Document:

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                                                                     EXHIBIT 4.6

                              REMARKETING AGREEMENT

                  REMARKETING AGREEMENT, dated as of __________, 2001 (the
"Agreement") by and between NRG Energy, Inc., a Delaware corporation (the
"Company"), _________________, a ___________ banking corporation, not
individually but solely as Purchase Contract Agent (the "Purchase Contract
Agent") and as attorney-in-fact of the holders of Purchase Contracts (as defined
in the Purchase Contract Agreement (as defined herein)), and Merrill Lynch &
Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Remarketing
Agent").

                                   WITNESSETH:

                  WHEREAS, the Company will issue $200,000,000 (or $230,000,000
if the Underwriters' overallotment option is exercised in full) aggregate Stated
Amount of its Equity Units (the "Equity Units") under the Purchase Contract
Agreement, dated as of _____________, 2001, by and between the Purchase Contract
Agent and the Company (the "Purchase Contract Agreement"); and

                  WHEREAS, the Equity Units will initially consist of 8,000,000
(or 9,200,000 if the underwriters' overallotment option is exercised in full)
units referred to as "Corporate Units."

                  WHEREAS, the Company will issue concurrently in connection
with the issuance of the Equity Units $200,000,000 (or $230,000,000 if the
Underwriters' overallotment option is exercised in full) aggregate principal
amount of ___% Senior Debentures due ____________, 2006 (the "Debentures") of
the Company; and

                  WHEREAS, the Debentures forming a part of the Corporate Units
will be pledged pursuant to the Pledge Agreement (the "Pledge Agreement"), dated
as of ____________, 2001, by and among the Company, _________________, as
collateral agent (the "Collateral Agent") and the Purchase Contract Agent, to
secure a Corporate Units holder's obligations under the related Purchase
Contract on the Purchase Contract Settlement Date; and

                  WHEREAS, the Debentures of the Debenture holders electing to
have their Debentures remarketed and of the Corporate Unit holders will be
remarketed by the Remarketing Agent on the third Business Day immediately
preceding __________, 2003 (the "Initial Remarketing Date"); and

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                  WHEREAS, in the event of a Failed Initial Remarketing, the
Debentures of the Debenture holders electing to have their Debentures
remarketed and of the Corporate Unit holders who have elected not to settle the
Purchase Contracts related to their Corporate Units by Cash Settlement and who
have not early settled their Purchase Contracts will be remarketed by the
Remarketing Agent on the third Business Day immediately preceding the Purchase
Contract Settlement Date; and

                  WHEREAS, in the event of a Successful Initial Remarketing, the
applicable interest rate on the Debentures will be reset on the Initial
Remarketing Date, to the Reset Rate to be determined by the Reset Agent as the
rate that such Debentures should bear in order for the Applicable Principal
Amount of the Debentures to have an approximate aggregate market value of
100.5% of the Treasury Portfolio Purchase Price on the Initial Remarketing Date,
provided that in the determination of such Reset Rate, the Company shall, if
applicable, limit the Reset Rate to the maximum rate permitted by applicable
law; and

                  WHEREAS, in the event of a Failed Initial Remarketing, the
applicable interest rate on the Debentures that remain outstanding on and after
the Purchase Contract Settlement Date will be reset on the third Business Day
immediately preceding the Purchase Contract Settlement Date, to the Reset Rate
to be determined by the Reset Agent as the rate that such Debentures should bear
in order to have an approximate market value of 100.5% of the aggregate
principal amount of the Debentures on the third Business Day immediately
preceding the Purchase Contract Settlement Date, provided that in the
determination of such Reset Rate, the Company shall, if applicable, limit the
Reset Rate to the maximum rate permitted by applicable law; and

                  WHEREAS, the Company has requested Merrill Lynch & Co.,
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") to act as
the Reset Agent and as the Remarketing Agent, and as such to perform the
services described herein; and

                  WHEREAS, Merrill Lynch is willing to act as Reset Agent and
Remarketing Agent and as such to perform such duties on the terms and conditions
expressly set forth herein;

                  NOW, THEREFORE, for and in consideration of the covenants
herein made, and subject to the conditions herein set forth, the parties hereto
agree as follows:

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                  Section 1. Definitions. Capitalized terms used and not defined
in this Agreement, in the recitals hereto or in the paragraph preceding such
recitals shall have the meanings assigned to them in the Purchase Contract
Agreement or, if not therein defined, the Pledge Agreement.

                  Section 2.   Appointment and Obligations of Remarketing Agent.

         (a) The Company hereby appoints Merrill Lynch and Merrill Lynch hereby
accepts such appointment, (i) as the Reset Agent to determine in consultation
with the Company, in the manner provided for herein and in the Indenture (as in
effect on the date of this Remarketing Agreement) with respect to the
Debentures, (1) the Reset Rate that, in the opinion of the Reset Agent, will,
when applied to the Debentures, enable the Applicable Principal Amount of the
Debentures to have an approximate aggregate market value of 100.5% of the
Treasury Portfolio Purchase Price as of the Initial Remarketing Date, and (2) in
the event of a Failed Initial Remarketing, the Reset Rate that, in the opinion
of the Reset Agent, will, when applied to the Debentures, enable a Debenture to
have an approximate market value of 100.5% of its principal amount as of the
third Business Day preceding the Purchase Contract Settlement Date, provided, in
each case, that the Company, by notice to the Reset Agent prior to the tenth
Business Day preceding _____, 2003, in the case of the Initial Remarketing (as
defined below), or the Purchase Contract Settlement Date, in the case of the
Secondary Remarketing (as defined below), shall, if applicable, limit the Reset
Rate so that it does not exceed the maximum rate permitted by applicable law)
and (ii) as the exclusive Remarketing Agent (subject to the right of Merrill
Lynch to appoint additional remarketing agents hereunder as described below) to
(1) remarket the Debentures of the Debenture holders electing to have their
Debentures remarketed and of the Corporate Units holders on the Initial
Remarketing Date, for settlement on ____________, 2003 and (2) in the case of a
Failed Initial Remarketing, remarket the Debentures of the Debenture holders
electing to have their Debentures remarketed or of the Corporate Units holders
who have not early settled the related Purchase Contracts and have failed to
notify the Purchase Contract Agent, on or prior to the fifth Business Day
immediately preceding the Purchase Contract Settlement Date, of their intention
to settle the related Purchase Contracts through Cash Settlement. In connection
with the remarketing contemplated hereby, the Remarketing Agent will enter into
a Supplemental Remarketing Agreement (the "Supplemental Remarketing Agreement")
with the Company and the Purchase Contract Agent, which shall either be (i)
substantially in the form attached hereto as Exhibit A (with such changes as the
Company and the Remarketing Agent may agree upon, it being understood that
changes may be necessary in the representations, warranties, covenants and other

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provisions of the Supplemental Remarketing Agreement due to changes in law or
facts and circumstances or in the event that Merrill Lynch is not the sole
remarketing agent, and with such further changes therein as the Remarketing
Agent may reasonably request, or (ii) in such other form as the Remarketing
Agent may reasonably request, subject to the approval of the Company (such
approval not to be unreasonably withheld). Anything herein to the contrary
notwithstanding, Merrill Lynch shall not be obligated to act as Remarketing
Agent or Reset Agent hereunder unless the Supplemental Remarketing Agreement is
in form and substance reasonably satisfactory to Merrill Lynch. The Company
agrees that Merrill Lynch shall have the right, on 15 Business Days notice to
the Company, to appoint one or more additional remarketing agents so long as any
such additional remarketing agents shall be reasonably acceptable to the
Company. Upon any such appointment, the parties shall enter into an appropriate
amendment to this Agreement to reflect the addition of any such remarketing
agent.

                  (b) Pursuant to the Supplemental Remarketing Agreement, the
Remarketing Agent, either as sole remarketing agent or as representative of a
group of remarketing agents appointed as aforesaid, will agree, subject to the
terms and conditions set forth herein and therein, to use its reasonable efforts
to (i) remarket, on the Initial Remarketing Date, the Debentures that the
Trustee (as such term is defined in the Indenture) shall have notified the
Remarketing Agent have been tendered for, or otherwise are to be included in,
the Initial Remarketing, at a price per Debenture such that the aggregate price
for the Applicable Principal Amount of the Debentures is approximately 100.5% of
the Treasury Portfolio Purchase Price and (ii) in the event of a Failed Initial
Remarketing, remarket, on the third Business Day immediately preceding the
Purchase Contract Settlement Date, the Debentures that the Trustee shall have
notified the Remarketing Agent have been tendered for, or otherwise are to be
included in, the Secondary Remarketing, at a price of approximately 100.5% of
the aggregate principal amount of such Debentures. Notwithstanding the preceding
sentence, the Remarketing Agent shall not remarket any Debentures for a price
less than the price (the "Minimum Initial Remarketing Price") necessary for the
Applicable Principal Amount of the Debentures to have an aggregate price equal
to 100% of the Treasury Portfolio Purchase Price, in the case of the Initial
Remarketing, or the aggregate principal amount of such Debentures, in the case
of the Secondary Remarketing. After deducting the fee specified in Section 3
below, the proceeds of such Initial Remarketing or Secondary Remarketing, as the
case may be, shall be paid to the Collateral Agent in accordance with Section
4.6 or 6.3 of the Pledge Agreement and Section 5.3 or 5.4 of the Purchase
Contract Agreement (each of which Sections are incorporated herein by
reference). The right of each holder of Debentures or Corporate Units to have
Debentures tendered for the

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Initial Remarketing or the Secondary Remarketing, as the case may be, shall be
limited to the extent that (i) the Remarketing Agent conducts an Initial
Remarketing and, in the event of a Failed Initial Remarketing, a Secondary
Remarketing pursuant to the terms of this Agreement, (ii) Debentures tendered
have not been called for redemption, (iii) the Remarketing Agent is able to find
a purchaser or purchasers for tendered Debentures at a price of not less than
the Minimum Initial Remarketing Price, in the case of the Initial Remarketing,
and 100% of the principal amount thereof, in the case of the Secondary
Remarketing and (iv) such purchaser or purchasers deliver the purchase price
therefor to the Remarketing Agent as and when required.

