Document:

ETR-12.31.2013-10Kex -10(h)22

Exhibit 10(h)22

Amendment To
Service Agreement

The parties hereto do hereby stipulate and agree to that the SERVICE AGREEMENT entered into by and between them under date of January 1, 2008, and as heretofore amended on June 1, 2009 and January 1, 2011 be and the same hereby is further amended by substituting for the SERVICE AGREEMENT, the attached Amended and Restated Service Agreement for Administrative and General Support Services (also referred to as Rate Schedule 435-A) and Service Agreement for Generation Planning and Operational Support Services (also referred to as Rate Schedule 435-B).  This Amendment is made and entered into as of December 19, 2013.

ENTERGY SERVICES, INC.

By /s/ Alyson M. Mount
Senior Vice President and Chief Accounting Officer

ENTERGY TEXAS, INC.

By /s/ Sallie T. Rainer
President and Chief Executive Officer

ENTERGY SERVICES, INC.
Rate Schedule 435-A

AMENDED AND RESTATED SERVICE AGREEMENT
FOR ADMINISTRATIVE AND GENERAL SUPPORT SERVICES

THIS SERVICE AGREEMENT (“Service Agreement”), made and entered into by and between Entergy Services, Inc. (hereinafter referred to as “Entergy Services”), a corporation organized under the laws of the State of Delaware, and Entergy Texas, Inc. (hereinafter referred to as “Client Company”), a corporation organized under the laws of the State of Texas with its principal place of business at 350 Pine Street, Beaumont, TX.
WITNESSETH THAT:
WHEREAS, in 1963, the Securities and Exchange Commission entered an order under the Public Utility Holding Company Act of 1935 authorizing the organization and conduct of business of Entergy Services, a wholly-owned subsidiary of Entergy Corporation (hereinafter referred to as “Entergy”);.
WHEREAS, Entergy Services is organized, staffed, and equipped to render services as herein provided to Entergy and its associated companies (hereinafter referred to as “Client Companies”), with whom Entergy Services is entering into agreements in the form hereof; 
WHEREAS, economies and increased efficiencies will result from the performance by Entergy Services of certain services for the Client Companies; 
WHEREAS, Entergy Services is willing to render such services at cost, determined in accordance with applicable rules and regulations of the Federal Energy Regulatory Commission (hereinafter referred to as the “Commission”) under the Federal Power Act, as amended by the 

Public Utility Holding Company Act of 2005, except that there will be no charge for the use of the initial equity capital of Entergy Services amounting to $20,000; 
WHEREAS, Entergy Services currently provides planning, operations, administrative, and support services to Client Companies under service agreements that conform with a form of service agreement on file with the Commission as Entergy Services’ Rate Schedule 435; 
WHEREAS, Entergy Services and the public utility operating companies of Entergy currently are parties to the Entergy System Agreement, a rate schedule approved by the Commission; 
WHEREAS, on December 19, 2005, Entergy Arkansas, Inc. (“EAI”), gave notice to the other parties to the Entergy System Agreement that it will terminate its participation in the System Agreement effective December 18, 2013; and
WHEREAS, effective on and after December 19, 2013, Entergy Services will continue to provide administrative and support services to Client Companies under service agreements that conform with this Rate Schedule 435-A while providing planning and operational support services to Client Companies other than EAI under service agreements that conform with Rate Schedule 435-B, generation planning and operational support services to EAI under a service agreement that conforms with Rate Schedule 435-C, and providing transmission planning and reliability support services to EAI under a service agreement that conforms with Rate Schedule 435-D.
NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein, the parties hereto agree as follows:
I.    AGREEMENT TO FURNISH SERVICES
Entergy Services agrees to furnish to Client Company, upon the terms and conditions hereinafter set forth, such of the services described in Exhibit I hereto at such times, for such periods and in such manner as Client Company may from time to time request Entergy Services to provide.  

Entergy Services will, as and to the extent required for Client Company, keep itself and its personnel available and competent to render such services to Client Company.  Entergy Services will also provide to Client Company such other services not described in Exhibit I as Client Company may request and which Entergy Services is competent to perform.
In supplying services under this Service Agreement, Entergy Services may arrange for the services of such executives, accountants, financial advisers, technical advisers, attorneys, engineers, and other service providers, whether employed by Entergy Services or an associate company or through a third party, with the necessary qualifications and experience as are required for or pertinent to the rendition of such services.
For the avoidance of doubt, nothing in this Service Agreement shall relate to the services taken by EAI in connection with generation planning and operational support services under ESI Rate Schedule 435-C, and references in this Agreement to “Client Company” shall not include EAI in connection with such services.
Notwithstanding the foregoing and for the avoidance of doubt, Entergy Arkansas, Inc. (“EAI”), shall not take services from Entergy Services under this Service Agreement in connection with transmission system planning and bulk electric system reliability, and references in this Agreement to “Client Company” shall not include EAI in connection with such services.
II.    AGREEMENT TO TAKE SERVICES
Client Company agrees to take from Entergy Services such of the services described in Exhibit I as the Client Company requests.  Client Company further agrees to take from Entergy Services such other services, whether or not described in Exhibit I and whether or 

not now contemplated, as Client Company may from time to time request from Entergy Services.
III.    COMPENSATION AND ALLOCATION
As compensation for services rendered under this Service Agreement, Client Company hereby agrees to pay to Entergy Services the cost of such services. Intercompany payables for the amount of such costs will be recorded by Client Company on or before closing of the books in the succeeding month and will be funded on or before the 25th day of such month.  The methods for the determination and the allocation of the cost of services to be paid by Client Company are set forth in Exhibit II hereto.
IV.    CLIENT COMPANIES
A Client Company will be Entergy or an associate company.  All such companies will be served at cost as provided in Section III and Exhibit II.
V.    TERM OF AGREEMENT – MODIFICATION
This Service Agreement shall become effective as of December 19, 2013, and shall continue until terminated as of the end of any calendar year by either party giving to the other at least 60 days written notice of its intention so to terminate.
Entergy Services may amend or supplement Exhibit I and Exhibit II, including the Exhibit II Supplement, from time to time.
IN WITNESS WHEREOF, the parties hereto have caused this Service Agreement to be executed as of the ____ day of ________, (year).

ENTERGY SERVICES, INC.
By ___________________________
Title _________________________

ENTERGY TEXAS, INC.

By___________________________
Title _________________________

EXHIBIT I

SERVICES

		
	1.
	Consultation and advice on financial planning, sale of securities and temporary cash investments, including assistance in connection with the preparation, printing and filing of appropriate documents with regulatory authorities, and provision of liaison with financial community;      

		
	2.
	Consultation and advice on budgeting and preparation of long-range economic and financial forecasts;           

		
	3.
	Consultation and advice on employee benefit plans and other human resources services;      

		
	4.
	Consultation and advice with respect to regulatory matters, particularly those involving the Securities and Exchange Commission or the Federal Energy Regulatory Commission, and provision of liaison and assistance in processing matters with the staffs of such commissions;      

		
	5.
	Assistance and advice in the field of nuclear activities including coordination or research programs and other activities in such field;     

		
	6.
	Liaison with special counsel representing Client Companies in legal and regulatory proceedings and with consultants retained to prepare testimony and other data for use in such proceedings, provided that the costs of proceedings involving the Entergy System Agreement commenced after December 18, 2013, will be allocated only to parties to the System Agreement after that date;

		
	7.
	Operation of a communications and public relations department and placing of national advertising and communications on behalf of the Entergy Operating Companies;      

		
	8.
	Tax services relating to preparation and filing of returns for federal and state income taxes and declaration of estimated income taxes; studies of adequacy of tax accruals; and assistance in connection with audit of returns by Internal Revenue Service and other taxing authorities;      

		
	9.
	Insurance consulting and advisory services relating to fire and allied lines of insurance, casualty and surety insurance, and employee benefit insurance;      

		
	10.
	General consultation on management, business problems and strategic planning;      

		
	11.
	Consultation on accounting issues;      

		
	12.
	Statistical services, such as study of comparative operating results, and up-dating annually Operating Company statistical data;          

		
	13.
	Preparation of maps and property records;      

		
	14.
	General advisory engineering services;      

		
	15.
	Operation of a data processing Computer Center to serve the Client Companies and associate companies;      

		
	16.
	Consultation and advisory services with respect to rate studies, rate design, cost studies, load research, weather analysis, economic studies, forecasts of intra-system transactions, and computer rate analysis programs; and  

		
	17.
	Consultation, advice and services with respect to internal auditing.

EXHIBIT II
COST ALLOCATIONS
		
	1.
	The costs of rendering service by Entergy Services will include all costs of doing business including departmental overheads and interest on debt.

