Document:

exv10w3

Exhibit 10.3

FORM OF

EMPLOYEE MATTERS AGREEMENT

by and among

ENTERGY CORPORATION,

ENEXUS ENERGY CORPORATION

and

EQUAGEN LLC

Dated as of ________, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION
	 	 	2	 
	Section 1.1 Definitions
	 	 	2	 
	Section 1.2 References; Interpretation
	 	 	14	 
	Section 1.3 Relation to Other Documents
	 	 	15	 
	ARTICLE II GENERAL PRINCIPLES
	 	 	15	 
	Section 2.1 Assumption and Retention of Liabilities; Related Assets
	 	 	15	 
	Section 2.2 Participation in Entergy Benefit Arrangements
	 	 	17	 
	Section 2.3 Service Recognition
	 	 	17	 
	Section 2.4 Collective Bargaining Agreements
	 	 	18	 
	Section 2.5 No Duplication of Benefits
	 	 	18	 
	Section 2.6 No Acceleration of Benefits
	 	 	19	 
	Section 2.7 Amendment Authority
	 	 	19	 
	Section 2.8 No Commitment to Employment or Benefits
	 	 	19	 
	Section 2.9 No Expansion of Participation
	 	 	19	 
	Section 2.10 Approval by Entergy as Sole Stockholder
	 	 	19	 
	ARTICLE III QUALIFIED DEFINED BENEFIT PLANS
	 	 	20	 
	Section 3.1 Establishment of EquaGen Plan
	 	 	20	 
	Section 3.2 Entergy Retirement Plan Transfer
	 	 	20	 
	Section 3.3 EquaGen Assumed Transfer Retirement Plan
	 	 	23	 
	Section 3.4 Certain Participants
	 	 	27	 
	ARTICLE IV QUALIFIED DEFINED CONTRIBUTION PLANS
	 	 	28	 
	Section 4.1 EquaGen Savings Plan
	 	 	28	 
	Section 4.2 Employer Securities
	 	 	30	 
	Section 4.3 Transfer of EquaGen Assumed Plan Accounts
	 	 	30	 
	Section 4.4 Enexus Savings Plan
	 	 	30	 
	ARTICLE V HEALTH AND WELFARE PLANS
	 	 	31	 
	Section 5.1 Health and Welfare Plans Maintained by Entergy Prior to the Distribution Date
	 	 	31	 
	Section 5.2 Time-Off Benefits
	 	 	36	 
	Section 5.3 Post-Retirement Benefits for Enexus Participants
	 	 	36	 
	Section 5.4 EquaGen OPEB Benefits
	 	 	37	 
	Section 5.5 Special Service Crediting Rule
	 	 	37	 
	Section 5.6 Disposition of VEBA Assets
	 	 	38	 
	ARTICLE VI EXECUTIVE BENEFIT PLANS
	 	 	39	 
	Section 6.1 Supplemental Retirement Plans
	 	 	39	 

 

 

	 	 	 	 	 
	Section 6.2 Separation is Not Distributable Event
	 	 	41	 
	Section 6.3 Establishment of Certain Plans
	 	 	41	 
	Section 6.4 No Transfer of Assets Attributable to Entergy Nonqualified Plans
	 	 	41	 
	ARTICLE VII LONG-TERM INCENTIVE AWARDS
	 	 	41	 
	Section 7.1 Treatment of Outstanding Entergy Options
	 	 	41	 
	Section 7.2 Treatment of Outstanding Entergy Restricted Stock
	 	 	43	 
	Section 7.3 Treatment of Outstanding Entergy Restricted Stock Units
	 	 	43	 
	Section 7.4 Treatment of Outstanding Entergy Performance Units
	 	 	44	 
	Section 7.5 Cooperation
	 	 	45	 
	Section 7.6 SEC Registration
	 	 	46	 
	Section 7.7 Savings Clause
	 	 	46	 
	ARTICLE VIII ADDITIONAL COMPENSATION MATTERS
	 	 	46	 
	Section 8.1 Workers’ Compensation Liabilities
	 	 	46	 
	Section 8.2 Code Sections 162(m)/409A
	 	 	47	 
	Section 8.3 Director Programs
	 	 	47	 
	Section 8.4 Certain Payroll, Annual Bonus and Relocation Payment Matters
	 	 	48	 
	Section 8.5 Nuclear Retention Plan
	 	 	49	 
	Section 8.6 Certain Insurance Arrangements
	 	 	50	 
	ARTICLE IX INDEMNIFICATION
	 	 	50	 
	Section 9.1 Indemnification by the Parties
	 	 	50	 
	Section 9.2 Procedures for Indemnification
	 	 	50	 
	Section 9.3 Indemnification Payments
	 	 	52	 
	Section 9.4 Indemnification Obligations Net of Insurance Proceeds and Other Amounts on a
Net-Tax Basis
	 	 	52	 
	Section 9.5 Additional Matters; Survival of Indemnities
	 	 	53	 
	ARTICLE X GENERAL AND ADMINISTRATIVE
	 	 	53	 
	Section 10.1 Sharing of Information
	 	 	53	 
	Section 10.2 Reasonable Efforts/Cooperation
	 	 	54	 
	Section 10.3 Employer Rights
	 	 	54	 
	Section 10.4 Effect on Employment
	 	 	54	 
	Section 10.5 Consent of Third Parties
	 	 	54	 
	Section 10.6 Access to Employees
	 	 	55	 
	Section 10.7 Beneficiary Designation/Release of Information/Right to Reimbursement
	 	 	55	 
	ARTICLE XI MISCELLANEOUS
	 	 	55	 
	Section 11.1 Complete Agreement; Construction
	 	 	55	 
	Section 11.2 Relationship of Parties
	 	 	55	 

 

 

	 	 	 	 	 
	Section 11.3 Subsidiaries
	 	 	55	 
	Section 11.4 Notices
	 	 	56	 
	Section 11.5 Waivers
	 	 	57	 
	Section 11.6 Amendments
	 	 	57	 
	Section 11.7 Termination, Etc.
	 	 	57	 
	Section 11.8 Governing Law
	 	 	57	 
	Section 11.9 Dispute Resolution
	 	 	57	 
	Section 11.10 Consent to Jurisdiction
	 	 	57	 
	Section 11.11 Titles and Headings
	 	 	58	 
	Section 11.12 Exhibits and Schedules
	 	 	58	 
	Section 11.13 Counterparts
	 	 	58	 
	Section 11.14 Assignment
	 	 	58	 
	Section 11.15 Severability
	 	 	58	 
	Section 11.16 Successors and Assigns
	 	 	58	 
	Section 11.17 Specific Performance
	 	 	59	 
	Section 11.18 Waiver of Jury Trial
	 	 	59	 
	Section 11.19 Force Majeure
	 	 	59	 
	Section 11.20 Authorization
	 	 	59	 
	Section 11.21 Third Party Beneficiaries
	 	 	60	 
	Section 11.22 Construction
	 	 	60	 

 

 

EMPLOYEE MATTERS AGREEMENT

     EMPLOYEE MATTERS AGREEMENT (this “Agreement”), dated as of [•], 2008, by and among
Entergy Corporation, a Delaware corporation (“Entergy”), Enexus Energy Corporation, a
Delaware corporation (“Enexus”), and EquaGen LLC, a Delaware limited liability company
(“EquaGen”). Each of Entergy, Enexus and EquaGen is herein referred to as a
“Party” and collectively, as the “Parties”.

R E C I T A L S:

     WHEREAS, Entergy, acting through its direct and indirect Subsidiaries, currently conducts a
number of businesses, including (i) the Non-Utility Nuclear Business, and (ii) the Retained
Business;

     WHEREAS, the Board of Directors of Entergy has determined that it is appropriate, desirable
and in the best interests of Entergy and its stockholders to separate Entergy into two separate,
independent and publicly traded companies: (i) one comprising the Non-Utility Nuclear Business,
which shall be owned and conducted, directly or indirectly, by Enexus, and (ii) one comprising the
Retained Business which shall continue to be owned and conducted, directly or indirectly, by
Entergy;

     WHEREAS, in order to effect such separation, the Board of Directors of Entergy has determined
that it is appropriate, desirable and in the best interests of Entergy and its stockholders: (i) to
enter into a series of transactions whereby certain assets of Entergy and its Affiliates will be
reorganized such that (A) Entergy and/or one or more other members of the Entergy Group will,
collectively, own all of the Retained Business Assets and assume (or retain) all of the Retained
Business Liabilities, and (B) Enexus and/or one or more other members of the Enexus Group will,
collectively, own all of the Non-Utility Nuclear Assets and assume (or retain) all of the
Non-Utility Nuclear Liabilities; and thereafter (ii) for Entergy to distribute to the holders of
Entergy Common Stock on such record date as may be established by the Board of Directors of Entergy
on a pro rata basis (in each case without consideration being paid by such stockholders) all of the
issued and outstanding shares of Enexus Common Stock (such transactions, as may be amended or
modified in accordance with the terms and subject to the conditions of this Agreement from time to
time, the “Separation”);

     WHEREAS, to effect this Separation the Parties entered into that certain Separation and
Distribution Agreement dated as of even date hereof (as amended or otherwise modified from time to
time, the “Separation Agreement”);

     WHEREAS, in connection with the Separation, the Board of Directors of Entergy and the Board of
Directors of Enexus have determined to establish (indirectly, through their wholly owned
Subsidiaries’ investment in EquaGen) the Joint Venture (within the meaning of the Joint Venture
Formation Agreement by and among the Parties, dated as of [•], 2008 (the “Joint Venture
Agreement”));

 

 

     WHEREAS, in accordance with the terms and conditions of the Joint Venture Agreement,
Entergy will own fifty percent (50%) of the membership interests in EquaGen and Enexus will own the
remaining fifty percent (50%) of the membership interests in EquaGen; and

     WHEREAS, pursuant to the Separation Agreement, Entergy, EquaGen and Enexus have agreed to
enter into this Agreement for the purpose of allocating Assets, Liabilities and responsibilities
with respect to certain employee compensation and benefit plans and programs between and among them
and to address certain other employment-related matters.

     NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and
covenants contained in this Agreement, the Parties hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

          Section 1.1 Definitions. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Separation Agreement and the following terms shall have the
following meanings:

     “Action” shall mean any demand, action, claim, charge, suit, countersuit, arbitration,
inquiry, subpoena, proceeding or investigation by or before any Governmental Entity or any
arbitration or mediation tribunal.

     “Agreement” shall have the meaning set forth in the preamble hereto.

     “Agreement Dispute” shall have the meaning ascribed thereto in Section 11.9 of
this Agreement.

     “Benefit Arrangement” shall mean each Benefit Plan and Benefit Policy.

     “Benefit Plan” shall mean, with respect to an entity, each plan, program, arrangement,
agreement or commitment that is an employment, change in control/severance, consulting,
non-competition or deferred compensation agreement, or an executive compensation, incentive bonus
or other bonus, employee pension, profit-sharing, savings, retirement, supplemental retirement,
stock option, stock purchase, stock appreciation rights, restricted stock, other equity-based
compensation, severance pay, salary continuation, life, health, hospitalization, disability or
accident insurance plan, corporate-owned or key-man life insurance or other employee benefit plan,
program, arrangement, agreement or commitment, including any “employee benefit plan” (as defined in
Section 3(3) of ERISA), sponsored or maintained by such entity (or to which such entity contributes
or is required to contribute or in which it participates), and excluding workers’ compensation
plans, policies, programs and arrangements.

     “Benefit Policy” shall mean, with respect to an entity, each plan, program,
arrangement, agreement or commitment that is a vacation pay or other paid or unpaid leave policy or
practice sponsored or maintained by such entity (or to which such entity contributes or is required
to contribute).

2

 

     “Business Day” means any day that is not a Saturday, a Sunday or any other day on
which banks are required or authorized by Law to be closed in the City of New York, New York.

     “Business Entity” shall mean any corporation, partnership, limited liability company,
joint venture, unincorporated associate, trust for business purposes or other entity which may
legally hold title to Assets.

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

     “Contract” shall mean any agreement, contract, obligation, indenture, instrument,
lease, license, promise, arrangement, release, warranty, commitment or undertaking (whether written
or oral and whether express or implied).

     “COBRA” shall mean the continuation coverage requirements for “group health plans”
under Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and as
codified in Code Section 4980B and Sections 601 through 608 of ERISA, together with all regulations
and proposed regulations promulgated thereunder.

     “Delaware Courts” shall have the meaning set forth in Section 11.10 of this
Agreement.

     “Distribution” shall mean the distribution by Entergy of all of the issued and
outstanding shares of Enexus Common Stock to holders of record of shares of Entergy Common Stock as
of the Record Date on the basis of [•] shares of Enexus Common Stock for each issued and
outstanding share of Entergy Common Stock.

     “Distribution Date” shall mean [•], 2008, or such later date as shall be determined by
the Board of Directors of Entergy to be the date on which the Distribution shall occur.

     “Effective Time” shall mean [•], New York City, New York time, on [•], 2008.

     “Enexus” shall have the meaning set forth in the preamble hereto.

     “Enexus Benefit Arrangement” shall mean any Benefit Arrangement sponsored, maintained
or contributed to by any member of the Enexus Group or any ERISA Affiliate thereof immediately
following the Distribution Date, including the Enexus Savings Plan and the Enexus Welfare Plans.

     “Enexus Common Stock” shall mean the issued and outstanding shares of common stock,
par value $0.01 per share, of Enexus.

     “Enexus Employee” shall mean an active employee or an employee on vacation or on
approved leave of absence (including qualified military leave, leave under the Family and Medical
Leave Act or corresponding state law, or long-term disability, salary continuation and other
approved leaves, paid or unpaid, as well as any other leave protected by Law) who, on the
Distribution Date, is employed by Enexus or any member of the Enexus Group (exclusive of any
individual who is on an approved leave of absence from Entergy or a member of the Entergy

3

 

Group as of the Distribution Date and who, upon return from such approved leave of absence
will be employed by Enexus or a member of the Enexus Group, unless and until the individual returns
from such approved leave of absence and commences employment with Enexus or a member of the Enexus
Group during the period in which return rights are protected by applicable Law).

     “Enexus Group” shall mean Enexus and each Person identified on Schedule
[1.1(41)] of the Separation Agreement, and each Person that is or becomes a Subsidiary of
Enexus at or after the Effective Time.

     “Enexus Indemnitees” shall mean each member of the Enexus Group, their respective
Affiliates and each of their respective directors, officers, employees and agents and each of the
heirs, executors, successors and assigns of any of the foregoing.

     “Enexus Option” shall mean an option to purchase shares of Enexus Common Stock as of
the Distribution Date, which shall be issued pursuant to the Enexus Stock Plan as part of the
adjustment to Entergy Options in connection with the Distribution.

     “Enexus Participant” shall mean any individual who, as of the Effective Time, is an
Enexus Employee, a Former Enexus Employee, or a beneficiary, dependent, alternate payee or other
person participating in an Enexus Benefit Arrangement in respect of any of the foregoing.

     “Enexus Performance Unit” shall mean a unit representing a general unsecured promise
to deliver the cash equivalent of a share of Enexus Common Stock and dividend equivalents, if
applicable, upon the satisfaction of a performance or service based vesting requirement, which unit
is issued pursuant to the Enexus Stock Plan as part of the adjustment to Entergy Performance Units
in connection with the Distribution.

     “Enexus Ratio” shall have the meaning ascribed thereto in Section 7.1(b) of
this Agreement.

     “Enexus Reimbursement Account Plan” shall have the meaning ascribed thereto in
Section 5.1(c)(i) of this Agreement.

     “Enexus Restricted Stock Unit” shall mean a unit issued by Enexus or one of its
Affiliates representing a general unsecured promise by Enexus or one of its Affiliates to deliver a
share of Enexus Common Stock or dividend equivalents, if applicable (or the cash equivalent of
either), upon the satisfaction of a service based vesting requirement, which unit is issued
pursuant to the Enexus Stock Plan as part of the adjustment to Entergy Restricted Stock Units in
connection with the Distribution.

     “Enexus Savings Plan” shall have the meaning ascribed thereto in Section 4.3
of this Agreement.

     “Enexus Service Plans” shall mean, collectively, the Enexus Savings Plan and the
severance and health and welfare plans maintained by a member of the Enexus Group to the extent
eligibility for or level of benefits thereunder is dependent upon length of service, including the

4

 

Enexus vacation, other paid time off, health and welfare, salary continuation and retiree
medical, dental, life, vision and other paid time off programs, if any.

     “Enexus Stock Plan” shall have the meaning ascribed thereto in Section 2.10 of
this Agreement.

     “Enexus Transferred Employee” shall mean any Enexus Employee who, immediately before
he or she commenced employment with a member of the Enexus Group, was employed by a member of the
EquaGen Group.

     “Enexus Welfare Plans” shall have the meaning ascribed thereto in Section
5.1(a) of this Agreement.

     “Entergy” shall have the meaning set forth in the recitals hereto.

     “Entergy Benefit Arrangement” shall mean any Benefit Arrangement sponsored, maintained
or contributed to by any member of the Entergy Group or any ERISA Affiliate thereof immediately
following the Distribution Date.

     “Entergy Common Stock” shall mean the issued and outstanding shares of common stock,
par value $0.01 per share, of Entergy.

     “Entergy Employee” shall mean an active employee or an employee on vacation or on
approved leave of absence (including qualified military leave, leave under the Family and Medical
Leave Act or corresponding state law, or long-term disability, salary continuation and other
approved leaves, paid or unpaid, as well as any other leave protected by Law) who, on the
Distribution Date, is employed by Entergy or any member of the Entergy Group (including, in the
case of any individual who is on such an approved leave of absence from Entergy or a member of the
Entergy Group as of the Distribution Date and who, upon return from such approved leave of absence,
will be employed by Enexus or a member of the Enexus Group, such individual unless and until the
individual returns from such approved leave of absence and commences employment with Enexus or a
member of the Enexus Group during the period in which return rights are protected by applicable
Law).

     “Entergy Group” shall mean Entergy and each Person identified on Schedule
[1.1(49)] of the Separation Agreement, and each Person that is or becomes a Subsidiary of
Entergy at or after the Effective Time.

     “Entergy Indemnitees” shall mean each member of the Entergy Group, and each of their
respective directors, officers, employees and agents and each of the heirs, executors, successors
and assigns of any of the foregoing.

     “Entergy Master Retirement Trust” shall have the meaning ascribed thereto in
Section 3.3(a)(i) of this Agreement.

     “Entergy Option” shall mean an option to purchase shares of Entergy Common Stock
granted pursuant to one of the Entergy Stock Plans.

5

 

     “Entergy Participant” shall mean any individual who, as of the Effective Time, is an
Entergy Employee, a Former Entergy Employee or a beneficiary, dependent, alternate payee or other
person participating in an Entergy Benefit Arrangement in respect of any of the foregoing.

     “Entergy Performance Unit” shall mean a share of phantom stock granted by Entergy or
one of its Affiliates pursuant to one of the Entergy Stock Plans representing a general unsecured
promise by Entergy or one of its Affiliates to deliver a share of Entergy Common Stock and/or
dividend equivalents, if applicable (or the cash equivalent of either), upon the satisfaction of a
performance based vesting requirement.

     “Entergy Restricted Share” shall mean a share of Entergy Common Stock granted by
Entergy or one of its Affiliates pursuant to one of the Entergy Stock Plans that is subject to
forfeiture based on the extent of attainment of a vesting requirement.

     “Entergy Reimbursement Account Plan” shall have the meaning ascribed thereto in
Section 5.1(c)(i) of this Agreement.

     “Entergy Restricted Stock Unit” shall mean a unit granted by Entergy or one of its
Affiliates pursuant to one of the Entergy Stock Plans representing a general unsecured promise by
Entergy or one of its Affiliates to deliver a share of Entergy Common Stock and/or dividend
equivalents, if applicable (or the cash equivalent of either), upon the satisfaction of a vesting
requirement (other than performance based vesting requirements).

     “Entergy Retained Claim” shall have the meaning ascribed thereto in Section
8.1(a) of this Agreement.

     “Entergy Retirement Plan” shall mean the Entergy Corporation Retirement Plan for
Nonbargaining Employees.

     “Entergy Savings Plan” shall mean, the Savings Plan of Entergy Corporation and
Subsidiaries.

     “Entergy Service Plans” shall mean, collectively, the Entergy Retirement Plan, the
Entergy Savings Plan, and the severance and health and welfare benefit plans maintained by a member
of the Entergy Group to the extent eligibility for or level of benefits thereunder is dependent
upon length of service, including the Entergy vacation, other paid time off, health and welfare,
salary continuation and retiree medical, dental, life, vision, and other paid time off programs, if
any.

     “Entergy SRP” shall mean, collectively, the Post-Retirement Plan of Entergy Corp. and
Subsidiaries, Pension Equalization Plan of Entergy Corp. and Subsidiaries, Supplemental Retirement
Plan of Entergy Corp. and Subsidiaries, Defined Contribution Restoration Plan of Entergy Corp. and
Subsidiaries, System Executive Retirement Plan of Entergy Corporation and Subsidiaries,
Supplemental Retirement Plan for Certain Participants in Entergy Corp. Retirement Plan III,
Executive Deferred Compensation Plan of Entergy Corp. and Subsidiaries and Gulf States
Utilities Company Executive Income Security Plan.

6

 

     “Entergy Stock Plans” shall mean, collectively, the 2007 Equity Ownership and Long
Term Cash Incentive Plan of Entergy Corporation and Subsidiaries, the 1998 Equity Ownership Plan of
Entergy Corporation and Subsidiaries, and the Entergy Corporation and Subsidiaries Equity Awards
Plan.

     “Entergy True-Up Amount” shall have the meaning ascribed thereto in Section
3.2(b)(v) of this Agreement.

     “Entergy Welfare Plans” shall have the meaning ascribed thereto in Section
5.1(a) of this Agreement.

     “EquaGen” shall have the meaning ascribed thereto in the recitals hereto.

     “EquaGen Assumed Retirement Plan” shall mean each EquaGen Assumed Plan that is a
defined benefit pension plan that is intended to satisfy the requirements of Section 401(a) of the
Code.

     “EquaGen Assumed Transfer Retirement Plan” shall mean each EquaGen Assumed Retirement
Plan other than the Entergy Corporation Retirement Plan II for Bargaining Employees and the Entergy
Corporation Retirement Plan IV for Bargaining Employees.

     “EquaGen Assumed Plans” shall mean those Benefit Arrangements that as of the Effective
Time cover exclusively EquaGen Participants and any other Benefit Arrangement set forth on Schedule
A.

     “EquaGen Benefit Arrangement” shall mean any Benefit Arrangement sponsored, maintained
or contributed to by any member of the EquaGen Group or any ERISA Affiliate thereof immediately
following the Distribution Date, including the EquaGen Savings Plan, EquaGen Assumed Retirement
Plan, EquaGen Assumed Plans and the EquaGen Welfare Plans.

     “EquaGen Employee” shall mean an active employee or an employee on vacation or on
approved leave of absence (including qualified military leave, leave under the Family and Medical
Leave Act or corresponding state law, or long-term disability, salary continuation and other
approved leaves, paid or unpaid, as well as any other leave protected by Law) who, on the
Distribution Date, is employed by EquaGen (including as of the Distribution Date any individual who
is on such an approved leave of absence from Entergy or a member of the Entergy Group as of the
Distribution Date and who otherwise is to be employed by EquaGen).

     “EquaGen Group” shall mean EquaGen and each Person identified on Schedule 1.1(83)
of the Separation Agreement, and each Person that is or becomes a Subsidiary of EquaGen at or
after the Effective Time and including any entity that merges with and into EquaGen.

     “EquaGen Indemnitees” shall mean each member of the EquaGen Group, their respective
Affiliates and each of their respective directors, officers, employees and agents and each of the
heirs, executors, successors and assigns of any of the foregoing.

7

 

     “EquaGen Master Retirement Trust” shall have the meaning ascribed thereto in
Section 3.3(a) of this Agreement.

     “EquaGen Nonqualified Plan” shall have the meaning ascribed thereto in Section
6.1(a) of this Agreement.

     “EquaGen Participant” shall mean any individual who, as of the Effective Time, is an
EquaGen System Employee, a Former EquaGen System Employee, or a beneficiary, dependent, alternate
payee or other person participating in an EquaGen Benefit Arrangement in respect of any of the
foregoing.

     “EquaGen Reimbursement Account Plan” shall have the meaning ascribed thereto in
Section 5.1(c)(ii) of this Agreement.

     “EquaGen Retirement Plan” shall have the meaning ascribed thereto in Section
3.1 of this Agreement.

     “EquaGen Retirement Plan Participants” shall have the meaning ascribed thereto in
Section 3.1 of this Agreement.

     “EquaGen Savings Plan” shall have the meaning ascribed thereto in Section 4.1
of this Agreement.