                  (c) It is understood and agreed that neither the Remarketing
Agent nor the Reset Agent shall have any obligation whatsoever to purchase any
Debentures, whether in the Initial Remarketing, Secondary Remarketing or
otherwise, and shall in no way be obligated to provide funds to make payment
upon tender of Debentures for remarketing or to otherwise expend or risk their
own funds or incur or be exposed to financial liability in the performance of
their respective duties under this Agreement or the Supplemental Remarketing
Agreement, and, without limitation of the foregoing, the Remarketing Agent shall
not be deemed an underwriter of the remarketed Debentures. The Company shall not
be obligated in any case to provide funds to make payment upon tender of
Debentures for remarketing.

                  Section 3. Fees. In the event of a Successful Initial
Remarketing, the Remarketing Agent shall retain as a remarketing fee (the
"Remarketing Fee") an amount not exceeding 25 basis points (0.25%) of the
Minimum Initial Remarketing Price from any amount received in connection with
such Initial Remarketing in excess of the Minimum Initial Remarketing Price. In
the event of a Successful Secondary Remarketing, the Remarketing Agent shall
retain as the Remarketing Fee an amount not exceeding 25 basis points (0.25%),
of the principal amount of the remarketed Debentures from any amount received in
connection with such Secondary Remarketing in excess of the aggregate principal
amount of such remarketed Debentures. In addition, the Reset Agent shall, in
either case, receive from the Company a reasonable and customary fee (the "Reset
Agent Fee"); provided, however, that if the Remarketing Agent shall also act as
the Reset Agent, then the Reset Agent shall not be entitled to receive any such
Reset Agent Fee. Payment of such Reset Agent Fee shall be made by the Company on
the Initial Remarketing Date, in the case of a Successful Initial Remarketing,
or on the third Business Day immediately preceding the Purchase Contract
Settlement Date, in the case of a Successful Secondary Remarketing, in
immediately available funds or, upon the

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instructions of the Reset Agent, by certified or official bank check or checks
or by wire transfer.

                  Section 4. Replacement and Resignation of Remarketing Agent.
(a) The Company may in its absolute discretion replace Merrill Lynch as the
Remarketing Agent and as the Reset Agent hereunder by giving notice prior to
3:00 p.m., New York City time (i) on the eleventh Business Day immediately prior
to _______________, 2003, or (ii) in the event of a Failed Initial Remarketing,
prior to 3:00 p.m., New York City time on the eleventh Business Day immediately
prior to the Purchase Contract Settlement Date, provided, in either case, that
the Company must replace Merrill Lynch both as Remarketing Agent and as Reset
Agent unless Merrill Lynch shall otherwise agree. Any such replacement shall
become effective upon the Company's appointment of a successor to perform the
services that would otherwise be performed hereunder by the Remarketing Agent
and the Reset Agent. Upon providing such notice, the Company shall use all
reasonable efforts to appoint such a successor and to enter into a remarketing
agreement with such successor as soon as reasonably practicable.

                  (b) Merrill Lynch may resign at any time and be discharged
from its duties and obligations hereunder as the Remarketing Agent and/or as the
Reset Agent by giving notice prior to 3:00 p.m., New York City time (i) on the
eleventh Business Day immediately prior to _______________, 2003, or (ii) in the
event of a Failed Initial Remarketing, on the eleventh Business Day immediately
prior to the Purchase Contract Settlement Date. Any such resignation shall
become effective upon the Company's appointment of a successor to perform the
services that would otherwise be performed hereunder by the Remarketing Agent
and/or the Reset Agent. Upon receiving notice from the Remarketing Agent and/or
the Reset Agent that it wishes to resign hereunder, the Company shall appoint
such a successor and enter into a remarketing agreement with it as soon as
reasonably practicable.

                  Section 5. Dealing in the Securities. Each of the Remarketing
Agent and the Reset Agent, when acting hereunder or, in the case of the
Remarketing Agent, under the Supplemental Remarketing Agreement, or when acting
in its individual or any other capacity, may, to the extent permitted by law,
buy, sell, hold or deal in any of the Debentures, Treasury Units, Corporate
Units or any other securities of the Company. With respect to any Debentures,
Treasury Units, Corporate Units or any other securities of the Company owned by
it, each of the Remarketing Agent and the Reset Agent may exercise any vote or
join in any action with like effect as if it did not act in any capacity
hereunder. Each of the Remarketing Agent and the Reset Agent, in its individual
capacity, either as principal

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or agent, may also engage in or have an interest in any financial or other
transaction with the Company as freely as if it did not act in any capacity
hereunder.

                  Section 6. Registration Statement and Prospectus. In
connection with the Initial Remarketing, if and to the extent required in the
view of counsel (which need not be an opinion) for either the Remarketing Agent
or the Company by applicable law, regulations or interpretations in effect at
the time of such Initial Remarketing, the Company (i) shall use its reasonable
efforts to have a registration statement relating to the Debentures effective
under the Securities Act of 1933 prior to the third Business Day immediately
preceding _____________, 2003, (ii) if requested by the Remarketing Agent shall
furnish a current preliminary prospectus and, if applicable, a current
preliminary prospectus supplement to be used by the Remarketing Agent in the
Initial Remarketing not later than seven Business Days prior to ____________,
2003 (or such earlier date as the Remarketing Agent may reasonably request) and
in such quantities as the Remarketing Agent may reasonably request, and (iii)
shall furnish a current final prospectus and, if applicable, a final prospectus
supplement to be used by the Remarketing Agent in the Initial Remarketing not
later than the third Business Day immediately preceding ____________, 2003 in
such quantities as the Remarketing Agent may reasonably request, and shall pay
all expenses relating thereto. In the event of a Failed Initial Remarketing and
in connection with the Secondary Remarketing, if and to the extent required in
the view of counsel (which need not be an opinion) for either the Remarketing
Agent or the Company by applicable law, regulations or interpretations in effect
at the time of such Secondary Remarketing, the Company (i) shall use its
reasonable efforts to have a registration statement relating to the Debentures
effective under the Securities Act of 1933 prior to the third Business Day
immediately preceding the Purchase Contract Settlement Date, (ii) if requested
by the Remarketing Agent, shall furnish a current preliminary prospectus and, if
applicable, a current preliminary prospectus supplement to be used by the
Remarketing Agent in the Secondary Remarketing not later than seven Business
Days prior to the Purchase Contract Settlement Date (or such earlier date as the
Remarketing Agent may reasonably request) and in such quantities as the
Remarketing Agent may reasonably request, and (iii) shall furnish a current
final prospectus and, if applicable, a final prospectus supplement to be used by
the Remarketing Agent in the Secondary Remarketing not later than the third
Business Day immediately preceding the Purchase Contract Settlement Date in such
quantities as the Remarketing Agent may reasonably request, and shall pay all
expenses relating thereto. The Company shall also take all such actions as may
(upon advice of counsel to the Company or the Remarketing Agent) be necessary or
desirable under state securities or blue sky laws in connection with the Initial
Remarketing and the Secondary Remarketing.

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                  Section 7. Conditions to the Remarketing Agent's Obligations.
(a) The obligations of the Remarketing Agent and the Reset Agent under this
Agreement and, in the case of the Remarketing Agent, the Supplemental
Remarketing Agreement shall be subject to the terms and conditions of this
Agreement and the Supplemental Remarketing Agreement, including, without
limitation, the following conditions: (i) the Debentures tendered for, or
otherwise to be included in the Initial Remarketing or Secondary Remarketing, as
the case may be, have not been called for redemption, (ii) the Remarketing Agent
is able to find a purchaser or purchasers for tendered Debentures (1) in the
case of the Initial Remarketing, at a price not less than Minimum Initial
Remarketing Price, and (2) in the case of the Secondary Remarketing, at a price
not less than 100% of the principal amount thereof, (iii) the Purchase Contract
Agent, the Collateral Agent, the Custodial Agent, the Company and the Trustee
shall have performed their respective obligations in connection with the Initial
Remarketing and, in the event of a Failed Initial Remarketing, in connection
with the Secondary Remarketing, in each case pursuant to the Purchase Contract
Agreement, the Pledge Agreement, the Indenture, this Agreement and the
Supplemental Remarketing Agreement (including, without limitation, giving the
Remarketing Agent notice of the Treasury Portfolio Purchase Price no later than
10:00 a.m., New York City time, on the fourth Business Day prior to
____________, 2003, in the case of the Initial Remarketing, and giving the
Remarketing Agent notice of the aggregate principal amount, as the case may be,
of Debentures to be remarketed, no later than 10:00 a.m., New York City time, on
the fourth Business Day prior to the Purchase Contract Settlement Date, in the
case of the Secondary Remarketing, and, in each case, concurrently delivering
the Debentures to be remarketed to the Remarketing Agent), (iv) no Event of
Default (as defined in the Indenture) shall have occurred and be continuing, (v)
the accuracy of the representations and warranties of the Company included and
incorporated by reference in this Agreement and the Supplemental Remarketing
Agreement or in certificates of any officer of the Company or any of its
subsidiaries delivered pursuant to the provisions included or incorporated by
reference in this Agreement or the Supplemental Remarketing Agreement, (vi) the
performance by the Company of its covenants and other obligations included and
incorporated by reference in this Agreement and the Supplemental Remarketing
Agreement, and (vii) the satisfaction of the other conditions set forth and
incorporated by reference in this Agreement and the Supplemental Remarketing
Agreement.

                  (b) If at any time during the term of this Agreement, any
Indenture Event of Default or event that with the passage of time or the giving
of notice or both would become an Indenture Event of Default has occurred and is
continuing under the Indenture, then the obligations and duties of the
Remarketing Agent and the

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Reset Agent under this Agreement and the Supplemental Remarketing Agreement
shall be suspended until such default or event has been cured. The Company will
promptly give the Remarketing Agent notice of all such defaults and events of
which the Company is aware.