		
	2.
	a.    Entergy Services will maintain a separate record of the expenses of each department.  The expenses of each department will include:

		
	i.
	those expenses that are directly attributable to such department;

		
	ii.
	an appropriate portion of those indirect expenses of Entergy Services that are not directly attributable to a specific department but which are necessary to the operation of such department; and

		
	iii.
	an appropriate portion of those expenses of other Entergy Services’ departments necessary to support the operation of the department.

		
	b.
	Expenses of a department will include salaries and wages of employees, including social security taxes, vacations, paid absences, sickness, employee disability expenses, and other employee welfare expenses, rent and utilities, desktops, information technology and communications equipment and systems, materials and supplies, and all other expenses attributable to the department.

		
	c.
	Departmental expense will be categorized into one of three classes:

		
	i.
	those expenses which are directly attributable to specific services rendered to a Client Company or group of Client Companies (“Departmental Direct Costs”);

		
	ii.
	those indirect expenses which are attributable to the overall operation of the department and not to a specific service provided to Client Companies (“Departmental Indirect Costs”) (these expenses include not only the salaries and wages of employees, but also other related employment costs described in Section 2(b) above); and

		
	iii.
	those expenses which are attributable to the operation of other departments of Entergy Services as well as to a specific service provided to the Client Companies (“Departmental Support Service Costs”).

		
	d.
	The indirect expenses of the department will not include:

		
	i.
	those incremental out-of-pocket expenses that are incurred for the direct benefit and convenience of a Client Company or a group of Client Companies and are to be directly charged to such Client Company or group of Client Companies; and

		
	ii.
	Entergy Services’ overhead expenses that are attributable to maintaining the corporate existence of Entergy Services, franchise and other general taxes, and all other incidental overhead expenses including those auditing fees and accounting department expenses attributable to Entergy Services (“Indirect Corporate Costs”).

		
	e.
	Entergy Services will establish annual budgets for controlling the expenses of each service department and those expenses identified in Section 2(d), which are not department specific.

		
	3.
	Employees in each department will maintain a record of the time they are employed in rendering service to each Client Company or group of Client Companies.  The hourly rate for each employee will be determined each pay period.

		
	4.
	a.        The charge to a Client Company or a group of Client Companies for a particular service will be the sum of the figures derived by multiplying the hours reported by each employee in rendering such service by the hourly rate applicable to such employee and other direct allocated expenses.

		
	b.
	Departmental Indirect Costs as defined in 2(c)(ii) will be loaded onto project codes in proportion to the direct salaries and wages charged to all project codes.

		
	c.
	Departmental Support Service Costs as defined in 2(c)(iii) will be allocated to other internal Entergy Services departments and the Client Companies using consumption-based billing methods, with these costs then distributed by function.  Any costs that remain at Entergy Services after this initial billing will be loaded onto project codes in proportion to the direct salaries and wages charged to all project codes. 

		
	5.
	Those expenses of Entergy Services that are not included in the expenses of a department under Section 2 above will be charged to Client Companies receiving service as follows:

		
	a.
	Incremental out-of-pocket costs incurred for the direct benefit and convenience of a Client Company or a group of Client Companies will be charged directly to such company or group of companies.

		
	b.
	The Indirect Corporate Costs of Entergy Services referred to above in Section 2(d)(ii) will be allocated among the Client Companies in the same proportion as all charges billed by Entergy Services to the Client Companies, excluding Indirect Corporate Costs.

		
	c.
	If the method of allocation of Departmental Indirect Costs (Section 4(b)), Departmental Support Service Costs (Section 4(c)), or Indirect Corporate Costs (Section 5(b)), would result in an inequity because of a change in operations or organization of any Client Company, then Entergy Services may adjust the basis to effect an equitable distribution.  Any such change in allocation shall be made only after first giving the Commission written notice of such proposed change not less than 60 days prior to the proposed effectiveness of any such change.

		
	6.
	On the basis of the foregoing, intercompany billings will be recorded by Client Company.  Intercompany billing procedures and amounts will be open to audit by Client Company and by any regulatory authority having jurisdiction in respect of the Client Company.

		
	7.
	When services are rendered to a group of Client Companies, costs of such service shall be allocated equitably among the Client Companies based on the nature and scope of the service rendered according to the formulae outlined in Exhibit II, Supplement.

		
	8.
	Entergy Services will ensure that a Client Company that takes services under more than one service agreement under Rate Schedule 435-A, 435-B, 435-C, or 435-D is not allocated duplicative costs in connection with the services it receives under those service agreements.

EXHIBIT II, SUPPLEMENT

COST ALLOCATION FORMULAE

Note: Each allocation formula will be based on data relevant to participating Client Companies to whom the services are provided.

263 - SECTION 263A TAX BENEFITS

Based on Internal Revenue Code Section 263A tax benefits for each Legal Entity.

Used for the allocation of costs associated with tax administration, planning, and support related to Internal Revenue Code Section 263A tax benefits.

ALO - ASSET LOCATIONS

Based on the number of asset locations at period end.

Used for the allocation of costs associated with the fixed asset accounting function.

APT - ACCOUNTS PAYABLE TRANSACTIONS

Based on a twelve-month number of accounts payable transactions processed.

Used for the allocation of costs associated with the support of the accounts payable function.

ARI - ACCOUNTS RECEIVABLE INVOICES

Based on a twelve-month number of accounts receivable transactions processed.

Used for the allocation of costs associated with the support of the accounts receivable function.

AST - TOTAL ASSETS

Based on total assets at period end.

Used primarily to allocate costs associated with the oversight and safeguarding of corporate assets.  This would include services provided by financial management and certain finance functions, among others.  Also used when the services provided are driven by the relative size and complexity of the System Companies and there is no functional relationship between the services and any other available allocation formula.

BNK - BANK ACCOUNTS

Based on the number of bank accounts at period end.

Used for the allocation of costs associated with daily cash management activities.

CAL - NUMBER OF CALLS – CUSTOMER SERVICE CENTERS

Based on a twenty-four month average of customer calls for each Legal Entity.

Used for the allocation of costs associated with the administration and support of Entergy’s Customer Service Centers.

CAP - SYSTEM CAPACITY (NON-NUCLEAR)

Based on the power level, in kilowatts, that could be achieved if all non-nuclear generating units were operating at maximum capability simultaneously.

Used primarily for the allocation of costs associated with the support of the fossil operations of the System.  This would include services provided by plant support, environmental and purchasing.

CEA - CAPITAL EXPENDITURE AUTHORIZATIONS 

Based on a twelve-month average of outstanding Capital Expenditure Authorizations and Storm Job Orders.

Used for the allocation of costs associated with the capital project costing accounting function.

CHK - PAYCHECKS

Based on the number of paychecks issued at each Legal Entity at period end.

Used for the allocation of costs associated with the processing of payroll.

CLM - OPEN WORKERS’ COMPENSATION CLAIMS

Based on the number of open claims for each Legal Entity.

Used for the allocation of costs associated with managing workers’ compensation claims processes and budgets.

COL - COAL CONSUMPTION

Based on the quantity of tons of coal delivered for a twelve-month period to each coal plant within the Entergy System.

Used for the allocation of costs associated with services in support of coal purchased for coal generating units.

CUS - CUSTOMERS

Based on a twelve-month average of residential, commercial, industrial, government, and municipal general business electric and gas customers.

Used primarily for the allocation of costs associated with the support of customer based services.  Would include customer service and support, marketing, economic forecasts, environmental services, financial and regulatory analyses and customer information systems.

DLM - DISTRIBUTION LINE MILES

Based on the number of miles of distribution lines of 34.5kv or less.

Used primarily for the allocation of costs associated with project design, maintenance and installation of Entergy distribution lines.

EMP - EMPLOYEES

Based on the number of full-time employees at period end.

Used primarily for the allocation of costs associated with the support of employee-based services.  Would include administration of employee benefits programs, employee communications, employee training, and various facilities-based benefits and information technology desktop support.

FBR - FIBER

Based on capacity and use of the Entergy System’s fiber optic network.

Used primarily for the allocation of fiber optic operations and maintenance expenses. 

GAS - GAS CONSUMPTION

Based on the volume of natural gas consumed annually by all gas fired generating units within the Entergy System.

Used for the allocation of costs associated with services in support of gas purchased for generation units.