     “EquaGen Service Plans” shall mean, collectively, the EquaGen Savings Plan, the
EquaGen Retirement Plan, the EquaGen Assumed Retirement Plan and the severance and health and
welfare plans maintained by a member of the EquaGen Group to the extent eligibility for or level of
benefits thereunder is dependent upon length of service, including the EquaGen vacation, other paid
time off, health and welfare, salary continuation and retiree medical, dental, life, vision and
other paid time off programs, if any.

     “EquaGen Sub Employee” shall mean an active employee or an employee on vacation or on
approved leave of absence (including qualified military leave, leave under the Family and Medical
Leave Act or corresponding state law, or long-term disability, salary continuation and other
approved leaves, paid or unpaid, as well as any other leave protected by Law) who, on the
Distribution Date, is employed by any Subsidiary of EquaGen (including as of the Distribution Date
any individual who is on such an approved leave of absence from Entergy or a member of the Entergy
Group as of the Distribution Date and who otherwise is to be employed by any Subsidiary of
EquaGen).

     “EquaGen System Employee” shall mean each EquaGen Employee and EquaGen Sub Employee.

     “EquaGen True-Up Amount” shall have the meaning ascribed thereto in Section
3.3(b)(iv) of this Agreement.

8

 

     “EquaGen Welfare Plans” shall have the meaning ascribed thereto in Section
5.1(a) of this Agreement.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” shall mean with respect to any Person, each business or entity which
is a member of a “controlled group of corporations,” under “common control” or a member of an
“affiliated service group” with such Person within the meaning of Sections 414(b), (c) or (m) of
the Code, or required to be aggregated with such Person under Section 414(o) of the Code, or under
“common control” with such Person within the meaning of Section 4001(a)(14) of ERISA.

     “Estimated Entergy Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.2(b)(ii) of this Agreement.

     “Estimated EquaGen Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.3(b)(i) of this Agreement.

     “Final Entergy Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.2(b)(iv) of this Agreement.

     “Final EquaGen Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.3(b)(iii) of this Agreement.

     “Final Entergy Transfer Date” shall have the meaning ascribed thereto in Section
3.2(b)(v) of this Agreement.

     “Final EquaGen Transfer Date” shall have the meaning ascribed thereto in Section
3.3(b)(iv) of this Agreement.

     “Former Enexus Employee” shall mean, as of the Distribution Date, any individual who,
before the Distribution Date, terminated employment with Enexus or its predecessors or any member
of the Enexus Group and did not commence employment with a member of the EquaGen Group or the
Entergy Group.

     “Former Entergy Employee” shall mean, as of the Distribution Date, any individual who,
before the Distribution Date, terminated employment (for any reason, whether voluntary or
involuntary) with Entergy or its predecessors or any member of the Entergy Group and did not
commence employment with a member of the EquaGen Group or the Enexus Group.

     “Former EquaGen System Employee” shall mean, as of the Distribution Date, any
individual who, before the Distribution Date, terminated employment with EquaGen or its
predecessors or any member of the EquaGen Group and did not commence employment with a member of
the Enexus Group or the Entergy Group.

     “Governmental Entity” shall mean any nation or government, any state, municipality or
other political subdivision thereof and any entity, body, agency, commission, department, board,

9

 

bureau or court, whether domestic, foreign or multinational, exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining to government and
any official thereof.

     “HIPAA” shall mean the Health Insurance Portability and Accountability Act of 1996, as
amended.

     “Indemnifiable Loss” and “Indemnifiable Losses” shall mean any and all
damages, losses, deficiencies, Liabilities, obligations, penalties, judgments, settlements, claims,
payments, fines, interest, costs and expenses (including the costs and expenses of any and all
Actions and demands, assessments, judgments, settlements and compromises relating thereto and the
reasonable costs and expenses of attorneys’, accountants’, consultants’ and other professionals’
fees and expenses incurred in the investigation or defense thereof or the enforcement of rights
hereunder) incurred by reason of a Party incurring a Liability that, pursuant to this Agreement, is
the responsibility of another Party, excluding special, consequential, indirect or punitive damages
(other than special, consequential, indirect or punitive damages awarded to any third party against
an indemnified party).

     “Indemnifying Party” shall have the meaning set forth in Section 9.2(b)(i) of
this Agreement.

     “Indemnitee” shall have the meaning set forth in Section 9.2(b)(i) of this
Agreement.

     “Indemnity Payment” shall have the meaning set forth in Section 9.4(a) of this
Agreement.

     “Information” shall mean information, whether or not patentable or copyrightable, in
written, oral, electronic or other tangible or intangible forms, stored in any medium, including
studies, reports, records, notes, books, Contracts, instruments, surveys, discoveries, ideas,
concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models,
prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs
or other software, marketing plans, customer names, communications by or to attorneys (including
attorney-client privileged communications), memos and other materials prepared by attorneys or
under their direction (including attorney work product), communications and materials otherwise
related to or made or prepared in connection with or in preparation for any legal proceeding, and
other technical, financial, employee or business information or data.

     “Initial Entergy Transfer Amount” shall have the meaning set forth in Section
3.2(b)(iii).

     “Initial EquaGen Transfer Amount” shall have the meaning set forth in Section
3.3(b)(ii) of this Agreement.

     “Initial EquaGen Master Trust Transfer Amount” shall have the meaning set forth in
Section 3.3(a)(i) of this Agreement.

     “Initial EquaGen VEBA Transfer Amount” shall have the meaning set forth in Section
5.6(b)(i) of this Agreement.

10

 

     “Insurance Proceeds” shall mean those monies (i) received by an insured from an
insurer under any Shared Policy, or (ii) paid by such insurer on behalf of an insured under any
Shared Policy, in either case net of any applicable premium adjustment, retrospectively-rated
premium, deductible, retention, or cost of reserve paid or held by or for the benefit of such
insured.

     “IRS” shall mean the United States Internal Revenue Service.

     “Law” shall mean any United States or non-United States federal, national,
supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code,
order, requirement or rule of law (including common law and equity).

     “Liabilities” shall mean any and all debts, liabilities, costs, expenses, interest,
and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured, reserved
or unreserved, or determined or determinable of any kind or nature whatsoever, including those
arising under any Law or Action, whether asserted or unasserted, or order, writ, judgment,
injunction, decree, stipulation, determination or award entered by or with any Governmental Entity,
and those arising under or resulting from any Contract or any fines, damages or equitable relief
which may be imposed in connection with any of the foregoing and including all costs and expenses
related thereto.

     “Master Retirement Trust True-Up Amount” shall have the meaning set forth in Section
3.3(a)(ii) of this Agreement.

     “Net-Tax Basis” shall have the meaning ascribed thereto in Section 9.4(c) of
this Agreement.

     “Non-Utility Nuclear Business” shall mean:

     (a) the non-utility nuclear business unit of Entergy which includes the following
nuclear power plants:

     (i) Pilgrim Nuclear Station in Plymouth, Massachusetts;

     (ii) James A. FitzPatrick near Oswego, New York;

     (iii) Indian Point Units 2 & 3 in Westchester County, New York;

     (iv) Vermont Yankee in Vernon, Vermont; and

     (v) Palisades Nuclear Energy Plant in South Haven, Michigan;

     (b) the following nuclear power plants in various stages of decommissioning:

     (i) Indian Point Units 1 in Westchester County, New York

     (ii) Big Rock in Charlevoix, Michigan

11

 

     (c) any business or operations, where such business or operations were conducted
primarily through the use of the Non-Utility Nuclear Assets prior to the Effective Time;

     (d) the power marketing business unit of Entergy; and

     (e) the businesses and operations of Business Entities acquired or established by or
for any member of the Enexus Group after the Effective Time;

provided, however, the Non-Utility Nuclear Business shall not in any event include,
as of the Effective Time, the businesses of any member of the Entergy Group or the EquaGen Group.

     “Non-Utility Nuclear Policies” shall mean all Policies, whether or not in force on the
Effective Time, issued by insurers to Entergy, Enexus, EquaGen or any of their respective
Affiliates, that cover risks that relate exclusively to the Non-Utility Nuclear Business.

     “OPEB Plan” shall mean health and welfare plans that provide post-employment welfare
benefits (i.e., any retiree medical, dental, vision, Medicare Part B reimbursement and/or life
benefits), and when immediately preceded by “Entergy” shall mean, collectively, the Entergy Welfare
Plans that are OPEB Plans, and when immediately preceded by “EquaGen” shall mean, collectively, the
EquaGen Welfare Plans that are OPEB Plans.

     “Participating Company” shall mean Entergy or any Person (other than an individual)
participating in an Entergy Benefit Arrangement.

     “Party” shall have the meaning set forth in the preamble hereto.

     “Person” shall mean any natural person, firm, individual, corporation, business trust,
joint venture, association, company, limited liability company, partnership or other organization
or entity, whether incorporated or unincorporated, or any Governmental Entity.

     “Policies” shall mean insurance policies and insurance Contracts of any kind (other
than life and benefits policies or Contracts), including primary, excess and umbrella policies,
comprehensive general liability policies, director and officer liability, fiduciary liability,
automobile, aircraft, property and casualty, business interruption, workers’ compensation and
employee dishonesty insurance policies, bonds and self-insurance, together with the rights,
benefits and privileges thereunder.

     “Post-Distribution Entergy Option” shall have the meaning ascribed thereto in
Section 7.1(a) of this Agreement.

     “Post-Distribution Enexus Stock Price” shall mean the per share trading price of
Enexus Common Stock in the first trade on the New York Stock Exchange following the Distribution.

     “Post-Distribution Entergy Stock Price” shall mean the per share trading price of
Entergy Common Stock in the first trade on the New York Stock Exchange following the Distribution.

12

 

     “Pre-Distribution Entergy Option Price” shall have the meaning ascribed thereto in
Section 7.1(b) of this Agreement.

     “Record Date” shall mean the date to be determined by the Board of Directors of
Entergy as the record date for the Distribution.

     “Retained Business” shall mean:

     (a) any business or operations where such business or operations were conducted
primarily through the use of the Retained Business Assets prior to the Effective Time; and

     (b) the businesses and operations of Business Entities acquired or established by or
for any member of the Entergy Group after the Effective Time;

provided, however, the Retained Business shall not include, as of the Effective
Time, the businesses of any member of the Enexus Group or the EquaGen Group.

     “Retained Business Policies” shall mean all Policies, whether or not in force on the
Effective Time, issued by insurers to Entergy, Enexus, EquaGen or any of their respective
Affiliates, that cover risks that relate exclusively to the Retained Business.

     “Revised Entergy Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.2(b)(iv) hereof.

     “Revised EquaGen Retirement Plan Transfer Amount” shall have the meaning ascribed
thereto in Section 3.3(b)(iii) hereof.

     “Separation” shall have the meaning ascribed thereto in the recitals hereto.

     “Separation Agreement” shall have the meaning ascribed thereto in the recitals hereto.

     “Service Crediting Date” shall have the meaning ascribed thereto in Section
2.3(b)(i) of this Agreement.

     “Shared Policies” shall mean all Policies, whether or not in force on the Effective
Time, issued by insurers to Entergy, Enexus, EquaGen or any of their respective Affiliates, which
cover risks that relate to both the Retained Business and the Non-Utility Nuclear Business. For
the avoidance of doubt, Shared Policies shall not include any Non-Utility Nuclear Policies or
Retained Business Policies.

     “Subsidiary” shall mean with respect to any Person (i) a corporation, at least a
majority of the voting capital stock of which is, as of the time in question, directly or
indirectly owned by such Person and (ii) any other limited liability company, partnership, joint
venture, association, joint stock company, trust, unincorporated organization or other entity in
which such Person, directly or

13

 

indirectly, owns at least a majority of the equity economic interest thereof or has the power
to elect or direct the election of at least a majority of the members of the governing body of such
entity or otherwise has control over such entity (e.g., as the managing partner of a partnership).
For the avoidance of doubt, for as long as a Party owns, directly or indirectly, no more than fifty
percent (50%) of the outstanding membership interests of EquaGen, no member of EquaGen Group shall
constitute a Subsidiary of such Party for purposes of this Agreement.

     “Tax” shall have the meaning set forth in the Tax Sharing Agreement.

     “Third Party Claim” shall have the meaning set forth in Section 9.2(b) of this
Agreement.

     “Third Party Proceeds” shall have the meaning set forth in Section 9.4(a) of
this Agreement.

     “USERRA Leave “ shall mean a leave of absence that is protected under the Uniformed
Services Employment and Reemployment Rights Act.

     “VEBA” shall, when immediately preceded by “Entergy,” mean, collectively, the Entergy
Corporation Companies’ Non-Bargaining Employees’ Welfare Benefit Trust Agreement, the Entergy
Corporation Companies’ Bargaining Employees’ Welfare Benefit Trust Agreement, and the Entergy
Corporation Companies’ Non-Bargaining Employees’ Welfare Benefit Trust—Life Agreement, which are
intended to be voluntary employees’ beneficiary associations under Section 501(c)(9) of the Code
and, when immediately preceded by “EquaGen,” means the voluntary employees’ beneficiary association
trust or trusts to be established by EquaGen pursuant to Section 5.5(a) of this Agreement.

     “VEBA True-Up Amount” shall have the meaning set forth in Section 5.6(b)(ii)
of the Agreement.

          Section 1.2 References; Interpretation. References in this Agreement to any gender
include references to all genders, and references to the singular include references to the plural
and vice versa. Unless the context otherwise requires:

     (a) the words “include,” “includes” and “including” when used in this Agreement shall be
deemed to be followed by the phrase “without limitation”;

     (b) references in this Agreement to Articles, Sections, Exhibits and Schedules shall be deemed
references to Articles and Sections of, Exhibits and Schedules to, this Agreement;

     (c) the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this
Agreement refer to this Agreement in its entirety and not to any particular Article, Section or
provision of this Agreement; and

     (d) references in this Agreement to any time shall be to the then prevailing New York City,
New York time unless otherwise expressly provided herein.

14

 

          Section 1.3 Relation to Other Documents. To the extent there is any inconsistency
between this Agreement and the terms of another agreement pertaining to the Distribution that is
the subject of this Agreement and such inconsistency (i) arises in connection with or as a result
of employment with or the performance of services before the Separation for any member of the
Entergy Group, Enexus Group or EquaGen Group and (ii) relates to the allocation of Liabilities
attributable to the employment, service, termination of employment or termination of service of all
present or former Entergy Employees, Enexus Employees, EquaGen System Employees, and any of their
dependents and beneficiaries (and any alternate payees in respect thereof) and other service
providers (including any individual who is, or was or is determined to be an independent
contractor, temporary employee, temporary service worker, consultant, freelancer, agency employee,
leased employee, on-call worker, incidental worker, or non-payroll worker or in any other
employment, non-employment, or retainer arrangement, or relationship with any member of the Entergy
Group, Enexus Group or EquaGen Group), the terms of this Agreement shall prevail.

ARTICLE II

GENERAL PRINCIPLES

          Section 2.1 Assumption and Retention of Liabilities; Related Assets.

          (a) As of the Effective Time, except as otherwise expressly provided for in this
Agreement, Entergy shall, or shall cause one or more members of the Entergy Group to, assume or
retain, as applicable, and pay, perform, fulfill and discharge, in due course in full (i) all
Liabilities under all Entergy Benefit Arrangements which exist as of the Effective Time or which
become due for no reason other than the passage of time, (ii) all Liabilities (excluding
Liabilities incurred under a Benefit Arrangement except as otherwise provided in this Agreement)
with respect to the employment, service, termination of employment or termination of service of all
Entergy Employees, Former Entergy Employees, EquaGen System Employees and Former EquaGen System
Employees and their dependents and beneficiaries (and any alternate payees in respect thereof) and
other service providers (including any individual who is, or was, or is determined to be an
independent contractor, temporary employee, temporary service worker, consultant, freelancer,
agency employee, leased employee, on-call worker, incidental worker, or non-payroll worker or in
any other employment, non-employment, or retainer arrangement, or relationship with any member of
the Entergy Group, Enexus Group or EquaGen Group), in each case to the extent such Liability arose
in connection with or as a result of employment with or the performance of services for any member
of the Entergy Group at or before the Effective Time, it being understood, however, that (except
for those applicable to Entergy Employees) Entergy shall not assume or otherwise be held liable for
any Liabilities arising out of any actions or inactions occurring after the Effective Time, even if
such actions or inactions are a continuation of any actions or inactions which occurred prior to
the Effective Time and even if Entergy incurred any Liabilities from any such actions or inactions
prior to the Effective Time, (iii) all Liabilities (including Liabilities incurred under a Benefit
Arrangement except as otherwise provided in this Agreement) with respect to the employment,
service, termination of employment or termination of service of all Enexus Employees and Former
Enexus Employees and their dependents and

15

 

beneficiaries (and any alternate payees in respect thereof), in each case to the extent such
Liability arose in connection with or as a result of employment with or the performance of services
for any member of the Entergy Group or Enexus Group before the Effective Time, it being understood,
however, that (except for those applicable to Entergy Employees) Entergy shall not assume or
otherwise be held liable for any Liabilities arising out of any actions or inactions occurring
after the Effective Time, even if such actions or inactions are a continuation of any actions or
inactions which occurred prior to the Effective Time and even if Entergy incurred any Liabilities
from any such actions or inactions prior to the Effective Time, (iv) any Liabilities or obligations
identified in Exhibit 2.1(a), and (v) any other Liabilities or obligations expressly assigned to
Entergy or any of its Affiliates under this Agreement. For purposes of clarification, the
Liabilities assumed or retained by the Entergy Group as provided for in this Section 2.1(a)
are intended to be Retained Business Liabilities.

          (b) As of the Effective Time, except as otherwise expressly provided for in this Agreement,
Enexus shall, or shall cause one or more members of the Enexus Group to, assume or retain, as
applicable, and pay, perform, fulfill and discharge, in due course in full (i) all Liabilities
under all Enexus Benefit Arrangements, (ii) any Liabilities or obligations identified in Exhibit
2.1(b), and (iii) any other Liabilities or obligations expressly assigned to Enexus or any of its
Affiliates under this Agreement. For purposes of clarification, the Liabilities assumed or retained
by the Enexus Group as provided for in this Section 2.1(b) are intended to be Non-Utility
Nuclear Liabilities. Except as otherwise expressly provided for in this Agreement, at and after
the Effective Time, neither Enexus nor any member of the Enexus Group shall assume or otherwise
have responsibility for any Liabilities described in Section 2.1(a)(iii) or
2.1(a)(iv) or Liabilities under any Benefit Arrangement attributable to the period before
the Effective Time.

          (c) As of the Effective Time, except as otherwise expressly provided for in this Agreement,
EquaGen shall, or shall cause one or more members of the EquaGen Group to, assume or retain, as
applicable, and pay, perform, fulfill and discharge, in due course in full (i) all Liabilities
under all EquaGen Benefit Arrangements, (ii) all Liabilities (excluding Liabilities incurred under
a Benefit Arrangement except as otherwise provided in this Agreement) with respect to the
employment, service, termination of employment or termination of service of all EquaGen System
Employees and Former EquaGen System Employees and their dependents and beneficiaries (and any
alternate payees in respect thereof) and other service providers (including any individual who is,
or was, or is determined to be an independent contractor, temporary employee, temporary service
worker, consultant, freelancer, agency employee, leased employee, on-call worker, incidental
worker, or non-payroll worker or in any other employment, non-employment, or retainer arrangement,
or relationship with any member of the EquaGen Group), in each case to the extent such Liability
arose in connection with or as a result of employment with or the performance of services for any
member of the EquaGen Group, and (iii) any other Liabilities or obligations expressly assigned to
EquaGen or any of its Affiliates under this Agreement.

          (d) Except to the extent otherwise provided in Section 3.3 or Section 5.1(g),
effective as of the Effective Time, Entergy shall take all steps necessary to assign to EquaGen,
and EquaGen shall take all steps necessary to assume, sponsorship of and all Liabilities in respect
of the EquaGen Assumed Plans (including the establishment and maintenance of trusts, as applicable,

16

 

that are separate from any trusts presently maintained in respect thereof by any member of the
Entergy Group).

          (e) From time to time after the Effective Time, the Parties shall promptly reimburse one
another, upon reasonable request of the Party requesting reimbursement and the presentation by such
Party of such substantiating documentation as the other Party shall reasonably request, for the
cost of any obligations or Liabilities satisfied or assumed by the Party requesting reimbursement
or its Affiliates that are, or that have been made pursuant to this Agreement, the responsibility
of the other Party or any of its Affiliates. Any such request for reimbursement must be made not
later than eighteen (18) months following the Effective Time.

          (f) Entergy shall retain responsibility for all employee-related regulatory filings for
reporting periods ending at or prior to the Effective Time except for Equal Employment Opportunity
Commission EEO-1 reports and affirmative action program (AAP) reports and responses to Office of
Federal Contract Compliance Programs (OFCCP) submissions, for which Entergy shall provide data and
information (to the extent permitted by applicable Laws and consistent with Section 10.1)
to Enexus or EquaGen, as the case may be, which shall be responsible for making such filings in
respect of Enexus Employees and Former Enexus Employees, on the one hand, and EquaGen System
Employees and Former EquaGen System Employees on the other hand, respectively.

          Section 2.2 Participation in Entergy Benefit Arrangements. Except as otherwise
expressly provided for in this Agreement or as otherwise expressly agreed to in writing between or
among the affected Parties, (i) effective as of the Effective Time, Enexus, EquaGen and each member
of the Enexus Group and EquaGen Group shall cease to be a Participating Company in any Entergy
Benefit Arrangement and (ii) each Enexus Participant and EquaGen Participant, effective as of the
Effective Time, shall cease to participate in, be covered by, accrue benefits under, be eligible to
contribute to or have any rights under any Entergy Benefit Arrangement (except to the extent of
obligations that accrued before the Effective Time, including benefits accrued as of the Effective
Time under the Entergy Retirement Plan, and that are not otherwise addressed herein), and Entergy,
Enexus and EquaGen shall take all necessary action to effectuate each such cessation.

          Section 2.3 Service Recognition.

            (a) Pre-Distribution Service Credit. Enexus shall give each Enexus
Participant, and EquaGen shall give each EquaGen Participant, full credit for purposes of
eligibility, vesting, determination of level of benefits, and, to the extent applicable, benefit
accruals under any Enexus Benefit Arrangement or EquaGen Benefit Arrangement, respectively, for
such Enexus Participant’s or EquaGen Participant’s service, respectively, with any member of the
Entergy Group prior to the Distribution Date, to the same extent such service was recognized by the
applicable Entergy Benefit Arrangements immediately prior to the Distribution Date;
provided, that, such service shall not be recognized to the extent such recognition
would result in the duplication of benefits.

          (b) Post-Distribution Reciprocal Service Crediting. Each of Entergy, Enexus and
EquaGen shall cause each of the Entergy Service Plans, Enexus Service Plans and EquaGen

17

 

          Service Plans, respectively, to provide the following service crediting rules effective as of the
Effective Time:

     (i) If an Entergy Employee or EquaGen System Employee, respectively, who participates
in any of the Entergy Service Plans or EquaGen Service Plans, respectively, directly
transfers employment from the Entergy Group (in the case of an Entergy Employee) or EquaGen
Group (in the case of an EquaGen System Employee) to the Enexus Group prior to the first
anniversary of the Distribution Date (the “Service Crediting Date”), then such
employee’s service with the group employing the employee immediately before the transfer
(but not the service of any Entergy Employee who first transfers employment to the s EquaGen
Group and then the Enexus Group or of any EquaGen System Employee who first transfers
employment to the Entergy Group and then the Enexus Group) shall be recognized for purposes
of eligibility, vesting and level of benefits under the appropriate Enexus Service Plans to
the same extent as such employee’s service was recognized under the corresponding Entergy
Service Plan or EquaGen Service Plan immediately before the transfer; provided,
that, such service shall not be recognized to the extent that such recognition would
result in the duplication of benefits.

     (ii) Except to the extent otherwise provided in clause (i) above, if an Entergy
Employee, Enexus Employee or EquaGen System Employee, respectively, who participates in any
of the Entergy Service Plans, Enexus Service Plans or EquaGen Service Plans, respectively,
either transfers employment among any of the Entergy Group, Enexus Group or EquaGen Group
after the Distribution Date or does not directly transfer employment among such group
members, then, except to the extent required by applicable Law, such employee’s service with
the group employing the employee immediately before the transfer shall not be recognized for
any purpose under the service plans of the post-transfer employer.

          Section 2.4 Collective Bargaining Agreements. Prior to the Distribution Date, Entergy,
EquaGen and Enexus shall take or cause to be taken actions that are necessary (if any) for EquaGen
or an EquaGen Subsidiary to continue to maintain or to assume any collective bargaining agreements
relating to EquaGen System Employees to the maximum extent allowable by Law. Schedule B sets forth
a list of collective bargaining agreements relating to EquaGen System Employees in effect as of the
date hereof. Nothing in this Agreement is intended to alter the provisions of any collective
bargaining agreement set forth on Schedule B or modify in any way the obligations of the Entergy
Group, the Enexus Group or the EquaGen Group to any person or union as described in such agreement.

