Document:

EX-10.1

 

Exhibit 10.1

	 	 	 	 	 
	

	 	 

NRG ENERGY, INC. LONG-TERM INCENTIVE PLAN

PERFORMANCE STOCK UNIT AGREEMENT
	 	 

 

«First_Name» «Last_Name» «Suffix»

«Address»

«City», «State» «Zip»

Congratulations on your selection as a Participant under the NRG Energy, Inc. Long-Term Incentive
Plan (“Plan”). You have been chosen by NRG Energy, Inc. (the “Company”) to receive
Performance Stock Units (“PUs”) under the Plan.

This Performance Stock Unit Agreement (this “Agreement”) constitutes the Grant Agreement
pursuant to Section 9 of the Plan. If there is any inconsistency between the terms of this
Agreement and the terms of the Plan, the Plan’s terms shall completely supersede and replace the
conflicting terms of this Agreement. Capitalized terms used but not defined in this Agreement
shall have the meaning assigned to them in the Plan. You are sometimes referred to as the
“Participant” in this Agreement.

PLEASE NOTE THAT BY SIGNING THIS AGREEMENT YOU ARE ACKNOWLEDGING THAT YOU AGREE TO BE BOUND BY THE
TERMS OF THIS AGREEMENT AND THE PLAN, INCLUDING WITHOUT LIMITATION TERMS AND CONDITIONS THAT MAY
LIMIT YOUR ABILITY TO PURCHASE THE COMMON STOCK UNDERLYING THE PUs GRANTED IN THIS AGREEMENT.

	1.	 	Grant of PU.

	 	 	 	 	 
	 

	 	You are hereby granted PUs as follows:	 	 
	 
	 	 	 	 
	 

	 	Date of Grant:
	 	August 1, 2005
	 
	 	 	 	 
	 

	 	Vesting Commencement Date:
	 	Date of Grant
	 
	 	 	 	 
	 

	 	Vesting Period:
	 	Please refer to Section 2 of this Agreement
	 
	 	 	 	 
	 

	 	Total Number of PUs:
	 	«PUs»

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	2.	 	Vesting Schedule.
	 
	 	 	Provided that you have been continuously employed by the Company during the vesting period, the
PUs will vest on the third anniversary of the Date of Grant based on NRG’s Total Shareholder
Return, in accordance with the following schedule:

	 	 	 	 	 	 	 	 	 	 	 
	Threshold	 	Stock Price	 	Cost of Equity	 	Payout *
	Maximum

	 	$	63.75	 	 	 	18.0	%	 	200% of Target

= Number of PUs in
Section 1 of this
agreement multiplied by
2.
	Target

	 	$	54.50	 	 	 	12.0	%	 	100% of Target

= Number of PUs in
Section 1 of this
agreement.
	< Target

	 	< $54.50
	 	< 12.0%
	 	0% of Target

= Number of PUs in
Section 1 multiplied by
0.

 

			
	*	 	Payout (# of PUs) is interpolated for performance falling between Target and Maximum
levels.

	 	 	Notwithstanding the foregoing, if there is a Change in Control (as defined in the Plan) of
the Company, the PUs shall vest in full immediately upon such Change in Control.
	 
	3.	 	Conversion of PU and Issuance of Shares
	 
	 	 	Upon vesting of the Award, one share of Common Stock shall be issued for each PU that vests on
such vesting date, subject to the terms and conditions of this Agreement and the Plan.
	 
	4.	 	Transfer of PUs
	 
	 	 	Unless otherwise permitted by the Committee or Section 14 of the Plan, the PUs may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, other than pursuant to a
will or the laws of descent and distribution. Any attempted disposition in violation of this
Section 4 or Section 14 of the Plan shall be void.
	 
	5.	 	Status of Participant
	 
	 	 	The Participant shall not be, or have rights as, a stockholder of the Company with respect to
any of the shares of Common Stock subject to the Award unless such Award has vested, and shares
underlying the PU have been issued and delivered to him or her. The Company shall not be
required to issue or transfer any certificates for shares of Common Stock upon vesting of the
Award until all applicable requirements of law have been complied with and such shares have been
duly listed on any securities exchange on which the Common Stock may then be listed.

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	6.	 	No Effect on Capital Structure
	 
	 	 	The Award shall not affect the right of the Company or any Subsidiary to reclassify,
recapitalize or otherwise change its capital or debt structure or to merge, consolidate, convey
any or all of its assets, dissolve, liquidate, windup, or otherwise reorganize.
	 