                  Section 8. Termination of Remarketing Agreement. This
Agreement shall terminate as to any Remarketing Agent or Reset Agent which is
replaced on the effective date of its replacement pursuant to Section 4(a)
hereof or pursuant to Section 4(b) hereof. Notwithstanding any such termination,
the obligations set forth in Section 3 hereof shall survive and remain in full
force and effect until all amounts payable under said Section 3 shall have been
paid in full. In addition, each former Remarketing Agent and Reset Agent shall
be entitled to the rights and benefits under Section 10 of this Agreement
notwithstanding the replacement or resignation of such Remarketing Agent or
Reset Agent.

                  Section 9. Remarketing Agent's Performance; Duty of Care. The
duties and obligations of the Remarketing Agent and the Reset Agent shall be
determined solely by the express provisions of this Agreement and, in the case
of the Remarketing Agent, the Supplemental Remarketing Agreement. No implied
covenants or obligations of or against the Remarketing Agent or the Reset Agent
shall be read into this Agreement or the Supplemental Remarketing Agreement. In
the absence of bad faith on the part of the Remarketing Agent or the Reset
Agent, as the case may be, the Remarketing Agent and the Reset Agent each may
conclusively rely upon any document furnished to it which purports to conform to
the requirements of this Agreement or the Supplemental Remarketing Agreement, as
the case may be, as to the truth of the statements expressed therein. Each of
the Remarketing Agent and the Reset Agent shall be protected in acting upon any
document or communication reasonably believed by it to be signed, presented or
made by the proper party or parties. Neither the Remarketing Agent nor the Reset
Agent shall have any obligation to determine whether there is any limitation
under applicable law on the Reset Rate on the Debentures or, if there is any
such limitation, the maximum permissible Reset Rate on the Debentures, and they
shall rely solely upon written notice from the Company (which the Company agrees
to provide prior to the tenth Business Day before __________, 2003, in the case
of the Initial Remarketing, and prior to the tenth Business Day before Purchase
Contract Settlement Date, in the case of the Secondary Remarketing) as to
whether or not there is any such limitation and, if so, the maximum permissible
Reset Rate. Neither the Remarketing Agent nor the Reset Agent shall incur any
liability under this Agreement or the Supplemental Remarketing Agreement to any
beneficial owner or holder of Debentures, or other securities, either in its
individual capacity or as

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Remarketing Agent or Reset Agent, as the case may be, for any action or failure
to act in connection with the Remarketing or otherwise in connection with the
transactions contemplated by this Agreement or the Supplemental Remarketing
Agreement. The provisions of this Section 9 shall survive any termination of
this Agreement and shall also continue to apply to every Remarketing Agent and
Reset Agent notwithstanding their resignation or removal.

                  Section 10. Indemnification and Contribution. (a) The Company
agrees to indemnify and hold harmless the Remarketing Agent, the Reset Agent and
their respective directors, officers, employees, agents, affiliates and each
person, if any, who controls the Remarketing Agent or the Reset Agent within the
meaning of either Section 15 of the Securities Act of 1933, as amended (the
"1933 Act"), or Section 20 of the Securities Exchange Act of 1934, as amended
(the "1934 Act") (the Remarketing Agent, the Reset Agent and each such person or
entity being an "Indemnified Party"), as follows:

                         (i)  from and against any and all losses, claims,
damages, liabilities and expenses whatsoever, joint or several, as incurred, to
which such Indemnified Party may become subject under any applicable federal or
state law, or otherwise, and related to, arising out of, or based on (A) the
failure to have an effective Registration Statement (as defined in the
Supplemental Remarketing Agreement) under the 1933 Act relating to the
Debentures, as the case may be, if required, or the failure to satisfy the
prospectus delivery requirements of the 1933 Act because the Company failed to
provide the Remarketing Agent with a Prospectus (as defined in the Supplemental
Remarketing Agreement) for delivery, or (B) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement or
any amendment thereto (including any information deemed to be a part of the
Registration Statement at the time it became effective pursuant to paragraph (b)
of Rule 430A under the 1933 Act, if applicable), or the omission or alleged
omission therefrom of a material fact required to be stated therein or necessary
to make the statements therein not misleading, or (C) any untrue statement or
alleged untrue statement of a material fact contained in any preliminary
prospectus or the Prospectus, or any amendment or supplement thereto, or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading, or (D) any untrue statement or alleged untrue
statement of a material fact contained in any other information (whether oral or
written) or documents (including, without limitation, any documents incorporated
or deemed to be incorporated by reference in any such information or documents)
provided by the Company for use in connection with the remarketing of the
Debentures or any of the transactions related

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thereto, or (E) any breach by the Company of any of the representations,
warranties or agreements included or incorporated by reference in this Agreement
or the Supplemental Remarketing Agreement, or (F) any failure by the Company to
make or consummate the remarketing of the Debentures (including, without
limitation, any Failed Initial Remarketing or Failed Secondary Remarketing) or
the withdrawal, recession, termination, amendment or extension of the terms of
such remarketing, or (G) any failure on the part of the Company to comply, or
any breach by the Company of, any of the provisions included or incorporated by
reference in this Agreement, the Supplemental Remarketing Agreement, the
Purchase Contract Agreement, the Corporate Units, the Treasury Units, the Pledge
Agreement, the Indenture or the Debentures (collectively, the "Operative
Documents") or (H) the remarketing of the Debentures, as the case may be, or any
other transaction contemplated by any of the Operative Documents, or the
engagement of the Remarketing Agent or the Reset Agent pursuant to, or the
performance by the Remarketing Agent or the Reset Agent of the respective
services contemplated by, this Agreement or the Supplemental Remarketing
Agreement, whether or not the Initial Remarketing or the Secondary Remarketing
or the reset of the interest rate on the Debentures as contemplated herein
actually occur;

                         (ii)  against any and all loss, liability, claim,
damage and expense whatsoever, as incurred, to the extent of the aggregate
amount paid in settlement of any litigation or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or of any claim
whatsoever related to, arising out of or based on any matter described in (i)
above; and

                         (iii) against any and all expense whatsoever, as
incurred (including the fees and disbursements of counsel chosen by Merrill
Lynch), incurred in investigating, preparing or defending against any
litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever related to, arising out
or based on any matter described in (i) above, whether or not such Indemnified
Party is a party and whether or not such claim, action or proceeding is
initiated or brought by or on behalf of the Company to the extent that any such
expense is not paid under (i) or (ii) above;

provided, however, that the Company shall not be liable under clause (i)(B),
(i)(C) or (i)(D) to the extent any such loss, claim, damage, liability or
expense arises out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and conformity with written
information furnished to the Company by the Remarketing Agent or the Reset Agent
expressly for use in the Registration Statement (or any amendment thereto) or
any preliminary prospectus or the

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Prospectus (or any amendment or supplement thereto) or any other documents used
in connection with remarketing of the Debentures, as the case may be; provided,
further, that with respect to any untrue statement or omission of a material
fact made in any preliminary prospectus, the indemnity agreement contained in
this Section 10(a) shall not inure to the benefit of the Remarketing Agent to
the extent that any such loss, claim, damage or liability of the Remarketing
Agent occurs under the circumstance where it shall have been determined by a
court of competent jurisdiction by final and nonappealable judgment that (w) the
Company had previously furnished copies of the Prospectus to Merrill Lynch, (x)
delivery of the Prospectus was required to be made to such person, (y) the
untrue statement or omission of a material fact contained in the preliminary
prospectus was corrected in the Prospectus, and (z) there was not sent or given
to such person, at or prior to the written confirmation of the sale of
Securities to such person, a copy of the Prospectus.

                  The Company agrees that no Indemnified Party shall have any
liability (whether direct or indirect, in contract or tort or otherwise) to the
Company or its respective security holders or creditors relating to or arising
out of the engagement of the Remarketing Agent or the Reset Agent pursuant to,
or the performance by the Remarketing Agent or the Reset Agent of their
respective services contemplated by, this Agreement or the Supplemental
Remarketing Agreement except to the extent that any loss, claim, damage,
liability or expense is found in a final judgment by a court of competent
jurisdiction to have resulted from the willful misconduct, gross negligence or
bad faith of the Remarketing Agent or the Reset Agent, as the case may be.

                  The Company agrees that, without Merrill Lynch's prior written
consent, it will not settle, compromise or consent to the entry of any judgment
with respect to any litigation, or any investigation or proceeding by any
governmental agency or body, commenced or threatened, or any action or claim
whatsoever in respect of which indemnification or contribution could be sought
under this Section 10 (whether or not Merrill Lynch or any other Indemnified
Party is an actual or potential party to such claim, action or proceeding),
unless such settlement, compromise or consent (i) includes an unconditional
release of each Indemnified Party from all liability arising out of such
litigation, investigation, proceeding, action or claim and (ii) does not include
a statement as to, or an admission of, fault, culpability or a failure to act by
or on behalf of an Indemnified Party.

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                  (b) If the indemnification provided for in Section 10(a)
hereof is for any reason unavailable to or insufficient to hold harmless an
Indemnified Party in respect of any losses, liabilities, claims, damages or
expenses referred to therein, then the Company shall contribute to the aggregate
amount of such losses, liabilities, claims, damages and expenses incurred by
such Indemnified Party, as incurred, (i) in such proportion as is appropriate to
reflect the relative benefits received by the Company on the one hand and the
Remarketing Agent and the Reset Agent on the other hand from the remarketing of
the Debentures contemplated hereby or (ii) if the allocation provided by clause
(i) is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also
the relative fault of the Company on the one hand and of the Remarketing Agent
and the Reset Agent on the other hand in connection with the statements,
omissions or other matters which resulted in such losses, liabilities, claims,
damages or expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Company on the one hand and the Remarketing
Agent and the Reset Agent on the other hand in connection with the remarketing
of the Debentures contemplated hereby shall be deemed to be in the same
respective proportions as the aggregate principal amount of the Debentures which
are or are to be remarketed bears to the aggregate fees actually received by the
Remarketing Agent and the Reset Agent under Section 3 hereof. The relative fault
of the Company on the one hand and the Remarketing Agent and the Reset Agent on
the other hand (i) in the case of an untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact, shall be
determined by reference to, among other things, whether such untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a
material fact relates to information supplied by the Company on the one hand or
by the Remarketing Agent or the Reset Agent on the other hand and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission and (ii) in the case of any other action or
omission shall be determined by reference to, among other things, whether such
action or omission was taken or omitted to be taken by the Company on the one
hand, or by the Remarketing Agent or the Reset Agent, on the other hand, and the
parties' relative intent, knowledge, access to information and opportunity to
prevent or correct such action or omission. The Company, the Remarketing Agent
and the Reset Agent agree that it would not be just and equitable if
contribution pursuant to this Section 10(b) were determined by pro rata
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this Section 10(b). The
aggregate amount of losses, liabilities, claims, damages and expenses incurred
by an Indemnified Party and referred to above in this Section 10(b) shall be
deemed to include any legal or other expenses incurred by such Indemnified Party
in

                                       13

<PAGE>   14
investigating, preparing or defending against any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or
threatened, or any claim whatsoever based upon any such untrue or alleged untrue
statement or any such omission or alleged omission or any other such action or
omission; provided, however, that to the extent permitted by applicable law, in
no event shall the Remarketing Agent or the Reset Agent be required to
contribute any amount which, in the aggregate, exceeds the aggregate fees
received by them under Section 3 of this Agreement. No investigation or failure
to investigate by any Indemnified Party shall impair the foregoing
indemnification and contribution agreement or any rights an Indemnified Party
may have. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation.