          Section 2.5 No Duplication of Benefits. The Enexus Benefit Arrangements and the
EquaGen Benefit Arrangements, respectively, shall not provide benefits that duplicate benefits
provided by the corresponding Entergy Benefit Arrangements. Entergy, Enexus and EquaGen shall agree
on methods and procedures to prevent Entergy Employees, Former Entergy Employees, Enexus Employees,
Former Enexus Employees, EquaGen System Employees and Former EquaGen System Employees from
receiving duplicative benefits. Nothing in this Agreement shall entitle any Entergy Participant to
any benefit, right or interest in any Enexus Benefit Arrangement or EquaGen Benefit Arrangement
(except to the extent otherwise provided in ARTICLE VII of this Agreement).

18

 

          Section 2.6 No Acceleration of Benefits. Except as otherwise provided in this
Agreement, no provision of this Agreement shall be construed to create any right, or accelerate
vesting or entitlement, to any compensation or benefit whatsoever on the part of any Entergy
Employee, Former Entergy Employee, Enexus Employee, Former Enexus Employee, EquaGen System Employee
or Former EquaGen System Employee or other future employee of the Entergy Group, Enexus Group or
EquaGen Group under any Benefit Arrangement of the Entergy Group, Enexus Group or EquaGen Group.

          Section 2.7 Amendment Authority. Except as otherwise provided in this Agreement,
nothing in this Agreement is intended to prohibit Entergy or the Entergy Group, Enexus or the
Enexus Group or EquaGen or the EquaGen Group from amending or terminating any employee benefit
plans, policies and compensation programs at any time on or after the Distribution Date.

          Section 2.8 No Commitment to Employment or Benefits. Nothing contained in this
Agreement shall be construed as a commitment or agreement on the part of any person to continue
employment with the Entergy Group, Enexus Group or EquaGen Group, or as a commitment on the part of
the Entergy Group, Enexus Group or EquaGen Group to continue the employment, compensation, or
benefits of any person for any period. This Agreement is solely for the benefit of the Entergy
Group, Enexus Group and EquaGen Group and, except to the extent otherwise expressly provided
herein, nothing in this Agreement, express or implied, is intended to confer any rights, benefits,
remedies, obligations or liabilities under this Agreement upon any Person, including any Entergy
Employee, Former Entergy Employee, Enexus Employee, Former Enexus Employee, EquaGen System Employee
or Former EquaGen System Employee, or officer, director or contractor of the Entergy Group, Enexus
Group or EquaGen Group, other than the parties to this Agreement and their respective successors
and assigns.

          Section 2.9 No Expansion of Participation. Unless otherwise determined by Enexus or
EquaGen, respectively, and subject to applicable collective bargaining agreements, an Enexus
Employee or Former Enexus Employee or an EquaGen System Employee or Former EquaGen System Employee
shall be entitled to participate in an Enexus Benefit Arrangement or EquaGen Benefit Arrangement,
as the case may be, only to the extent that such Enexus Employee, Former Enexus Employee, EquaGen
System Employee or Former EquaGen System Employee (as the case may be) was entitled to participate
in any corresponding Entergy Benefit Arrangement as in effect immediately prior to the Effective
Time.

          Section 2.10 Approval by Entergy as Sole Stockholder. Effective as of the Effective
Time, Enexus shall have adopted the Enexus 2008 Equity Ownership and Long Term Cash Incentive Plan
(the “Enexus Stock Plan”), which shall permit the issuance of long-term incentive awards
that have material terms and conditions substantially similar to those long-term incentive awards
issued under the relevant Entergy Stock Plans in respect of which Enexus long-term incentive awards
will be issued in connection with the Distribution. The Enexus Stock Plan shall be approved prior
to the Effective Time by Entergy as the sole stockholder of Enexus.

19

 

ARTICLE III

QUALIFIED DEFINED BENEFIT PLANS

     Section 3.1 Establishment of EquaGen Plan. Effective as of the Distribution Date, EquaGen shall, or shall have caused one or more
members of the EquaGen Group to, establish a defined benefit pension plan or plans and related
trust or trusts to accept the transfer of assets and liabilities described in Section 3.2
of this Agreement and provide retirement benefits to EquaGen Participants who immediately prior to
the Distribution Date were participants in, or entitled to present or future benefits (except as
provided in Section 3.2(d) of this Agreement), whether or not vested, under, the Entergy
Retirement Plan (such defined benefit pension plan or plans, the “EquaGen Retirement Plan”
and such EquaGen Participants, the “EquaGen Retirement Plan Participants”). EquaGen shall
be responsible for taking all necessary, reasonable, and appropriate action to establish, maintain
and administer the EquaGen Retirement Plan so that it is qualified under Section 401(a) of the Code
and that the related trust thereunder is exempt under Section 501(a) of the Code, and as soon as
reasonably practicable following the Distribution Date EquaGen shall take all steps reasonably
necessary to obtain a favorable determination from the IRS as to such qualification. EquaGen shall
be responsible for any and all Liabilities (including Liability for funding) and other obligations
with respect to the EquaGen Retirement Plan.

     Section 3.2 Entergy Retirement Plan Transfer.

     (a) Assumption of Entergy Retirement Plan Liabilities. Effective as of the
Distribution Date, EquaGen hereby agrees to cause the EquaGen Retirement Plan to assume, fully
perform, pay and discharge, all Liabilities as of the Distribution Date under the Entergy
Retirement Plan relating to all EquaGen Retirement Plan Participants and Enexus Transferred
Employees.

     (b) Transfer of Entergy Retirement Plan Assets.

          (i) The Parties intend that the portion of the Entergy Retirement Plan covering EquaGen
Retirement Plan Participants shall be transferred to the EquaGen Retirement Plan in accordance with
Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1 and Section 208 of ERISA. Any
surplus Assets under the Entergy Retirement Plan (i.e., any Assets held under the Entergy
Retirement Plan that are in excess of the Assets required to be allocated to the Entergy Retirement
Plan and the EquaGen Retirement Plan in accordance with the preceding sentence) shall be retained
by the Entergy Retirement Plan. No later than thirty (30) days prior to the Distribution Date,
Entergy and EquaGen shall, to the extent necessary, file an IRS Form 5310-A regarding the transfer
of Assets and Liabilities from the Entergy Retirement Plan to the EquaGen Retirement Plan.

          (ii) Prior to the Distribution Date (or such later time as mutually agreed by the Parties),
Entergy shall cause the Entergy Actuary to determine the estimated value, as of the Distribution
Date, of the Assets to be transferred to the EquaGen Retirement Plan in accordance with the
assumptions and valuation methodology set forth on Schedule C-1 attached hereto (the “Estimated
Entergy Retirement Plan Transfer Amount”).

20

 

          (iii) Not later than ten (10) Business Days following the Distribution Date (or such later
time as mutually agreed by the Parties), Entergy and EquaGen shall cooperate in good faith to cause
an initial transfer of Assets from the Entergy Retirement Plan to the EquaGen Retirement Plan in an
amount equal (as determined in the discretion of Entergy) to not less than eighty-five percent
(85%) and not more than ninety-five percent (95%) of the Estimated Entergy Retirement Plan Transfer
Amount (such amount, the “Initial Entergy Transfer Amount”). Entergy shall satisfy its
obligation pursuant to this Section 3.2(b)(iii) by causing the Entergy Retirement Plan to
transfer an amount of Assets (as determined by Entergy in its discretion, in kind, in cash,
cash-like securities or other cash equivalents) equal to the Initial Entergy Transfer Amount.

          (iv) Within two hundred seventy (270) days (or such later time as mutually agreed by the
Parties) following the Distribution Date, Entergy shall cause the Entergy Actuary to provide
EquaGen with a revised calculation of the value, as of the Distribution Date, of the Assets to be
transferred to the EquaGen Retirement Plan determined in accordance with the assumptions and
valuation methodology (including a provision for crediting any distributions made from the Entergy
Retirement Plan) set forth on Schedule C-1 attached hereto (the “Revised Entergy Retirement
Plan Transfer Amount”). EquaGen may submit, at its sole cost and expense, the Revised Entergy
Retirement Plan Transfer Amount to the EquaGen Actuary for verification; provided,
that, such verification process and any calculation performed by the EquaGen Actuary in
connection therewith shall be performed solely on the basis of the assumptions and valuation
methodology set forth on Schedule C-1 attached hereto. In order to perform such verification, upon
request from EquaGen, the EquaGen Actuary shall receive the data and additional detailed
methodology used to calculate the Initial Entergy Transfer Amount and the Revised Entergy
Retirement Plan Transfer Amount (if reasonably needed) from the Entergy Actuary. EquaGen shall be
responsible for the cost and expense of the EquaGen Actuary and Entergy shall be responsible for
the cost and expense for the Entergy Actuary for such data transfer. In the event the EquaGen
Actuary so determines that the value, as of the Distribution Date, of the Assets to be transferred
to the EquaGen Retirement Plan differs from the Revised Entergy Retirement Plan Transfer Amount,
the EquaGen Actuary shall identify in writing to the Entergy Actuary all objections to the
determination within sixty (60) days following provision of the revised value calculation to
EquaGen pursuant to the first sentence of this paragraph (iv), and the EquaGen Actuary and Entergy
Actuary shall use good faith efforts to reconcile any such difference. If the EquaGen Actuary and
the Entergy Actuary fail to reconcile such difference, the EquaGen Actuary and the Entergy Actuary
shall jointly designate a third, independent actuary whose calculation of the value, as of the
Distribution Date, of the Assets to be transferred to the EquaGen Retirement Plan shall be final
and binding; provided, that, such calculation must be performed within sixty (60)
days following designation of such third actuary and in accordance with the assumptions and
valuation methodology set forth on Schedule C-1 attached hereto; and provided,
further, that if such value is not equal to or between the value determined by the EquaGen
Actuary and the Revised Entergy Retirement Plan Transfer Amount, such value shall be deemed to be
either the value determined by the EquaGen Actuary or the Revised Entergy Retirement Plan Transfer
Amount, whichever is closer. Entergy and EquaGen shall each pay one-half of the costs incurred in
connection with the retention of such independent actuary. The final, verified value, as of the
Distribution Date, of the Assets to be transferred to the EquaGen Retirement Plan as determined in
accordance with this Section 3.2(b)(iv) shall be referred to herein as the “Final
Entergy Retirement Plan Transfer Amount.”

21

 

               (v) Within forty-five (45) days (or such later time as mutually agreed by the Parties) of the
determination of the Final Entergy Retirement Plan Transfer Amount, Entergy shall cause the Entergy
Retirement Plan to transfer to the EquaGen Retirement Plan (the date of such transfer, the
“Final Entergy Transfer Date”) an amount (as determined by Entergy in its discretion, in
kind, in cash, cash-like securities or other cash equivalents), equal to (A) the Final Entergy
Retirement Plan Transfer Amount minus (B) the Initial Entergy Transfer Amount (such difference, as
adjusted to reflect earnings or losses as described below, the “Entergy True-Up Amount”);
provided, that, in the event the Entergy True-Up Amount is negative, Entergy shall
not be required to cause any such additional transfer and instead EquaGen shall be required to
cause a transfer of cash, cash-like securities or other cash equivalents (or, if determined by
EquaGen in its discretion, assets in kind) from the EquaGen Retirement Plan to the Entergy
Retirement Plan in amount equal to the Entergy True-Up Amount. The Parties acknowledge that the
Entergy Retirement Plan’s transfer of the Entergy True-Up Amount to the EquaGen Retirement Plan
shall be in full settlement and satisfaction of the obligations of Entergy to cause the transfer
of, and the Entergy Retirement Plan to transfer, Assets to the EquaGen Retirement Plan pursuant to
this Section 3.2(b)(v).

     The Entergy True-Up Amount shall be paid from the Entergy Retirement Plan to the EquaGen
Retirement Plan, as determined by Entergy in its discretion in kind, in cash, cash-like securities
or other cash equivalents, and shall be adjusted to reflect earnings or losses during the period
from the Distribution Date to the Final Entergy Transfer Date. Such earnings or losses shall be
determined based on the actual rate of return of the Entergy Retirement Plan (as determined by such
plan’s trustee) for the period commencing on the first day of the calendar month following the
calendar month in which the Distribution Date occurs and ending on the last day of the calendar
month ending immediately prior to the Final Entergy Transfer Date. Earnings or losses for the
period from such last day of the month to the Final Entergy Transfer Date shall be based on the
actual rate of return of the Entergy Retirement Plan (as determined by such plan’s trustee) during
the last calendar month ending immediately prior to the Final Entergy Transfer Date determined as
of the date that is as close as administratively practicable to the Final Entergy Transfer Date.
In the event that EquaGen is obligated to cause the EquaGen Retirement Plan to reimburse the
Entergy Retirement Plan pursuant to this Section 3.2(b)(v), such reimbursement shall be
performed in accordance with the same principles set forth herein with respect to the payment of
the Entergy True-Up Amount. The Parties acknowledge that the EquaGen Retirement Plan’s transfer of
such reimbursement amount to the Entergy Retirement Plan shall be in full settlement and
satisfaction of the obligations of EquaGen to cause the transfer of, and the EquaGen Retirement
Plan to transfer, Assets to the Entergy Retirement Plan pursuant to this Section 3.2(b)(v).

          (c) Continuation of Elections. As of the Distribution Date, to the extent permitted
by applicable Law, EquaGen shall cause the EquaGen Retirement Plan to recognize and maintain all
existing elections, including, but not limited to, beneficiary designations, payment form elections
and rights of alternate payees under qualified domestic relations orders with respect to EquaGen
Retirement Plan Participants under the Entergy Retirement Plan; provided, that,
nothing in this Section 3.2(c) shall prohibit EquaGen from soliciting or causing the
solicitation of new elections from EquaGen Retirement Plan Participants to be effective under the
EquaGen Retirement Plan.

22

 

          (d) Terminated Non-Vested Employees. Notwithstanding anything herein to the contrary,
the Entergy Retirement Plan shall retain all Liabilities (if any) earned under the Entergy
Retirement Plan in respect of any individual whose employment with the Entergy Group and EquaGen
Group (as the case may be) terminated before the Distribution Date with no vested benefit under the
Entergy Retirement Plan.

          (e) 401(h) Accounts. The calculations of the Estimated Entergy Retirement Plan
Transfer Amount and the Final Entergy Retirement Plan Transfer Amount described above shall be
determined without regard to the value of retiree health benefit Liabilities that are funded in
whole or in part through any account maintained under the Entergy Retirement Plan pursuant to
Section 401(h) of the Code.

          (f) Certain Obligations. If, as a result of the transfer and assumption of
Liabilities and other obligations described in this Section 3.2, Entergy is required to
post a surety bond, letter of credit, guarantee or other security in favor of a Person other than a
member of the Entergy Group, Enexus shall indemnify Entergy in respect of any Liability suffered or
incurred by Entergy in respect of or relating to such surety bond, letter of credit, guarantee or
other security.

          Section 3.3 EquaGen Assumed Transfer Retirement Plan.

          (a) Establishment of Trust. Effective as of the Distribution Date, EquaGen shall, or
shall have caused one or more members of the EquaGen Group to, establish a trust or trusts (the
“EquaGen Master Retirement Trust”) in connection with its assumption of the EquaGen Assumed
Retirement Plan in accordance with Section 2.1(d) and to accept the transfer of assets and
liabilities described in the following provisions of this Section 3.3(a). EquaGen shall be
responsible for taking all necessary, reasonable, and appropriate action to establish, maintain and
administer the EquaGen Master Retirement Trust to ensure its exemption under Section 501(a) of the
Code, and as soon as reasonably practicable following the Distribution Date EquaGen shall take all
steps reasonably necessary to obtain a favorable determination from the IRS as to such exemption.

               (i) Initial Transfer. Not later than ten (10) Business Days following the
Distribution Date (or such later time as mutually agreed by the Parties but in any event following
the Distribution Date), Entergy and EquaGen shall cooperate in good faith to cause an initial
transfer of Assets (as determined by Entergy in its discretion, in kind, in cash, cash-like
securities or other cash equivalents) from the trust or trusts maintained under the EquaGen Assumed
Retirement Plans immediately before the Distribution (the “Entergy Master Retirement
Trust”) to the EquaGen Master Retirement Trust in an amount equal (as determined in the
discretion of Entergy) to not less than eighty-five percent (85%) and not more than ninety-five
percent (95%) of the Assets credited to the EquaGen Assumed Retirement Plans under the Entergy
Master Retirement Trust as of the last day of the calendar month ending at least fifteen (15) days
prior to the Distribution (such amount, the “Initial EquaGen Master Trust Transfer
Amount”).

23

 

               (ii) True-Up Transfer. Within forty-five (45) days (or such later time as
mutually agreed by the Parties) following the Distribution Date (and in any event following the
transfer described in subsection (a)(i) above), Entergy shall cause the Entergy Master Retirement
Trust to transfer to the EquaGen Master Retirement Trust an amount (as determined by Entergy in its
discretion, in kind, in cash, cash-like securities or other cash equivalents), equal to
(A) the value of the Assets credited to the EquaGen Assumed Retirement Plans under the Entergy
Master Retirement Trust as of the Distribution Date minus (B) the Initial EquaGen Master Trust
Transfer Amount (such difference, as adjusted to reflect earnings or losses as described below, the
“Master Retirement Trust True-Up Amount”); provided, that, in the event the
Master Retirement Trust True-Up Amount is negative, Entergy shall not be required to cause any such
additional transfer and instead EquaGen shall be required to cause a transfer of cash, cash-like
securities or other cash equivalents (or, if determined by EquaGen in its discretion, assets in
kind) from the EquaGen Master Retirement Trust to the Entergy Master Retirement Trust in amount
equal to the Master Retirement Trust True-Up Amount. The Parties acknowledge that the Entergy
Master Retirement Trust’s transfer of the Master Retirement Trust True-Up Amount to the EquaGen
Master Retirement Trust shall be in full settlement and satisfaction of the obligations of Entergy
to cause the transfer of, and the Entergy Master Retirement Trust to transfer, Assets to the
EquaGen Master Retirement Trust pursuant to this Section 3.3(a)(ii).

     The Master Retirement Trust True-Up Amount shall be paid from the Entergy Master Retirement
Trust to the EquaGen Master Retirement Trust, as determined by Entergy in its discretion in kind,
in cash, cash-like securities or other cash equivalents, and shall be adjusted to reflect earnings
or losses during the period from the Distribution Date to the date of transfer of the Master
Retirement Trust True-Up Amount. Such earnings or losses shall be determined based on the
methodology set forth in Exhibit 3.3(a)(ii). In the event that EquaGen is obligated to cause the
EquaGen Master Retirement Trust to reimburse the Entergy Master Retirement Trust pursuant to this
Section 3.3(a)(ii), such reimbursement shall be performed in accordance with the same
principles set forth herein with respect to the payment of the Master Retirement Trust True-Up
Amount. The Parties acknowledge that the EquaGen Master Retirement Trust’s transfer of such
reimbursement amount to the Entergy Master Retirement Trust shall be in full settlement and
satisfaction of the obligations of EquaGen to cause the transfer of, and the EquaGen Master
Retirement Trust to transfer, Assets to the Entergy Master Retirement Trust pursuant to this
Section 3.3(a)(ii).

          (b) Transfer To Entergy Retirement Plan Generally. The Parties intend that the
portion of the EquaGen Assumed Transfer Retirement Plan assumed by EquaGen in accordance with
Section 2.1(d) (each EquaGen Assumed Transfer Retirement Plan to be treated separately for
purposes of this Section 3.3(b)) covering any individual who is neither an EquaGen
Retirement Plan Participant nor an Enexus Transferred Employee shall be transferred to the Entergy
Retirement Plan in accordance with Section 414(l) of the Code, Treasury Regulation Section
1.414(l)-1 and Section 208 of ERISA. Any surplus Assets under the EquaGen Assumed Transfer
Retirement Plan (i.e., any Assets held under the EquaGen Assumed Transfer Retirement Plan that are
in excess of the Assets required to be allocated to the EquaGen Assumed Transfer Retirement Plan
and Entergy Retirement Plan in accordance with the preceding sentence) shall be retained by the
EquaGen Assumed Transfer Retirement Plan. No later than thirty (30) days prior to the Distribution
Date, Entergy and EquaGen shall, to the extent necessary, file an IRS Form 5310-A
regarding the transfer of Assets and Liabilities from the EquaGen Assumed Transfer Retirement Plan
to the Entergy Retirement Plan.

24

 

               (i) Estimated Transfer Amount. Prior to the Distribution Date (or such later time as
mutually agreed by the Parties), Entergy shall cause the Entergy Actuary to determine the estimated
value, as of the Distribution Date, of the Assets to be transferred to the Entergy Retirement Plan
in accordance with the assumptions and valuation methodology set forth on Schedule C-2 attached
hereto (the “Estimated EquaGen Retirement Plan Transfer Amount”).

               (ii) Initial Transfer. Not later than ten (10) Business Days following the
Distribution Date (or such later time as mutually agreed by the Parties), Entergy and EquaGen shall
cooperate in good faith to cause an initial transfer of Assets from the EquaGen Assumed Transfer
Retirement Plan to the Entergy Retirement Plan in an amount equal (as determined in the discretion
of EquaGen) to not less than eighty-five percent (85%) and not more than ninety-five percent (95%)
of the Estimated EquaGen Retirement Plan Transfer Amount (such amount, the “Initial EquaGen
Transfer Amount”). EquaGen shall satisfy its obligation pursuant to this Section
3.3(b)(ii) by causing the EquaGen Assumed Transfer Retirement Plan to transfer Assets, in kind,
equal to the Initial EquaGen Transfer Amount.

               (iii) Revised Transfer Amount. Within two hundred seventy (270) days (or such later
time as mutually agreed by the Parties) following the Distribution Date, Entergy shall cause the
Entergy Actuary to provide EquaGen with a revised calculation of the value, as of the Distribution
Date, of the Assets to be transferred to the Entergy Retirement Plan determined in accordance with
the assumptions and valuation methodology (including a provision for crediting any distributions
made from the EquaGen Assumed Transfer Retirement Plan) set forth on Schedule C-2 attached hereto
(the “Revised EquaGen Retirement Plan Transfer Amount”). EquaGen may submit, at its sole
cost and expense, the Revised EquaGen Retirement Plan Transfer Amount to the EquaGen Actuary for
verification; provided, that, such verification process and any calculation
performed by the EquaGen Actuary in connection therewith shall be performed solely on the basis of
the assumptions and valuation methodology set forth on Schedule C-2 attached hereto. In order to
perform such verification, upon request from EquaGen, the EquaGen Actuary shall receive the data
and additional detailed methodology used to calculate the Initial EquaGen Transfer Amount and the
Revised EquaGen Retirement Plan Transfer Amount (if reasonably needed) from the Entergy Actuary.
EquaGen shall be responsible for the cost and expense of the EquaGen Actuary and Entergy shall be
responsible for the cost and expense for the Entergy Actuary for such data transfer. In the event
the EquaGen Actuary so determines that the value, as of the Distribution Date, of the Assets to be
transferred to the Entergy Retirement Plan differs from the Revised EquaGen Retirement Plan
Transfer Amount, the EquaGen Actuary shall identify in writing to the Entergy Actuary all
objections to the determination within sixty (60) days following provision of the revised value
calculation to EquaGen pursuant to the first sentence of this subsection (b)(iii), and the EquaGen
Actuary and Entergy Actuary shall use good faith efforts to reconcile any such difference. If the
EquaGen Actuary and the Entergy Actuary fail to reconcile such difference, the EquaGen Actuary and
the Entergy Actuary shall jointly designate a third, independent actuary whose calculation of the
value, as of the Distribution Date, of the Assets to be transferred to the Entergy Retirement Plan
shall be final and binding; provided, that, such calculation must be performed
within sixty (60) days following designation of such third actuary

25

 

and in accordance with the assumptions and valuation methodology set forth on Schedule C-2 attached
hereto; and provided, further, that if such value is not equal to or between the
value determined by the EquaGen Actuary and the Revised EquaGen Retirement Plan Transfer Amount,
such value shall be deemed to be either the value determined by the EquaGen Actuary or the Revised
EquaGen Retirement Plan Transfer Amount, whichever is closer. Entergy and EquaGen shall each pay
one-half of the costs incurred in connection with the retention of such independent actuary. The
final, verified value, as of the Distribution Date, of the Assets to be transferred to the Entergy
Retirement Plan as determined in accordance with this subsection (b(iii) shall be referred to
herein as the “Final EquaGen Retirement Plan Transfer Amount.”