	7.	 	Expiration and Forfeiture of Award
	 
	 	 	Your Award shall vest and/or expire in the circumstances described below in this Section 7. As
used herein, “Termination of Service” means termination of a Participant’s employment by or
service to the Company, including any of its Subsidiaries.

	 	(a)	 	Death.
	 
	 	 	 	Upon a Termination of Service by reason of death, the Award shall vest in full and the
Common Stock underlying the Award shall be issued and delivered to the Participant’s legal
representatives, heirs, legatees, or distributees.
	 
	 	(b)	 	Termination of Service other than as a result of Death.
	 
	 	 	 	Upon a Termination of Service by any reason other than death, including without limitation
as a result of Disability, Retirement, voluntary resignation or termination for Cause, any
unvested portion of the Award shall expire and be forfeited to the Company.

	8.	 	Committee Authority
	 
	 	 	Any question concerning the interpretation of this Agreement, any adjustments required to be
made under the Plan, and any controversy that may arise under the Plan or the Grant Agreement
shall be determined by the Committee in its sole discretion. Any decisions by the Committee
regarding the Plan or this Agreement shall be final and binding.
	 
	9.	 	Plan Controls
	 
	 	 	The terms of this Agreement are governed by the terms of the Plan, as it exists on the date of
the grant and as the Plan is amended from time to time. In the event of any conflict between
the provisions of this Agreement and the provisions of the Plan, the terms of the Plan shall
control.
	 
	10.	 	Limitation on Rights; No Right to Future Grants; Extraordinary Item.
	 
	 	 	By entering into this Agreement and accepting the Award, the Participant acknowledges that: (a)
the Plan is discretionary and may be modified, suspended or terminated by the Company at any
time as provided in the Plan, provided that, except as provided in Section 17 of the Plan, no
amendment to this Agreement shall adversely affect in a material manner the Participant’s rights
under this Agreement without his or her written consent; (b) the grant of the Award is a
one-time benefit and does not create any contractual or other right to receive future grants of
awards or benefits in lieu of awards; (c) all determinations with respect to any such future
grants, including, but not limited to, the times when awards will be granted, the number of
shares subject to each award, the award price, if any, and the time or times when each award
will be settled, will be at the sole discretion of the Company; (d) participation in the Plan is
voluntary; (e) the value of the Award is an extraordinary item which is outside the scope of the
Participant’s employment contract, if any, unless expressly provided for in any such employment
contract; (f) the Award is not part of normal or expected compensation for

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	 	 	any purpose, including without limitation for calculating any benefits, severance, resignation,
termination, redundancy, end of service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments, and the Participant will have no entitlement to
compensation or damages as a consequence of the forfeiture of any unvested portion of the Award
as a result of the Participant’s Termination of Service for any reason; (g) the future value of
the Common Stock subject to the Award is unknown and cannot be predicted with certainty, (h)
neither the Plan, the Award nor the issuance of the shares underlying the Award confers upon the
Participant any right to continue in the employ or service of (or any other relationship with)
the Company or any Subsidiary, nor do they limit in any respect the right of the Company or any
Subsidiary to terminate the Participant’s employment or other relationship with the Company or
any Subsidiary, as the case may be, at any time with or without Cause, and (i) the grant of the
Award will not be interpreted to form an employment relationship with the Company or any
Subsidiary; and furthermore, the grant of the Award will not be interpreted to form an
employment contract with the Company or any Subsidiary.
	 
	11.	 	General Provisions

	 	(a)	 	Notice
	 
	 	 	 	Whenever any notice is required or permitted hereunder, such notice must be in writing and
delivered in person or by mail (to the address set forth below if notice is being delivered
to the Company) or electronically. Any notice delivered in person or by mail shall be
deemed to be delivered on the date on which it is personally delivered, or, whether actually
received or not, on the third business day after it is deposited in the United States mail,
certified or registered, postage prepaid, addressed to the person who is to receive it at
the address set forth in this Agreement. Notices delivered to the Participant in person or
by mail shall be addressed to the address for the Participant in the records of the Company.
Notices delivered to the Company in person or by mail shall be addressed as follows:

	 	 	 	 	 
	 

	 	Company:
	 	NRG Energy, Inc.
	 

	 	 	 	Attn: Vice President, Human Resources
	 

	 	 	 	211 Carnegie Center
	 

	 	 	 	Princeton, NJ 08450

	 	 	 	The Company or the Participant may change, by written notice to the other, the address
previously specified for receiving notices.
	 