GCE - SERVER AND MAINFRAME USAGE COMPOSITE

Based on the use of historical expenditures.

Used primarily for the allocation of costs associated with mainframe, unix servers and related database administration.  

GLT - GENERAL LEDGER TRANSACTIONS

Based on the number of general ledger transactions for the period.

Used primarily for the allocation of costs associated with general ledger activities, including related information systems, and for general accounting activities.

GWH - ENERGY SALES

Based on total kilowatt-hours of energy sold to consumers.

Used primarily for the allocation of costs associated with the financial analyses of sales and related items.

HUR – STORM COSTS

Based on estimated gross storm recovery costs for Hurricanes Katrina & Rita. 

Used primarily for the allocation of costs associated with the analysis, reporting and filings related to losses in connection with Hurricanes Katrina & Rita.

ITS - TOTAL IT SPEND

Based on the total dollars spent in the Information Technology plan.

Used for the allocation of costs associated with the administration and support of Entergy’s IT business planning.

LVS - LEVEL OF ESI SERVICE

Based on ESI total billings to each System company, excluding corporate overhead.  Used for the allocation of costs associated with support of ESI as a legal entity.

The variation of this cost driver, Labor Dollars Billed, is based on ESI total labor dollars billed to each System company.  Used primarily to allocate the costs associated with employee benefit plans, payroll taxes, department indirect costs, and performance based compensation plans for ESI employees.

MAT - SUPPLY CHAIN – Inventory Management Fossil, Transmission & Distribution Issues, Transfers & Returns

Based on the number of issues, transfer & return transactions for each Legal Entity at period end.

Used for the allocation of costs associated with the management and operations of investment recovery, including Fossil, but excluding Nuclear.

MGA - MANAGED ACCOUNTS

Based on the number of industrial and commercial managed accounts.

Used for the allocation of costs associated with the maintenance of Entergy’s industrial and commercial customer accounts.

NST - NUCLEAR SITES

Based on the number of nuclear sites managed and operated by each Entergy System Company.

Used to allocate miscellaneous nuclear-related services.

NUT - NUCLEAR UNITS

Based on the number of nuclear units managed and operated by each Entergy System Company.

Used primarily to allocate nuclear fuel-related services.

PC – PERSONAL COMPUTERS

Based on the number of PC’s within each Legal Entity at period end.

Used for the allocation of costs associated with maintenance and support of PC’s

PLL - PROPERTY AND LIABILITY PAID LOSSES

Based on a five-year annual average of the property and liability losses paid by the system companies.

Used for the allocation of costs associated with the operation and maintenance of the Risk Information System. 

PRM - INSURANCE PREMIUMS (NON-NUCLEAR)

Based on non-nuclear insurance premiums.  

Used for the allocation of costs associated with risk management.

RAD - RADIO USAGE

Based on usage of Entergy’s 2-way radio system.

Used for the allocation of costs associated with the administration and support of Entergy’s 2-way radio system.

RAS - REMOTE ACCESS SERVICES ID’s

Based on the number of RAS ID’s within each Legal Entity at period end.

Used for the allocation of costs associated with providing Remote Access Service to Entergy employees and contractors.

RCM - RECORDS MANAGEMENT

Based on the number of employees at each Legal Entity using records management services.

Used to allocate costs associated with the management and supervision of non-nuclear business unit records management processes.

RES - RESPONSIBILITY RATIO

Based on the ratio of the Client Company's load to the system peak load at time of system peak load, provided that the Client Company is a party to the Entergy System Agreement.  Calculation is performed using a twelve month rolling average of those coincident peak loads.  

Used primarily for the allocation of costs incurred for system dispatch, fuel procurement and settlements, plant support, and planning services for those Client Companies that procure such services under this Service Agreement.

SCC - SUPPLY CHAIN MATERIALS TRANSACTIONS

Based on the number of Supply Chain materials transactions for each Legal Entity.

Used for the allocation of costs associated with the support of systems that manage Supply Chain materials.

SCL - SUPPLY CHAIN – Labor Dollars

Based on the labor dollars for the Transformer, Meter, and Light Shops.

Used primarily for the allocation of costs associated with services provided by employees in the supply chain equipment refurbishment and repair department.

SCS - SUPPLY CHAIN – Procurement Total Spending 

Based on the dollar amount of procurement spending within each Legal Entity at period end.  

Used for the allocation of costs associated with procurement activities for the Entergy System.

SQF - SQUARE FOOTAGE

Based on occupied square footage administrated by ESI Administrated Services units.
Used primarily to allocate the costs associated with facilities supervision and support.

STR - DISTRIBUTION SUBSTATIONS TRANSFORMERS

Based on the number of transformers at the Distribution Substations at period end.

Used primarily for the allocation of costs associated with the maintenance, administrative activities, and technical analysis of all Distribution Substations.

SUB - SUBSTATIONS

Based on the number of high voltage substations weighted for Voltage (Voltage < 500kv = 1; Voltage >= 500kv = 2).

Used primarily for the allocation of related engineering and technical support for transmission and distribution substation operations and maintenance as well as for engineering and project management associated with substation construction.

TEL - TELEPHONES

Based on the number of telephones within each Legal Entity at period end.

Used for the allocation of costs associated with maintenance and support of telephones.

TLN - TRANSMISSION LINE MILES

Based on the number of miles of transmission lines, weighted for design voltage (Voltage < 400kv = 1; Voltage >=400kv =2).

Used primarily for the allocation of costs associated with project design, maintenance and installation of Entergy transmission lines.

TSL - COMPOSITE - TRANSMISSION LINES/SUBSTATIONS

Based on two components: Transmission Line Miles (30% weighting) and the Number of High Voltage Substations (70% weighting).

Used primarily for the allocation of the costs associated with the support of the transmission and distribution function that has both a transmission line component as well as a substation or load component.

UPS - UNIT POWER SALES AGREEMENT

Based on fixed allocation percentages under Entergy’s Unit Power Sales Agreement.

Used primarily for the allocation of certain Tax Department services in connection with Entergy’s Unit Power Sales Agreement.

VEH - VEHICLES

Based on the number of vehicles owned by each Legal Entity.

Used for the allocation of costs associated with the maintenance of company vehicles.

CCP -  CAPITAL CONSTRUCTION PLAN

Based on the total dollars budgeted for each Legal Entity in the annual capital construction plans developed by the various functions.

Used for the allocation of costs associated with capital construction overheads.

PGR – PROCUREMENT OF LONG-TERM GENERATION RESOURCES

Based on the ownership/contractual interest of each Legal Entity in connection with the procurement of those long-term generation resources where more than one Entergy Operating Company is expected to hold an ownership/contractual interest.

Used for the allocation of costs associated with the procurement of long-term generation resources where more than one Entergy Operating Company is expected to hold an ownership/contractual interest.

SVR – SERVER & MAINFRAME USAGE

Based on the historical data usage of servers, platforms, & mainframe.

Used for the allocation of costs associated with the individual maintenance of the mainframe, UNIX servers, WINTEL servers, and related database administration. 

PKL – PEAK LOAD RATIO

Based on the ratio of each Client Company’s load to the peak load at time of all companies peak load.  The calculation of Peak Load Ratio is performed using a twelve month rolling average of the coincident peaks.

Used primarily for the allocation of costs incurred for operations support, software, and training.

PPE – PROPERTY, PLANT AND EQUIPMENT

Based on the net book value of property, plant and equipment, excluding natural gas and nuclear fuel.

Used for the allocation of costs associated with the operation of Entergy Services’ Property Accounting department in monitoring, managing, and accounting for Entergy’s property, plant and equipment, excluding natural gas and nuclear fuel.