               (iv) EquaGen True-Up Amount. Within forty-five (45) days (or such later time as
mutually agreed by the Parties) of the determination of the Final EquaGen Retirement Plan Transfer
Amount, EquaGen shall cause the EquaGen Assumed Transfer Retirement Plan to transfer to the Entergy
Retirement Plan (the date of such transfer, the “Final EquaGen Transfer Date”) an amount
(as determined by EquaGen in its discretion, in kind, in cash, cash-like securities or other cash
equivalents), equal to (A) the Final EquaGen Retirement Plan Transfer Amount minus (B) the Initial
EquaGen Transfer Amount (such difference, as adjusted to reflect earnings or losses as described
below, the “EquaGen True-Up Amount”); provided, that, in the event the
EquaGen True-Up Amount is negative, EquaGen shall not be required to cause any such additional
transfer and instead Entergy shall be required to cause a transfer of cash, cash-like securities or
other cash equivalents (or, if determined by Entergy in its discretion, assets in kind) from the
Entergy Retirement Plan to the EquaGen Assumed Transfer Retirement Plan in amount equal to the
EquaGen True-Up Amount. The Parties acknowledge that the EquaGen Assumed Transfer Retirement Plan’s
transfer of the EquaGen True-Up Amount to the Entergy Retirement Plan shall be in full settlement
and satisfaction of the obligations of EquaGen to cause the transfer of, and the EquaGen Assumed
Transfer Retirement Plan to transfer, Assets to the Entergy Retirement Plan pursuant to this
Section 3.3(b)(iv).

     The EquaGen True-Up Amount shall be paid from the EquaGen Assumed Transfer Retirement Plan to
the Entergy Retirement Plan, as determined by EquaGen in its discretion in kind, in cash, cash-like
securities or other cash equivalents, and shall be adjusted to reflect earnings or losses during
the period from the Distribution Date to the EquaGen Final Entergy Transfer Date. Such earnings or
losses shall be determined based on the actual rate of return of the EquaGen Assumed Transfer
Retirement Plan (as determined by such plan’s trustee) for the period commencing on the first day
of the calendar month following the calendar month in which the Distribution Date occurs and ending
on the last calendar day of the month ending immediately prior to the Final EquaGen Transfer Date.
Earnings or losses for the period from such last day of the month to the Final EquaGen Transfer
Date shall be based on the actual rate of return of the EquaGen Assumed Transfer Retirement Plan
(as determined by such plan’s trustee) during the last calendar month ending immediately prior to
the Final EquaGen Transfer Date determined as of the date that is as close as administratively
practicable to the Final EquaGen Transfer Date. In the event that Entergy is obligated to cause
the Entergy Retirement Plan to reimburse the EquaGen Assumed Transfer Retirement Plan pursuant to
this Section 3.3(b)(iv), such reimbursement shall be performed in accordance with the same
principles set forth herein with respect to the payment of the EquaGen True-Up Amount. The Parties
acknowledge that the Entergy Retirement Plan’s transfer of such reimbursement amount to the EquaGen
Assumed Transfer Retirement Plan shall

26

 

be in full settlement and satisfaction of the obligations of Entergy to cause the transfer of, and
the Entergy Retirement Plan to transfer, Assets to the EquaGen Assumed Transfer Retirement Plan
pursuant to this Section 3.3(b)(iv).

               (v) Terminated Non-Vested Employees. Notwithstanding anything herein to the contrary,
the EquaGen Assumed Transfer Retirement Plan shall retain all Liabilities (if any) earned under the
EquaGen Assumed Transfer Retirement Plan in respect of any individual whose employment with the
Entergy Group and EquaGen Group (as the case may be) terminated before the Distribution Date with
no vested benefit under the EquaGen Assumed Transfer Retirement Plan.

          Section 3.4 Certain Participants.

          (a) Certain Enexus Retirement Plan Matters. From and after the Distribution Date,
Enexus Employees shall be treated as having incurred a separation from service under the Entergy
Retirement Plan and (to the extent otherwise provided under the Entergy Retirement Plan) as
eligible for a distribution under the Entergy Retirement Plan. No Assets shall be transferred from
the Entergy Retirement Plan (or from the Entergy Corporation Retirement Plan for Bargaining
Employees) to any benefit plan maintained by Enexus. For purposes of clarification, the
Liabilities retained by Entergy as provided in this Section 3.4 are intended to be Retained
Business Liabilities.

          (b) Special Service/Compensation Crediting Rule.

               (i) Without limiting Section 2.3 of this Agreement and subject to the provisions of
clause (ii) below:

                    (A) for purposes of determining the extent to which (x) any Entergy Employee who transfers
employment directly to the Enexus Group after the Distribution Date but prior to the Service
Crediting Date, (y) any Entergy Employee who does not become an Enexus Employee as of the
Distribution Date but who becomes an Enexus Employee upon return from a leave of absence, which
commenced while the individual was an Entergy Employee, during the period in which return rights
are protected by applicable Law, and (z) any Enexus Employee (in each case exclusive of any
individual who was not actively employed on May 31, 2008, by, and continuously employed since then
by, a member of the Entergy Group or EquaGen Group) is vested in his or her benefit under the
Entergy Retirement Plan in which he or she participated immediately before the Separation or such
transfer date, as the case may be, and the extent to which such a person is eligible for early
retirement or other subsidized benefits under such Entergy Retirement Plan, Entergy shall cause the
Entergy Retirement Plan to credit such person’s service with Enexus after the Distribution Date to
the same extent had such service been with and compensation earned from Entergy;

                    (B) for purposes of determining the extent to which any EquaGen System Employee who
participates in an EquaGen Assumed Retirement Plan and who transfers employment directly to the
Enexus Group prior to the Service Crediting Date (exclusive of any individual who was not actively
employed on May 31, 2008, by, and continuously

27

 

employed since then by, a member of the Entergy Group or EquaGen Group) is vested in his or her
benefit under the EquaGen Assumed Retirement Plan in which he or she participated immediately
before such transfer date and the extent to which such a person is eligible for early retirement or
other subsidized benefits under such EquaGen Assumed Retirement Plan, EquaGen shall cause the
EquaGen Assumed Retirement Plan to credit such person’s service with Enexus after the Distribution
Date to the same extent had such service been with EquaGen; and

                    (C) in no event shall any person who is credited with service pursuant to the foregoing
provisions of this subsection (b)(i) be credited in respect of service at Enexus for benefit
accrual purposes or for purposes of determining earnings levels; provided, that, in
determining the benefit available under the Entergy Retirement Plan (in the case of subsection
(b)(i)(A)) or the EquaGen Assumed Retirement Plan (in case of subsection (b)(i)(B)), the benefit
shall be determined taking into account compensation in respect of the period of service with
Enexus after the Distribution Date based upon such individual’s base pay and annual target
incentive (subject in the case of the annual target incentive to any otherwise applicable plan
limits on the amount of incentive that may be taken into account) as in effect immediately before
the first date of his or her employment with Enexus (or, in the case of an individual described in
subsection (b)(i)(A)(y) above who is on USERRA Leave, as in effect immediately before the USERRA
Leave commenced), in each case increased by four percent (4%) on a compound basis each year).

               (ii) Although it is presently the intent of Entergy and EquaGen to credit service and
compensation as provided in the foregoing provision of this Section 3.4(b) (subject to the
provisions of Section 11.16 hereof), nothing in this Section 3.4(b) is intended to
or shall be construed to prohibit Entergy or EquaGen from terminating the Entergy Retirement Plan
or the EquaGen Assumed Retirement Plan or from amending such plans to disregard such service and
imputed compensation at any time for any reason.

ARTICLE IV

QUALIFIED DEFINED CONTRIBUTION PLANS

          Section 4.1 EquaGen Savings Plan.

          (a) In General.

               (i) Without limiting Section 2.1(d) hereof, effective as of the Effective Time,
EquaGen shall take all steps necessary to assume, sponsorship of and all Liabilities in respect of
the Savings Plan of Entergy Corporation and Subsidiaries II, Savings Plan of Entergy Corporation
and Subsidiaries IV, Savings Plan of Entergy Corporation and Subsidiaries VI and Savings Plan of
Entergy Corporation and Subsidiaries VII, including the establishment of a related trust that is
exempt under Section 501(a) of the Code to hold the assets of such plans, and as soon as reasonably
practicable following the Distribution Date EquaGen shall take all steps reasonably necessary to
obtain a favorable determination from the IRS as to the exempt status of such trust. Entergy and
EquaGen shall cooperate in causing the trustee of the trust holding such assets immediately before
the Distribution Date to transfer such assets to such newly established trust and in causing the
trustee of such newly established trust to accept such assets.

28

 

               (ii) Effective as of the Distribution Date, EquaGen shall, or shall have caused one of its
Affiliates to, establish a defined contribution plan and trust for the benefit of EquaGen
Participants (the “EquaGen Savings Plan”). EquaGen shall be responsible for taking all
necessary, reasonable and appropriate action to establish, maintain and administer the EquaGen
Savings Plan so that it is qualified under Section 401(a) of the Code and that the related trust
thereunder is exempt under Section 501(a) of the Code, and as soon as reasonably practicable
following the Distribution Date EquaGen shall take all steps reasonably necessary to obtain a
favorable determination from the IRS as to such qualification. EquaGen shall be responsible for any
and all Liabilities and other obligations with respect to the EquaGen Savings Plan.

          (b) Transfer of Entergy Savings Plan Assets. Not later than one hundred eighty (180)
days following the Distribution Date (or such later time as mutually agreed by the Parties),
Entergy shall cause the accounts (including any outstanding participant loan balances) in the
Entergy Savings Plan attributable to EquaGen Participants as of the Distribution Date and all of
the Assets in the Entergy Savings Plan related thereto to be transferred in-kind to the EquaGen
Savings Plan, and EquaGen shall cause the EquaGen Savings Plan to accept such transfer of accounts
and underlying Assets and, effective as of the date of such transfer, to assume and to fully
perform, pay and discharge, all obligations of the Entergy Savings Plan relating to the accounts of
EquaGen Participants (to the extent the Assets related to those accounts are actually transferred
from the Entergy Savings Plan to the EquaGen Savings Plan). The transfer of Assets shall be
conducted in accordance with Section 414(l) of the Code, Treasury Regulation Section 1.414(l)-1 and
Section 208 of ERISA. During the period after the Distribution Date and before such transfer of
Assets, with respect to any EquaGen Participant who has an outstanding participant loan balance
under the Entergy Savings Plan, EquaGen shall provide that such amounts as are required to make
payments on such loan in accordance with its terms are timely remitted as directed by the
administrator of the Entergy Savings Plan for crediting under the Entergy Savings Plan in respect
of such loan, and Entergy shall cause such administrator to apply such amounts in satisfaction of
such loan.

          (c) Continuation of Elections. As of the Distribution Date, to the extent permitted
by applicable Law, EquaGen shall cause the EquaGen Savings Plan to recognize and maintain all
Entergy Savings Plan elections, including, but not limited to, deferral, after-tax contribution,
investment, and payment form elections, beneficiary designations, and the rights of alternate
payees under qualified domestic relations orders with respect to EquaGen Participants, to the
extent such election or designation is available under the EquaGen Savings Plan; provided,
that, nothing in this Section 4.1(c) shall prohibit EquaGen from soliciting or
causing the solicitation of new elections from EquaGen Participants to be effective under the
EquaGen Savings Plan.

          (d) Certain Contributions. EquaGen shall be responsible for making under the EquaGen
Savings Plan, in respect of the entirety of the calendar year in which the Distribution Date occurs
(to the extent not yet made as of the Distribution Date), all non-matching nonelective employer
contributions in respect of EquaGen Participants.

          (e) Form 5310-A. No later than thirty (30) days prior to the Distribution Date,
Entergy and EquaGen shall, to the extent necessary, file IRS Form 5310-A regarding the transfer
of Assets and Liabilities from the Entergy Savings Plan to the EquaGen Savings Plan as discussed in
this ARTICLE IV.

29

 

          Section 4.2 Employer Securities. To the extent not already required by applicable Law, Entergy and EquaGen each presently
intend to preserve the right of Entergy Participants and Enexus Participants (in the case of the
Entergy Savings Plan) and EquaGen Participants (in the case of the EquaGen Savings Plan and the
EquaGen Assumed Plans that hold Entergy Common Stock immediately before the Distribution Date) to
receive distributions in kind from, respectively, the Entergy Savings Plan and the EquaGen Savings
Plan and such EquaGen Assumed Plans, if, and to the extent, investments under such plans in
investment funds are comprised of Entergy Common Stock or Enexus Common Stock, respectively;
provided, that, Entergy shall cause the Entergy Savings Plan to provide that, no
later than two (2) years following the Distribution Date, the Entergy Savings Plan shall hold no
investment fund comprised of Enexus Common Stock and EquaGen shall cause the EquaGen Savings Plan
and such EquaGen Assumed Plans to provide that, no later than two (2) years following the
Distribution Date, neither the EquaGen Savings Plan nor such EquaGen Assumed Plans shall hold an
investment fund comprised of either Entergy Common Stock or Enexus Common Stock. Each of Entergy
and EquaGen shall retain an independent fiduciary to determine the extent to which and when Enexus
Common Stock (in the case of the Entergy Savings Plan) and Entergy Common Stock and Enexus Common
Stock (in the case of the EquaGen Savings Plan and such EquaGen Assumed Plans) shall cease to be
available as an investment option thereunder regardless of the provision in the preceding sentence.

          Section 4.3 Transfer of EquaGen Assumed Plan Accounts. From and after the Distribution Date, Entergy Employees and Enexus Employees shall be
treated as having incurred a separation from service under the EquaGen Assumed Plans that are
defined contribution plans intended to qualify under Section 401(a) of the Code and (to the extent
otherwise provided under such plans) as eligible for a distribution under such plans.

          Section 4.4 Enexus Savings Plan.

          (a) Establishment of the Enexus Savings Plan. Effective as of the
Distribution Date, Enexus shall, or shall have caused one of its Affiliates to, establish a defined
contribution plan and trust for the benefit of Enexus Participants (the “Enexus Savings
Plan”). Enexus shall be responsible for taking all necessary, reasonable and appropriate
action to establish, maintain and administer the Enexus Savings Plan so that it is qualified under
Section 401(a) of the Code and that the related trust thereunder is exempt under Section 501(a) of
the Code, and as soon as reasonably practicable following the Distribution Date Enexus shall take
all steps reasonably necessary to obtain a favorable determination from the IRS as to such
qualification. Enexus shall be responsible for any and all Liabilities and other obligations with
respect to the Enexus Savings Plan.

          (b) Entergy Retention of Liability. Entergy shall retain, and neither Enexus nor
EquaGen (nor any of their respective Affiliates) shall have any obligation whatsoever with regard
to, all obligations and Liabilities under the Entergy Savings Plan in respect of all participants
who are not EquaGen Participants. For purposes of clarification, the Liabilities retained by
Entergy as provided in this Section 4.4(b) are intended to be Retained Business
Liabilities.

30

 

          (c) Distributions to Enexus Participants. From and after the Distribution Date,
Enexus Employees shall be treated as having incurred a separation from service under the Entergy
Savings Plan and (to the extent otherwise provided under the Entergy Savings Plan) as eligible for
a distribution under the Entergy Savings Plan, including in the case of a rollover contribution to
the Enexus Savings Plan as contemplated by the following sentence, a distribution in kind of any
participant loan balance that is not then in default in accordance with its terms. Enexus shall
cause the Enexus Savings Plan to accept as a direct rollover (within the meaning of Section
401(a)(31) of the Code) any distribution from the Entergy Savings Plan to the extent acceptance of
such rollover shall not cause the Enexus Savings Plan to fail to satisfy the requirements of
Section 401(a) of the Code, including any rollover in kind of participant loan balances provided
that such loan balances are not then in default in accordance with their terms; provided,
that, Enexus need not accept any other type of distribution in kind. Except as provided in
the preceding sentence, no Assets shall be transferred from the Entergy Savings Plan to any benefit
plan maintained by Enexus.

ARTICLE V

HEALTH AND WELFARE PLANS

          Section 5.1 Health and Welfare Plans Maintained by Entergy Prior to the Distribution
Date.

          (a) Establishment of Welfare Plans. Entergy or one or more of its
Affiliates maintain health and welfare plans and plans intended to satisfy the requirements of
Section 125 of the Code (the “Entergy Welfare Plans”) for the benefit of eligible Entergy
Participants, Enexus Participants and EquaGen Participants. Effective as of the Distribution Date,
Enexus shall, or shall cause an Enexus Affiliate to, adopt, for the benefit of eligible Enexus
Participants, health and welfare plans, exclusive of OPEB Plans (such plans to be established by
Enexus, collectively, the “Enexus Welfare Plans”). Effective as of the Distribution Date,
EquaGen shall, or shall cause an EquaGen Affiliate to, adopt, for the benefit of eligible EquaGen
Participants, health and welfare plans (collectively, the “EquaGen Welfare Plans”).

          (b) Terms of Participation in Enexus/EquaGen Welfare Plans. Subject to any
requirements under an applicable collective bargaining agreement, Enexus and EquaGen shall use
commercially reasonable efforts to cause all Enexus Welfare Plans and EquaGen Welfare Plans,
respectively, to (i) to the extent not otherwise required by Law, waive all limitations as to
preexisting conditions, exclusions, and service conditions with respect to participation and
coverage requirements applicable to Enexus Participants and EquaGen Participants, respectively,
other than limitations that were in effect with respect to Enexus Participants and EquaGen
Participants as of the Distribution Date under the Entergy Welfare Plans, (ii) waive any waiting
period limitation or evidence of insurability requirement that would otherwise be applicable to an
Enexus Participant or EquaGen Participant, respectively, following the Effective Time to the extent
such Enexus Participant or EquaGen Participant had satisfied any similar limitation under the
analogous Entergy Welfare Plan, (iii) to the extent such plans are administered in conjunction with
the same third party administrators and coverage providers as under the corresponding Entergy
Welfare Plan, recognize and give credit for (A) all amounts applied by Enexus Participants and
EquaGen Participants under the Entergy Welfare Plans to deductibles,

31

 

out-of-pocket maximums, and other applicable benefit coverage limits with respect to which such
expenses have been incurred during the calendar year in which the Distribution Date occurs and (B)
all benefits paid to, or received by, Enexus Participants and EquaGen Participants under the
Entergy Welfare Plan, in either case, for purposes of determining when such persons have received
the maximum benefits, including lifetime maximum benefits, provided under the Enexus Welfare Plans
and EquaGen Welfare Plans, respectively, and (iv) honor in accordance with their terms any
Qualified Medical Child Support Orders to the extent they were in effect under a corresponding
Entergy Welfare Plan.

          (c) Reimbursement Account Plans.

               (i) Effective as of the Distribution Date Enexus shall have established a health and dependent
care reimbursement account plan (the “Enexus Reimbursement Account Plan”) with features
substantially similar to those contained in the Entergy Corporation Companies Benefits Plus
Reimbursement Plan maintained by Entergy for the benefit of Enexus Participants immediately prior
to the Distribution Date (the “Entergy Reimbursement Account Plan”). Entergy shall retain
the responsibility for administering under the Entergy Reimbursement Account Plan all reimbursement
claims of Entergy Participants with respect to calendar year 2008 arising before, on, or after the
Distribution Date. With respect to Enexus Participants, Enexus shall assume responsibility for
administering under the Enexus Reimbursement Account Plan all reimbursement claims of Enexus
Participants with respect to calendar year 2008 not yet processed as of the Distribution Date,
whether arising before, on, or after the Distribution Date. No more than forty-five (45) days
following the Distribution Date (or such later time as mutually agreed by the Parties), (A) Entergy
shall cause to be transferred to Enexus an amount in cash, cash-like securities or other cash
equivalents equal to the excess, if any, of all contributions to the Entergy Reimbursement Account
Plan made with respect to calendar year 2008 by or on behalf of any Enexus Participant prior to the
Distribution Date over the amount previously distributed to the Enexus Participants for 2008 under
the Entergy Reimbursement Account Plan, and (B) Enexus shall cause to be transferred to Entergy an
amount in cash, cash-like securities or other cash equivalents equal to the excess, if any, of the
amount previously distributed to the Enexus Participants for 2008 under the Entergy Reimbursement
Account Plan over all contributions to the Entergy Reimbursement Account Plan made with respect to
calendar year 2008 by or on behalf of any Enexus Participant prior to the Distribution Date.

               (ii) Effective as of the Distribution Date, and subject to applicable collective bargaining
agreements and statutory bargaining obligations, EquaGen shall have established a health and
dependent care reimbursement account plan (the “EquaGen Reimbursement Account Plan”) with
features substantially similar to those contained in the Entergy Reimbursement Account Plan. With
respect to EquaGen Participants, EquaGen shall assume responsibility for administering under the
EquaGen Reimbursement Account Plan all reimbursement claims of EquaGen Participants with respect to
calendar year 2008 not yet processed as of the Distribution Date, whether arising before, on, or
after the Distribution Date. No more than forty-five (45) days following the Distribution Date (or
such later time as mutually agreed by the Parties), (A) Entergy shall cause to be transferred to
EquaGen an amount in cash, cash-like securities or other cash equivalents equal to the excess, if
any, of all contributions to the Entergy Reimbursement Account Plan made with respect to calendar
year 2008 by or on behalf of

32

 

any EquaGen Participant prior to the Distribution Date over the amount previously distributed to
the EquaGen Participants for 2008 under the Entergy Reimbursement Account Plan, and (B) EquaGen
shall cause to be transferred to Entergy an amount in cash, cash-like securities or other cash
equivalents equal to the excess, if any, of the amount previously distributed to the EquaGen
Participants for 2008 under the Entergy Reimbursement Account Plan over all contributions to the
Entergy Reimbursement Account Plan made with respect to calendar year 2008 by or on behalf of any
EquaGen Participant prior to the Distribution Date.

          (d) Continuation of Elections. As of the Distribution Date, to the extent permitted
by applicable Law, Enexus shall cause the Enexus Welfare Plans to recognize and maintain all
elections and designations (including all coverage and contribution elections and beneficiary
designations) made by Enexus Participants under, or with respect to, the Entergy Welfare Plans
(including “open enrollment” elections for 2009) and apply such elections and designations under
the corresponding Enexus Welfare Plans for the remainder of the period or periods for which such
elections or designations are by their original terms applicable, to the extent such election or
designation is available under the corresponding Enexus Welfare Plan. As of the Distribution Date,
to the extent permitted by applicable Law, EquaGen shall cause the EquaGen Welfare Plans to
recognize and maintain all elections and designations (including all coverage and contribution
elections and beneficiary designations) made by EquaGen Participants under, or with respect to, the
Entergy Welfare Plans (including “open enrollment” elections for 2009) and apply such elections and
designations under the corresponding EquaGen Welfare Plans for the remainder of the period or
periods for which such elections or designations are by their original terms applicable, to the
extent such election or designation is available under the corresponding EquaGen Welfare Plan and
permitted by applicable Law. Notwithstanding the foregoing provisions of this 5.1(e),
nothing in this Section 5.1(e) shall prohibit Enexus or EquaGen from soliciting or causing
the solicitation of new elections from Enexus Participants or EquaGen Participants, respectively,
to be effective under the Enexus Welfare Plans and EquaGen Welfare Plans, respectively.

          (e) Employees on Leave. Notwithstanding any other provision of this Agreement to the
contrary but except to the extent otherwise provided in Section 5.2, effective as of the
Effective Time Enexus and EquaGen shall assume Liability with respect to Enexus Employees and
Former Enexus Employees and EquaGen System Employees and Former EquaGen System Employees,
respectively, who are as of the Effective Time on vacation or other approved leave of absence
(including leave under the Family and Medical Leave Act or corresponding state law, salary
continuation, short-term disability and other approved leaves, paid or unpaid, as well as any other
leave protected by law, but in the case of EquaGen Employees only (and not in the case of Enexus
Employees), qualified military leave and long-term disability coverage) including Liability for
payment of any salary continuation, paid leave, and health and welfare coverage (and treating for
this purpose as an Enexus Employee or EquaGen System Employee, respectively, any Entergy Employee
who has accepted as of the Distribution Date an offer of employment with the Enexus Group or
EquaGen Group, respectively, and likewise treating for this purpose as an Entergy Employee any
EquaGen System Employee who has accepted as of the Distribution Date an offer of employment with
the Entergy Group), and Entergy shall have no further responsibility for such employees after the
Effective Time; provided, that, with respect to any individual who is on such an
approved leave of absence from Entergy or a

33

 

member of the Entergy Group as of the Distribution Date and who, upon return from such approved
leave of absence, will be employed by Enexus or a member of the Enexus Group, Entergy shall retain
any Liabilities in respect of such individual unless and until the individual returns from such
approved leave of absence and commences employment with Enexus or a member of the Enexus Group
during the period in which return rights are protected by applicable Law, at which time Entergy
shall have no further responsibility for such individual.