	 	(b)	 	No Waiver
	 
	 	 	 	No waiver of any provision of this Agreement will be valid unless in writing and signed by
the person against whom such waiver is sought to be enforced, nor will failure to enforce
any right under this Agreement constitute a continuing waiver of the same or a waiver of any
other right hereunder.
	 
	 	(c)	 	Undertaking
	 
	 	 	 	The Participant hereby agrees to take whatever additional action and execute whatever
additional documents the Company may deem necessary or advisable in order to carry out or
effect one or more of the obligations or restrictions imposed on either the Participant or
the Award pursuant to the express provisions of this Agreement.

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	 	(d)	 	Entire Contract
	 
	 	 	 	This Agreement and the Plan constitute the entire contract between the parties hereto with
regard to the subject matter hereof. This Agreement is made pursuant to the provisions of
the Plan and will in all respects be construed in conformity with the express terms and
provisions of the Plan.
	 
	 	(e)	 	Successors and Assigns
	 
	 	 	 	The provisions of this Agreement shall inure to the benefit of, and be binding on, the
Company and its successors and assigns and Participant and Participant’s legal
representatives, heirs, legatees, distributees, assigns and transferees by operation of law.
	 
	 	(f)	 	Securities Law Compliance
	 
	 	 	 	The Company currently has an effective registration statement on file with the Securities
and Exchange Commission with respect to the shares of Common Stock subject to the Award.
The Company intends to maintain this registration but has no obligation to the Participant
to do so. If the registration ceases to be effective, the Participant will not be able to
transfer or sell shares of Common Stock issued pursuant to the Award unless exemptions from
registration under applicable securities laws are available. Such exemptions from
registration are very limited and might be unavailable. Participant agrees that any resale
of the shares of Common Stock issued pursuant to the Award shall comply in all respects with
the requirements of all applicable securities laws, rules and regulations (including,
without limitation, the provisions of the Securities Act of 1933, the Securities Exchange
Act of 1934 and the respective rules and regulations promulgated thereunder) and any other
law, rule or regulation applicable thereto, as such laws, rules, and regulations may be
amended from time to time. The Company shall not be obligated to either issue shares of
Common Stock or permit the resale of any such shares if such issuance or resale would
violate any such requirements.
	 
	 	(g)	 	Taxes
	 
	 	 	 	Participant acknowledges that the removal of restrictions with respect to an PU will give
rise to a withholding tax liability, and that no shares of Common Stock are issuable
hereunder until such withholding obligation is satisfied in full. The Participant agrees to
remit to the Company the amount of any taxes required to be withheld. The Committee, in its
sole discretion, may permit Participant to satisfy all or part of such tax obligation
through withholding of the number of shares of Common Stock otherwise issued to him or her
hereunder and/or by the Participant transferring to the Company nonrestricted shares of
Common Stock previously owned by the Participant for at least six (6) months prior to the
vesting of the Award hereunder, with the amount of the withholding to be credited based on
the current Fair Market Value of the Common Stock as of the date the amount of tax to be
withheld is determined.
	 
	 	(h)	 	Information Confidential
	 
	 	 	 	As partial consideration for the granting of the Award, the Participant agrees that he or
she will keep confidential all information and knowledge that the Participant has relating
to the manner and amount of his or her participation in the Plan; provided, however, that

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	 	 	 	such information may be disclosed as required by law and may be given in confidence to the
Participant’s spouse, tax and financial advisors, or to a financial institution to the
extent that such information is necessary to secure a loan.
	 
	 	(i)	 	Governing Law
	 
	 	 	 	Except as may otherwise be provided in the Plan, the provisions of this Agreement shall be
governed by the laws of the state of Delaware, without giving effect to principles of
conflicts of law.
	 
	 	(j)	 	Code Section 409A Compliance
	 
	 	 	 	Notwithstanding any provision of this Agreement, to the extent that the Committee determines
that any Award granted under this Agreement is subject to Section 409A of the Code and fails
to comply with the requirements of Section 409A of the Code, notwithstanding anything to the
contrary contained in the Plan or in this Agreement, the Committee reserves the right to
amend, restructure, terminate or replace the Award in order to cause the Award to either not
be subject to Section 409A of the Code or to comply with the applicable provisions of such
section.

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

	 	 	 	 	 
	 	 	NRG ENERGY, INC.
	 