ENTERGY SERVICES, INC.
Rate Schedule 435-B

SERVICE AGREEMENT FOR GENERATION
PLANNING AND OPERATIONAL SUPPORT SERVICES

THIS SERVICE AGREEMENT (“Service Agreement”), made and entered into by and between Entergy Services, Inc. (hereinafter referred to as “Entergy Services”) a corporation organized under the laws of the State of Delaware, and Entergy Texas, Inc. (hereinafter referred to as “Client Company”), a corporation organized under the laws of the State of Texas with its principal place of business at 350 Pine Street, Beaumont, TX.
WITNESSETH THAT:
WHEREAS, in 1963, the Securities and Exchange Commission entered an order under the Public Utility Holding Company Act of 1935 authorizing the organization and conduct of business of Entergy Services, a wholly-owned subsidiary of Entergy Corporation (hereinafter referred to as “Entergy”); 
WHEREAS, Entergy Services is organized, staffed and equipped to render services as herein provided to Entergy and its associated companies (hereinafter referred to as Client Companies), with whom Entergy Services is entering into agreements in the form hereof; 
WHEREAS, economies and increased efficiencies will result from the performance by Entergy Services of certain services for the Client Companies; 
WHEREAS, Entergy Services is willing to render such services at cost, determined in accordance with applicable rules and regulations of the Federal Energy Regulatory Commission (hereinafter referred to as the “Commission”) under the Federal Power Act, as amended by the 

Public Utility Holding Company Act of 2005, except that there will be no charge for the use of the initial equity capital of Energy Services amounting to $20,000; 
WHEREAS, Entergy Services currently provides planning, operations, administrative, and support services to Client Companies under service agreements that conform with a form of service agreement on file with the Commission as Entergy Services’ Rate Schedule 435; 
WHEREAS, Entergy Services and the public utility operating companies of Entergy currently are parties to the Entergy System Agreement, a rate schedule approved by the Commission; 
WHEREAS, on December 19, 2005, Entergy Arkansas, Inc. (“EAI”), gave notice to the other parties to the Entergy System Agreement that it will terminate its participation in the System Agreement effective December 18, 2013; and
WHEREAS, effective on and after December 19, 2013, Entergy Services will continue to provide administrative and support services to Client Companies under service agreements that conform with Rate Schedule 435-A while providing generation planning and operational support services to Client Companies other than EAI under service agreements that conform with this Rate Schedule 435-B and providing generation planning and operational support services to EAI under a service agreement that conforms with Rate Schedule 435-C.
NOW, THEREFORE, in consideration of the premises and of the mutual agreements herein, the parties hereto agree as follows:
I.    AGREEMENT TO FURNISH SERVICES
Entergy Services agrees to furnish to Client Company, upon the terms and conditions hereinafter set forth, such of the services described in Exhibit I hereto at such times, for such periods and in such manner as Client Company may from time to time request Entergy Services to provide.  Entergy Services will, as and to the extent required for Client Company, keep itself and its personnel 

available and competent to render such services to Client Company.  Entergy Services will also provide to Client Company such other services not described in Exhibit I as Client Company may request and which Entergy Services is competent to perform.
In supplying services under this Service Agreement, Entergy Services may arrange for the services of such executives, accountants, financial advisers, technical advisers, attorneys, engineers, and other service providers, whether employed by Entergy Services or an associate company or through a third party, with the necessary qualifications and experience as are required for or pertinent to the rendition of such services.
II.    AGREEMENT TO TAKE SERVICES
Client Company agrees to take from Entergy Services such of the services described in Exhibit I as the Client Company requests.  Client Company further agrees to take from Entergy Services such other services, whether or not described in Exhibit I and whether or not now contemplated, as Client Company may from time to time request from Entergy Services.
III.    COMPENSATION AND ALLOCATION
As compensation for services rendered under this Service Agreement, Client Company hereby agrees to pay to Entergy Services the cost of such services. Intercompany payables for the amount of such costs will be recorded by Client Company on or before the closing of the books in the succeeding month and will be funded on or before the 25th day of such month.  The methods for the determination 

and the allocation of the cost of services to be paid by Client Company are set forth in Exhibit II hereto.
IV.    CLIENT COMPANIES
A Client Company will be Entergy or an associate company.  All such companies will be served at cost as provided in Section III and Exhibit II.
V.    TERM OF AGREEMENT – MODIFICATION
This Service Agreement shall become effective as of December 19, 2013, and shall continue until terminated as of the end of any calendar year by either party giving to the other at least 60 days written notice of its intention so to terminate.
Entergy Services may amend or supplement Exhibit I and Exhibit II, including the Exhibit II Supplement, from time to time.
IN WITNESS WHEREOF, the parties hereto have caused this Service Agreement to be executed as of the ____ day of ________, (year).
ENTERGY SERVICES, INC.
By ___________________________
Title _________________________
ENTERGY TEXAS, INC.
By___________________________
Title _________________________
                            

EXHIBIT I

SERVICES

		
	1.
	Operation of a System Operations Center for the control of bulk power supply and load dispatching among the Client Companies and with interconnected systems; and

		
	2.
	Planning assistance and advice with respect to sales of power under the interconnection agreements among the Client Companies and acting on behalf of the Client Companies in dealing with other electric utilities with relation to the sale, purchase or exchange of bulk electric power and energy.    

EXHIBIT II
COST ALLOCATIONS
		
	1.
	The costs of rendering service by Entergy Services will include all costs of doing business including departmental overheads and interest on debt.

		
	2.
	a.    Entergy Services will maintain a separate record of the expenses of each department.  The expenses of each department will include:

		
	iv.
	those expenses that are directly attributable to such department;

		
	v.
	an appropriate portion of those indirect expenses of Entergy Services that are not directly attributable to a specific department but which are necessary to the operation of such department; and

		
	vi.
	an appropriate portion of those expenses of other Entergy Services departments necessary to support the operation of the department.

		
	d.
	Expenses of a department will include salaries and wages of employees, including social security taxes, vacations, paid absences, sickness, employee disability expenses, and other employee welfare expenses, rent and utilities, desktops, information technology and communications equipment and systems, materials and supplies, and all other expenses attributable to the department.

		
	e.
	Departmental expense will be categorized into one of three classes:

		
	iv.
	those expenses which are directly attributable to specific services rendered to a Client Company or group of Client Companies (“Departmental Direct Costs”);

		
	v.
	those indirect expenses which are attributable to the overall operation of the department and not to a specific service provided to Client Companies (“Departmental Indirect Costs”) (these expenses include not only the salaries and wages of employees, but also other related employment costs described in Section 2(b) above); and

		
	vi.
	those expenses which are attributable to the operation of other departments of Entergy Services as well as to a specific service provided to the Client Companies (“Departmental Support Service Costs”).

		
	f.
	    The indirect expenses of the department will not include:

		
	iii.
	those incremental out-of-pocket expenses that are incurred for the direct benefit and convenience of a Client Company or a group of Client Companies and are to be directly charged to such Client Company or group of Client Companies; and

		
	iv.
	Entergy Services’ overhead expenses that are attributable to maintaining the corporate existence of Entergy Services, franchise and other general taxes, and all other incidental overhead expenses including those auditing fees and accounting department expenses attributable to Entergy Services (“Indirect Corporate Costs”).

		
	f.
	Entergy Services will establish annual budgets for controlling the expenses of each service department and those expenses identified in Section 2(d), which are not department specific.

		
	5.
	Employees in each department will maintain a record of the time they are employed in rendering service to each Client Company or group of Client Companies.  The hourly rate for each employee will be determined each pay period.

		
	6.
	a.        The charge to a Client Company or a group of Client Companies for a particular service will be the sum of the figures derived by multiplying the hours reported by each employee in rendering such service by the hourly rate applicable to such employee and other direct allocated expenses.

		
	d.
	Departmental Indirect Costs as defined in 2(c)(ii) will be loaded onto project codes in proportion to the direct salaries and wages charged to all project codes.

		
	e.
	Departmental Support Service Costs as defined in 2(c)(iii) will be allocated to other internal Entergy Services departments and the Client Companies using consumption-based billing methods, with these costs then distributed by function.  Any costs that remain at Entergy Services after this initial billing will be loaded onto project codes in proportion to the direct salaries and wages charged to all project codes. 

		
	6.
	Those expenses of Entergy Services that are not included in the expenses of a department under Section 2 above will be charged to Client Companies receiving service as follows:

		
	d.
	Incremental out-of-pocket costs incurred for the direct benefit and convenience of a Client Company or a group of Client Companies will be charged directly to such company or group of companies.

		
	e.
	The Indirect Corporate Costs of Entergy Services referred to above in Section 2(d)(ii) will be allocated among the Client Companies in the same proportion as all charges billed by Entergy Services to the Client Companies, excluding Indirect Corporate Costs.

		
	f.
	If the method of allocation of Departmental Indirect Costs (Section 4(b)), Departmental Support Service Costs (Section 4(c)), or Indirect Corporate Costs (Section 5(b)), would result in an inequity because of a change in operations or organization of any Client Company, then Entergy Services may adjust the basis to effect an equitable distribution.  Any such change in allocation shall be made only after first giving the Commission written notice of such proposed change not less than 60 days prior to the proposed effectiveness of any such change.