          (f) COBRA and HIPAA. Entergy shall retain or assume responsibility for providing any
notices required under COBRA to Entergy Participants (exclusive of any Entergy Employee who,
immediately before he or she commenced employment with a member of the Entergy Group, was employed
by a member of the EquaGen Group), Enexus Participants (exclusive of Enexus Transferred Employees)
and EquaGen Participants. Entergy shall otherwise retain or assume responsibility for compliance
with the health care continuation coverage requirements of COBRA with respect to Entergy
Participants and Enexus Participants (exclusive of Enexus Transferred Employees) who experience a
qualifying event under COBRA on or before the Distribution Date, and EquaGen shall otherwise retain
or assume responsibility, in respect of qualifying events under COBRA occurring on or before the
Distribution Date, for compliance with the health care continuation coverage requirements of COBRA
with respect to EquaGen Participants, Enexus Transferred Employees, and any Entergy Employee who,
immediately before he or she commenced employment with a member of the Entergy Group, was employed
by a member of the EquaGen Group. Entergy, Enexus and EquaGen shall retain or assume
responsibility for compliance with the health care continuation coverage requirements of COBRA with
respect to, respectively, Entergy Employees, Enexus Employees and EquaGen System Employees who
experience a qualifying event under COBRA after the Distribution Date. Entergy shall be
responsible for administering compliance with any certificate of creditable coverage requirements
of HIPAA or Medicare applicable to the Entergy Welfare Plans with respect to Enexus Participants
and EquaGen Participants.

          (g) Liabilities.

               (i) Insured Benefits. With respect to employee welfare and fringe benefits that are
provided through the purchase of insurance, Entergy shall timely pay all premiums in respect of
coverage of Enexus Participants and EquaGen Participants in respect of the period before the
Distribution Date, and Enexus and EquaGen, respectively, shall cause Entergy not to have any
liability in respect of any and all claims of Enexus Participants and EquaGen Participants that are
incurred under the Enexus Welfare Plans and EquaGen Welfare Plans on or after the Distribution
Date.

               (ii) Self-Insured Benefits. Except to the extent otherwise provided in Section
5.1(g)(vi), with respect to employee welfare and fringe benefits that are provided on a
self-insured basis, (A) Entergy shall fully perform, pay and discharge, under the Entergy Welfare
Plans, all claims of Enexus Participants and EquaGen Participants that are incurred but not paid
prior to the Distribution Date (and Entergy shall retain any reserve in respect of such claims that
may exist as of the Distribution Date), (B) Enexus shall fully perform, pay and discharge, under
the Enexus Welfare Plans, from and after the Distribution Date, all claims of Enexus Participants
that are incurred on or after the Distribution Date, and (C) EquaGen shall fully perform, pay and

34

 

discharge, under the EquaGen Welfare Plans, from and after the Distribution Date, all claims of
EquaGen Participants that are incurred on or after the Distribution Date.

          (iii) Incurred Claim Definition. For purposes of this Section 5.1(g), a claim
or Liability is deemed to be incurred (A) with respect to medical, dental, vision and/or
prescription drug benefits, upon the rendering of health services giving rise to such claim or
Liability; (B) with respect to life insurance, accidental death and dismemberment and business
travel accident insurance, upon the occurrence of the event giving rise to such claim or Liability;
and (C) with respect to disability benefits, upon the date of an individual’s disability, as
determined by the disability benefit insurance carrier or claim administrator, giving rise to such
claim or Liability.

          (iv) Treatment of Other Liabilities, Recoveries and Adjustments. For purposes of
applying the claim Liability provisions of clause (iii) above as it relates to retiree medical and
dental claims: (A) recoveries made by the Entergy Welfare Plans or Entergy with respect to claims
incurred prior to the Distribution Date, including subrogation/reimbursement recoveries, claim
adjustment recoveries and demutualization proceeds, shall be taken into account as positive claim
adjustments; and (B) other non-routine claim Liabilities paid by the Entergy Welfare Plans or
Entergy with respect to claims incurred prior to the Distribution Date, including Medicare
Secondary Payer Liability, shall be taken into account as claim Liabilities.

          (v) Claim Experience. Notwithstanding the foregoing, the Parties shall take any
action necessary to ensure that any claims experience under the Entergy Welfare Plans attributable
to Enexus Participants and EquaGen Participants shall be available to the Enexus Welfare Plans and
EquaGen Welfare Plans, respectively, in respect of a period not exceeding twenty-four (24) months
before the Distribution Date.

          (vi) Special Prescription Drug Rules. With respect to Entergy’s prescription drug
program, (A) Entergy shall retain any prescription drug rebate from any medical claim administrator
or insurer regardless of the date of payment to the extent they are associated with claims that are
incurred prior to the Distribution Date, and (B) Entergy shall retain any Medicare Part D subsidy
by the federal government regardless of the date of payment to the extent they are associated with
claims that are incurred prior to the Distribution Date. Entergy shall reimburse EquaGen for any
Medicare Part D subsidy for claims incurred on or after the Distribution Date attributable to
EquaGen Participants included on the Entergy Medicare Part D application and associated with claims
that are incurred on or after the Distribution Date.

          (vii) Special EquaGen Payments. To the extent that Entergy is responsible for and
pays any Liability under this Section 5.1(g) that arises before the Distribution Date, or
to the extent a Liability was paid before the Distribution Date, and in any event such Liability is
one in respect of which payment could have been satisfied but was not satisfied out of the Entergy
VEBA or an account maintained under the Entergy Retirement Plan, the Entergy Corporation Retirement
Plan for Bargaining Employees or the EquaGen Assumed Retirement Plan pursuant to Section 401(h) of
the Code, EquaGen shall pay (or cause the EquaGen VEBA to pay) to Entergy promptly upon request
therefor such amount paid by Entergy.

35

 

          (h) Employee Rewards and Recognition Program. Effective as of the Distribution Date,
EquaGen shall assume all Liabilities under Entergy’s Employee Rewards and Recognition Program in
respect of EquaGen Participants and Entergy shall retain none of such Liability. Entergy shall
assume all Liabilities under Entergy’s Employee Rewards and Recognition Program in respect of
Entergy Participants. In accordance with the terms of Entergy’s Employee Rewards and Recognition
Program, Enexus Participants shall cease to be entitled to benefits under such program upon
consummation of the Distribution.

          Section 5.2 Time-Off Benefits. In the case of any Entergy Employee, Enexus Employee who is an employee of Entergy Nuclear
Nebraska, LLC as of the Effective Time, or EquaGen System Employee, Entergy, Enexus or EquaGen (as
the case may be) shall credit (or continue to credit) as of the Effective Time each Entergy
Employee, such Enexus Employee or EquaGen System Employee, respectively, with the amount of accrued
but unused vacation time, paid time off and other time-off benefits as such Entergy Employee,
Enexus Employee or EquaGen System Employee had with the Entergy Group, Enexus Group or EquaGen
Group as of immediately before the Effective Time. In the case of any Enexus Employee who is not
an employee of Entergy Nuclear Nebraska, LLC as of the Effective Time, Entergy shall make to such
employee payment in respect of any accrued but unused vacation time, paid time off and other
time-off benefits (but exclusive of floating holiday time or sick leave time that is not banked) as
of the Effective Time in full satisfaction of the such then existing entitlement of such employee.

          Section 5.3 Post-Retirement Benefits for Enexus Participants.

          (a) Retention of Liability. Entergy shall retain and neither Enexus nor
EquaGen (nor any of their respective Affiliates) shall have any obligation whatsoever with regard
to, all obligations and Liabilities under any Entergy OPEB Plans in respect of all participants who
are Entergy Participants or Enexus Participants. From and after the Distribution Date, Enexus
Employees shall be treated as having incurred a separation from service under the Entergy OPEB
Plans and (to the extent otherwise provided under the Entergy OPEB Plans) as eligible for benefits
under the Entergy OPEB Plans. No Assets shall be transferred to Enexus or any Benefit Arrangement
of Enexus in respect of any Entergy OPEB Plan. For purposes of clarification, the Liabilities
retained by Entergy as provided in this subsection (a) are intended to be Retained Business
Liabilities.

          (b) Special Enexus Employee Service Crediting.

               (i) Without limiting Section 2.3 of this Agreement and subject to subsection (b)(ii)
below, Entergy shall cause each Entergy OPEB Plan to treat (x) any Entergy Employee who transfers
employment directly to the Enexus Group prior to the Service Crediting Date, (y) any Entergy
Employee who does not become an Enexus Employee as of the Distribution Date but who becomes an
Enexus Employee upon return from a leave of absence, which commenced while the individual was an
Entergy Employee, during the period in which return rights are protected by applicable Law, and (z)
any Enexus Employee (in each case exclusive of any individual who was not actively employed on May
31, 2008, by, and continuously employed since then by, a member of the Entergy Group or EquaGen
Group) as eligible for benefits under the Entergy OPEB Plan (A) if as of the Distribution Date, the
person would have qualified for such

36

 

benefits had the person’s employment with the Entergy Group continued for at least five (5) more
years or the sum of the person’s age and years of service credited under the Entergy OPEB Plan
totaled at least sixty-five (65), and (B) if (but only if and when) the person otherwise would have
been eligible for benefits under the Entergy OPEB Plan (but not before attainment of the earlier of
at least age 55 with 10 years of service or age 65) if such person’s service with Enexus after the
Distribution Date were treated as service with Entergy (regardless whether the individual’s
employment with Enexus has terminated). For purposes of determining the retiree life insurance
benefit under this Section 5.3(b) for any individual, Entergy shall cause the Entergy OPEB
Plan to recognize compensation based upon such individual’s base pay as in effect immediately
before the first date of his or her employment with Enexus (or, in the case of an individual
described in clause (y) above who is on USERRA Leave, as in effect immediately before the USERRA
Leave commenced), increased by four percent (4%) on a compound basis each year.

               (ii) Although it is presently the intent of Entergy to credit service and compensation as
provided in the foregoing provision of this Section 5.3(b) (subject to the provisions of
Section 11.16 hereof), nothing in this Section 5.3(b) is intended to or shall be
construed to prohibit Entergy from terminating the Entergy OPEB Plan or from amending the Entergy
OPEB Plan to disregard such service and imputed compensation at any time for any reason.

          Section 5.4 EquaGen OPEB Benefits. Effective as of the Distribution Date, and subject to applicable collective bargaining
agreements and statutory bargaining obligations, EquaGen shall establish an OPEB Plan with terms
substantially similar to the terms of any Entergy OPEB Plan as of the Distribution Date to the
extent applicable to EquaGen Participants, and EquaGen shall assume, and neither Entergy nor Enexus
shall have any obligation whatsoever with regard to, all obligations and Liabilities under any
Entergy OPEB Plans in respect of all participants who are EquaGen Participants.

          Section 5.5 Special Service Crediting Rule.

          (a) In General. Without limiting Section 2.3 of this Agreement and
subject to subsection (b) below, Entergy shall cause each Entergy OPEB Plan to treat any EquaGen
System Employee who participates in an EquaGen OPEB Plan and who transfers employment directly to
the Enexus Group prior to the Service Crediting Date as eligible for benefits under the Entergy
OPEB Plan (i) if as of the Distribution Date, the person would have qualified for such benefits had
the person’s employment with Entergy continued for at least five (5) more years or the sum of the
person’s age and years of credited service under the Entergy OPEB Plan totaled at least sixty-five
(65), and (ii) if (but only if and when) the person otherwise would have been eligible for benefits
under the Entergy OPEB Plan (but not before attainment of the earlier of at least age 55 with 10
years of service or age 65) if such person’s service with EquaGen and Enexus after the Distribution
Date were treated as service with Entergy (regardless whether the individual’s employment with
Enexus has terminated). For purposes of determining the retiree life insurance benefit under this
Section 5.4(b) for any individual, Entergy shall cause the Entergy OPEB Plan to recognize
compensation based upon such individual’s base pay as in effect immediately before the first date
of his or her employment with Enexus, increased by four percent (4%) on a compound basis each year.

37

 

          (b) No Limit on Changes. Although it is presently the intent of Entergy to credit
service and compensation as provided in the foregoing provision of this Section 5.5
(subject to the provisions of Section 11.16 hereof), nothing in this Section 5.5 is
intended to or shall be construed to prohibit Entergy from terminating the Entergy OPEB Plan or
from amending the Entergy OPEB Plan to disregard such service and imputed compensation at any time
for any reason.

          Section 5.6 Disposition of VEBA Assets.

          (a) Establishment of EquaGen VEBA. Effective not later than the
Distribution Date (or such later time as mutually agreed by the Parties), EquaGen shall adopt the
EquaGen VEBA in a form that is substantially comparable to the Entergy VEBA as in effect
immediately before the Distribution Date and shall cause the EquaGen VEBA to qualify under Section
501(c)(9) of the Code.

          (b) VEBA Asset Allocations and Transfers. Within 180 days following the Distribution
Date, Entergy shall cause the Entergy VEBA to transfer to the EquaGen VEBA the amounts in the
Entergy VEBA attributable to the Pilgrim Nuclear Station in Plymouth, Massachusetts, the Vermont
Yankee nuclear power plant in Vernon, Vermont, and the Palisades Nuclear Energy Plant in South
Haven, Michigan, as determined in accordance with the following provisions of this Section
5.6.

               (i) Initial Transfer. Not later than ten (10) Business Days following the
Distribution Date (or such later time as mutually agreed by the Parties but in any event following
the Distribution Date), Entergy and EquaGen shall cooperate in good faith to cause an initial
transfer of Assets (as determined by Entergy in its discretion, in kind, in cash, cash-like
securities or other cash equivalents) from the Entergy VEBA to the EquaGen VEBA in an amount equal
(as determined in the discretion of Entergy) to not less than eighty-five percent (85%) and not
more than ninety-five percent (95%) of the Assets credited under the Entergy VEBA to the Pilgrim
Nuclear Station in Plymouth, Massachusetts, the Vermont Yankee nuclear power plant in Vernon,
Vermont, and the Palisades Nuclear Energy Plant in South Haven, Michigan, determined as of the last
day of the calendar month ending at least fifteen (15) days prior to the Distribution (such amount,
the “Initial EquaGen VEBA Transfer Amount”).

               (ii) True-Up Transfer. Within forty-five (45) days (or such later time as mutually
agreed by the Parties) following the Distribution Date (and in any event following the transfer
described in subsection (b)(i) above), Entergy shall cause the Entergy VEBA to transfer to the
EquaGen VEBA an amount (as determined by Entergy in its discretion, in kind, in cash, cash-like
securities or other cash equivalents), equal to (A) the value of the Assets credited under the
Entergy VEBA as of the Distribution Date to the Pilgrim Nuclear Station in Plymouth, Massachusetts,
the Vermont Yankee nuclear power plant in Vernon, Vermont, and the Palisades Nuclear Energy Plant
in South Haven, Michigan minus (B) the Initial EquaGen VEBA Transfer Amount (such difference, as
adjusted to reflect earnings or losses as described below, the “VEBA True-Up Amount”);
provided, that, in the event the VEBA Trust True-Up Amount is negative, Entergy
shall not be required to cause any such additional transfer and instead EquaGen shall be required
to cause a transfer of cash, cash-like securities or other cash equivalents (or, if determined

38

 

by EquaGen in its discretion, assets in kind) from the EquaGen VEBA to the Entergy VEBA in amount
equal to the VEBA True-Up Amount. The Parties acknowledge that the Entergy VEBA’s transfer of the
VEBA True-Up Amount to the EquaGen VEBA shall be in full settlement and satisfaction of the
obligations of Entergy to cause the transfer of, and the Entergy VEBA to transfer, Assets to the
EquaGen VEBA pursuant to this Section 5.6(b)(ii).

     The VEBA True-Up Amount shall be paid from the Entergy VEBA to the EquaGen VEBA, as determined
by Entergy in its discretion in kind, in cash, cash-like securities or other cash equivalents, and
shall be adjusted to reflect earnings or losses during the period from the Distribution Date to the
date of transfer of the VEBA True-Up Amount. Such earnings or losses shall be determined based on
the methodology set forth in Exhibit 5.6(b)(ii). In the event that EquaGen is obligated to cause
the EquaGen VEBA to reimburse the Entergy VEBA pursuant to this Section 5.6(b)(ii), such
reimbursement shall be performed in accordance with the same principles set forth herein with
respect to the payment of the VEBA True-Up Amount. The Parties acknowledge that the EquaGen VEBA’s
transfer of such reimbursement amount to the Entergy VEBA shall be in full settlement and
satisfaction of the obligations of EquaGen to cause the transfer of, and the EquaGen VEBA to
transfer, Assets to the Entergy VEBA pursuant to this Section 5.6(b)(ii).

ARTICLE VI

EXECUTIVE BENEFIT PLANS

          Section 6.1 Supplemental Retirement Plans.

          (a) Establishment of EquaGen Nonqualified Plan. Effective as of the
Distribution Date, EquaGen shall, or shall cause one of its Affiliates to, establish a
non-qualified deferred compensation plan or plans to benefit EquaGen Participants and Enexus
Transferred Employees who were participants in, or were eligible to accrue, benefits under the
Entergy SRP immediately prior to the Distribution Date, the terms of which are substantially
comparable, in the aggregate, to the terms of the Entergy SRP arrangements identified on Schedule D
as in effect immediately prior to the Distribution Date (the “EquaGen Nonqualified Plans”).
Effective as of the Distribution Date, EquaGen hereby agrees to cause the EquaGen Nonqualified
Plans to assume responsibility for all Liabilities and fully perform, pay and discharge all
obligations, when such obligations become due, of the Entergy SRP arrangements identified on
Schedule D with respect to all EquaGen Participants and Enexus Transferred Employees who
participate therein (other than to the extent the EquaGen Participant or Enexus Transferred
Employee, as of the Distribution Date, has elected a distribution payable during 2009 under an
Entergy SRP that is a defined contribution plan). EquaGen shall be responsible for any and all
Liabilities (including Liability for funding) and other obligations with respect to the EquaGen
Nonqualified Plans.

          (b) Continuation of Elections. As of the Distribution Date, to the extent permitted
by applicable Law, EquaGen shall cause the EquaGen Nonqualified Plans to recognize and maintain all
elections (including deferral, distribution and investment elections) and beneficiary designations
with respect to EquaGen Participants under the Entergy SRP to the extent such elections or
designations are available under the EquaGen Nonqualified Plans until a new

39

 

election that by its terms supersedes such original election is made by the EquaGen Participant in
accordance with applicable Law and the terms and conditions of the EquaGen Nonqualified Plans;
provided, that, nothing in this Section 6.1(b) shall prohibit EquaGen from
soliciting or causing the solicitation of new elections from EquaGen Participants to be effective
under the EquaGen Nonqualified Plans.

          (c) Special Enexus Service Crediting Rules.

               (i) Without limiting Section 2.3 of this Agreement and subject to the provisions of
clause (ii) below:

                    (A) for purposes of determining the extent to which (x) any Entergy Employee who transfers
employment directly to the Enexus Group after the Distribution Date but prior to the Service
Crediting Date, (y) any Entergy Employee who does not become an Enexus Employee as of the
Distribution Date but who becomes an Enexus Employee upon return from a leave of absence, which
commenced while the individual was an Entergy Employee, during the period in which return rights
are protected by applicable Law, and (z) any Enexus Employee (in each case exclusive of any
individuals who was not actively employed on May 31, 2008, by, and continuously employed since then
by, a member of the Entergy Group or EquaGen Group) is vested in his or her benefit under the
Entergy SRP, and the extent to which such a person is eligible for early retirement or other
subsidized benefits under the Entergy SRP, Entergy shall cause the Entergy SRP to credit such
person’s service with Enexus after the Distribution Date to the same extent had such service been
with and compensation earned from Entergy;

                    (B) for purposes of determining the extent to which any EquaGen System Employee who
participates in an EquaGen Nonqualified Plan and who transfers employment directly to the Enexus
Group prior to the Service Crediting Date (exclusive of any individual who was not actively
employed on May 31, 2008, by, and continuously employed since then by, a member of the Entergy
Group or EquaGen Group) is vested in his or her benefit under the EquaGen Nonqualified Plan and the
extent to which such a person is eligible for early retirement or other subsidized benefits under
the EquaGen Nonqualified Plan, EquaGen shall cause the EquaGen Nonqualified Plan to credit such
person’s service with Enexus after the Distribution Date to the same extent had such service been
with EquaGen; and

                    (C) in no event shall any person who is credited with service pursuant to the foregoing
provisions of this subsection (c)(i) be credited in respect of service at Enexus for benefit
accrual purposes or for purposes of determining earnings levels; provided, that, in
determining the benefit available under the Entergy SRP (in the case of subsection (c)(i)(A)) or
the EquaGen Nonqualified Plan (in case of subsection (c)( i)(B)), the benefit shall be determined
taking into account compensation in respect of the period of service with Enexus after the
Distribution Date based upon such individual’s base pay and annual target incentive as in effect
immediately before the first date of his or her employment with Enexus (subject in the case of the
annual target incentive to any otherwise applicable plan limits on the amount of incentive that may
be taken into account), in each case increased by four percent (4%) on a compound basis each year).

40

 

               (ii) Although it is presently the intent of Entergy and EquaGen to credit service and
compensation as provided in the foregoing provision of this Section 6.1(c) (subject to the
provisions of Section 11.16 hereof), nothing in this Section 6.1(c) is intended to
or shall be construed to prohibit Entergy or EquaGen from terminating the Entergy SRP or the
EquaGen Nonqualified Plan or from amending such plans to disregard such service and imputed
compensation at any time for any reason.

          Section 6.2 Separation is Not Distributable Event. The Parties acknowledge that, for purposes of the Entergy SRP, the Separation and any
transfers of employment incident to the Separation shall result in a distributable event under the
Entergy SRP only to the extent so provided under the terms of the Entergy SRP as in effect on the
Distribution Date.

          Section 6.3 Establishment of Certain Plans. Effective as of the Distribution Date, Enexus shall establish plans the terms of which are
substantially comparable (including with respect to the right to amend or terminate such plans) to
the Entergy plans set forth on E-1 for the benefit of eligible Enexus Participants, and EquaGen
shall establish plans the terms of which are substantially comparable (including with respect to
the right to amend or terminate such plans) to the Entergy plans set forth on Schedule E-2 for the
benefit of eligible EquaGen Participants.

          Section 6.4 No Transfer of Assets Attributable to Entergy Nonqualified Plans. There shall be no transfer of Assets to EquaGen or Enexus or any of their Affiliates (or to
any trust maintained by any of them or to or in respect of the EquaGen Nonqualified Plans) in
respect of Liabilities under the Entergy Nonqualified Plans.

ARTICLE VII

LONG-TERM INCENTIVE AWARDS

          Section 7.1 Treatment of Outstanding Entergy Options.

          (a) Each Entergy Option that is outstanding immediately prior to the Distribution Date shall,
as of the Distribution Date, be converted into an Enexus Option and an adjusted Entergy Option
(each a “Post-Distribution Entergy Option”) in accordance with the succeeding paragraphs of
this Section 7.1.

          (b) The number of shares subject to the Enexus Option shall be equal to the number of shares
of Enexus Common Stock to which the option holder would be entitled in the Distribution had the
shares subject to the Entergy Option represented outstanding shares of Entergy Common Stock as of
the Record Date, the resulting number of shares subject to the Enexus Option being rounded down to
the nearest whole share. The per share exercise price of the Enexus Option shall be equal to the
product of (1) the per share exercise price of the Entergy Option immediately prior to the
Distribution Date (the “Pre-Distribution Entergy Option Price”) multiplied by (2) a
fraction, the numerator of which shall be the Post-Distribution Enexus Stock Price and the
denominator of which shall be the sum of (i) the Post-Distribution Entergy Stock Price and (ii) the
quotient determined by dividing the Post-Distribution Enexus Stock Price by the Enexus Ratio, which
product shall be rounded up to the nearest whole cent. For purposes of this

41

 

paragraph (b), “Enexus Ratio” shall mean the amount determined by dividing (x) the number
one (1) by (y) the number of shares of Enexus Common Stock distributed in respect of each share of
Entergy Common Stock in the Distribution. The per share exercise price of the Post-Distribution
Entergy Option shall be equal to the product of (1) the Pre-Distribution Entergy Option Price
multiplied by (2) a fraction, the numerator of which shall be the Post-Distribution Entergy Stock
Price and the denominator of which shall be the sum of (i) the Post-Distribution Entergy Stock
Price and (ii) the quotient determined by dividing the Post-Distribution Enexus Stock Price by the
Enexus Ratio (as defined above), which product shall be rounded up to the nearest whole cent. For
the avoidance of doubt, the methodology described in the preceding provisions of this subsection
(b) for determining the exercise price under the Post-Distribution Entergy Option and Enexus Option
shall likewise apply in determining the base price of any stock appreciation right issued in tandem
with an Entergy Option that is outstanding immediately prior to the Distribution Date.