                  (c) In the event an Indemnified Party is requested or required
to appear as a witness in any action brought by or on behalf of or against the
Company, the Company agrees to reimburse the Remarketing Agent or the Reset
Agent, as the case may be, for all reasonable expenses, as incurred, which are
incurred by the Remarketing Agent or the Reset Agent, as the case may be, in
connection with such Indemnified Party's appearing and preparing to appear as
such a witness, including, without limitation, the reasonable fees and
disbursements of its legal counsel, and to compensate the Remarketing Agent or
the Reset Agent, as the case may be, in an amount to be mutually agreed upon. In
addition, the Company agrees to compensate the Remarketing Agent or the Reset
Agent, as the case may be, in an amount to be mutually agreed upon per person
per day for each day that an officer, director or employee of the Remarketing
Agent or the Reset Agent, as the case may be, or any of their respective
affiliates is involved in preparation, discovery or testimony pertaining to any
litigation, discovery or investigation in connection with this Agreement or the
Supplemental Remarketing Agreement.

                  (d) Promptly after receipt by an Indemnified Party of written
notice of any claim or commencement of an action or proceeding with respect to
which indemnification may be sought hereunder, such Indemnified Party will
notify the Company in writing of such claim or of the commencement of such
action or proceeding, but failure so to notify the Company will not relieve the
Company from any liability which it may have to such Indemnified Party under
this indemnification and contribution agreement, and in any event will not
relieve the Company from any other liability that it may have to such
Indemnified Party. Merrill Lynch shall have the right to select counsel in
connection with any transaction for which any Indemnified Party may be entitled
to indemnification or contribution hereunder, provided that in no event shall
the indemnifying parties be liable for fees and

                                       14

<PAGE>   15
expenses of more than one counsel (in addition to any local counsel) separate
from their own counsel for all Indemnified Parties in connection with any one
action or separate but similar or related actions in the same jurisdiction
arising out of the same general allegations or circumstances.

                  (e) Anything herein or in the Supplemental Remarketing
Agreement to the contrary notwithstanding, the provisions of this Section 10,
and the rights of the Remarketing Agent, the Reset Agent and the other
Indemnified Parties hereunder, shall be in addition to, and not in limitation
of, any rights or benefits (including, without limitation, rights to
indemnification or contribution) which the Remarketing Agent, the Reset Agent or
any other Indemnified Party may have under any other instrument or agreement.

                  Section 11.  Governing Law.  This Agreement shall be governed
by and construed in accordance with the laws of the State of New York without
regard to principles of conflicts of laws.

                  Section 12. Term of Agreement. (a) Unless otherwise terminated
in accordance with the provisions hereof and except as otherwise provided
herein, this Agreement shall remain in full force and effect from the date
hereof until the first day thereafter on which no Debentures are outstanding,
or, if earlier, the Business Day immediately following ___________, 2003, in the
case of a Successful Initial Remarketing, or the Business Day immediately
following the Purchase Contract Settlement Date, in the case of a Successful
Secondary Remarketing. Anything herein to the contrary notwithstanding, the
provisions of the last section of Section 8 hereof and the provisions of
Sections 3, 9, 10 and 12(b) hereof shall survive any termination of this
Agreement and remain in full force and effect.

                  (b) All representations and warranties included or
incorporated by reference in this Agreement, or the Supplemental Remarketing
Agreement, or contained in certificates of officers of the Company submitted
pursuant hereto or thereto, shall remain operative and in full force and effect,
regardless of any investigation made by or on behalf of the Remarketing Agent,
the Reset Agent or any of their controlling persons, or by or on behalf of the
Company or the Purchase Contract Agent, and shall survive the remarketing of the
Debentures.

                  Section 13. Successors and Assigns. The rights and obligations
of the Company and the Purchase Contract Agent (both in its capacity as Purchase
Contract Agent and as attorney-in-fact) hereunder may not be assigned or
delegated to any other person without the prior written consent of the
Remarketing Agent and

                                       15

<PAGE>   16
the Reset Agent. The rights and obligations of the Remarketing Agent and the
Reset Agent hereunder may not be assigned or delegated to any other person
without the prior written consent of the Company, except that the Remarketing
Agent shall have the right to appoint additional remarketing agents as provided
herein. This Agreement shall inure to the benefit of and be binding upon the
Company, the Purchase Contract Agent, the Remarketing Agent and the Reset Agent
and their respective successors and assigns and the other Indemnified Parties
(as defined in Section 10 hereof) and the successors, assigns, heirs and legal
representatives of the Indemnified Parties. The terms "successors" and "assigns"
shall not include any purchaser of Securities or Debentures merely because of
such purchase.

                  Section 14. Headings. Section headings have been inserted in
this Agreement and the Supplemental Remarketing Agreement as a matter of
convenience of reference only, and it is agreed that such section headings are
not a part of this Agreement or the Supplemental Remarketing Agreement and will
not be used in the interpretation of any provision of this Agreement or the
Supplemental Remarketing Agreement.

                  Section 15. Severability. If any provision of this Agreement
or the Supplemental Remarketing Agreement shall be held or deemed to be or
shall, in fact, be invalid, inoperative or unenforceable as applied in any
particular case in any or all jurisdictions because it conflicts with any
provisions of any constitution, statute, rule or public policy or for any other
reason, then, to the extent permitted by law, such circumstances shall not have
the effect of rendering the provision in question invalid, inoperative or
unenforceable in any other case, circumstances or jurisdiction, or of rendering
any other provision or provisions of this Agreement or the Supplemental
Remarketing Agreement, as the case may be, invalid, inoperative or unenforceable
to any extent whatsoever.

                  Section 16.  Counterparts.  This Agreement and the
Supplemental Remarketing Agreement may be executed in counterparts, each of
which shall be regarded as an original and all of which shall constitute one and
the same document.

                  Section 17. Amendments. This Agreement and the Supplemental
Remarketing Agreement may be amended by any instrument in writing signed by the
parties hereto. The Company and the Purchase Contract Agent agree that they will
not enter into, cause or permit any amendment or modification of the Purchase
Contract Agreement, the Indenture, the Pledge Agreement, the Debentures, the
Equity Units or any other instruments or agreements relating to the Debentures
or the Equity Units which would in any way affect the rights, duties or
obligations of the

                                       16

<PAGE>   17
Remarketing Agent or the Reset Agent without the prior written consent of the
Remarketing Agent or the Reset Agent, as the case may be.

                  Section 18. Notices. Unless otherwise specified, any notices,
requests, consents or other communications given or made hereunder or pursuant
hereto shall be made in writing or transmitted by any standard form of
telecommunication, including telephone or telecopy, and confirmed in writing.
All written notices and confirmations of notices by telecommunication shall be
deemed to have been validly given or made when delivered or mailed, registered
or certified mail, return receipt requested and postage prepaid. All such
notices, requests, consents or other communications shall be addressed as
follows: if to the Company, to NRG Energy, Inc., 901 Marquette Avenue, Suite
2300, Minneapolis, Minnesota, 55402, Attention: Chief Financial Officer; if to
the Remarketing Agent or Reset Agent, to Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated, at World Financial Center, North Tower, New
York, New York 10281, Attention: Phil Jones, with a copy to Skadden, Arps,
Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036,
Attention: John W. Osborn; and if to the Purchase Contract Agent, to
_________________, ______________________________________________, or to such
other address as any of the above shall specify to the other in writing.

                  Section 19. Information. The Company agrees to furnish the
Remarketing Agent and the Reset Agent with such information and documents as the
Remarketing Agent or the Reset Agent may reasonably request in connection with
the transactions contemplated by this Remarketing Agreement and the Supplemental
Remarketing Agreement, and make reasonably available to the Remarketing Agent,
the Reset Agent and any accountant, attorney or other advisor retained by the
Remarketing Agent or the Reset Agent such information that parties would
customarily require in connection with a due diligence investigation conducted
in accordance with applicable securities laws and cause the Company's officers,
directors, employees and accountants to participate in all such discussions and
to supply all such information reasonably requested by any such person in
connection with such investigation.

                                       17

<PAGE>   18

                  IN WITNESS WHEREOF, each of the Company, the Purchase Contract
Agent and the Remarketing Agent has caused this Agreement to be executed in its
name and on its behalf by one of its duly authorized signatories as of the date
first above written.

                                      NRG ENERGY, INC.