		
	8.
	On the basis of the foregoing, intercompany billings will be recorded by Client Company.  Intercompany billing procedures and amounts will be open to audit by Client Company and by any regulatory authority having jurisdiction in respect of the Client Company.

		
	9.
	When services are rendered to a group of Client Companies, costs of such service shall be allocated equitably among the Client Companies based on the nature and scope of the service rendered according to the formulae outlined in Exhibit II, Supplement.

		
	8.
	Entergy Services will ensure that a Client Company that takes services under more than one service agreement under Rate Schedule 435-A, 435-B, 435-C, or 435-D is not allocated duplicative costs in connection with the services it receives under those service agreements.

EXHIBIT II, SUPPLEMENT

COST ALLOCATION FORMULAE

Note: Each allocation formula will be based on data relevant to participating Client Companies to whom the services are provided.

263 - SECTION 263A TAX BENEFITS

Based on Internal Revenue Code Section 263A tax benefits for each Legal Entity.

Used for the allocation of costs associated with tax administration, planning, and support related to Internal Revenue Code Section 263A tax benefits.

ALO - ASSET LOCATIONS

Based on the number of asset locations at period end.

Used for the allocation of costs associated with the fixed asset accounting function.

APT - ACCOUNTS PAYABLE TRANSACTIONS

Based on a twelve-month number of accounts payable transactions processed.

Used for the allocation of costs associated with the support of the accounts payable function.

ARI - ACCOUNTS RECEIVABLE INVOICES

Based on a twelve-month number of accounts receivable transactions processed.

Used for the allocation of costs associated with the support of the accounts receivable function.

AST - TOTAL ASSETS

Based on total assets at period end.

Used primarily to allocate costs associated with the oversight and safeguarding of corporate assets.  This would include services provided by financial management and certain finance functions, among others.  Also used when the services provided are driven by the relative size and complexity of the System Companies and there is no functional relationship between the services and any other available allocation formula.

BNK - BANK ACCOUNTS

Based on the number of bank accounts at period end.

Used for the allocation of costs associated with daily cash management activities.

CAL - NUMBER OF CALLS – CUSTOMER SERVICE CENTERS

Based on a twenty-four month average of customer calls for each Legal Entity.

Used for the allocation of costs associated with the administration and support of Entergy’s Customer Service Centers.

CAP - SYSTEM CAPACITY (NON-NUCLEAR)

Based on the power level, in kilowatts, that could be achieved if all non-nuclear generating units were operating at maximum capability simultaneously.

Used primarily for the allocation of costs associated with the support of the fossil operations of the System.  This would include services provided by plant support, environmental and purchasing.

CEA - CAPITAL EXPENDITURE AUTHORIZATIONS 

Based on a twelve-month average of outstanding Capital Expenditure Authorizations and Storm Job Orders.

Used for the allocation of costs associated with the capital project costing accounting function.

CHK - PAYCHECKS

Based on the number of paychecks issued at each Legal Entity at period end.

Used for the allocation of costs associated with the processing of payroll.

CLM - OPEN WORKERS’ COMPENSATION CLAIMS

Based on the number of open claims for each Legal Entity.

Used for the allocation of costs associated with managing workers’ compensation claims processes and budgets.

COL - COAL CONSUMPTION

Based on the quantity of tons of coal delivered for a twelve-month period to each coal plant within the Entergy System.

Used for the allocation of costs associated with services in support of coal purchased for coal generating units.

CUS - CUSTOMERS

Based on a twelve-month average of residential, commercial, industrial, government, and municipal general business electric and gas customers.

Used primarily for the allocation of costs associated with the support of customer based services.  Would include customer service and support, marketing, economic forecasts, environmental services, financial and regulatory analyses and customer information systems.

DLM - DISTRIBUTION LINE MILES

Based on the number of miles of distribution lines of 34.5kv or less.

Used primarily for the allocation of costs associated with project design, maintenance and installation of Entergy distribution lines.

EMP - EMPLOYEES

Based on the number of full-time employees at period end.

Used primarily for the allocation of costs associated with the support of employee-based services.  Would include administration of employee benefits programs, employee communications, employee training, and various facilities-based benefits and information technology desktop support.

FBR - FIBER

Based on capacity and use of the Entergy System’s fiber optic network.

Used primarily for the allocation of fiber optic operations and maintenance expenses. 

GAS - GAS CONSUMPTION

Based on the volume of natural gas consumed annually by all gas fired generating units within the Entergy System.

Used for the allocation of costs associated with services in support of gas purchased for generation units.

GCE - SERVER AND MAINFRAME USAGE COMPOSITE

Based on the use of historical expenditures.

Used primarily for the allocation of costs associated with mainframe, unix servers and related database administration.  

GLT - GENERAL LEDGER TRANSACTIONS

Based on the number of general ledger transactions for the period.

Used primarily for the allocation of costs associated with general ledger activities, including related information systems, and for general accounting activities.

GWH - ENERGY SALES

Based on total kilowatt-hours of energy sold to consumers.

Used primarily for the allocation of costs associated with the financial analyses of sales and related items.

HUR – STORM COSTS

Based on estimated gross storm recovery costs for Hurricanes Katrina & Rita. 

Used primarily for the allocation of costs associated with the analysis, reporting and filings related to losses in connection with Hurricanes Katrina & Rita.

ITS - TOTAL IT SPEND

Based on the total dollars spent in the Information Technology plan.

Used for the allocation of costs associated with the administration and support of Entergy’s IT business planning.

LVS - LEVEL OF ESI SERVICE

Based on ESI total billings to each System company, excluding corporate overhead.  Used for the allocation of costs associated with support of ESI as a legal entity.

The variation of this cost driver, Labor Dollars Billed, is based on ESI total labor dollars billed to each System company.  Used primarily to allocate the costs associated with employee benefit plans, payroll taxes, department indirect costs, and performance based compensation plans for ESI employees.

MAT - SUPPLY CHAIN – Inventory Management Fossil, Transmission & Distribution Issues, Transfers & Returns

Based on the number of issues, transfer & return transactions for each Legal Entity at period end.

Used for the allocation of costs associated with the management and operations of investment recovery, including Fossil, but excluding Nuclear.

MGA - MANAGED ACCOUNTS

Based on the number of industrial and commercial managed accounts.

Used for the allocation of costs associated with the maintenance of Entergy’s industrial and commercial customer accounts.

NST - NUCLEAR SITES

Based on the number of nuclear sites managed and operated by each Entergy System Company.

Used to allocate miscellaneous nuclear-related services.

NUT - NUCLEAR UNITS

Based on the number of nuclear units managed and operated by each Entergy System Company.

Used primarily to allocate nuclear fuel-related services.

PC – PERSONAL COMPUTERS

Based on the number of PC’s within each Legal Entity at period end.

Used for the allocation of costs associated with maintenance and support of PC’s

PLL - PROPERTY AND LIABILITY PAID LOSSES

Based on a five-year annual average of the property and liability losses paid by the system companies.

Used for the allocation of costs associated with the operation and maintenance of the Risk Information System. 

PRM - INSURANCE PREMIUMS (NON-NUCLEAR)

Based on non-nuclear insurance premiums.  

Used for the allocation of costs associated with risk management.

RAD - RADIO USAGE

Based on usage of Entergy’s 2-way radio system.

Used for the allocation of costs associated with the administration and support of Entergy’s 2-way radio system.

RAS - REMOTE ACCESS SERVICES ID’s

Based on the number of RAS ID’s within each Legal Entity at period end.

Used for the allocation of costs associated with providing Remote Access Service to Entergy employees and contractors.

RCM - RECORDS MANAGEMENT

Based on the number of employees at each Legal Entity using records management services.

Used to allocate costs associated with the management and supervision of non-nuclear business unit records management processes.

RES - RESPONSIBILITY RATIO

Based on the ratio of the Client Company's load to the system peak load at time of system peak load, provided that the Client Company is a party to the Entergy System Agreement.  Calculation is performed using a twelve month rolling average of those coincident peak loads.

Used primarily for the allocation of costs incurred for system dispatch, fuel procurement and settlements, plant support, and planning services for those Client Companies that procure such services under this Service Agreement.

SCC - SUPPLY CHAIN MATERIALS TRANSACTIONS

Based on the number of Supply Chain materials transactions for each Legal Entity.

Used for the allocation of costs associated with the support of systems that manage Supply Chain materials.

SCL - SUPPLY CHAIN – Labor Dollars

Based on the labor dollars for the Transformer, Meter, and Light Shops.