          (c) Prior to the Distribution Date, Entergy shall amend the applicable Entergy Stock Plans as
necessary, effective as of the Distribution Date, to provide that for purposes of the
Post-Distribution Entergy Options (including in determining exercisability and the post-termination
exercise period), an Enexus Employee’s continued service with the Enexus Group following the
Distribution Date and the continued service with the Enexus Group of an Entergy Employee or an
EquaGen System Employee who directly transfers employment from the Entergy Group or the EquaGen
Group, respectively, to the Enexus Group prior to the Service Crediting Date shall be deemed
continued service with Entergy, and an EquaGen System Employee’s continued service with the EquaGen
Group following the Distribution Date shall be deemed continued service with Entergy. Enexus shall
issue each Enexus Option under the Enexus Stock Plan, which shall provide that, except as otherwise
provided herein, the terms and conditions applicable to the Enexus Options shall be substantially
similar to the terms and conditions applicable to the corresponding Entergy Option, including the
terms and conditions relating to vesting and the post-termination exercise period (as set forth in
the applicable plan, award agreement or in the option holder’s then applicable employment agreement
with Entergy or its Affiliates, which terms shall remain in effect even after the expiration or
termination of such employment agreement) and including a provision to the effect that, for
purposes of the Enexus Options, continued service with the Entergy Group or EquaGen Group from and
after the Distribution Date shall be deemed to constitute service with Enexus.

          (d) The Enexus Options and the Post-Distribution Entergy Options shall remain subject to the
terms and conditions of the underlying Entergy Option as in effect immediately prior to the
Distribution Date, including any terms relating to post-termination exercise periods provided for
in any option holder’s employment agreement.

          (e) Upon the exercise of an Enexus Option, regardless of the holder thereof, the exercise
price shall be paid to (or otherwise satisfied to the satisfaction of) Enexus in accordance with
the terms of the Enexus Option, and Enexus shall be solely responsible for the issuance of Enexus
Common Stock, for ensuring the withholding of all applicable Tax on behalf of the employing entity
of such holder, and for ensuring the remittance of such withholding Taxes to the employing entity
of such holder. Upon the exercise of an Entergy Option, regardless of the holder thereof, the
exercise price shall be paid to (or otherwise satisfied to the satisfaction of Entergy) in
accordance with the terms of the Entergy Option, and Entergy shall be solely responsible for the

42

 

issuance of Entergy Common Stock, for ensuring the withholding of all applicable Tax on behalf of
the employing entity of such holder and for ensuring the remittance of such withholding Taxes to
the employing entity of such holder.

          Section 7.2 Treatment of Outstanding Entergy Restricted Stock. Each holder as of the Record Date of Entergy Restricted Shares that remain outstanding
immediately prior to the Distribution Date shall receive in respect of such Entergy Restricted
Shares, upon the Distribution being made, such number of additional Entergy Restricted Shares with
a value (based on the Post-Distribution Entergy Stock Price and determined without regard to any
restrictions imposed on such Entergy Restricted Shares in accordance with the succeeding provisions
of this Section 7.2) equal to the value (based on the Post-Distribution Enexus Stock Price)
of the number of shares of Enexus Common Stock to which all other holders of shares of Entergy
Common Stock would be entitled to receive upon the Distribution being made, the resulting number of
additional Entergy Restricted Shares being rounded down to the nearest whole unit. The Entergy
Restricted Shares outstanding following the Distribution in accordance with the preceding sentence
are hereinafter referred to as “adjusted Entergy Restricted Shares.” All adjusted Entergy
Restricted Shares shall become vested upon the date the Entergy Restricted Shares would have
otherwise vested in accordance with the existing vesting schedule. Upon the vesting of the
adjusted Entergy Restricted Shares, Entergy shall be solely responsible for the settlement of all
Entergy Restricted Shares, regardless of the holder thereof, and for ensuring the satisfaction of
all applicable Tax withholding requirements on behalf of the employing entity of such holder and
for ensuring the remittance of such withholding Taxes to the employing entity of such holder.

          Section 7.3 Treatment of Outstanding Entergy Restricted Stock Units.

          (a) Each Entergy Restricted Stock Unit that is outstanding immediately prior to the
Distribution Date shall be converted, as of the Distribution Date, into an Enexus Restricted Stock
Unit and an adjusted Entergy Restricted Stock Unit (including a ratable portion of any accumulated
dividend equivalents) in accordance with the succeeding paragraphs of this Section 7.3.

          (b) The number of Enexus Restricted Stock Units shall be equal to the number of shares of
Enexus Common Stock to which the holder of Entergy Restricted Stock Units would be entitled in the
Distribution had the Entergy Restricted Stock Units represented actual shares of Entergy Common
Stock as of the Record Date, the resulting number of Enexus Restricted Stock Units being rounded
down to the nearest whole unit. All Enexus Restricted Stock Units and adjusted Entergy Restricted
Stock Units shall become vested upon the date the Entergy Restricted Stock Units would have
otherwise vested in accordance with the existing vesting schedule.

          (c) Prior to the Distribution Date, Entergy shall amend the applicable Entergy Stock Plans as
necessary, effective as of the Distribution Date, to provide that for purposes of continued vesting
of the adjusted Entergy Restricted Stock Units, an Enexus Employee’s continued service with the
Enexus Group following the Distribution Date and the continued service with the Enexus Group of an
Entergy Employee or an EquaGen System Employee who directly transfers employment from the Entergy
Group or the EquaGen Group, respectively, to the Enexus Group prior to the Service Crediting Date
shall be deemed continued service with Entergy, and an

43

 

EquaGen System Employee’s continued service with the EquaGen Group following the Distribution Date
shall be deemed continued service with Entergy. Enexus shall issue each Enexus Restricted Stock
Unit under the Enexus Stock Plan, which shall provide that, except as otherwise provided herein,
the terms and conditions applicable to the Enexus Restricted Stock Units shall be substantially
similar to the terms and conditions applicable to the corresponding Entergy Restricted Stock Unit
(as set forth in the applicable plan, award agreement or in the holder’s then applicable employment
agreement with Entergy or its Affiliates, which terms shall remain in effect even after the
expiration or termination of such employment agreement), including a provision to the effect that,
for purposes of the Enexus Restricted Stock Units, continued service with the Entergy Group or
EquaGen Group from and after the Distribution Date shall be deemed to constitute service with
Enexus.

          (d) Upon the vesting of Enexus Restricted Stock Units that are settled in shares of Enexus
Common Stock, Enexus shall be solely responsible for the settlement of the Enexus Restricted Stock
Units (including any attributable dividend equivalents), regardless of the holder thereof, and for
ensuring the satisfaction of all applicable Tax withholding requirements on behalf of the employing
entity of such holder and for ensuring the remittance of such withholding Taxes to the employing
entity of such holder. Upon the vesting of the Entergy Restricted Stock Units that are settled in
shares of Entergy Common Stock, Entergy shall be solely responsible for the settlement of the
Entergy Restricted Stock Units (including any attributable dividend equivalents), regardless of the
holder thereof, and for ensuring the satisfaction of all applicable Tax withholding requirements on
behalf of the employing entity of such holder and for ensuring the remittance of such withholding
Taxes to the employing entity of such holder. Upon the vesting of Entergy Restricted Stock Units
or Enexus Restricted Stock Units that are settled in cash, the employing entity of the holder (or,
in the case of a director, the entity for whom the holder serves as director) shall be solely
responsible for the settlement of such stock units (including any attributable dividend
equivalents) and, in the case of an employee, for ensuring the satisfaction of all applicable Tax
withholding requirements and for ensuring the remittance of such withholding Taxes.
Notwithstanding the foregoing provisions of this subsection (d), to the extent an Entergy
Restricted Stock Unit or Enexus Restricted Stock Unit is deferred under a deferral plan (including
the Entergy SRP), payment in respect of such Entergy Restricted Stock Unit or Enexus Restricted
Stock Unit shall be made pursuant to the terms of such deferral plan; provided,
that, Entergy shall retain all Liability for settling any such deferrals to the extent the
participant, as of the Distribution Date, has elected a distribution payable during 2009.

          Section 7.4 Treatment of Outstanding Entergy Performance Units.

          (a) Each Entergy Performance Unit that is outstanding immediately prior to the
Distribution Date shall be converted, as of the Distribution Date, into an Enexus Performance Unit
and an adjusted Entergy Performance Unit (including a ratable portion of any accumulated dividend
equivalents) in accordance with the succeeding paragraphs of this Section 7.4.

          (b) The number of Enexus Performance Units shall be equal to the number of shares of Enexus
Common Stock to which the holder of Entergy Performance Units would be entitled in the Distribution
had the Entergy Performance Units represented actual shares of Entergy Common Stock as of the
Record Date, the resulting number of Enexus Performance Units

44

 

being rounded down to the nearest whole unit. For purposes of determining the extent to which
Enexus Performance Units and adjusted Entergy Performance Units shall become vested, to the extent
necessary Entergy shall recommend such actions to be taken such that, for any portion of the
applicable performance period that occurs after the Distribution Date, measurement of applicable
performance shall be based upon two components, consisting respectively of performance in respect
of Entergy and performance in respect of Enexus, weighted equally.

          (c) Prior to the Distribution Date, Entergy shall amend the applicable Entergy Stock Plans as
necessary, effective as of the Distribution Date, to provide that for purposes of continued vesting
of the adjusted Entergy Performance Units, an Enexus Employee’s continued service with the Enexus
Group following the Distribution Date and the continued service with the Enexus Group of an Entergy
Employee or an EquaGen System Employee who directly transfers employment from the Entergy Group or
the EquaGen Group, respectively, to the Enexus Group prior to the Service Crediting Date shall be
deemed continued service with Entergy, and an EquaGen System Employee’s continued service with the
EquaGen Group following the Distribution Date shall be deemed continued service with Entergy.
Enexus shall issue each Enexus Performance Unit under the Enexus Stock Plan, which shall provide
that, except as otherwise provided herein, the terms and conditions applicable to the Enexus
Performance Units shall be substantially similar to the terms and conditions applicable to the
corresponding Entergy Performance Unit (as set forth in the applicable plan, award agreement or in
the holder’s then applicable employment agreement with Entergy or its Affiliates, which terms shall
remain in effect even after the expiration or termination of such employment agreement), including
a provision to the effect that, for purposes of the Enexus Performance Units, continued service
with the Entergy Group or EquaGen Group from and after the Distribution Date shall be deemed to
constitute service with Enexus.

          (d) Upon the vesting of Entergy Performance Units or Enexus Performance Units, the employing
entity of the holder shall be solely responsible for the settlement of such performance shares
(including any attributable dividend equivalents) and for ensuring the satisfaction of all
applicable Tax withholding requirements and for ensuring the remittance of such withholding Taxes.
Notwithstanding the foregoing provisions of this subsection (d), to the extent an Entergy
Performance Unit or Enexus Performance Unit is deferred under a deferral plan (including the
Entergy SRP), payment in respect of such Entergy Performance Unit or Enexus Performance Unit shall
be made pursuant to the terms of such deferral plan; provided, that, Entergy shall
retain all Liability for settling any such deferrals to the extent the participant, as of the
Distribution Date, has elected a distribution payable in 2009.

          Section 7.5 Cooperation. Each of the Parties shall establish an appropriate administration system in order to handle
in an orderly manner exercises of the Entergy Options and the Enexus Options and the settlement of
the Entergy Restricted Shares, the Entergy Restricted Stock Units, the Entergy Performance Units,
the Enexus Restricted Stock Units and the Enexus Performance Units. Each of the Parties shall work
together to unify and consolidate all indicative data and payroll and employment information on
regular timetables and make certain that each applicable entity’s data and records in respect of
such awards are correct and updated on a timely basis. The foregoing shall include employment
status and information required for Tax

45

 

withholding/remittance, compliance with trading windows and compliance with the requirements
of the Exchange Act and other applicable Laws.

          Section 7.6 SEC Registration. Entergy and Enexus agree to use commercially reasonable efforts to maintain effective
registration statements with the Securities and Exchange Commission (“SEC”) with respect to
the long-term incentive awards described in this ARTICLE VII, to the extent any
such registration statement is required by applicable Law, and EquaGen agrees to use commercially
reasonable efforts to facilitate the filing and maintenance of any such registration statements.

          Section 7.7 Savings Clause. The Parties hereby acknowledge that the provisions of this ARTICLE VII are intended
to achieve certain Tax, legal and accounting objectives and, in the event such objectives are not
achieved, the Parties agree to negotiate in good faith regarding such other actions that may be
necessary or appropriate to achieve such objectives.

ARTICLE VIII

ADDITIONAL COMPENSATION MATTERS

          Section 8.1 Workers’ Compensation Liabilities.

          (a) Pre-Distribution Date Claims. Except as set forth below, (i) except to
the extent provided in the following clause (ii), all workers’ compensation Liabilities relating
to, arising out of, or resulting from any claim by an Enexus Employee or Former Enexus Employee
that results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, before the Distribution Date shall be retained or assumed by Entergy, (ii)
Entergy Nuclear Nebraska, LLC shall retain all Liabilities relating to, arising out of, or
resulting from any claim by an Enexus Employee or Former Enexus Employee that results from an
accident, incident or event occurring, or from an occupational disease which becomes manifest,
before the Distribution Date and while such individual was employed by Entergy Nuclear Nebraska,
LLC, provided that Entergy shall upon request reimburse Entergy Nuclear Nebraska, LLC for actual
costs incurred in respect of such Liabilities, and (iii) all workers’ compensation Liabilities
relating to, arising out of, or resulting from any claim by an EquaGen System Employee or Former
EquaGen System Employee that results from an accident, incident or event occurring, or from an
occupational disease which becomes manifest, before the Distribution Date shall be retained or
assumed by EquaGen. Notwithstanding the foregoing, EquaGen shall not assume or retain any workers’
compensation Liability relating to, arising out of, or resulting from any claim by an EquaGen
System Employee or Former EquaGen System Employee that results from an accident, incident or event
occurring, or from an occupational disease which becomes manifest, while such EquaGen System
Employee or Former EquaGen System Employee was employed by any member of the Entergy Group (each
such a claim, a “Entergy Retained Claim”) and liabilities for such Entergy Retained Claims
shall be assumed or retained by Entergy. All workers’ compensation Liabilities relating to, arising
out of, or resulting from any Entergy Retained Claim or any claim by a Entergy Employee or Former
Entergy Employee that results from an accident, incident, or event occurring, or from an
occupational disease which becomes manifest before the Distribution Date shall be retained by
Entergy.

46

 

          (b) Post-Distribution Date Claims. All workers’ compensation Liabilities relating to,
arising out of, or resulting from any claim by an Enexus Employee or Former Enexus Employee that
results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, on or after the Distribution Date shall be retained by Enexus. All workers’
compensation Liabilities relating to, arising out of, or resulting from any claim by any Entergy
Employee or EquaGen System Employee who transfers employment directly to the Enexus Group after the
Distribution Date but prior to the Service Crediting Date that results from an accident, incident
or event occurring, or from an occupational disease which becomes manifest, on or after the
Distribution Date shall be retained or assumed by Entergy or EquaGen, as the case may be. All
workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a
Entergy Employee or Former Entergy Employee that results from an accident, incident or event
occurring, or from an occupational disease which becomes manifest, on or after the Distribution
Date shall be retained by Entergy. All workers’ compensation Liabilities relating to, arising out
of, or resulting from any claim by an EquaGen System Employee or Former EquaGen System Employee
that results from an accident, incident or event occurring, or from an occupational disease which
becomes manifest, on or after the Distribution Date shall be retained by EquaGen.

          (c) General. For purposes of this Section 8.1, a compensable injury shall be
deemed to be sustained upon the occurrence of the event giving rise to eligibility for workers’
compensation benefits or upon an occupational disease becoming manifest, as the case may be. The
Parties shall cooperate in good faith with respect to the notification to appropriate governmental
agencies of the Distribution and the issuance of new, or the transfer of existing, workers’
compensation insurance policies and claims handling contracts.

          Section 8.2 Code Sections 162(m)/409A. Notwithstanding anything in this Agreement to the contrary (including the treatment of
supplemental and deferred compensation plans, outstanding long-term incentive awards and annual
incentive awards as described herein), the Parties agree to negotiate in good faith regarding the
need for any treatment different from that otherwise provided herein to ensure that (i) a federal
income Tax deduction for the payment of such supplemental or deferred compensation or long-term
incentive award, annual incentive award or other compensation is not limited by reason of Section
162(m) of the Code, and (ii) the treatment of such supplemental or deferred compensation or
long-term incentive award, annual incentive award or other compensation does not cause the
imposition of a Tax under Section 409A of the Code.

          Section 8.3 Director Programs.

          (a) Director Fees Generally. Except as provided in subsection (b), below, Enexus
shall assume responsibility for the payment of any fees payable in respect of service on the
Entergy Board of Directors that are payable but not yet paid as of the Distribution Date to
individuals who become directors of Enexus as of the Distribution Date.

47

 

     (b) Certain Director Fees. With respect to any fees payable in respect of service on
the Entergy Board of Directors that otherwise are payable in shares of Entergy Common Stock, each
share of Entergy Common Stock credited immediately before the Effective Time shall, at the
Effective Time, be treated in the manner (and shall be subject to payment as provided under) the
applicable director compensation plan as it may be adjusted to reflect the circumstances of the
Separation.

     Section 8.4 Certain Payroll, Annual Bonus and Relocation Payment Matters.

     (a) Payroll of Transferring Employees.

          (i) Employees of an EquaGen Subsidiary.

               (I) Existing Employees. In the case of any individual who, immediately before the
Distribution Date, is an employee of a Subsidiary of EquaGen, such Subsidiary shall be responsible
for paying the entire payroll amount due such individual for the first payroll period ending after
the Distribution Date and for satisfying all applicable Tax reporting and withholding requirements
in respect of such payment.

               (II) New Employees. In the case of an EquaGen Sub Employee who is not an employee of
a Subsidiary of EquaGen immediately before the Distribution Date, the employer of such individual
as of immediately before the Distribution Date shall be responsible for paying (and the W-2 and
other payroll reporting obligations for) the payroll amount due to such individual for the payroll
period (or portion thereof) ending on the Distribution Date.

          (ii) Enexus Employees and EquaGen Employees. In the case of an Enexus Employee or
EquaGen Employee, the employer of such individual as of immediately before the Distribution Date
shall be responsible for paying (and the W-2 and other payroll reporting obligations for) the
payroll amount due to such individual for the payroll period (or portion thereof) ending on the
Distribution Date.

     (b) Annual Bonus Programs. Effective as of the Distribution Date, Entergy shall
assume or retain, as applicable, responsibility for all Liabilities and fully perform, pay and
discharge all obligations relating to any annual incentive awards that any Entergy Participant is
eligible to receive with respect to calendar year 2008, and effective as of the Distribution Date
neither Enexus nor EquaGen shall have any obligation with respect thereto. Effective as of the
Distribution Date, Enexus shall assume or retain, as applicable, responsibility for all Liabilities
and fully perform, pay and discharge all obligations, when such obligations become due, relating to
any annual incentive awards that any Enexus Participant is eligible to receive with respect to
calendar year 2008, and effective as of the Distribution Date neither Entergy nor EquaGen shall
have any obligation with respect thereto. Effective as of the Distribution Date, EquaGen shall
assume or retain, as applicable, responsibility for all Liabilities and fully perform, pay and
discharge all obligations, when such obligations become due, relating to any annual incentive
awards that any EquaGen Participant is eligible to receive with respect to calendar year 2008, and
effective as of the Distribution Date neither Entergy nor Enexus shall have any obligation with
respect thereto. For purposes of determining the extent to which calendar year 2008 annual

48

 

bonuses are earned, any discretionary determinations are to be made by the individual’s employer at
the time of payment (taking into account in good faith any input from Entergy in that regard) and
to the extent necessary the Parties shall cause such actions to be taken such that, for any portion
of the applicable performance period that occurs after the Distribution Date, measurement of
applicable performance originally to be determined in respect of performance of Entergy shall be
based upon two components, consisting respectively of performance in respect of Entergy and
performance in respect of Enexus, weighted equally. Without limiting Section 10.1, the
Parties shall share with each other information that is required to determine the amount of bonus
payable pursuant to this Section 8.4(b).

     (c) Relocation Costs. To the extent an Entergy Employee, Enexus Employee or EquaGen
System Employee must repay any amount of relocation costs paid by Entergy, Enexus or EquaGen
because of default under the terms of the applicable relocation program, and the recipient of such
repayment did not originally provide payment of such relocation costs, the recipient, which
received it on behalf of the payor, shall promptly pay it over to the payor.

     (d) Forms W-2.

          (i) Each Party shall bear the expense of, and W-2 and other payroll reporting obligations for,
all compensation payable to or on behalf of its employees, contractors, and former employees and
contractors for periods on and after the Distribution Date (including compensation relative to
relocations or relocation subsidies initiated prior to the Distribution Date) except as otherwise
set forth herein.

          (ii) EquaGen shall be responsible for W-2 and other payroll reporting obligations for, all
compensation payable in 2008 to or on behalf of (A) all Former EquaGen System Employees who were
employed by EquaGen or a Subsidiary of EquaGen on the date of the conversion of Entergy Nuclear
Operations, Inc. into EquaGen Nuclear LLC and (B) all EquaGen System Employees.

          (iii) Entergy shall be responsible for W-2 and other payroll reporting obligations for, all
compensation payable in 2008 to or on behalf of (A) Entergy Employees, (B) Former Entergy
Employees, and (C) Former EquaGen System Employees who were not employed by EquaGen or a Subsidiary
of EquaGen on the date of the conversion of Entergy Nuclear Operations, Inc. into EquaGen Nuclear
LLC.

          (iv) Entergy shall be responsible for W-2 and other payroll reporting obligations for, all
compensation payable in respect of Enexus Employees and Former Enexus Employees for the period
prior to the Distribution Date, other than for payments in respect of services for Entergy Nuclear
Nebraska, LLC, which shall retain such responsibility.

     Section 8.5 Nuclear Retention Plan. Effective as of the Distribution Date, EquaGen shall, or shall cause one of its Affiliates
to, establish a plan to benefit EquaGen Participants who were participants in the Entergy Nuclear
Retention Plan immediately prior to the Distribution Date, the terms of which are substantially
identical to the terms of the Entergy Nuclear Retention Plan as in effect immediately prior to the
Distribution Date. Effective as of the

49

 

Distribution Date, EquaGen hereby agrees to cause such plan to assume responsibility for all
Liabilities and fully perform, pay and discharge all obligations, when such obligations become due,
of the Entergy Nuclear Retention Plan with respect to all EquaGen Participants therein.

     Section 8.6 Certain Insurance Arrangements. Effective as of the Distribution Date, Entergy shall retain and neither EquaGen nor Enexus
shall assume Entergy’s rights and obligations under the Gulf States Utilities Company Nonqualified
Deferred Compensation Plan for Officers, Nonemployee Directors and Designated Key Employees.

ARTICLE IX

INDEMNIFICATION

     Section 9.1 Indemnification by the Parties. Except as otherwise specifically set forth in any provision of this Agreement, following
the Effective Time, (i) Entergy shall indemnify, defend and hold harmless the Enexus Indemnitees
and EquaGen Indemnitees from and against any and all Indemnifiable Losses or any breach by any
member of the Entergy Group of any provision of this Agreement, (ii) Enexus shall indemnify, defend
and hold harmless the Entergy Indemnitees and EquaGen Indemnitees from and against any and all
Indemnifiable Losses or any breach by any member of the Enexus Group of any provision of this
Agreement, and (iii) EquaGen shall indemnify, defend and hold harmless the Entergy Indemnitees and
Enexus Indemnitees from and against any and all Indemnifiable Losses or any breach by any member of
the EquaGen Group of any provision of this Agreement.

     Section 9.2 Procedures for Indemnification.

     (a) In General. An Indemnitee shall give the Indemnifying Party notice of
any matter that an Indemnitee has determined has given or could give rise to a right of
indemnification under this Agreement (other than a Third Party Claim which shall be governed by
Section 9.2(b)), within ten (10) Business Days of such determination, stating the amount of
the loss claimed, if known, and method of computation thereof, and containing a reference to the
provisions of this Agreement in respect of which such right of indemnification is claimed by such
Indemnitee arises; provided, however, that the failure to provide such notice shall
not release the Indemnifying Party from any of its obligations except and solely to the extent the
Indemnifying Party shall have been materially prejudiced as a result of such failure (except that
the Indemnifying Party or Parties shall not be liable for any expenses incurred during the period
in which the Indemnitee failed to give such notice).

