	 
	 	 	Title:  	President

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