                                      By:
                                          --------------------------------------
                                          Name:
                                          Title:

CONFIRMED AND ACCEPTED:

MERRILL LYNCH & CO.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

By:
   ------------------------------------
      Authorized Signatory

------------------------------------------------
not individually but solely as Purchase Contract
Agent and as attorney-in-fact for the holders of
the Purchase Contracts

By:
   ------------------------------------
   Name:
   Title:

<PAGE>   19
                                                                    Exhibit A to
                                                           Remarketing Agreement

                   Form of Supplemental Remarketing Agreement

         Supplemental Remarketing Agreement dated _____________, ____ among NRG
Energy, Inc., a Delaware corporation (the "Company"), ___________________ (the
"Remarketing Agent"), and _________________, as Purchase Contract Agent and
attorney-in-fact for the Holders of the Purchase Contracts (as such terms are
defined in the Purchase Contract Agreement referred to in Schedule I hereto)

         NOW, THEREFORE, for and in consideration of the covenants herein made,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

         1. Definitions. Capitalized terms used and not defined in this
Agreement shall have the meanings assigned to them in the Remarketing Agreement
dated as of _______________, 2001 (the "Remarketing Agreement") among the
Company, the Purchase Contract Agent and Merrill Lynch & Co., Merrill Lynch,
Pierce, Fenner & Smith Incorporated or, if not defined in the Remarketing
Agreement, the meanings assigned to them in the Purchase Contract Agreement (as
defined in Schedule I hereto).

         2. Registration Statement and Prospectus. The Company has filed with
the Securities and Exchange Commission, and there has become effective, a
registration statement on Form S-3, including a prospectus, relating to the
Securities (as such term is defined on Schedule I hereto). Such Registration
Statement, as amended, and including the information deemed to be a part thereof
pursuant to Rule 430A under the Securities Act of 1933, as amended (the "1933
Act"), and the documents incorporated or deemed to be incorporated by reference
therein, are hereinafter called, collectively, the "Registration Statement";
[the related preliminary prospectus dated ___________, including the documents
incorporated or deemed to be incorporated by reference therein, [and preliminary
prospectus supplemented dated __________] are hereinafter called, [collectively]
the "preliminary prospectus";] and the related prospectus dated, including the
documents incorporated or deemed to be incorporated by reference therein, [and
prospectus

<PAGE>   20
supplement dated ________] are hereinafter called, [collectively,] the
"Prospectus." The Company has provided copies of the Registration Statement [,
the preliminary prospectus] and the Prospectus to the Remarketing Agent, and
hereby consents to the use of the [preliminary prospectus] and the Prospectus in
connection with the remarketing of the Securities. [IN THE EVENT THAT A
REGISTRATION STATEMENT IS NOT REQUIRED, INSERT THE FOLLOWING: The Company has
provided to the Remarketing Agent, for use in connection with remarketing of the
Securities (as such term is defined on Schedule I hereto), a [preliminary
remarketing memorandum and] remarketing memorandum and [describe other
materials, if any]. Such remarketing memorandum (including the documents
incorporated or deemed to be incorporated by reference therein, [and] [describe
other materials] are hereinafter called, collectively, the "Prospectus," [and
such preliminary marketing memorandum (including the documents incorporated or
deemed to be incorporated by reference therein) is hereinafter called a
"preliminary prospectus")]. The Company hereby consents to the use of the
Prospectus [and the preliminary prospectus] in connection with the remarketing
of the Securities]. All references in this Agreement to amendments or
supplements to the Registration Statement [, the preliminary prospectus] or the
Prospectus shall be deemed to mean and include the filing of any document under
the Securities Exchange Act of 1934, as amended (the "1934 Act"), which is
incorporated or deemed to be incorporated by reference in the Registration
Statement [, the preliminary prospectus] or the Prospectus, as the case may be.

         3.       Provisions Incorporated by Reference.

                  (a) Subject to Section 3(b), the provisions of the
Underwriting Agreement (other than Section 2, Section 3, Section 4, Section 7,
Section 8 and Section 9 thereof) are incorporated herein by reference, mutatis
mutandis, and the Company hereby makes the representations and warranties, and
agrees to comply with the covenants and obligations, set forth in the provisions
of the Units Underwriting Agreement incorporated by reference herein, as
modified by the provisions of Section 3(b) hereof.

                  (b) With respect to the provisions of the Underwriting
Agreement incorporated herein, for the purposes hereof, (i) all references
therein to the "Underwriter" or "Underwriters" shall be deemed to refer to the
Remarketing Agent and all references to the "Representative" or the
"Representatives" shall be deemed to refer to Merrill Lynch, Pierce, Fenner &
Smith Incorporated, ("Merrill Lynch"); (ii) all references therein to the
"Securities" or "Initial Securities" shall be deemed to refer to the Securities
as defined herein; (iii) all references therein to the "Closing Date" shall be
deemed to refer to the Remarketing Closing Date specified in

                                       A-2

<PAGE>   21
Schedule I hereto; (iv) all references therein to the "Registration Statement"
[, the "Preliminary Final Prospectus"] or the "Final Prospectus" shall be deemed
to refer to the Registration Statement[, the preliminary prospectus] and the
Prospectus, respectively, as defined herein; (v) all references therein to this
"Agreement," the "Underwriting Agreement," "hereof," "herein" and all references
of similar import, shall be deemed to mean and refer to this Supplemental
Remarketing Agreement; (vi) all references therein to "the date hereof," "the
date of this Agreement" and all similar references shall be deemed to refer to
the date of this Supplemental Remarketing Agreement; (vii) all references
therein to any "settlement date" shall be disregarded; and (viii) [other
changes].]

         4. Remarketing. Subject to the terms and conditions and in reliance
upon the representations and warranties herein set forth or incorporated by
reference herein and in the Remarketing Agreement, the Remarketing Agent agrees
to use its reasonable efforts to remarket, in the manner set forth in Section
2(b) of the Remarketing Agreement, the aggregate principal amount, as the case
may be, of Securities set forth in Schedule I hereto at a purchase price not
less than 100% of the [Minimum Initial Remarketing Price] [aggregate principal
amount of the Securities]. In connection therewith, the registered holder or
holders thereof agree, in the manner specified in Section 5 hereof, to pay to
the Remarketing Agent a Remarketing Fee equal to an amount not exceeding 25
basis points (0.25%) of [the Minimum Initial Remarketing Price] [such aggregate
principal amount,] payable by deduction from any amount received in connection
from such [Initial][Secondary] Remarketing in excess of the [Minimum Initial
Remarketing Price] [aggregate principal amount of the Securities]. The right of
each holder of Securities to have Securities tendered for purchase shall be
limited to the extent set forth in the last sentence of Section 2(b) of the
Remarketing Agreement (which is incorporated by reference herein). As more fully
provided in Section 2(c) of the Remarketing Agreement (which is incorporated by
reference herein), the Remarketing Agent is not obligated to purchase any
Securities in the remarketing or otherwise, and neither the Sponsor nor the
Remarketing Agent shall be obligated in any case to provide funds to make
payment upon tender of Securities for remarketing.

         5. Delivery and Payment. Delivery of payment for the remarketed
Securities by the purchasers thereof identified by the Remarketing Agent and
payment of the Remarketing Fee shall be made on the Remarketing Closing Date at
the location and time specified in Schedule I hereto (or such later date not
later than five Business Days after such date as the Remarketing Agent shall
designate), which date and time may be postponed by agreement between the
Remarketing Agent and the Company. Delivery of the remarketed Securities and
payment of the

                                       A-3

<PAGE>   22
Remarketing Fee shall be made to the Remarketing Agent against payment by the
respective purchasers of the remarketed Securities of the consideration therefor
as specified herein, which consideration shall be paid to the Collateral Agent
for the account of the persons entitled thereto by certified or official bank
check or checks drawn on or by a New York Clearing House bank and payable in
immediately available funds or in immediately available funds by wire transfer
to an account or accounts designated by the Collateral Agent.

         If the Securities are not represented by a Global Security held by or
on behalf of The Depositary Trust Company, certificates for the Securities shall
be registered in such names and denominations as the Remarketing Agent may
request not less than one full Business Day in advance of the Remarketing
Closing Date, and the Company, the Collateral Agent and the registered holder or
holders thereof agree to have such certificates available for inspection,
packaging and checking by the Remarketing Agent in New York, New York not later
than 1:00 p.m. on the Business Day prior to the Remarketing Closing Date.

         6. Notices. Unless otherwise specified, any notices, requests, consents
or other communications given or made hereunder or pursuant hereto shall be made
in writing or transmitted by any standard form of telecommunication, including
telephone or telecopy, and confirmed in writing. All written notices and
confirmations of notices by telecommunication shall be deemed to have been
validly given or made when delivered or mailed, registered or certified mail,
return receipt requested and postage prepaid. All such notices, requests,
consents or other communications shall be addressed as follows: if to the
Company, to NRG Energy, Inc., 901 Marquette Avenue, Suite 2300, Minneapolis,
Minnesota, 55402, Attention: Chief Financial Officer; if to the Remarketing
Agent, to Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith
Incorporated at World Financial Center, North Tower, New York, New York 10281,
Attention: Phil Jones; with a copy to Skadden, Arps, Slate, Meagher & Flom LLP,
Four Times Square, New York, NY 10036, Attention: John W. Osborn; and if to the
Purchase Contract Agent, to _________________, _______________________________,
or to such other address as any of the above shall specify to the other in
writing.

         7. Conditions to Obligations of Remarketing Agent. Anything herein to
the contrary notwithstanding, the parties hereto agree (and the holders and
beneficial owners of the Securities will be deemed to agree) that the
obligations of the Remarketing Agent under this Agreement and the Remarketing
Agreement are subject to the satisfaction of the conditions set forth in Section
7 of the Remarketing Agreement (which are incorporated herein by reference), and
to the satisfaction, on

                                       A-4

<PAGE>   23
the Remarketing Closing Date, of the conditions incorporated by reference herein
from Section 6 of the Underwriting Agreement as modified by Section 3(b) hereof
(including, without limitation, the delivery of opinions of counsel, officers'
certificates and accountants' comfort letters in form and substance satisfactory
to the Remarketing Agent, the accuracy as of the Remarketing Closing Date of the
representations and warranties of the Company included and incorporated by
reference herein and the performance by the Company of its obligations under the
Remarketing Agreement and this Agreement as and when required hereby and
thereby). In addition, anything herein or in the Remarketing Agreement to the
contrary notwithstanding, the Remarketing Agreement and this Agreement may be
terminated by the Remarketing Agent, by notice to the Company at any time prior
to the time of settlement on the Remarketing Closing Date, if any of the events
or conditions set forth in Section 10 of the Underwriting Agreement, as modified
by Section 3(b) hereof, shall have occurred or shall exist.