     (b) Third Party Claims.

          (i) In General. If a claim or demand is made against an Entergy Indemnitee, an Enexus
Indemnitee or an EquaGen Indemnitee (each, an “Indemnitee”) by any Person who is not a
party to this Agreement or an Affiliate of a Party (a “Third Party Claim”) as to which such
Indemnitee is or may be entitled to indemnification pursuant to this Agreement, such Indemnitee
shall notify the Party that is or may be required pursuant to this ARTICLE IX to make such
indemnification (the “Indemnifying Party”) in writing, and in reasonable detail, of the
Third

50

 

Party Claim promptly (and in any event within fifteen (15) days) after receipt by such Indemnitee
of written notice of the Third Party Claim; provided, however, that the failure to
provide notice of any such Third Party Claim pursuant to this sentence shall not release the
Indemnifying Party from any of its obligations except and solely to the extent the Indemnifying
Party shall have been materially prejudiced as a result of such failure (except that the
Indemnifying Party or Parties shall not be liable for any expenses incurred during the period in
which the Indemnitee failed to give such notice). Thereafter, the Indemnitee shall deliver to the
Indemnifying Party, promptly (and in any event within ten (10) Business Days) after the
Indemnitee’s receipt thereof, copies of all notices and documents (including court papers) received
by the Indemnitee relating to the Third Party Claim.

          (ii) Control of Defense. An Indemnifying Party shall be entitled (but shall not be
required) to assume, control the defense of, and settle any Third Party Claim, at such Indemnifying
Party’s own cost and expense and by such Indemnifying Party’s own counsel, which counsel is
reasonably acceptable to the applicable Indemnitees, if it gives notice of its intention to do so
to the applicable Indemnitees within thirty (30) days of the receipt of such notice from such
Indemnitees. After notice from an Indemnifying Party to an Indemnitee of its election to assume
the defense of a Third Party Claim, such Indemnitee shall have the right to employ separate counsel
and to participate in (but not control) the defense, compromise, or settlement thereof, at its own
expense and, in any event, shall cooperate with the Indemnifying Party in such defense and make
available to the Indemnifying Party all witnesses, pertinent Information, materials and information
in such Indemnitee’s possession or under such Indemnitee’s control relating thereto as are
reasonably required by the Indemnifying Party. In the event of a conflict of interest between the
Indemnifying Party and the applicable Indemnitee(s), or in the event that any Third Party Claim
seeks equitable relief that would restrict or limit the future conduct of an Indemnitee’s business
or operations, such Indemnitee(s) shall be entitled to retain, at the Indemnifying Party’s expense,
separate counsel as required by the applicable rules of professional conduct (which counsel shall
be reasonably acceptable to the Indemnifying Party) and to participate in (but not control) the
defense, compromise or settlement of that portion of the Third Party Claim that seeks equitable
relief with respect to the Indemnitee(s).

          (iii) No Assumption of Defense. If an Indemnifying Party elects not to assume
responsibility for defending a Third Party Claim, or fails to notify an Indemnitee of its election
as provided in Section 9.2(b)(ii), such Indemnitee may defend such Third Party Claim at the
cost and expense of the Indemnifying Party. If the Indemnitee is conducting the defense against
any such Third Party Claim, the Indemnifying Party shall cooperate with the Indemnitee in such
defense and make available to the Indemnitee all witnesses, pertinent Information, material and
information in such Indemnifying Party’s possession or under such Indemnifying Party’s control
relating thereto as are reasonably required by the Indemnitee.

          (iv) Consent to Settlement. Unless the Indemnifying Party has failed to assume the
defense of the Third Party Claim in accordance with the terms of this Agreement, no Indemnitee may
settle or compromise any Third Party Claim without the consent of the Indemnifying Party, which
consent shall not be unreasonably withheld or delayed. If an Indemnifying Party has failed to
assume the defense of the Third Party Claim, it shall not be a defense to any obligation to pay any
amount in respect of such Third Party Claim that the

51

 

Indemnifying Party was not consulted in the defense thereof, that such Indemnifying Party’s views
or opinions as to the conduct of such defense were not accepted or adopted, that such Indemnifying
Party does not approve of the quality or manner of the defense thereof or that such Third Party
Claim was incurred by reason of a settlement rather than by a judgment or other determination of
liability.

          (v) Special Consent Rule. In the case of a Third Party Claim, no Indemnifying Party
shall consent to entry of any judgment or enter into any settlement of the Third Party Claim
without the consent (not to be unreasonably withheld) of the Indemnitee if the effect thereof is to
permit any injunction, declaratory judgment, other order or other nonmonetary relief to be entered,
directly or indirectly, against any Indemnitee.

     (c) Exclusive Remedy. Except as otherwise provided in Section 11.16, absent
fraud or willful misconduct by an Indemnifying Party, the indemnification provisions of this
ARTICLE IX shall be the sole and exclusive remedy of an Indemnitee for any monetary or
compensatory damages or losses resulting from any breach of this Agreement, and each Indemnitee
expressly waives and relinquishes any and all rights, claims or remedies such Person may have with
respect to the foregoing other than under this ARTICLE IX against any Indemnifying Party.
Nothing in this Section 9.2(c) limits a Party’s rights to reimbursement pursuant to
Section 2.1(e).

     Section 9.3 Indemnification Payments. Indemnification required by this ARTICLE IX shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, as and when bills are
received or an Indemnifiable Loss or Liability incurred.

     Section 9.4 Indemnification Obligations Net of Insurance Proceeds and Other Amounts on a
Net-Tax Basis.

     (a) In General. Any Liability subject to indemnification pursuant to this
ARTICLE IX will (i) be net of Insurance Proceeds that actually reduce the amount of the
Liability, (ii) be net of any proceeds received by the Indemnitee from any third party for
indemnification for such Liability that actually reduce the amount of the Liability (“Third
Party Proceeds”) and (iii) will be determined on a Net-Tax Basis. Accordingly, the amount
which any Indemnifying Party is required to pay pursuant to this ARTICLE IX to any
Indemnitee pursuant to this ARTICLE IX will be reduced by any Insurance Proceeds or Third
Party Proceeds theretofore actually recovered by or on behalf of the Indemnitee in respect of the
related Liability. If an Indemnitee receives a payment required by this Agreement from an
Indemnifying Party in respect of any Liability (an “Indemnity Payment”) and subsequently
receives Insurance Proceeds or Third Party Proceeds, then the Indemnitee will pay to the
Indemnifying Party an amount equal to the excess of the Indemnity Payment received over the amount
of the Indemnity Payment that would have been due if the Insurance Proceeds or Third Party Proceeds
had been received, realized or recovered before the Indemnity Payment was made.

52

 

     (b) Facility of Payment. An insurer who would otherwise be obligated to pay
any claim shall not be relieved of the responsibility with respect thereto or, solely by virtue of
the indemnification provisions hereof, have any subrogation rights with respect thereto. The
Indemnitee shall use commercially reasonable efforts to seek to collect or recover any third-party
Insurance Proceeds and any Third Party Proceeds to which the Indemnified Party is entitled in
connection with any Liability for which the Indemnified Party seeks indemnification pursuant to
this ARTICLE IX; provided, that the Indemnitee’s inability to collect or recover
any such Insurance Proceeds or Third Party Proceeds shall not limit the Indemnifying Party’s
obligations hereunder.

     (c) Special Definition. The term “Net-Tax Basis” as used in this ARTICLE IX
means that, in determining the amount of the payment necessary to indemnify any Indemnitee against,
or reimburse any Indemnitee for, Liabilities, the amount of such Liabilities will be determined net
of any theoretical reduction in Tax realizable (assuming a hypothetical effective tax rate of forty
percent (40%)) by the Indemnitee as the result of sustaining or paying such Liabilities after
taking into account any Tax incurred on the receipt of Insurance Proceeds, and the amount of such
Indemnity Payment will be increased (i.e., “grossed up”) by the amount necessary to satisfy any
income or franchise Tax Liabilities that will be incurred by the Indemnitee as a result of its
receipt of, or right to receive, such Indemnity Payment (as so increased), so that the Indemnitee
is put in the same net after-Tax economic position as if it had not incurred such Liabilities, in
each case without taking into account any impact on the Tax basis that an Indemnitee has in its
assets.

     Section 9.5 Additional Matters; Survival of Indemnities. The indemnity contained in this ARTICLE IX shall remain operative and in full force
and effect, regardless of (i) any investigation made by or on behalf of any Indemnitee and (ii) the
knowledge by the Indemnitee of Liabilities for which it might be entitled to indemnification
hereunder. The rights and obligations of each Party and their respective Indemnitees under this
ARTICLE IX shall survive the sale or other transfer by any Party or its respective
Subsidiaries of any Assets or businesses or the assignment by it of any and all Liabilities.

ARTICLE X

GENERAL AND ADMINISTRATIVE

     Section 10.1 Sharing of Information. To the extent permitted by applicable Law, Entergy, Enexus and EquaGen shall provide to
each other and their respective agents and vendors all Information as the other may reasonably
request to enable the requesting Party to defend or prosecute claims, administer efficiently and
accurately each of its Benefit Arrangements (including in connection with audits or other
proceedings maintained by any Governmental Entity), to timely and accurately comply with and report
under Section 14 of the Exchange Act and the Code, to determine the scope of, as well as fulfill,
its obligations under this Agreement, and otherwise to comply with provisions of applicable Law.
Such Information shall, to the extent reasonably practicable, be provided in the format and at the
times and places requested, but in no event shall the Party providing such Information be obligated
to incur any out-of-pocket expenses

53

 

not reimbursed by the Party making such request or make such Information available outside of
its normal business hours and premises. Without limiting the generality of the foregoing, not less
than once per year and more often upon reasonable request by Entergy or EquaGen as the case may be,
the Parties shall provide to each other Information in respect of Enexus Participants and EquaGen
Participants, as the case may be, who are eligible for benefits under Entergy Benefit Arrangements
or EquaGen Benefit Arrangements, regarding employment termination and nondiscrimination testing
under Benefit Arrangements or that is otherwise reasonably required for Benefit Arrangement
administration. Any Information shared or exchanged pursuant to this Agreement shall be subject to
the confidentiality requirements set forth in ARTICLE VIII of the Separation Agreement;
provided, that, notwithstanding anything in such ARTICLE VIII and without otherwise
limiting the provisions of such ARTICLE VIII, each of the Parties shall comply with any
requirement of applicable Law in regard to the confidentiality of the Information (whether relating
to employee records or otherwise) that is shared with another Party in accordance with this
Section 10.1. The Parties also hereby agree to enter into any business associate
agreements that may be required for the sharing of any Information pursuant to this Agreement to
comply with the requirements of HIPAA.

     Section 10.2 Reasonable Efforts/Cooperation. Each of the Parties hereto 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 reasonably necessary, proper or
advisable under applicable Laws or contractual obligations to consummate and make effective the
transactions contemplated by this Agreement, including adopting plans or plan amendments. Each of
the Parties hereto shall cooperate fully on any issue relating to the transactions contemplated by
this Agreement for which the other Party seeks a determination letter or private letter ruling from
the IRS, an advisory opinion from the Department of Labor or any other filing, consent or approval
with respect to or by a Governmental Entity.

     Section 10.3 Employer Rights. Without limiting Section 2.8 of this Agreement, nothing in this Agreement shall
prohibit any Party or any of their respective Affiliates from amending, modifying or terminating
any of their respective Benefit Arrangements at any time within their sole discretion.

     Section 10.4 Effect on Employment. Without limiting Section 2.9 of this Agreement, (i) except as expressly provided in
this Agreement, the mere occurrence of the Distribution shall not cause any employee to be deemed
to have incurred a termination of employment which entitles such individual to the commencement of
benefits under any of the Entergy Benefit Arrangements (provided that Enexus Participants may
become eligible for a distribution from the Entergy Retirement Plan in accordance with the terms of
such plan), and (ii) nothing in this Agreement is intended to confer upon any employee or former
employee of Entergy, Enexus, EquaGen or any of their respective Affiliates any right to continued
employment, or any recall or similar rights to an individual on layoff or any type of approved
leave.

     Section 10.5 Consent of Third Parties. If any provision of this Agreement is dependent on the Consent of any third party and such
Consent is withheld, the Parties hereto shall use their reasonable best efforts to implement the
applicable provisions of this Agreement to the fullest extent practicable. If any provision of this
Agreement cannot be implemented due to the

54

 

failure of such third party to consent, the Parties hereto shall negotiate in good faith to
implement the provision (as applicable) in a mutually satisfactory manner.

     Section 10.6 Access to Employees. Following the Effective Time, subject to applicable collective bargaining agreements,
Entergy, Enexus and EquaGen shall, or shall cause each of their respective Affiliates to, use their
best efforts to make available to each other those of their employees who may reasonably be needed
in order to defend or prosecute any legal or administrative action (other than a legal action
between or among any of the Parties) to which any employee, director or Benefit Arrangement of the
Entergy Group, Enexus Group or EquaGen Group is a party and which relates to their respective
Benefit Arrangements prior to the Effective Time. The Party to whom an employee is made available
in accordance with this Section 10.6 shall pay or reimburse the other Party for all
reasonable expenses which may be incurred by such employee in connection therewith, including all
reasonable travel, lodging, and meal expenses, but excluding any amount for such employee’s time
spent in connection herewith.

     Section 10.7 Beneficiary Designation/Release of Information/Right to Reimbursement.
Without limiting the provisions of Section 2.7 or other provisions of this
Agreement, to the extent permitted by applicable Law and except as otherwise provided for in this
Agreement, all beneficiary designations, authorizations for the release of Information and rights
to reimbursement made by or relating to Enexus Participants or EquaGen Participants under Entergy
Benefit Arrangements shall be transferred to and be in full force and effect under the
corresponding Enexus Benefit Arrangements and EquaGen Benefit Arrangements until such beneficiary
designations, authorizations or rights are replaced or revoked by, or no longer apply, to the
relevant Enexus Participant or EquaGen Participant.

ARTICLE XI

MISCELLANEOUS

     Section 11.1 Complete Agreement; Construction. This Agreement, including the Exhibits and Schedules shall constitute the entire agreement
between the Parties with respect to the subject matter hereof and shall supersede all previous
negotiations, commitments and writings with respect to such subject matter. In the event of any
conflict between the terms and conditions of the body of this Agreement and the terms and
conditions of any Schedule, the terms and conditions of such Schedule shall control.

     Section 11.2 Relationship of Parties. Nothing in this Agreement shall be deemed or construed by the Parties or any third party as
creating the relationship of principal and agent, partnership, joint venture or joint employer
relationship between or among the Parties, it being understood and agreed that no provision
contained herein, and no act of the Parties, shall be deemed to create any relationship between or
among the Parties other than the relationship set forth herein.

     Section 11.3 Subsidiaries. Each of the Parties shall cause to be performed all actions, agreements and obligations set
forth herein to be performed by any Subsidiary or Affiliate

55

 

of such Party or by any entity that becomes a Subsidiary or Affiliate of such Party on or
after the date hereof. Each of the Parties may require one of its respective Subsidiaries or
Affiliates (including any Person which becomes a Subsidiary or Affiliate on or after the date
hereof) to take any or all actions, agreements and obligations set forth herein to be performed by
the Party, and discharge of such action, agreement or obligation by such Subsidiary or Affiliate
shall be deemed discharge of the action, agreement or obligation by the Party. The Parties
acknowledge that certain actions, agreements and obligations that certain of their Affiliates and
Subsidiaries may be required to perform in connection with the performance of the Parties’
obligations under this Agreement may require Governmental Approval by Governmental Entities under
applicable Law, and therefore agree that performance of such actions, agreements and obligations is
subject to the receipt of all such necessary Governmental Approvals, which approvals each Party
shall, and shall cause the members of its respective Group to, use its commercially reasonable
efforts to obtain.

     Section 11.4 Notices. All notices, requests, claims, demands and other communications under this Agreement shall
be in writing and shall be given or made (and shall be deemed to have been duly given or made upon
receipt unless the day of receipt is not a Business Day, in which case it shall be deemed to have
been duly given or made on the next Business Day) by delivery in person, by overnight courier
service, by facsimile with receipt confirmed (followed by delivery of an original via overnight
courier service) or by registered or certified mail (postage prepaid, return receipt requested) to
the respective Party or Parties at the following addresses (or at such other address for a Party as
shall be specified in a notice given in accordance with this Section 11.4):

To Entergy:

Entergy Corporation

Attn: Chief Legal Officer

Facsimile:

To Enexus:

Enexus

Enexus Energy Corporation

Attn: General Counsel

Facsimile:

To EquaGen:

EquaGen

Attn:

Facsimile:

56

 

     Section 11.5 Waivers. The failure of any Party to require strict performance by any other Party of any provision
in this Agreement will not waive or diminish that Party’s right to demand strict performance
thereafter of that or any other provision hereof.

     Section 11.6 Amendments. Subject to the terms of Section 11.7 of this Agreement, this Agreement may not be
modified or amended except by an agreement in writing signed by each of the Parties.

     Section 11.7 Termination, Etc.. Notwithstanding anything to the contrary herein, this Agreement (including ARTICLE
IX (Indemnification) hereof) may be terminated and abandoned at any time prior to the Effective
Time by and in the sole discretion of Entergy without the approval of Enexus or EquaGen or the
stockholders of Entergy and it shall be deemed terminated if and when the Separation Agreement is
terminated prior to the Effective Time. In the event of such termination, no Party shall have any
Liability to any other Party or any other Person. After the Effective Time, this Agreement may not
be terminated except by an agreement in writing signed by Entergy, Enexus and EquaGen.

     Section 11.8 Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State
of Delaware, without giving effect to any conflict or choice of law provision that would result in
the imposition of another jurisdiction’s Law.

     Section 11.9 Dispute Resolution. Any controversy, dispute or claim arising out of, in connection with, or in relation to the
interpretation, performance, nonperformance, validity, termination or breach of this Agreement or
otherwise arising out of, or in any way related to this Agreement or the transactions contemplated
hereby, including any claim based on contract, tort, statute or constitution (but excluding any
controversy, dispute or claim arising out of any Contract relating to the use or lease of real
property if any third party is a necessary party to such controversy, dispute or claim)
(collectively, “Agreement Dispute”), shall be governed by, and be subject to, the provisions of
ARTICLE IX of the Separation Agreement, which provisions (and related defined terms) are
hereby incorporated by reference into this Agreement and any references to “Agreement” in such
ARTICLE IX as incorporated herein shall be deemed to be references to this Agreement;
provided, however, any references to “Agreement” or “Agreement Disputes” in such ARTICLE IX
as incorporated herein shall be deemed to be references to this Agreement and Agreement Disputes as
defined in this Agreement, and any references to a “Party” or the “Parties” in such ARTICLE
IX as incorporated herein shall be deemed to be references to one or more of Entergy, Enexus or
EquaGen.

     Section 11.10 Consent to Jurisdiction. Subject to the provisions of ARTICLE IX of the Separation Agreement, each of the
Parties irrevocably submits to the exclusive jurisdiction of any federal court sitting in New
Castle County, Delaware (and of the appropriate appellate courts there from) (the “Delaware
Courts”) for the purposes of any suit, action or other proceeding to compel arbitration or for
provisional relief in aid of arbitration in accordance with ARTICLE IX of the Separation
Agreement or for provisional relief to prevent irreparable harm, and to the non-exclusive
jurisdiction of the Delaware Courts for the enforcement of any award issued thereunder. Each of
the Parties further agrees that service of any process, summons, notice or document by United
States registered mail to such Party’s respective address set forth in Section 

57

 

11.3 of this Agreement shall be effective service of process for any action, suit or
proceeding in the Delaware Courts with respect to any matters to which it has submitted to
jurisdiction in this Section 11.10. Each of the Parties irrevocably and unconditionally
waives any objection to the laying of venue of any action, suit or proceeding arising out of this
Agreement or the transactions contemplated hereby in the Delaware Courts, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any
such action, suit or proceeding brought in any such court has been brought in an inconvenient
forum.

     Section 11.11 Titles and Headings. Titles and headings to Sections and Articles herein are inserted for the convenience of
reference only and are not intended to be a part of or to affect the meaning or interpretation of
this Agreement.

     Section 11.12 Exhibits and Schedules. The Exhibits and Schedules attached hereto are incorporated herein by reference and shall
be construed with and as an integral part of this Agreement to the same extent as if the same had
been set forth verbatim herein.

     Section 11.13 Counterparts. This Agreement may be executed in more than one counterparts, all of which shall be
considered one and the same agreement, and shall become effective when one or more such
counterparts have been signed by each of the Parties and delivered to the other Parties. Execution
of this Agreement or any other documents pursuant to this Agreement by facsimile or other
electronic copy of a signature shall be deemed to be, and shall have the same effect as, executed
by an original signature.

     Section 11.14 Assignment. Except as otherwise expressly provided for in this Agreement, this Agreement shall not be
assignable, in whole or in part, by any Party without the prior written consent of the other
Parties, and any attempt to assign any rights or obligations arising under this Agreement without
such consent shall be null and void; provided, that a Party may assign this Agreement in
connection with a merger transaction in which such Party is not the surviving entity or the sale by
such Party of all or substantially all of its Assets, and upon the effectiveness of such assignment
the assigning Party shall be released from all of its obligations under this Agreement if the
surviving entity of such merger or the transferee of such Assets shall agree in writing, in form
and substance reasonably satisfactory to the other Parties, to be bound by the terms of this
Agreement as if named as a “Party” hereto.

     Section 11.15 Severability. In the event any one or more of the provisions contained in this Agreement should be held
invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be affected or impaired
thereby, and the Parties shall endeavor in good-faith negotiations to replace the invalid, illegal
or unenforceable provisions with valid provisions, the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

     Section 11.16 Successors and Assigns. The provisions of this Agreement and the obligations and rights hereunder shall be binding
upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective
successors and permitted transferees and assigns. Notwithstanding the preceding sentence, to the
extent this Agreement treats service with the Enexus Group as service with the Entergy Group or the
EquaGen Group, as the case may be, or

58

 

imputes compensation in respect of service with the Enexus Group for purposes of Benefit
Arrangements maintained by the Entergy Group or EquaGen Group (including for purposes of
Section 2.3, Section 3.4(b), Section 5.3(b), Section 5.5 and
Section 6.1(c)), such service shall cease to be so taken into account to the extent
provided by the terms of the Benefit Arrangement under which such service or compensation would
otherwise be credited or imputed, as the case may be.

     Section 11.17 Specific Performance. The Parties agree that irreparable damage would occur in the event that the provisions of
this Agreement were not performed in accordance with their specific terms. Accordingly, it is
hereby agreed that the Parties shall be entitled to (i) an injunction or injunctions to enforce
specifically the terms and provisions hereof in any arbitration in accordance with Section
11.9 of this Agreement, (ii) provisional or temporary injunctive relief in accordance
therewith in any Delaware Court, and (iii) enforcement of any such award of an arbitral tribunal or
a Delaware Court in any court of the United States, or any other any court or tribunal sitting in
any state of the United States or in any foreign country that has jurisdiction, this being in
addition to any other remedy or relief to which they may be entitled.

     Section 11.18 Waiver of Jury Trial. SUBJECT TO SECTIONS 11.8, 11.9 AND 11.10 OF THIS AGREEMENT, EACH OF
THE PARTIES HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY WITH RESPECT TO ANY COURT PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF AND
PERMITTED UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT. EACH OF THE PARTIES HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
11.18.

     Section 11.19 Force Majeure. No Party (or any Person acting on its behalf) shall have any liability or responsibility
for failure to fulfill any obligation (other than a payment obligation) under this Agreement so
long as and to the extent to which the fulfillment of such obligation is prevented, frustrated,
hindered or delayed as a consequence of circumstances of Force Majeure. A Party claiming the
benefit of this provision shall, as soon as reasonably practicable after the occurrence of any such
event: (a) notify the other Party of the nature and extent of any such Force Majeure condition and
(b) use due diligence to remove any such causes and resume performance under this Agreement as soon
as reasonably practicable.

     Section 11.20 Authorization. Each of the Parties hereby represents and warrants that it has the power and authority to
execute, deliver and perform this Agreement, that this Agreement has been duly authorized by all
necessary corporate action on the part of such Party, that this Agreement constitutes a legal,
valid and binding obligation of each such Party and that the execution, delivery and performance of
this Agreement by such Party does not contravene or conflict with any provision of law or of its
charter or bylaws or any material agreement, instrument or order binding on such Party.

59

 

     Section 11.21 Third Party Beneficiaries. Except as otherwise expressly provided in this Agreement, this Agreement is solely for the
benefit of the Parties and should not be deemed to confer upon third parties any remedy, claim,
liability, reimbursement, cause of action or other right in excess of those existing without
reference to this Agreement.

     Section 11.22 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement.
This Agreement shall be construed without regard to any presumption or rule requiring construction
or interpretation against the party drafting or causing any instrument to be drafted.