Used primarily for the allocation of costs associated with services provided by employees in the supply chain equipment refurbishment and repair department.

SCS - SUPPLY CHAIN – Procurement Total Spending 

Based on the dollar amount of procurement spending within each Legal Entity at period end.  

Used for the allocation of costs associated with procurement activities for the Entergy System.

SQF - SQUARE FOOTAGE

Based on occupied square footage administrated by ESI Administrated Services units.

Used primarily to allocate the costs associated with facilities supervision and support.

STR - DISTRIBUTION SUBSTATIONS TRANSFORMERS

Based on the number of transformers at the Distribution Substations at period end.

Used primarily for the allocation of costs associated with the maintenance, administrative activities, and technical analysis of all Distribution Substations.

SUB - SUBSTATIONS

Based on the number of high voltage substations weighted for Voltage (Voltage < 500kv = 1; Voltage >= 500kv = 2).

Used primarily for the allocation of related engineering and technical support for transmission and distribution substation operations and maintenance as well as for engineering and project management associated with substation construction.

TEL - TELEPHONES

Based on the number of telephones within each Legal Entity at period end.

Used for the allocation of costs associated with maintenance and support of telephones.

TLN - TRANSMISSION LINE MILES

Based on the number of miles of transmission lines, weighted for design voltage (Voltage < 400kv = 1; Voltage >=400kv =2).

Used primarily for the allocation of costs associated with project design, maintenance and installation of Entergy transmission lines.

TSL - COMPOSITE - TRANSMISSION LINES/SUBSTATIONS

Based on two components: Transmission Line Miles (30% weighting) and the Number of High Voltage Substations (70% weighting).

Used primarily for the allocation of the costs associated with the support of the transmission and distribution function that has both a transmission line component as well as a substation or load component.

UPS - UNIT POWER SALES AGREEMENT

Based on fixed allocation percentages under Entergy’s Unit Power Sales Agreement.

Used primarily for the allocation of certain Tax Department services in connection with Entergy’s Unit Power Sales Agreement.

VEH - VEHICLES

Based on the number of vehicles owned by each Legal Entity.

Used for the allocation of costs associated with the maintenance of company vehicles.

CCP -  CAPITAL CONSTRUCTION PLAN

Based on the total dollars budgeted for each Legal Entity in the annual capital construction plans developed by the various functions.

Used for the allocation of costs associated with capital construction overheads.

PGR – PROCUREMENT OF LONG-TERM GENERATION RESOURCES

Based on the ownership/contractual interest of each Legal Entity in connection with the procurement of those long-term generation resources where more than one Entergy Operating Company is expected to hold an ownership/contractual interest.

Used for the allocation of costs associated with the procurement of long-term generation resources where more than one Entergy Operating Company is expected to hold an ownership/contractual interest.

SVR – SERVER & MAINFRAME USAGE

Based on the historical data usage of servers, platforms, & mainframe.

Used for the allocation of costs associated with the individual maintenance of the mainframe, UNIX servers, WINTEL servers, and related database administration.

PKL – PEAK LOAD RATIO

Based on the ratio of each Client Company’s load to the peak load at time of all companies peak load.  The calculation of Peak Load Ratio is performed using a twelve month rolling average of the coincident peaks.

Used primarily for the allocation of costs incurred for operations support, software, and training.

PPE – PROPERTY, PLANT AND EQUIPMENT

Based on the net book value of property, plant and equipment, excluding natural gas and nuclear fuel.

Used for the allocation of costs associated with the operation of Entergy Services’ Property Accounting department in monitoring, managing, and accounting for Entergy’s property, plant and equipment, excluding natural gas and nuclear fuel.MYL_EX10.38_2013.12.31-10K

Exhibit 10.38

MYLAN INC.
AMENDED AND RESTATED
INDEMNIFICATION AGREEMENT

This Amended and Restated Indemnification Agreement (the “Agreement”) is made this __ day of _______, 2013, by and between Mylan Inc., a Pennsylvania corporation (the “Corporation”), and __________ (“Indemnitee”).  This Agreement amends and restates in its entirety the Indemnification Agreement previously entered into between the Corporation and Indemnitee.
WHEREAS, Indemnitee is a director of the Board of Directors of the Corporation and performs a valuable service in such capacity for the Corporation; and
WHEREAS, Article VIII of the Second Amended and Restated Bylaws, as amended to date (the “Bylaws”), of the Corporation provides for indemnification of and advancement of expenses to certain persons acting on behalf of the Corporation; and
WHEREAS, such Bylaws, and Chapter 17, Subchapter D, of the Pennsylvania Business Corporation Law of 1988, as amended (the “BCL”), specifically provide that the indemnification and advancement of expenses provided by or pursuant to the BCL is not exclusive of any other rights to which any person may be entitled under any agreement, and thus contemplate that agreements may be entered into with respect to indemnification and advancement of expenses; and
WHEREAS, the Corporation and Indemnitee recognize that the increase in corporate litigation subjects directors and officers to substantial risks of personal liability and expensive litigation; and
WHEREAS, the Corporation and Indemnitee further recognize that the cost of liability insurance for the Corporation’s directors and officers can be significant and continues to rise, and that there have been reports of general reductions in the coverage afforded by such insurance in some cases; and
WHEREAS, there may be uncertainties concerning the adequacy and reliability of the protection afforded by directors’ and officers’ liability insurance; and
WHEREAS, in order to ameliorate such uncertainties and to induce Indemnitee to continue to serve the Corporation, the Corporation has determined it to be fair and in the best interests of the Corporation to enter into this Agreement with Indemnitee.
NOW, THEREFORE, in consideration of Indemnitee’s continued service to the Corporation after the date hereof, the parties hereto, intending to be legally bound, agree as follows:
1.     Certain Definitions.
(a)    “Proceeding” shall mean any threatened, pending or completed claim, action, suit or proceeding, alternative dispute resolution mechanism, or any hearing, inquiry or investigation, that Indemnitee in good faith believes might lead to the institution of any such claim, action, suit, proceeding, hearing, inquiry, investigation, or alternative dispute mechanism, whether civil, criminal, administrative, investigative or otherwise, whether brought by a third party, in the name of the Corporation or otherwise, or by the Indemnitee.
(b)     “Expenses” shall mean all expenses, liability and loss (including, without limitation, attorneys’ fees and disbursements and all other costs, expenses and obligations incurred in connection with investigating, defending, being a witness or potential witness in or participating in (including, without limitation, on appeal), or preparing to defend, to be a witness or potential witness in or participate in, any actual, threatened or completed action, suit, or proceeding, or any alternative dispute resolution mechanism, hearing or investigation), judgments, fines, awards, penalties, ERISA excise taxes 

or penalties, amounts paid in settlement (if such settlement is approved by the Corporation, which approval shall not be unreasonably withheld) and punitive and exemplary damages, actually incurred, in respect of any Proceeding, and any federal, state, local or foreign income taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement or otherwise in respect of indemnification (and any federal, state, local or foreign income taxes attributable thereto).
2.     Indemnification.
(a)     The Corporation shall hold harmless and indemnify the Indemnitee against any and all Expenses actually incurred by Indemnitee in connection with any Proceeding to which the Indemnitee is, was or at any time becomes a party, or is threatened to be made a party or is involved (as a witness, potential witness or otherwise) by reason of (or arising as a whole or in part out of) the fact that Indemnitee is or was a director or officer of the Corporation or of any subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, trustee, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including, without limitation, service with respect to an employee benefit plan, whether the basis of such Proceeding is alleged action or the failure to take action in Indemnitee’s official capacity, or in any other capacity while serving as a director, officer, trustee, employee or agent (an “Indemnifiable Event”); provided, however, the Corporation shall indemnify Indemnitee hereunder in connection with any Proceeding (or part thereof) initiated by Indemnitee only if such Proceeding (or part thereof) was authorized by the Board of Directors of the Corporation, or except as otherwise provided herein.
(b)     Notwithstanding the provisions of Paragraph 2(a), in the event of a determination by a court (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee’s act or failure to act giving rise to the claim for indemnification constituted willful misconduct or recklessness, any such claim shall not constitute an Indemnifiable Event and the Corporation shall have no obligation to indemnify Indemnitee hereunder against any Expenses in connection with such claim; provided, however, that such claim shall constitute an “Indemnifiable Event” and the Corporation shall indemnify Indemnitee for all Expenses hereunder in connection with such claim if and to the same extent that, notwithstanding such final judicial determination, such court or the Corporation shall have determined that indemnification of some or all Expenses incurred by Indemnitee is appropriate and permitted under applicable law.
(c)     Without limiting the effect of any other provision of this Agreement, and in addition to the rights of Indemnitee elsewhere set forth in this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any Proceeding referred to in Paragraph 2(a) or in defense of any claim, issue or matter therein, Indemnitee shall be indemnified against Expenses actually and reasonably incurred by Indemnitee in connection therewith.  For purposes of this Paragraph 2(c), the term “successful on the merits or otherwise” shall include (i) any termination, withdrawal, dismissal, or other resolution (with or without prejudice) of any Proceeding against Indemnitee without any express finding of willful misconduct or recklessness leading to liability or guilt against him, or (ii) the expiration of a reasonable period of time after the making of any claim or threat of a Proceeding without the institution of the same and without any promise or payment made to induce a settlement.  The Corporation acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty.  In the event that any Proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee based on a finding of willful misconduct or recklessness by Indemnitee (including, without limitation, settlement of such Proceeding, with or without payment of money or other consideration, as long as the Corporation has approved the settlement, which approval shall not be unreasonably withheld) it shall be presumed that Indemnitee has been successful on the merits or 