         8. Indemnity and Contribution.  Anything herein to the contrary
notwithstanding, the Remarketing Agent shall be entitled to indemnity and
contribution on the terms and conditions set forth in the Remarketing Agreement.

                                       A-5

<PAGE>   24
         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicate hereof, whereupon
this letter and your acceptance shall represent a binding agreement among the
Company and the Remarketing Agent.

                                             Very truly yours,

                                             NRG ENERGY, INC.

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

CONFIRMED AND ACCEPTED:

----------------------------------

By:
   -------------------------------
      Authorized Signatory

[Add other Remarketing Agents, if any]

------------------------------------------------
not individually but solely as Purchase Contract
Agent and as attorney-in-fact for the holders of
the Purchase Contracts

By:
   -------------------------------
   Name:
   Title:

                                       A-6

<PAGE>   25
                                   SCHEDULE I

Securities subject to the remarketing: ___% Debentures due ________, 2006 of the
         Company (the "Securities").

Purchase Contract Agreement, dated as of _____________, 2001 (the "Purchase
         Contract Agreement") by and between NRG Energy, Inc., a Delaware
         corporation, and _________________, a national banking association.

         Pledge Agreement dated as of _____________, 2001 (the "Pledge
         Agreement") by and between NRG Energy, Inc., a Delaware corporation,
         _________________ a national banking association, and ________________.

Indenture dated as of _____________, 2001 (the "Base Indenture")
         by and between NRG Energy, Inc., a Delaware corporation, and
         _________________.

Supplemental Indenture, dated as of _____________, 2001
         (the "Supplemental Indenture" and, together with the Base Indenture,
         the "Indenture") by and between NRG Energy, Inc., a Delaware
         corporation, and ________________________.

[Minimum Initial Remarketing Price]
[Aggregate Principal Amount of Securities:  $ ____________]

Underwriting Agreement, dated _____________, 2001 (the "Underwriting
         Agreement") among NRG Energy, Inc. and Merrill Lynch & Co., Merrill
         Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse First Boston
         Corporation, CIBC World Markets Corp., J. P. Morgan Securities Inc. and
         Salomon Smith Barney Inc.

Remarketing Closing Date, Time and Location:

                                       A-7<PAGE>   1
                                                                    Exhibit 10.8

                              EMPLOYMENT AGREEMENT

This Employment Agreement ("Agreement") is entered into between National Oilwell
(U.K.) Limited, having offices at Badentory Industrial Park, Portlethen,
Aberdeen, Scotland AB12 4YA, U.K., an indirect subsidiary of National-Oilwell,
Inc., ("NOI"), and Jon Gjedebo, an individual currently residing at 13 Lauriston
Road, SW194TS, London ("Employee"), to be effective as of the 1st day of March,
2000.

         Hitec ASA has merged with NOI. Prior to such merger, the Hitec ASA
employed Employee, and Employee was a major shareholder in the Hitec ASA. In
connection with such merger, NOI is desirous of continuing to employ Employee at
its indirect subsidiary, National Oilwell (U.K.) Limited ("Employer"), pursuant
to this Agreement and of terminating any prior employment agreement or
arrangement, and Employee is desirous of continuing in the employ of Employer
pursuant to this Agreement and of terminating any prior existing employment
agreement.

         NOW, THEREFORE, for and in consideration of the mutual promises,
covenants, and obligations contained herein, Employer, NOI and Employee agree as
follows:

1.       EMPLOYMENT AND DUTIES:

         1.1.     Employer agrees to employ Employee, and Employee agrees to be
employed by Employer, beginning 1 March 2000, and continuing throughout the Term
(as defined below) of this Agreement, subject to this Agreement.

         1.2.     Employee shall serve as Executive Vice President & Chief
Technology Officer of the Employer and NOI and shall report to the Chief
Executive Officer of NOI. Employee agrees to serve in the assigned position and
to perform diligently and to the best of Employee's abilities the duties and
services appertaining to such position as determined by Employer or NOI, as well
as such additional or different duties and services appropriate to such position
which Employee from time to time may be reasonably directed to perform by
Employer or NOI. Employer will provide Employee with such office space and staff
support as shall reasonably be required for the performance of his duties
hereunder. Employee shall at all times comply with and be subject to such
generally applicable policies and procedures as Employer or NOI may establish
from time to time, including without limitation, the Statement of Policy on
Business Ethics, Statement of Policy Regarding Conflict of Interest, Antitrust
Laws, Insider Trading Policy and Statement of Policy Regarding Improper Business
Payment, all of which are attached hereto as Annex I.

         1.3.     Employee shall use reasonable efforts, during the period of
Employee's employment by Employer, to devote no less than one-half of Employee's
business time and best efforts to the business and affairs of Employer and NOI.
Employee may have other business, personal, and civic interests which, from time
to time, require portions of his time but which (i) do not and will not
interfere with the performance of his duties hereunder and (ii) are not and will
not be competitive with Employer's or NOI's business interests. Employer and NOI
acknowledges that Employee is
<PAGE>   2
a principal owner of Hitec Vision and may serve as the Chairman of the Board of
Directors for Hitec Vision.

         1.4.     Employee acknowledges and agrees that Employee owes a
fiduciary duty of loyalty, fidelity and allegiance to act as provided in this
Agreement in the best interests of Employer, NOI or any of its subsidiaries or
affiliates. In keeping with these duties, Employee shall make full disclosure to
NOI and Employer of all business opportunities pertaining to NOI and Employer's
business and shall not appropriate for Employee's own benefit business
opportunities concerning the subject matter of the fiduciary relationship.

2.       COMPENSATION AND BENEFITS:

         2.1.     Employee's initial base salary under this Agreement shall be
One Hundred Forty-Four Thousand British Pounds (L 144,000.00) per annum, and
shall be paid in accordance with Employer's standard payroll practice.
Employee's base salary may be increased from time to time by NOI and Employer
and, after any such change, Employee's new level of base salary shall be
Employee's base salary for purposes of this Agreement until the effective date
of any subsequent change.

         2.2.     NOI and Employee may enter into separate written stock option
agreements pursuant to which Employee may be granted options to purchase shares
of common stock of National-Oilwell, Inc. subject to the terms and conditions of
any such agreement. The number of shares and terms of the restrictions placed
upon exercising the options shall be as specified in any such agreement and
shall be similar to the other officers of the Employer or NOI at the same
management level.

         2.3.     Employee shall be entitled to participate in the then current
National-Oilwell Management Incentive Program (or such other name as it is
adopted) at a manner similar to the other officers of the Employer or NOI at the
same management level.

         2.4.     While employed by Employer, Employee shall be allowed to
participate, on the same basis generally as other employees of Employer, in all
general employee benefit plans and programs which are made available by Employer
to all or substantially all of Employer's employees. Such benefits, plans, and
programs may include, without limitation, medical, health, and dental care, life
insurance, disability protection, and pension plans. Nothing in this Agreement
is to be construed or interpreted to provide greater rights, participation,
coverage, or benefits under such benefit plans or programs than provided to
similarly situated employees pursuant to the terms and conditions of such
benefit plans and programs.

         2.5.     Employer shall not by reason of this Article 2 be obligated to
institute, maintain, or refrain from amending, or discontinuing any such
incentive compensation or employee benefit plan, so long as such actions are
similarly applicable to covered employees generally. Unless specifically
provided for in a written plan document adopted by the Board of Directors of
NOI, none of the benefits or arrangements described in this Article 2 shall be
secured or funded in any way, and each shall instead constitute an unfunded and
unsecured promise to pay money in the future exclusively from the general assets
of NOI and its subsidiaries and affiliates.

                                       2
<PAGE>   3
         2.6.     Employer may withhold from any compensation, benefits, or
amounts payable under this Agreement all federal, state, city, or other taxes as
may be required pursuant to any law or governmental regulation or ruling.

3.       TERM OF THIS AGREEMENT, EFFECT OF EXPIRATION OF TERM, AND TERMINATION
         PRIOR TO EXPIRATION OF TERM AND EFFECTS OF SUCH TERMINATION:

         3.1.     The term of this Agreement shall be for three (3) year(s) from
the date hereof, and shall be automatically extended for successive terms of one
year commencing on the third anniversary of the date of this Agreement, and on
each anniversary date thereafter, unless Employer or Employee gives written
notice to the other, not less than ninety (90) days prior to the next succeeding
anniversary date, that employment will not be renewed or continued hereunder
following such anniversary date.

         3.2.     Notwithstanding any other provisions of this Agreement, NOI
and Employer shall have the right to terminate Employee's employment under this
Agreement at any time for any of the following reasons:

         (i)      For "cause" upon the determination by the Board of Director's
                  of National-Oilwell, Inc. that "cause" exists for the
                  termination of the employment relationship. As used in this
                  Section 3.2(i), the term "cause" shall mean (a) Employee has
                  engaged in gross negligence, incompetence or willful
                  misconduct in the performance of, or Employee's refusal to
                  perform, the duties and services required of Employee pursuant
                  to this Agreement; (b) Employee has committed any fraudulent
                  or dishonest acts involving Employer or NOI or has been
                  convicted of a crime involving moral turpitude; or (c)
                  Employee's breach of any material provision of this Agreement
                  or corporate code or policy. It is expressly acknowledged and
                  agreed that the decision as to whether "cause" exists for
                  termination of the employment relationship by NOI or Employer
                  is delegated to National-Oilwell Inc.'s Board of Directors for
                  determination. Employee, if he so requests, after reasonable
                  notice of such Board of Directors meeting, shall be entitled
                  to be heard before the Board of Directors. If Employee
                  disagrees with the decision reached by National-Oilwell Inc.'s
                  Board of Directors, any dispute will be limited to whether
                  National-Oilwell Inc.'s Board of Directors reached its
                  decision in good faith;

         (ii)     for any other reason whatsoever, including termination without
                  cause, in the sole discretion of National-Oilwell Inc.'s Chief
                  Executive Officer or National-Oilwell's Board of Directors;

         (iii)    upon Employee's death; or

         (iv)     upon Employee becoming incapacitated which in the reasonable
                  opinion of a qualified doctor approved by National-Oilwell's
                  Board of Directors renders him

                                       3
<PAGE>   4
                  mentally or physically incapable of performing the duties and
                  services required of Employee, and which will continue, in the
                  opinion of such doctor, for a period of not less than 180
                  days.