[Remainder of this page intentionally left blank.]

60

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the day
and year first above written.

	 	 	 	 	 
	 	ENTERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ENEXUS ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	EQUAGEN LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w10

Exhibit 10.10

	 	 	 
	

	 	Entergy Services, Inc.

639 Loyola Avenue

New Orleans, LA 70113
	 
	July 2, 2008
	 	 

Dean Keller

601 Valley Road

Watchung, NJ 07069

RE: Contingent Offer of Enexus Employment

Dear Dean:

Further to our discussions, this letter agreement sets forth the terms and conditions of our
contingent offer of employment with Enexus Energy Corporation (“Enexus”), the non-utility nuclear
business contemplated to be spun off from Entergy Corporation on terms approved by the board of
directors of Entergy Corporation (the “Spin Transaction”). The details of employment under this
agreement (the “Agreement”) are set forth below and shall supersede any other oral or written
employment offers, representations, agreements or communications that you may have received from,
or entered into with, any affiliate or subsidiary of Entergy Corporation (collectively, the
“Entergy System,” and each an “Entergy System Company”) related to current or
future Enexus or Entergy System Company employment prior to the execution of this Agreement, which
prior offers, representations, agreements or communications you acknowledge are without effect.
The date upon which you execute this Agreement indicating your acceptance of the contingent offer
of employment with Enexus shall be the effective date of the Agreement. We are excited to offer
you this opportunity and feel that you can add tremendous value to the Enexus team being
assembled.

1. Employment Overview.

Although this offer contemplates employment with Enexus, until the spin transaction occurs, you
will be employed on an interim basis by Entergy Services, Inc. (“ESI”), assuming you accept
this contingent offer and meet the conditions for ESI employment set forth in Section 3. Your
interim employment with ESI will be in the position of Executive Vice President, Finance, reporting
to Richard J. Smith, with your job location in Jackson, MS, and your primary duties will be those
required to establish operations for Enexus or such other duties assigned to you by your
supervisor. Thereafter, provided you meet the conditions for Enexus employment also set forth in
Section 3, on the date of the Spin Transaction (unless you are notified otherwise in writing) you
will separate from ESI and become a full-time employee of Enexus (“Enexus Hire Date”) in the
position of Chief Financial Officer reporting to the Chief Executive Officer, with your job
location in Jackson, MS. It is anticipated that you will begin your interim ESI employment on or
before August 1, 2008, or such later date before the Spin Transaction as may be mutually agreed to
by you and Richard J. Smith.

2. Compensation and Benefits.

Your interim employment with ESI and thereafter your employment with Enexus (both prospective
employers collectively referred to in this Agreement as “your Employer”) shall be at will,
except to the extent expressly set forth below in Section 3(b) of this Agreement. Your
compensation, benefits and incentive package is anticipated to be as follows, subject to required
approvals:

	 	(a)	 	Salary. Your bi-weekly rate of pay shall be NINETEEN THOUSAND TWO HUNDRED
THIRTY AND 77/100 ($19,230.77) DOLLARS or such amount as may be approved from time to
time by your Employer, in its sole discretion, while you are employed in accordance with
this Agreement (subject to all appropriate withholdings or other deductions required by
law or by your Employer’s established policies), such salary to be payable in accordance
with your Employer’s payroll practices. To the fullest extent permitted by law, your
Employer shall have the right to require you to remit to it, or to withhold

 

 

July 2, 2008

Page 2 of 8

	 	 	 	from other amounts payable to you, as compensation or otherwise, an amount sufficient to
satisfy all federal, state and local tax withholding requirements.

	 	(b)	 	Entergy Benefits During Interim ESI Employment Period. While you are an
interim ESI employee, you may participate in all ESI qualified employee benefit plans and
welfare benefit plans and programs for which you are eligible, in accordance with the
terms and conditions of such plans and programs as in effect and as they may be amended
from time to time. Certain of these benefits are described in the document entitled
“Entergy Benefits at a Glance,” attached to this Agreement.
	 
	 	 	 	Your participation in some or all of these plans and programs may be contingent upon your
execution of, and the acceptance by the plan’s administrator of, a participation agreement,
and upon your satisfaction of other terms and conditions. The benefits provided under this
Agreement shall in no way alter or affect the terms and conditions of any of your Employer’s
sponsored or maintained employee benefit plans and programs in which you may otherwise be
eligible to participate, and your eligibility to participate in any such plans or programs
will be determined in accordance with the terms and conditions of such plans and programs, as
they may be amended from time to time.

	 	(1)	 	Employment Commencement Bonus. If all of the conditions and
contingencies set forth in Section 3(a) below are met and you become employed by
ESI under this Agreement, then, subject to the provisions of a repayment agreement
you will be required to sign with an authorized representative of ESI and Enexus,
you will receive a one-time employment commencement bonus of FIVE HUNDRED THOUSAND
and NO/100 ($500,000.00) DOLLARS (“Employment Commencement Bonus”) payable within
30 days following your ESI Hire Date. Under the repayment agreement you will be
required to sign, if prior to the twelve-month anniversary of your ESI Hire Date
you voluntarily resign your ESI or Enexus employment or your ESI or Enexus
employment is involuntarily terminated for “Cause” as defined in this subsection,
you will repay ESI or Enexus, whichever entity is your employer immediately prior
to the condition triggering your repayment obligation, all or a portion of the
Employment Commencement Bonus as follows: (1) full repayment for termination for
Cause prior to the twelve-month anniversary of your first day of employment with
ESI (“ESI Hire Date”); (2) pro-rated repayment for termination without
Cause or resignation prior to the twelve-month anniversary of your ESI Hire Date;
and (3) no repayment for termination or resignation on or after the twelve-month
anniversary of your ESI Hire Date.
	 
	 	 	 	For purposes of this Agreement, “Cause” shall mean: (a) the failure by you to
substantially perform your duties (other than such failure resulting from your
incapacity due to physical or mental illness) that has not been cured within 30 days
after a written demand for substantial performance is delivered to you by your
employer, which demand specifically identifies the manner in which such employer
believes that you have not substantially performed your duties; or (b) the engaging
by you in conduct which is materially injurious to your employer or any of its
affiliated companies (which in the case of an Entergy System Company employer shall
include, but not be limited to, any other Entergy System Company), monetarily or
otherwise; (c) your conviction of or entrance of a plea of guilty or nolo contendere
to a felony or other crime that has or may have a material adverse effect on your
ability to carry out your duties or upon the reputation of your employer or any of
its affiliated companies; (d) a material violation by you of any agreement you have
with your employer or any of its affiliated companies; or (e) unauthorized disclosure
by you of any information of your employer or any of its affiliated companies as
described in Section 4 of this Agreement.

 

 

July 2, 2008

Page 3 of 8

	 	(2)	 	Entergy Annual Incentive Plan Award. As a result of your
anticipated interim ESI employment, you will be eligible to participate in the
Entergy Annual Incentive Plan (“EAIP”), in accordance with its terms and
conditions, with a target value of 70% of your annual base salary. Individual
awards are 100% discretionary, and any payout under the EAIP, if earned, will be
made in the first quarter of 2009 in accordance with the plan terms.
	 
	 	(3)	 	Entergy Long Term Incentive Plan. The Long Term Incentive
Program (“Entergy LTIP”) under the 2007 Equity Ownership and Long Term Cash
Incentive Plan of Entergy Corporation and Subsidiaries (“Equity Plan”)
provides participants with performance units (each “Performance Unit” representing
the cash equivalent of one share of Entergy Corporation common stock) that will be
earned by achieving pre-approved Entergy Corporation goals, as established by the
Personnel Committee, for the applicable thirty-six month performance period.
Subject to the terms and conditions of the Equity Plan, you will be eligible, based
on a full 36 months of participation, for a Target Entergy LTIP award of 4,500
Performance Units (with a maximum opportunity of 250% of that Entergy LTIP Target)
 — prorated for the 2007 to 2009 performance period; and a Target Entergy LTIP award
of 3,900 Performance Units (with a maximum opportunity of 250% of that Entergy LTIP
Target) — prorated for the 2008 to 2010 performance period. Additionally, you shall
be entitled to a cash amount equal to the pro-rated amount you would have been
eligible to receive if you were a participant in the Entergy LTIP program for the
2006 to 2008 performance period with a Target Entergy LTIP award of 6,000
Performance Units (with a maximum opportunity of 250% of that Entergy LTIP Target).

	 	(c)	 	Enexus Benefits and Incentive Compensation Plans. When you become an
Enexus employee as contemplated by this Agreement, you may participate in all Enexus
employee benefit plans and programs for which you are eligible, in accordance with the
terms and conditions of such plans and programs as in effect and as they may be amended
from time to time. At this time, the compensation and benefit plans, programs and
arrangements to be offered to employees of Enexus have not been finalized. It is
anticipated that Enexus will offer its employees the benefit plans and programs
described in the document titled “Enexus Benefits at a Glance,” attached to this
Agreement, but these arrangements are subject to change.
	 
	 	 	 	Your participation in some or all of these plans and programs, including but not limited
to those set forth in this Section 2(c), may be contingent upon your execution of, and
the acceptance by the plan’s administrator of, a participation agreement, and upon your
satisfaction of other terms and conditions. The benefits provided under this Agreement
shall in no way alter or affect the terms and conditions of any of your Employer’s
sponsored or maintained employee benefit plans and programs in which you may otherwise be
eligible to participate, and your eligibility to participate in any such plans or
programs will be determined in accordance with the terms and conditions of such plans and
programs, as they may be amended from time to time.

	 	(1)	 	Contingent Restricted Unit Grant. If all of the conditions and
contingencies set forth in this Section 2(c)(l) and Section 3(a) are met and you
become employed by ESI and Enexus as contemplated by this Agreement, then subject to
approval of the Compensation Committee of the Board of Directors of Enexus (“Enexus
Compensation Committee”), you will be eligible for Restricted Share Units (each
Restricted Share Unit representing the cash equivalent of one share of Enexus common
stock), the total number of which will equal the quotient obtained by dividing the
value (determined as of the date of your Enexus Hire Date, but in no event to exceed
$500,000.00) of the non-vested equity in your former employer, Citigroup, that was
forfeited by you in order to accept employment with your Employers in accordance
with this Agreement (“Forfeited Equity Value”) by the closing price of Enexus common
stock on your Enexus Hire

 

 

July 2, 2008

Page 4 of 8

	 	 	 	Date. The Restricted Share Units granted (without dividend equivalents) shall vest in
accordance with the following schedule:

	 	•	 	one-half (1/2) of the Restricted Share Units shall vest on the
first day of the 13-month anniversary of your Enexus Hire Date; and
	 
	 	•	 	the remaining Restricted Share Units shall vest on the first day
of the 37-month anniversary of your Enexus Hire Date.

	 	 	 	You must be a full-time employee of Enexus continuously from your Enexus Hire Date
through the applicable vesting date in order to vest in the Restricted Share Units
that are scheduled to vest on such vesting date. Notwithstanding the foregoing
provisions of this Section 2(c)(l), in order to be eligible for this Restricted Share
Unit grant, you must provide written documentation to Richard J. Smith, within 90
days following your ESI Hire Date, establishing proof, in a manner acceptable
to Mr. Smith, of the Forfeited Equity Value. Additionally, if prior to the
twelve-month anniversary of your Enexus Hire Date you voluntarily resign your Enexus
employment or your Enexus employment is involuntarily terminated for Cause (as
defined above), you will immediately forfeit all Restricted Share Units granted in
accordance with this Section.
	 
	 	(2)	 	Enexus Annual Cash Incentive Plan. During your Enexus employment,
you will be eligible to participate in the Enexus annual cash incentive plan, as
established by the Enexus Compensation Committee, in accordance with its terms and
conditions. For 2008, your participation in the Enexus annual incentive plan is
anticipated to be at a target level of 70% of your annual base salary. Individual
awards are 100% discretionary and any payout under the annual incentive plan for a
pro-rated 2008 performance period, if earned, will be made in the first quarter of
2009.
	 
	 	(3)	 	Enexus Annual Stock Option Plan. During your Enexus employment,
you will be eligible to receive stock option grants, if any, as may be determined by
the Enexus Compensation Committee under the equity plan it may establish. It is
anticipated that for the 2009 calendar year, you will be eligible for a grant of
Enexus stock options and that one-third of all options granted will vest at the
first, second and third anniversaries of the date of grant if you are an active
Enexus employee or otherwise eligible to vest on each such date. The actual Enexus
stock option target grant will be determined based on the Enexus 2009 compensation
model as established by the Enexus Compensation Committee, and the Enexus stock
option vesting schedule and other grant terms will be established in accordance with
the terms of the Enexus equity plan, as specified in your grant letter.
	 
	 	(4)	 	Enexus Long Term Incentive Plan. During your Enexus employment,
you will be eligible to participate in a Long Term Incentive Plan (“Enexus LTIP”)
anticipated to be established by the Enexus Compensation Committee. Under the Enexus
LTIP, you will be eligible for Enexus performance units (each “Enexus Performance
Unit” representing the cash equivalent of one share of Enexus common stock) that
will be earned by achieving pre-approved Enexus goals, as may be established by the
Enexus Compensation Committee, for the applicable performance period.
	 
	 	(5)	 	Up-Front Enexus Stock Options. If all of the conditions and
contingencies set forth in Section 3(a) are met and you become employed by Enexus
under this Agreement, then subject to approval of the Enexus Compensation Committee,
you will be eligible for 50,000 up-front Enexus stock options, which shall vest in
accordance with the following schedule:

 

 

July 2, 2008

Page 5 of 8

	 	•	 	12,500 options shall vest on the first day of the 25-month
anniversary of your Enexus Hire Date;
	 
	 	•	 	12,500 options shall vest on the first day of the 37-month
anniversary of your Enexus Hire Date;
	 
	 	•	 	12,500 options shall vest on the first day of the 49-month
anniversary of your Enexus Hire Date;
	 
	 	•	 	12,500 options shall vest on the first day of the 61-month
anniversary of your Enexus Hire Date;

	 	 	 	These Enexus stock options will be issued on the date of the Spin Transaction (which
is contemplated to be your Enexus Hire Date) with a strike price equal to the closing
price of Enexus common stock on the first day of trading. You must be a full-time
employee of Enexus continuously from your Enexus Hire Date through the applicable
vesting date in order to vest in the Enexus stock options that are scheduled to vest
on such vesting date.
	 
	 	(6)	 	Enexus Change in Control Benefits. During your Enexus employment,
it is anticipated that you will be eligible to participate in a change in control
plan that closely resembles the current System Executive Continuity Plan of Entergy
Corporation and Subsidiaries, which provides certain benefits to participants in the
event of a Change in Control, subject to the terms and conditions of the plan as may
be amended from time to time.
	 
	 	(7)	 	Other Enexus Benefits. During your Enexus employment, you will be
eligible for other perquisites made available to Enexus executives, contemplated to
include, among others, executive financial planning and annual executive physicals.

3. Contingencies.

	 	(a)	 	Interim ESI employment and Subsequent Enexus Employment. Your first day of
interim employment with ESI will be determined upon formal acceptance of this offer within
the time limitation set forth below, and provided you meet the additional contingencies set
forth in the following paragraph. Thereafter, you shall become an employee of Enexus,
contingent upon: (1) the Spin Transaction occurring; (2) your remaining employed by, and in
good standing with, ESI, including the performance of your duties in a satisfactory manner
(as determined by ESI in its sole discretion), until you become employed by Enexus; and (3)
your meeting the additional contingencies set forth in the following paragraph. The date of
the Spin Transaction shall be your Enexus Hire Date unless you are notified otherwise in
writing. Immediately preceding your Enexus Hire Date, your interim employment with ESI
shall be deemed terminated, with no benefits due to you as a result of such termination
except as may be described in this Agreement.
	 
	 	 	 	As a condition of obtaining and maintaining your employment with ESI and Enexus,
respectively, you agree that you must: (1) within 3 days of the effective date of your
employment with ESI and then within 3 days of your Enexus Hire Date, present suitable
documentation to your Employer of your identity and employment
eligibility (I-9 INS
certification); (2) obtain and maintain authorization for unescorted access to a nuclear
plant site to the extent the job you are being offered requires such access; and (3) comply
with any and all hiring and employment policies, practices and procedures of ESI and Enexus,
respectively, including but not limited to, the execution of any forms provided by ESI and
Enexus in connection with same.
	 
	 	(b)	 	Should the Spin-off Fail to Occur. This Agreement outlines the terms and
conditions of your future employment with Enexus and interim employment with ESI. If you
become employed by ESI pending

 

 

July 2, 2008

Page 6 of 8

	 	 	 	your employment with Enexus as described in this Agreement and the Spin Transaction
contemplated by this Agreement does not occur, then:

	 	(1)	 	an Entergy System Company, as designated by the Chief Executive Officer
of Entergy Corporation, shall employ you in a position at a management level and
with a salary no less than your management level and salary as of your ESI Hire
Date, and for no less than two years from your ESI Hire Date (thereafter on an “at
will” basis), as long as you do not voluntarily resign such employment and you are
not terminated for Cause (as defined in Section 2 of this Agreement);
	 
	 	(2)	 	you shall not be entitled to any of the benefits, incentive compensation
amounts, or other items contemplated to be offered to you by Enexus upon your Enexus
Hire Date; and
	 
	 	(3)	 	although you shall not be entitled to the Contingent Restricted Unit
Grant described in Section 2(c)(l) you shall be entitled to the cash equivalent of
the confirmed Forfeited Equity Value described in that section except in the event
of a termination for Cause within 1 year of your ESI Hire Date, which amount shall
be payable by your Entergy System Company employer to you in a lump sum, subject to
all required withholdings, within 30 days of a public announcement that the Spin
Transaction will not occur.

Upon the event of a public announcement that the Spin Transaction contemplated by this Agreement
shall not occur, any and all compensation and benefit provisions related to your anticipated
Enexus employment shall be null and void, and shall not resurrect in the event of any other
contemplated spin-off, other corporate restructuring or other transaction.

4. Confidentiality and Work Product.

	 	(a)	 	Confidentiality. During your Entergy System Company employment and forever
thereafter, other than as authorized by an Entergy System Company or as required by law or
as necessary for you to perform your duties, you shall hold in a fiduciary capacity for the
benefit of the Entergy System and not disclose to any person or entity and not use for any
purposes or release or disclose to any person, any trade secrets or proprietary information
and materials (including, without limitation, all information concerning the business
transactions, financial arrangements, or marketing plans of any Entergy System Company or
otherwise acquired by you in conjunction with your Entergy System Company employment,
including, without limitation, any information which if released to third persons would
result in financial loss, loss of pecuniary advantage, or otherwise be detrimental to the
interests of any Entergy System Company (“Entergy Confidential Information”)).
	 
	 	 	 	During your Enexus employment and forever thereafter, other than as authorized by Enexus or
as required by law or as necessary to perform your duties, you shall hold in a fiduciary
capacity for the benefit of Enexus and not disclose to any person or entity and not use for
any purposes or release or disclose to any person, any trade secrets or proprietary
information and materials (including, without limitation, any information which if released
to third persons would result in financial loss, loss of pecuniary advantage, or otherwise be
detrimental to the interests of Enexus or any person transacting business with Enexus
(“Enexus Confidential Information”)).
	 
	 	 	 	Notwithstanding the foregoing paragraphs, nothing in this Agreement shall be deemed to
prohibit or interfere with your right to: (i) make any disclosure of relevant and necessary
information in any action or proceeding relating to this Agreement, or as otherwise required
by law pursuant to a subpoena, court order or other legal process; or (ii) participate,
cooperate, or testify in any action, investigation or proceeding with, or provide information
to, any governmental agency or legislative body; provided that,

 

 

July 2, 2008

Page 7 of 8

	 	 	 	to the extent permitted by law, upon receipt of any such subpoena, court order or other
legal process compelling the disclosure of any Entergy Confidential Information or Enexus
Confidential Information, as applicable, you will give prompt written notice to the General
Counsel of Entergy Corporation, in the case of Entergy Confidential Information, or to the
General Counsel of Enexus, in the case of Enexus Confidential Information, so as to provide
the applicable company with an opportunity to protect its interests in confidentiality to
the fullest extent possible. In the event of any breach or threatened breach of the
confidentiality provisions of this Agreement, all unvested benefits or other payments
otherwise payable to you under this Agreement shall be cancelled and shall not vest or
otherwise be payable to you, and any Entergy System Company (in the case of Entergy
Confidential Information) or Enexus (in the case of Enexus Confidential Information) shall
be entitled to an injunction, without bond, restraining you from violating the
confidentiality provisions of this Agreement in the future, in addition to any other relief
to which the affected company may be entitled.
	 
	 	(b)	 	Work Product. You agree to and hereby do assign to any Entergy System Company
employing you all your rights in and to all inventions, business plans, work models or
procedures, whether patentable or not (“Work Product”), which are made or conceived solely
or jointly by you at any time during your employment with any Entergy System Company or
with the use of any Entergy System Company time and materials. You will disclose to such
Entergy System Company all facts known to you concerning such matters and, at the Entergy
System Company’s expense, do everything reasonably practicable to aid it in obtaining and
enforcing proper legal protection for, and vesting Entergy System Company in title to, such
matters. In addition, you agree, and hereby assign to Enexus, any Work Product initiated by
you after your Enexus Hire Date, and shall disclose to Enexus all facts known to you
concerning such matters.

5. Additional Terms.

	 	(a)	 	At-Will Employment. Except as set forth in Section 3(b) above, your employment
with your employer shall be at-will at all times. This means that both you and your
employer shall always have the right to terminate your employment at any time for any
reason, with or without notice or cause. Your at-will status may only be modified by a
signed agreement between you and an authorized representative of your employer. Except as
expressly set forth in Section 3(b) of this Agreement, nothing in this Agreement shall be
construed as a contract or guarantee of continued employment with either an Entergy System
Company or Enexus for any length of time.
	 
	 	(b)	 	Employment Files. In connection with your employment at Enexus, you agree to,
and hereby authorize, the disclosure and transfer of all of your personnel, medical,
benefits and other employment-related files and information from your Entergy System
Company to Enexus upon your Enexus Hire Date. You agree to execute any authorizations
requested by Enexus or any Entergy System Company to effectuate such transfers.
	 
	 	(c)	 	Amendment. This Agreement contains the entire understanding regarding your
contemplated employment with ESI and Enexus, respectively. No provision of this Agreement
may be modified, amended or waived except in a writing signed by you and ESI or Enexus, as
applicable.
	 
	 	(d)	 	No Subsequent Waiver. A waiver of a breach of any provision of this Agreement
shall not operate to waive any subsequent breach of the Agreement.
	 
	 	(e)	 	Applicable Law. The Agreement shall be interpreted and enforced in accordance
with the laws of the State of Delaware, without regard to its principles of conflicts of
laws.

 

 

July 2, 2008

Page 8 of 8

	 	(f)	 	Code Section 409A. Notwithstanding any payment provision set forth in
this Agreement to the contrary, if you are determined to be a “specified employee”
within the meaning of Internal Revenue Code Section 409A (“409A”), then any
payments to you under this Agreement, to the extent subject to 409A, may be delayed for
six (6) months following your separation of service.
	 
	 	(g)	 	Severability. Should any part of this Agreement be found to be invalid
or in violation of law, such part shall be of no force and effect, and the rest of this
Agreement shall survive as valid and enforceable to the fullest extent permitted by
law.
	 
	 	(h)	 	Acknowledgement. By signing the Agreement in the space provided below,
you are acknowledging that you have read and understand all of the terms of this
Agreement and are entering into this Agreement voluntarily.

6. Timing of Contingent Offer and Acceptance.

The contingent offer of employment contemplated by this Agreement will remain outstanding until
July 9, 2008. You will be deemed to have rejected the offer if we do not receive your
signed acceptance by the indicated date.

Please indicate your response to this offer by checking the appropriate box below and returning
the signed and dated Agreement to Terry Seamons. You may fax your signed Agreement to
504-576-5796, and a facsimile will have the same effect as the original.

Please do not hesitate to call should you have any questions or need any assistance.

	 	 	 
	/s/ Richard J. Smith
	 	 
	 

Richard J. Smith

	 	 
	Authorized Agent of Entergy Services, Inc.

CEO Designee of Enexus
	 	 

RESPONSE OF DEAN KELLER TO CONTINGENT OFFER OF EMPLOYMENT

	 	þ	 	I understand and accept the contingent offer of Enexus employment.
	 
	 	o	 	I reject the contingent offer of Enexus employment.

	 	 	 	 	 
	/s/ Dean Keller

	 	July 8, 2008	 	 
	 

 DEAN KELLER

	 	 

     DATE
	 	 

Enclosures:

Discussion Sheet

Entergy Benefits at a Glance

Enexus Benefits at a Glance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]