otherwise in such Proceeding.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.
(d)     Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of (or arising as a whole or in part out of) the fact that Indemnitee is or was a director or officer of the Corporation or of any subsidiary of the Corporation, or is or was serving at the request of the Corporation as a director, officer, trustee, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including, without limitation, service with respect to an employee benefit plan, a witness or a potential witness, or is made (or asked) to respond to discovery requests, in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 
3.     Advancement of Expenses.  The Corporation shall promptly pay (or reimburse Indemnitee for) all Expenses incurred by Indemnitee from time to time by reason of Indemnitee’s actual or threatened participation (as a party, witness or potential witness, or other participant) in any Proceeding (including, without limitation, appellate Proceedings) for which a claim for indemnification is made hereunder, in advance of the final disposition of such Proceeding.  Unless otherwise agreed by Indemnitee and the Corporation, Indemnitee will request third parties to furnish invoices relating to amounts incurred as Expenses directly to the Corporation, which shall promptly make payment thereon directly to such third parties without any out-of-pocket Expenses being incurred by Indemnitee.
4.     Undertaking to Repay Expenses.
(a)     In the event of a determination by a court (as to which all rights of appeal therefrom have been exhausted or lapsed) that Indemnitee’s conduct relating to any claim for indemnification constituted willful misconduct or recklessness, the Indemnitee shall repay to the Corporation such amount of the Expenses or the appropriate portion thereof, so paid or advanced; provided, however, that Indemnitee shall not be obligated to make such repayment if and to the same extent that, notwithstanding such final judicial determination, such court or the Corporation shall have determined that indemnification of some or all Expenses incurred by Indemnitee is appropriate and permitted under applicable law.
(b)     For purposes of any determination of the amount of Expenses, if any, subject to repayment under this Paragraph 4, such amount shall be determined taking into account the provisions of Paragraph 6 hereof.
5.     Enforcement.
(a)     Indemnitee shall be entitled to be indemnified for, and the Corporation shall be obligated to pay, any and all Expenses incurred by Indemnitee in connection with any action, suit or proceeding commenced by Indemnitee (and including, without limitation, such Expenses with respect to any appellate proceeding commenced thereon by either party) to enforce rights or to collect monies under, or interpret any of the terms of, this Agreement, the Corporation’s Articles of Incorporation or its Bylaws, applicable law (including, without limitation, the BCL) or under any liability insurance policies maintained by the Corporation; provided, however, that Indemnitee shall not be entitled to be indemnified for any such amount if, as a part of such action, suit or proceeding, a final judicial determination shall be made (as to which all rights of appeal therefrom have been exhausted or lapsed) that each and every material assertion made by Indemnitee as a basis of such action, suit or proceeding was frivolous.  The Corporation shall pay all such amounts in advance of the judicial determination of any such action, suit or proceeding contemplated in this paragraph (including, without limitation, appellate proceedings) in accordance with Paragraph 3 hereof.
(b)     If a claim under Paragraph 2 is not paid in full by the Corporation within sixty (60) days after a written claim has been received by the Corporation, or if a claim under Paragraph 3 is 

not paid in full by the Corporation within twenty (20) days after a written claim has been received by the Corporation, Indemnitee may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim.  If successful in whole or in part in any such suit, Indemnitee also shall be entitled to be paid the expense of prosecuting or defending such suit, including, without limitation, attorney’s fees.
6.     Procedures and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of the parties to this Agreement to secure rights of Indemnitee to indemnification that are as favorable as may be permitted under the BCL and public policy of the Commonwealth of Pennsylvania.  Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement: 
(a)    Procedures.  Indemnitee shall present in writing any claims for repayment or advancement of Expenses in connection with a Proceeding to the Executive Committee of the Corporations’ Board of Directors (the “Executive Committee”), unless the Indemnitee is a member of the Executive Committee, in which case the claim for repayment or advancement of Expenses shall be presented to the full Board of Directors.  Provided the claims meet the other requirements of this Agreement, the Executive Committee or the Board of Directors, as the case may be, shall then approve payment by the Corporation of those claims and so notify the Indemnitee within ten (10) days of its receipt of the claims for repayment or advancement.
(b)    Presumption.  It is presumed that Indemnitee is entitled to indemnification by the Corporation for the Expenses actually incurred by Indemnitee in respect of any Proceeding.  For the purposes of this Paragraph 6, the Corporation shall have the burden of proof and the burden of persuasion by clear and convincing evidence to establish that Indemnitee is not entitled to be indemnified for any amount of Expenses actually incurred by Indemnitee in respect of any Proceedings. 
(c)    Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Corporation for some or a portion of the Expenses actually incurred by Indemnitee in respect of any Proceeding, but not for the total amount of such Expenses, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.
7.     Cooperation; Settlement.  Indemnitee shall not make any admission or effect any settlement with respect to any Proceeding without the Corporation’s prior written consent.  The Corporation shall not settle any such Proceeding in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s prior written consent.  The Executive Committee shall have the authority to make decisions for the Corporation with respect to any settlement relating to a Proceeding covered by this Agreement; provided, however, that if the Indemnitee is a member of the Executive Committee, then the full Board of Directors shall have such authority.  Neither the Corporation nor Indemnitee will unreasonably withhold consent to any proposed settlement; provided, however, that if the Corporation withholds its consent to any settlement proposed by Indemnitee reasonably and in good faith, the Corporation shall thereafter, to the fullest extent permitted by law and this Agreement, (i) advance attorneys’ fees and all other costs in the manner provided in Paragraph 3 hereof, with respect to any separate counsel thereafter retained by Indemnitee in connection with such Proceeding, and (ii) confirm in a manner reasonably satisfactory to Indemnitee that, with respect to such Proceeding, the Corporation shall provide indemnification and/or advancement of Expenses to Indemnitee without regard to any defense, offset, counterclaim or any other basis for which the Corporation may otherwise contest Indemnitee’s entitlement to such amounts. Indemnitee shall cooperate to the extent reasonably possible with the Corporation and its insurers in attempts to defend or settle such Proceeding.
8.     Notification; Assumption of Defense; Selection of Counsel.  As soon as practicable after receipt by Indemnitee of notice of the commencement of a Proceeding made against or otherwise 