	 	 	 	 
	 	 	 
	 	 	 	 	/s/ David Crane
	 
	 	 	 	 
	 

	 	Name:
	 	David Crane
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:
	 	President & CEO
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	PARTICIPANT:
	 
	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 	 	 	 	 

-6-EX-10.2

 

Exhibit 10.2

EXECUTION COPY

FIRST AMENDMENT TO CREDIT AGREEMENT

     FIRST AMENDMENT dated as of August 5, 2005 (this “First Amendment”), to the Credit
Agreement dated as of December 23, 2003, as amended and restated as of December 24, 2004 (as
further amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among NRG ENERGY, INC., a Delaware corporation (the “Company”), NRG POWER
MARKETING INC., a Delaware corporation (together with the Company, the “Borrowers”), the
LENDERS from time to time party thereto, CREDIT SUISSE FIRST BOSTON, acting through its Cayman
Islands Branch, and GOLDMAN SACHS CREDIT PARTNERS L.P., as joint lead book runners, joint lead
arrangers and co-documentation agents, CREDIT SUISSE FIRST BOSTON, acting through its Cayman
Islands Branch, as administrative agent (in such capacity and together with its successors, the
“Administrative Agent”) and as collateral agent, and GOLDMAN SACHS CREDIT PARTNERS L.P., as
syndication agent.

     WHEREAS, the Borrowers and the Administrative Agent, among others, are parties to the Credit
Agreement;

     WHEREAS, the Borrowers have requested that the Lenders agree to amend certain provisions of
the Credit Agreement as set forth in this First Amendment; and

     WHEREAS, the Lenders whose signatures appear below, constituting at least the Required
Lenders, are willing to amend the Credit Agreement on the terms and subject to the conditions set
forth herein;

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

     1. Defined Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meanings ascribed to such terms in the Credit Agreement.

     2. Amendment of Section 1.01 (Defined Terms). Section 1.01 of the Credit Agreement is
hereby amended by adding the following defined terms in the proper alphabetical order:

     “First Amendment” shall mean the First Amendment dated as of August 5, 2005 to this
Agreement.

     “First Amendment Effective Date” shall mean the date on which the First Amendment
becomes effective.

     3. Amendment of Section 3.23 (Energy Regulation). Section 3.23(c) of the Credit
Agreement is hereby amended by adding after the first appearance of the word “Subsidiaries” the
following clause: “(other than Subsidiaries regulated as steam utilities or chilled water
providers)”.

 

 

     4. Amendment of Section 6.05 (Restricted Payments; Restrictive Agreements).

     (i) Section 6.05(a) of the Credit Agreement is hereby amended by deleting the words “and (x)”
in the first parenthetical in clause (C) of such Section and substituting therefor “, (x) and
(xii)”.

     (ii) Section 6.05(b) of the Credit Agreement is hereby amended by (a) deleting (i) the word
“and” at the end of clause (x) and (ii) the period at the end of clause (xi) of such Section and
(b) adding the following clause at the end of paragraph (b) of such Section:

     “and (xii) the repurchase or redemption from and after the First Amendment Effective
Date of Senior Notes in an aggregate principal amount (excluding prepayment or redemption
premiums and accrued interest) not to exceed $228,750,000 with the proceeds of the issuance
or sale of Equity Interests of the Company (other than Disqualified Stock) (it being
understood, for the avoidance of doubt, that the proviso in Section 6.05(b)(ii) shall not
apply to the net cash proceeds of the issuance or sale of Equity Interests described in this
clause (xii)).”

     5. Representations and Warranties. In order to induce the other parties hereto to
enter into this First Amendment, each of the Borrowers represents and warrants to each other party
hereto that, as of the First Amendment Effective Date (as defined below):

     (a) this First Amendment has been duly authorized, executed and delivered by each of the
Borrowers and this First Amendment and the Credit Agreement, as amended hereby, constitutes each of
the Borrower’s legal, valid and binding obligation, enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law;

     (b) the representations and warranties set forth in each Loan Documents are, after giving
effect to this First Amendment, true and correct in all material respects on and as of the First
Amendment Effective Date with the same effect as though made on and as of the First Amendment
Effective Date, except to the extent such representations and warranties relate to an earlier date,
in which case such representations and warranties shall be true and correct in all material
respects on and as of such earlier date, provided that the references to the Credit
Agreement in such representations and warranties shall be deemed to refer to the Credit Agreement
as amended pursuant to this First Amendment; and

     (c) no Event of Default or Default has occurred and is continuing.