The termination of Employee's employment shall constitute a "Termination for
Cause" if made pursuant to Section 3.2(i); the effect of such termination is
specified in Section 3.4. The termination of Employee's employment shall
constitute an "Involuntary Termination" if made pursuant to Section 3.2(ii); the
effect of such termination is specified in Section 3.5. The effect of the
employment relationship being terminated pursuant to Section 3.2(iii) as a
result of Employee's death is specified in Section 3.7. The effect of the
employment relationship being terminated pursuant to Section 3.2(iv) as a result
of the Employee becoming incapacitated is specified in Section 3.8.

         3.3.     Notwithstanding any other provisions of this Agreement,
Employee shall have the right to terminate the employment relationship under
this Agreement at any time for any of the following reasons:

         (i)      a material breach by Employer or NOI of any material provision
                  of this Agreement, including, without limitation, a material
                  reduction in Employee's title, position, duties,
                  responsibilities, and authority to such an extent that
                  Employee is relegated to a position substantially inferior to
                  that which he shall hold with Employer or NOI at the
                  commencement of this Agreement, or elimination of Employee's
                  job and him not being offered employment by NOI or a successor
                  to all or a portion of NOI's business or assets, with (a)
                  comparable responsibilities, (b) the same or greater base
                  salary, (c) comparable value for his participation in any
                  stock option plans and (d) comparable severance benefits, and
                  then only if any such breach remains uncorrected for 30 days
                  following written notice of such breach by Employee to
                  National-Oilwell Inc.'s Board of Directors

         (ii)     NOI completes a merger or consolidation, a sale of all or
                  substantially all of its assets, or the sale of all of its
                  outstanding Common Stock, and Employee's employment is
                  terminated after such transaction by virtue of an Involuntary
                  Termination within ninety (90) days after the completion of
                  such transaction;

         (iii)    any corporation, person or group within the meaning of
                  Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act
                  of 1934, as amended (the "Act"), other than Inverness
                  Management LLC or First Reserve Corporation or their
                  respective affiliates, becomes the beneficial owner (within
                  the meaning of Rule 13d-3 under the Act) of voting securities
                  of NOI representing more than fifty percent of the total votes
                  eligible to be cast at any election of directors of NOI and
                  Employee's employment is terminated after such event by virtue
                  of Involuntary Termination within ninety (90) days after the
                  occurrence of such event;

         (iv)     the dissolution of NOI; or

                                       4
<PAGE>   5
         (v)      for any other reason whatsoever, in the sole discretion of
                  Employee.

The termination of Employee's employment by Employee shall constitute an
"Involuntary Termination" if made pursuant to Section 3.3(i), 3.3(ii), 3.3(iii)
or 3.3(iv); the effect of such termination is specified in Section 3.5. The
termination of Employee's employment by Employee shall constitute a "Voluntary
Termination" if made pursuant to Sections 3.3(v); the effect of such termination
is specified in Section 3.4.

         3.4.     Upon a "Voluntary Termination" of the employment relationship
by Employee or a termination of the employment relationship for "Cause" by NOI
or Employer, all future compensation to which Employee is entitled and future
benefits for which Employee is eligible shall cease and terminate as of the date
of termination. Employee shall be entitled to pro rata salary through the date
of such termination, but Employee shall not be entitled to any bonuses not yet
paid at the date of such termination.

         3.5.     Upon an Involuntary Termination of the employment relationship
by either NOI, Employer or Employee pursuant to Sections 3.2(ii), 3.3(i),
3.3(ii) or 3.3(iii), Employee shall be entitled, in consideration of Employee's
continuing obligations hereunder after such termination (including, without
limitation, Employee's non-competition obligations), to receive a lump sum
payment equal to three (3) times the per annum based salary specified in Section
2.1 plus an amount equal to the applicable bonus incentive as described in
Section 2.3. Such lump sum payment will be reduced by the sum of all previous
payments under Sections 2.1 and 2.3, except that the minimum payment applicable
will be one (1) time the per annum base salary specified in Section 2.1 plus an
amount equal to the bonus incentive as described in Section 2.3. Employee's
rights under this Section 3.5 are Employee's sole and exclusive rights against
NOI or its subsidiaries or affiliates, in contract, tort, or otherwise, for any
Involuntary Termination of the employment relationship, provided however,
Employee's rights and obligations with respect to Employee stock options, if
any, are governed by the controlling option agreement.

         3.6.     Employee covenants not to sue or lodge any claim, demand or
cause of action against Employer or NOI based on Involuntary Termination for any
monies other than those specified in Section 3.5.

         3.7.     Upon termination of the employment relationship as a result of
Employee's death, Employee's heirs, administrators, or legatees shall be
entitled to Employee's pro rata salary through the date of such termination, but
Employee's heirs, administrators, or legatees shall not be entitled to any
individual bonuses not yet paid to Employee at the date of such termination.

         3.8.     Upon termination of the employment relationship as a result of
Employee's incapacity, Employee shall be entitled to his pro rata salary for a
period of six months following the date of such termination, but Employee shall
not be entitled to any individual bonuses not yet paid to Employee at the date
of such termination.

                                       5
<PAGE>   6
         3.9.     In all cases, the compensation and benefits payable to
Employee under this Agreement upon termination of the employment relationship
shall be reduced and offset by any amounts to which Employee may otherwise be
entitled under any and all severance plans or policies of Employer, NOI or its
subsidiaries or affiliates or any successor in interest; provided, however, that
no sums received by Employee pursuant to any retirement or benefit plans shall
be considered a payment requiring offset under this Section.

         3.10.    Termination of the employment relationship shall not terminate
those obligations imposed by this Agreement which are continuing in nature,
including, without limitation, Employee's obligations of confidentiality,
non-competition and Employee's continuing obligations with respect to business
opportunities.

         3.11.    This Agreement governs the rights and obligations of NOI,
Employer and Employee with respect to Employee's salary and other perquisites of
employment. Except as otherwise provided in this Agreement, Employee's rights
and obligations with respect to any Employee stock options and other incentive
awards shall be governed by the applicable governing documents.

4.       UNITED STATES FOREIGN CORRUPT PRACTICES ACT AND OTHER LAWS:

         4.1.     Employee shall at all times comply with all United States and
foreign laws applicable to Employee's actions on behalf of Employer, NOI and its
subsidiaries and affiliates, including specifically, without limitation, the
United States Foreign Corrupt Practices Act, generally codified in 15 USC 78
("FCPA"). If Employee pleads guilty or admits liability under any applicable
law, or if a court finds that Employee, Employer or NOI has liability under any
applicable law by the actions of Employee, such action or finding shall
constitute "cause" for termination under this Agreement unless Employer's or
NOI's Board of Directors determines that the actions found to be in violation of
any applicable law were taken in good faith and in compliance with all
applicable policies of NOI. Employee shall be responsible for, and shall
reimburse and pay to Employer, NOI or its subsidiaries or affiliates any civil
or criminal fines, sanctions or damages incurred as a result of Employee's
actions.

5.       OWNERSHIP OF INFORMATION:

         5.1.     All information, ideas, concepts, improvements, discoveries,
and inventions, whether patentable or not, which are conceived, made, developed
or acquired by Employee, individually or in conjunction with others, during
Employee's employment by Employer (whether during business hours or otherwise
and whether on Employer's premises or otherwise) which relate to Employer's,
NOI's or any of its subsidiaries' or affiliates' businesses, products or
services, shall be disclosed to Employer and NOI and are and shall be the
property of Employer and NOI, subject to the provisions of Section 5.4. Upon
termination of Employee's employment, for any reason, Employee promptly shall
deliver same, and all copies thereof, to Employer and NOI.

         5.2.     Subject to the provisions of Section 5.4 if, during Employee's
employment by Employer, Employee creates any original work of authorship fixed
in any medium which is the

                                       6
<PAGE>   7
subject matter of copyright, relating to Employer's, NOI's or any of its
subsidiaries' or affiliates' businesses, products, or services, whether such
work is created solely by Employee or jointly with others (whether during
business hours or otherwise and whether on Employer's, NOI's or any of its
subsidiaries' or affiliates' premises or otherwise), Employer and NOI shall be
deemed the author of such work if the work is prepared by Employee in the scope
of his employment; or, if the work is not prepared by Employee within the scope
of his employment but is specially ordered by Employer or NOI or any of its
subsidiaries or affiliates as a contribution to a collective work, then the work
shall be considered to be work made for hire and NOI or any of its subsidiaries
or affiliates shall be the author of the work.

         5.3.     Both during the period of Employee's employment by Employer
and thereafter, Employee shall assist Employer, NOI or any of its subsidiaries
or affiliates and their nominees, at any time, in the protection of Employer's,
NOI's or any of its subsidiaries' or affiliates' worldwide right, title, and
interest in and to information, ideas, concepts, improvements, discoveries, and
inventions, and its copyrighted works, including without limitation, the
execution of all formal assignment documents requested by Employer, NOI or any
of its subsidiaries or affiliates or their nominees and the execution of all
lawful oaths and applications for applications for patents and registration of
copyright in the United States and foreign countries.

         5.4.     Employer, NOI and Employee agree that Employee may have
certain ideas, concepts, improvements, discoveries, and inventions that relate
to the businesses of both Hitec Vision and Employer or NOI. Any ideas, concepts,
improvements, discoveries, and inventions, whether patentable or not, which are
conceived, made, developed or acquired by Employee, individually or in
conjunction with others, during Employee's employment by Employer (whether
during business hours or otherwise and whether on Employer's or NOI's premises
or otherwise) which relate in a viable financial manner to both NOI's or its
affiliates businesses and also the businesses of Hitec Vision, shall be owned
jointly by both companies, with each granting the other, respectively, an
exclusive royalty free license to use the idea, improvement, discovery,
technology and corresponding rights in all parts of the world.