involving Indemnitee for which Indemnitee may be entitled to be indemnified, Indemnitee shall notify the Corporation in writing of the commencement thereof (but the failure to notify the Corporation shall not relieve it from any liability which it may have under this Agreement unless and to the extent that it has been prejudiced in a material respect by such failure or from the forfeiture of substantial rights and defenses).  The Corporation will be entitled to participate therein, and to the extent it may elect by written notice delivered to Indemnitee after receiving the aforesaid notice from Indemnitee, to assume the defense thereof with counsel reasonably satisfactory to Indemnitee, which may be the same counsel as counsel to the Corporation.  Notwithstanding the foregoing, Indemnitee shall have the right to employ such Indemnitee’s own counsel in any such case, but the fees and costs of such counsel shall be at the expense of Indemnitee unless (i) the employment of such counsel shall have been authorized in writing by the Corporation, or (ii) the Corporation shall not have employed counsel reasonably satisfactory to Indemnitee to take charge of the defense of such action within a reasonable time after notice of commencement of the action, or (iii) Indemnitee shall have retained such counsel pursuant to the provisions of Paragraph 7 hereof, or (iv) Indemnitee shall have reasonably concluded, based upon the written advice of counsel to Indemnitee, that a conflict of interest exists which makes representation by counsel chosen by the Corporation not advisable.  In any of the events referred to in (i) through (iv) in the preceding sentence, the Corporation shall not have the right to direct the defense of such action on behalf of Indemnitee, and the fees and costs of one separate counsel retained by Indemnitee shall be borne by the Corporation.
9.     Subrogation; No Duplication of Payments.
(a)     In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including, without limitation, the execution of such documents necessary to enable the Corporation effectively to bring suit to enforce such rights.
(b)     The Corporation shall not be liable under this Agreement to make payment of any amounts contemplated under this Agreement, to the extent the Indemnitee has actually received payment (under any insurance policy, the Corporation’s Articles of Incorporation or its Bylaws or otherwise) of the amounts otherwise payable hereunder.
10.     Contribution. If the indemnification provided in Paragraph 2 is unavailable and may not be paid to Indemnitee because such indemnification is not permitted by law or otherwise under the provisions of this Agreement, then in respect of any Proceeding in which the Corporation is jointly liable with Indemnitee (or would be if joined in such action, suit, or proceeding), the Corporation shall contribute to the fullest extent permitted by law, to the amount of Expenses incurred and paid or payable by Indemnitee in such Proceeding in such proportion as is appropriate to reflect (i) the relative benefits received by the Corporation on the one hand and Indemnitee on the other hand from the transaction from which such Proceeding arose, and (ii) the relative fault of the Corporation on the one hand and of Indemnitee on the other in connection with the events which resulted in such Expenses, as well as any other relevant equitable considerations. The relative fault of the Corporation on the one hand and of Indemnitee on the other shall be determined by reference to among other things, the parties’ relative intent, knowledge, access to information, involvement, and opportunity to correct or prevent the circumstances resulting in such Expenses.  The Corporation agrees that it would not be just and equitable if contribution pursuant to this Paragraph 10 were determined by pro rata allocation or any other method of allocation, which does not take account of the foregoing equitable considerations.
11.     Liability Insurance and Funding.
(a)     The Corporation shall, from time to time, make the good faith determination whether or not it is practicable for the Corporation to obtain and maintain a policy or policies of insurance 

with reputable insurance companies providing the directors of the Corporation with coverage for losses from wrongful acts, or to ensure the Corporation’s performance of its indemnification obligations under this Agreement.  Among other considerations, the Corporation will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage.  In all policies of directors’ and officers’ liability insurance, Indemnitee shall be insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Corporation’s officers or directors.
(b)     Notwithstanding the foregoing, the Corporation shall have no obligation to obtain or maintain such insurance if the Corporation determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by an affiliate of the Corporation.  If such insurance is not obtained or maintained, then Indemnitee must be notified in advance in writing and, if and as requested by Indemnitee, the Corporation shall establish a trust fund or other comparable arrangement to support the indemnification obligations of the Corporation under this Agreement in an amount comparable to the highest amount of coverage previously secured through insurance during the three preceding years.  The amount of funds to be contributed by the Corporation to such a trust fund or other comparable arrangement shall be determined by counsel mutually agreeable to the Corporation and the Indemnitee.
(c)     If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Corporation has directors’ and officers’ liability insurance in effect, the Corporation shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Corporation shall thereafter take all necessary action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.
12.     Scope; Non-exclusivity; Subsequent Changes in the Law.
(a)     Scope.  Notwithstanding any other provision of this Agreement that may limit, or appear to have the effect of limiting the Indemnitee’s right to indemnification by the Corporation pursuant to the BCL or the public policy of the Commonwealth of Pennsylvania, the Corporation shall indemnify Indemnitee to the fullest extent permitted by law and public policy, notwithstanding that such indemnification is not specifically authorized by law, the other provisions of this Agreement, the Corporation’s Articles of Incorporation, its Bylaws, any insurance policy, any agreement, any vote of shareholders of the Corporation or disinterested directors, or otherwise.
(b)    Non-exclusivity.  The right to indemnification and advancement of Expenses provided by this Agreement shall not be deemed exclusive of any other rights to which the Indemnitee may be entitled under the Corporation’s Articles of Incorporation or its Bylaws, any applicable laws and regulations in effect now or in the future, any insurance policy, any agreement, any vote of shareholders of the Corporation or disinterested directors, or otherwise, both as to actions in Indemnitee’s official capacity and as to actions in another capacity while holding such office.  The protection and rights provided by this Agreement and all such other protections and rights are intended to be cumulative.
(c)     Subsequent Changes in the Law.  In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule, or the interpretation thereof, which expands the right of the Corporation to indemnify the Indemnitee or any other person serving in a capacity referred to in Paragraph 2 hereof, such change shall be deemed to have been made to Indemnitee’s rights, and the Corporation’s obligations, respectively, under this Agreement.  In the event of any change in any applicable law, statute, or rule, or the interpretation thereof, which narrows the right of the Indemnitee to receive indemnification and/or the advancement of Expenses hereunder, such change, to the extent not 

explicitly required by such law, statute or rule to be applied to this Agreement, shall have no effect on this Agreement or the parties’ rights and obligations hereunder.
13.     Continuation of Indemnity.  All agreements and obligations of the Corporation and of the Indemnitee contained in this Agreement shall continue during the period the Indemnitee is a director or officer of the Corporation or any subsidiary (or is or was serving at the request of the Corporation as a director, officer, trustee, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including, without limitation, any employee benefit plan) and shall continue thereafter so long as the Indemnitee shall be subject to any Proceeding by reason of the fact that the Indemnitee was a director or officer of the Corporation or serving in any other capacity referred to above and in any case for at least six years following the termination of the Indemnitee’s service as a director or officer of the Corporation or any subsidiary.
14.     Notices.  All notices, statements, requests and demands given to or made upon either party hereto in accordance with the provisions of this Agreement shall be in writing and shall be deemed to be given or made when personally delivered, or when deposited in the U.S. Mail, first­class, registered or certified mail, postage prepaid, addressed as follows:
If to the Corporation:
Mylan Inc.
1500 Corporate Drive
Canonsburg, Pennsylvania  15317
Attention:     Joseph F. Haggerty, Esq.
Executive Vice President and Chief Legal Officer
If to Indemnitee: 
to the most recent address on file with the Corporation,
or in accordance with the latest unrevoked written direction from either party to the other party hereto.
15.     Severability.  If any provision of this Agreement is held to be invalid, illegal or unenforceable for any reason whatsoever:
(a)     the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Paragraph of this Agreement containing any such provision held to be invalid, illegal, or unenforceable, that is not itself invalid, illegal, or unenforceable) shall not in any way be affected or impaired thereby; and
(b)     to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.
16.     Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania applicable to contracts made and to be performed in the Commonwealth of Pennsylvania, without giving effect to the principles of conflict of laws thereof.
17.     Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Agreement.
18.     Binding Effect; Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns, including, without limitation, any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Corporation, spouses, heirs, and personal and legal representatives. The Corporation shall require and cause any successor (whether direct 

or indirect by purchase, merger, consolidation or otherwise) to all, substantially all, or a substantial part, of the business and/or assets of the Corporation, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume all of the Corporation’s obligations under and agree to perform this Agreement in the same manner, and to the same extent that the Corporation would be required to perform if no such succession had taken place, and thereafter the term “Corporation” whenever used in this Agreement shall mean and include any such successor or transferee.
19.     Consent to Jurisdiction. The Corporation and Indemnitee each hereby consent to the non-exclusive jurisdiction of the state courts of the Commonwealth of Pennsylvania in and for Washington County for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.
20.     Amendment and Termination.  No amendment, modification, termination or cancellation of this Agreement shall be effective unless it is in writing signed by both the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
21.     Integration and Entire Agreement.  This Agreement sets forth the entire understanding between the parties hereto and supersedes and merges all previous written and oral negotiations, commitments, understandings and agreements relating to the subject matter hereof between the parties hereto.
22.     Headings.  The Paragraph and other headings contained in this Agreement are for reference purposes only and shall not control or affect its construction or interpretation in any respect.
23.      No Construction as Employment Agreement.  Nothing contained in this Agreement shall be construed as giving Indemnitee any right to be retained in the employ of the Corporation or any of its subsidiaries.
[SIGNATURE PAGE FOLLOWS]

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

MYLAN INC.

By: ____________________________
                                

INDEMNITEE

____________________________
                                

[Signature Page to Indemnification Agreement]

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