     6. Conditions to Effectiveness of this First Amendment. This First Amendment shall
become effective on the date (the “First Amendment Effective Date”) on which:

     (a) The Administrative Agent shall have received duly executed and delivered counterparts of
this First Amendment that, when taken together, bear the signatures of each of the Borrowers and
the Required Lenders.

2

 

     (b) The Company shall have paid to the Administrative Agent all outstanding fees, costs and
expenses owing to the Administrative Agent as of such date.

     7. Continuing Effect; No Other Amendments. Except as expressly set forth in this
First Amendment, all of the terms and provisions of the Credit Agreement are and shall remain in
full force and effect and the Borrowers shall continue to be bound by all of such terms and
provisions. The amendments provided for herein are limited to the specific provisions of the
Credit Agreement specified herein and shall not constitute an amendment of, or an indication of the
Administrative Agent’s or the Lenders’ willingness to amend or waive, any other provisions of the
Credit Agreement or the same provisions for any other date or purpose. This First Amendment shall
constitute a Loan Document.

     8. Expenses; Indemnification. The Borrowers jointly and severally agree to pay and
reimburse the Administrative Agent for all its reasonable out-of-pocket costs and expenses incurred
in connection with the preparation and execution and delivery of this First Amendment, and any
other documents prepared in connection herewith, and the transactions contemplated hereby,
including, without limitation, reasonable fees, disbursements and other charges of counsel to the
Administrative Agent and the customary charges of IntraLinks, Syndrak or any other third-party
internet workspace utilized in connection with this First Amendment. Without limiting the
foregoing, the Borrowers also hereby acknowledge that the provisions of Section 9.05 of the Credit
Agreement (including, without limitation, the indemnification provisions of clause (b) thereof)
shall apply in connection with this First Amendment.

     9. Counterparts. This First Amendment may be executed by one or more of the parties
to this First Amendment on any number of separate counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. Delivery of an executed
signature page of this First Amendment by facsimile transmission shall be effective as delivery of
a manually executed counterpart hereof. A set of the copies of this First Amendment signed by all
the parties shall be lodged with the Company and the Administrative Agent. The execution and
delivery of this First Amendment by the Borrowers, the Lenders party hereto and the Administrative
Agent shall be binding upon the Loan Parties, the Lenders, the Agents and all future holders of the
Loans.

     10. Effect of Amendment. On the First Amendment Effective Date, the Credit Agreement
shall be amended as provided herein. The parties hereto acknowledge and agree that (a) this First
Amendment and any other Loan Documents executed and delivered in connection herewith do not
constitute a novation, or termination of the “Secured Obligations” (as defined in the Credit
Agreement) under the Credit Agreement as in effect prior to the First Amendment Effective Date; (b)
such “Secured Obligations” are in all respects continuing (as amended hereby) with only the terms
thereof being modified to the extent provided in this First Amendment; and (c) the Liens and
security interests as granted under the Security Documents securing payment of such “Secured
Obligations” are in all respects continuing and in full force and effect and secure the payment of
the “Secured Obligations”.

     11. GOVERNING LAW. THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS FIRST AMENDMENT SHALL BE

3

 

GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK.

[Signature Pages Follow]

4

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed
and delivered by their respective duly authorized officers as of the date first above written.

	 	 	 	 	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	/s/ GEORGE P. SCHAEFER
 	 
	 	 	Name:  	George P. Schaefer 	 
	 	 	Title:  	VP and Treasurer 	 
	 
	 	NRG POWER MARKETING INC.

 	 
	 	By:  	GEORGE P. SCHAEFER
 	 
	 	 	Name:  	George P. Schaefer 	 
	 	 	Title:  	VP and Treasurer 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH 

(formerly known as Credit Suisse First Boston,

acting through its Cayman Islands Branch),

as Administrative Agent,

 	 
	 	By:  	/s/ JAMES MORAN
 	 
	 	 	Name:  	James Moran 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	               /s/ GREGORY S. RICHARDS
 	 
	 	 	Name:  	Gregory S. Richards 	 
	 	 	Title:  	Associate 	 
	 

 

 

SIGNATURE
PAGE TO FIRST AMENDMENT DATED AS OF AUGUST 5, 2005, TO

THE NRG ENERGY, INC. AND NRG POWER MARKETING INC.

AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF DECEMBER 24, 2004

To Approve the First Amendment:

Name of Institution:

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:	 	 
	Title:	 	 

6

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