         5.5.     All information, ideas, concepts, improvements, discoveries,
and inventions, whether patentable or not, which are conceived, made, developed
or acquired by Employee, individually or in conjunction with others, within one
(1) calendar year of termination of Employee's employment relationship with
Employer and NOI, related to either the businesses of Hitec Vision, Employer or
NOI shall be subject to the provisions of Section 5.1 and 5.4. After one (1)
calendar year through a period of an additional four (4) calendar years, NOI
shall have the right to license from Employee for a royalty fee of two percent
(2%) of the sales price of the item, any idea, improvement, discovery,
technology and corresponding rights related to NOI's businesses in all parts of
the world.

6.       POST-EMPLOYMENT NON-COMPETITION OBLIGATIONS:

         6.1.     As part of the consideration for the compensation and benefits
to be paid to Employee hereunder, and as an additional incentive for Employee,
NOI and Employer to enter into this Agreement, NOI, Employer and Employee agree
to the non-competition provisions of this Article

                                       7
<PAGE>   8
6. Employee agrees that during the period of Employee's non-competition
obligations hereunder, Employee will not, directly or indirectly for Employee or
for others, within the countries of Norway and the United Kingdom, and to the
extent allowed by law, in any geographic area or market where NOI, Employer or
any of its subsidiaries or affiliated companies are engaged in business as of
the date of termination of the employment relationship or have during the
previous twelve months engaged in the business:

         (i)      engage in the business of the design, manufacture and sale of
                  machinery, equipment and downwhole products used in oil and
                  gas drilling and production, including computer controlled
                  drilling machinery, control systems and instrumentation, and
                  any other business engaged in by NOI immediately prior to the
                  date of termination of the employment relationship or render
                  advice or services to, or otherwise assist, persons or
                  entities that are in such business; and

         (ii)     induce any employee of Employer, NOI or any of its
                  subsidiaries or affiliates to terminate his or her employment
                  with Employer, NOI or any of its subsidiaries or affiliates,
                  or hire or assist in the hiring of any such employee by any
                  person, association, or entity not affiliated with Employer,
                  NOI or any of its subsidiaries or affiliates.

These non-competition obligations shall not be considered as restrictions on
Employee's activities with respect to the businesses actively engaged in by
Hitec Vision immediately prior to termination of the employment relationship
with Employer. These non-competition obligations shall apply during Employee's
provided, Employer or NOI, by tendering to Employee within sixty (60) days of
termination, an amount equal to the greater of one-half his annual base salary
as of the date of termination of the employment relationship or Seventy-Two
Thousand British Pounds (L 72,000.00). Employer and NOI shall have the right to
extend this non-competition obligation up to four (4) additional calendar years
beyond the initial term by tendering the same amount within sixty (60) days of
the anniversary date.

         6.2.     Employee understands that the foregoing restrictions may limit
his ability to engage in certain businesses during the period provided for
above, but acknowledges that Employee will receive sufficiently high
remuneration and other benefits under this Agreement to justify such
restriction. Employee acknowledges that money damages would not be sufficient
remedy for any breach of this Article 6 by Employee, and Employer, NOI or any of
its subsidiaries or affiliates shall be entitled to enforce the provisions of
this Article 6 by terminating any payments then owing to Employee and/or to
specific performance and injunctive relief as remedies for any breach. Such
remedies shall not be deemed the exclusive remedies, but shall be in addition to
all remedies available at law or in equity.

         6.3.     It is expressly understood and agreed that if any of the
aforesaid restrictions are found by a court having jurisdiction to be
unreasonable or unenforceable, the parties intend for the restrictions therein
to be modified by such courts so as to be reasonable and enforceable and, as so
modified by the court, to be fully enforced.

                                       8
<PAGE>   9
7.       EMPLOYEE CONFIDENTIALITY COMMITMENT:

         7.1      In the course of employment, Employee will have access to a
great deal of proprietary, confidential, and restricted information, including
Trade Secrets (as herein defined), not known to those outside of NOI
(collectively, "Confidential Information"). "Trade Secrets" are any information
that derives economic value, actual or potential, from not being generally known
to the public.

         7.2      Employee shall not disclose or make use of Employer's or NOI's
Confidential Information to anyone not employed by Employer or NOI without
written authorization. Employee shall be bound by Employer's and NOI's rules
governing company trade secret usage and will not use Employer's or NOI's Trade
Secrets outside the scope of Employee's employment. Employee further shall not
disclose or use Employer's or NOI's Confidential Information for any purpose for
a period of five (5) years after termination of his employment with Employer and
NOI.

         7.3      Employee will hold Confidential Information in trust, and
consistently exercise all reasonable precautions to ensure that it is not
disclosed to any unauthorized persons, either during or subsequent to,
employment with Employer, and will immediately report to Employer and NOI any
breach or violation of the commitments made herein.

8.       MISCELLANEOUS:

         8.1.     For purposes of this Agreement the terms "affiliates" or
"affiliated" means an entity who directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with
Employer or NOI.

         8.2.     Employer, NOI and Employee shall refrain, both during the
employment relationship and after the employment relationship terminates, from
publishing any oral or written statements about each other or any of NOI's
subsidiaries' or affiliates' directors, officers, employees, agents or
representatives that are slanderous, libelous, or defamatory; or that place them
in a false light before the public; or that constitute a misappropriation of the
name or likeness of Employee or Employer, NOI or any of its subsidiaries or
affiliates.

         8.3.     For purposes of this Agreement, notices and all other
communications provided for herein shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by registered or
certified mail, postage prepaid, addressed as follows:

                                       9
<PAGE>   10
If to Employer to:

         Badentory Industrial Park
         Portlethen, Aberdeen
         Scotland AB12 4YA
         United Kingdom
         011-44-1224-334981
         011-44-1224-________ facsimile

If to NOI to:

         National-Oilwell, Inc.
         10000 Richmond Ave., Suite 400
         Houston, Texas 77042
         P.O. Box 4888
         Houston, TX 77210-4888

with a copy to:

         National-Oilwell L.P.
         10000 Richmond Ave., Suite 400
         Houston, Texas 77042
         P.O. Box 4888
         Attn: General Counsel

If to Employee:  ___________________________
                 ___________________________
                 ___________________________
                 ___________________________

with a copy to:  ___________________________
                 ___________________________
                 ___________________________
                 ___________________________

Either Employer, NOI or Employee may furnish a change of address to the other in
writing in accordance herewith, except that notices of changes of address shall
be effective only upon receipt.

         8.4.     This Agreement shall be governed in all respects by the laws
of the State of Delaware, USA, excluding any conflict-of-law rule or principle
that might refer the construction of the Agreement to the laws of another State
or country.

                                       10
<PAGE>   11
         8.5.     No failure by either party hereto at any time to give notice
of any breach by the other party of, or to require compliance with, any
condition or provision of this Agreement shall be deemed a waiver of similar or
dissimilar provisions or conditions at the same or at any prior or subsequent
time.

         8.6.     It is a desire and intent of the parties that the terms,
provisions, covenants, and remedies contained in this Agreement shall be
enforceable to the fullest extent permitted by law. If any such term, provision,
covenant, or remedy of this Agreement or the application thereof to any person,
association, or entity or circumstances shall, to any extent, be construed to be
invalid or unenforceable in whole or in part, then such term, provision,
covenant, or remedy shall be construed in a manner so as to permit its
enforceability under the applicable law to the fullest extent permitted by law.
In any case, the remaining provisions of this Agreement or the application
thereof to any person, association, or entity or circumstances other than those
to which they have been held invalid or unenforceable, shall remain in full
force and effect.

         8.7.     Any and all claims, demands, cause of action, disputes,
controversies and other matters in question arising out of or relating to this
Agreement, or in any way relating to this Agreement, (all of which are referred
to herein as "Claims"), even though some or all of such Claims allegedly are
extra-contractual in nature, no matter how such Claims arise shall be resolved
and decided by binding arbitration pursuant to the Rules of Conciliation and
Arbitration of the International Chamber of Commerce by one or more arbitrators
appointed in accordance with said rules. Arbitration shall be held in London,
England and the proceedings shall be conducted in English. The arbitrators shall
apply the substantive laws of the State of Delaware, USA.

         8.8.     This Agreement shall be binding upon and inure to the benefit
of Employer, NOI, its subsidiaries and affiliates, and any other person,
association, or entity which may hereafter acquire or succeed to all or a
portion of the business or assets of Employer or NOI by any means whether direct
or indirect, by purchase, merger, consolidation, or otherwise. Employee's rights
and obligations under this Agreement are personal and such rights, benefits, and
obligations of Employee shall not be voluntarily or involuntarily assigned,
alienated, or transferred, whether by operation of law or otherwise, by Employee
without the prior written consent of Employer and NOI.

         8.9.     Except as provided in (1) written company policies promulgated
by Employer or NOI, (2) the company's written benefits, plans, and programs, or
(3) any signed written agreements contemporaneously or hereafter executed by
NOI, Employer and Employee, this Agreement constitutes the entire agreement of
the parties with regard to such subject matters, and contains all of the
agreements between the parties with respect to such subject matters and replaces
and merges previous agreements and discussions pertaining to the employment
relationship between Employer, NOI and Employee. Specifically, but not by way of
limitation, any other employment agreement or arrangement in existence as of the
date hereof between NOI and Employee is hereby canceled and Employee hereby
irrevocably waives and renounces all of Employee's rights and claims under any
such agreement or arrangement.

                                       11
<PAGE>   12
         IN WITNESS WHEREOF, Employer, NOI and Employee have duly executed this
Agreement in multiple originals to be effective on the date first stated above.

EMPLOYEE                                NATIONAL-OILWELL, INC.

By: /s/ JON GJEDEBO                     By: /s/ JOEL V. STAFF
   -----------------------------           ----------------------------------
   Jon Gjedebo                             Joel V. Staff
                                           President and Chief Executive Officer

                                        National Oilwell (U.K.) Ltd.

                                        By: /s/ DANIEL L. MOLINARO
                                           -----------------------------------
                                           Daniel L. Molinaro
                                           Assistant Secretary

                                       12

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