Document:

Exhibit 10.1

Exhibit 10.1

GenOn Escrow Corp.

$1,225,000,000

9.500% Senior Notes due 2018

9.875% Senior Notes due 2020

Purchase Agreement

September 20, 2010

J.P. Morgan Securities LLC

As Representative of the

several Initial Purchasers listed

in Schedule 1 hereto

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

Ladies and Gentlemen:

GenOn Escrow Corp., a Delaware corporation (“Escrow Issuer”), a wholly-owned
subsidiary of Mirant Corporation, a Delaware corporation (“Mirant”), proposes to
issue and sell to the several initial purchasers listed in Schedule 1 hereto (the
“Initial Purchasers”), for whom you are acting as representative (the
“Representative”), $675,000,000 principal amount of its 9.500% Senior Notes due
2018 (the “2018 Securities”) and $550,000,000 principal amount of its 9.875%
Senior Notes due 2020 (the “2020 Securities” and, together with the 2018
Securities, the “Securities”). The Securities will be issued pursuant to an
Indenture to be dated as of October 4, 2010 (the “Securities Indenture”) between
Escrow Issuer and Wilmington Trust Company, a Delaware banking corporation, as trustee
(the “Trustee”).

The Securities are being issued in connection with (A) the proposed merger (the
“Merger”) of RRI Energy Holdings, Inc., a Delaware corporation (“Merger
Sub”), a wholly-owned subsidiary of RRI Energy, Inc. (“RRI”), with and into
Mirant, pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) dated
April 11, 2010 among RRI, Mirant and Merger Sub and (B) the Refinancing Transactions (as
defined herein).

The Securities will be initially issued by Escrow Issuer. Concurrently with the
completion of the Merger and the Refinancing Transactions (other than the subsequent
discharge or redemption of debt), (i) Escrow Issuer will merge with and into RRI (to be
renamed GenOn Energy, Inc.), with RRI continuing as the surviving corporation (such
merger, the “Escrow Merger” and, together with the Merger, the “Mergers”),
(ii) RRI will assume all of Escrow Issuer’s obligations under the Securities and the
Securities Indenture (such assumption to be
effected by RRI’s execution of a supplemental indenture to the Securities Indenture
in connection therewith (the “Supplemental Indenture” and, together with the
Securities Indenture, the “Indenture”)) and (iii) the funds held in escrow will be
released to GenOn Energy, Inc. As used herein, the term “GenOn” will mean the
combined business of RRI and Mirant after giving effect to the Mergers (including RRI’s
assumption of all of the obligations of Escrow Issuer under the Indenture).

 

 

 

For purposes of this Purchase Agreement (this “Agreement”), (A) the term
“Refinancing Transactions” means (i) GenOn having repaid all borrowings under
Mirant North America, LLC’s (“MNA”) senior secured term loan, (ii) GenOn having
redeemed (or having sufficient amounts to redeem) $850 million aggregate principal amount
of MNA’s senior unsecured notes and $279 million aggregate principal amount of RRI senior
secured notes and (iii) GenOn having defeased the indebtedness outstanding on the date of
the Indenture incurred by RRI or guaranteed by RRI in tax-exempt industrial development
bond financings, the proceeds of which were used to finance the development, construction
or acquisition of the 520 MW coal facility and related assets owned by Reliant Energy
Wholesale Generation LLC and located in New Florence, Indiana County, Pennsylvania
(“PEDFA Bonds”) and (B) the term “Credit Facility” means the senior
secured credit facilities to be entered into in connection with the Merger pursuant to a
Credit Agreement (the “Credit Agreement”) entered into among GenOn Energy, Inc.,
as a borrower, GenOn Mirant Americas, Inc., as a borrower, the subsidiary guarantors party
thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and other
agents party thereto as of the date hereof.

Pursuant to this Agreement, at or prior to the Closing Date (as defined herein),
Escrow Issuer will enter into an escrow and security agreement (the “Escrow
Agreement”), and (a) Escrow Issuer will deposit the net proceeds of this offering (the
“Proceeds”), together with cash or Government Securities (as defined in the
Offering Memorandum) (the “Additional Escrow Amount” and, together with the
Proceeds, the “Escrowed Funds”) in an amount sufficient to fund the redemption of
the Securities and accrued and unpaid interest thereon to, but excluding, December 31,
2010 (or, subject to the deposit with the escrow agent (the “Escrow Agent”) of
such additional amounts of cash or Government Securities as are sufficient to fund the
Special Mandatory Redemption Payment (as defined herein), March 31, 2011) (the “Merger
Termination Date”), when and if due, into a segregated escrow account (the “Escrow
Account”). If (i) the Merger is not completed on or before the Merger Termination
Date, (ii) the Refinancing Transactions are not completed at or before the Merger
Termination Date, (iii) the Merger Agreement is terminated before the Merger Termination
Date, (iv) an event of default shall have occurred and be continuing under the Indenture
or (v) at any time, RRI and Mirant, in their sole judgment, determine jointly that the
Refinancing Transactions will not be completed on or before the Merger Termination Date,
Escrow Issuer will be required to redeem the Securities of each series at 100% of the
issue price of the Securities of such series, plus accrued and unpaid interest thereon to,
but excluding, the redemption date (such payment amount, the “Special Mandatory
Redemption Payment”) as provided in the Escrow Agreement. The Escrow Agreement shall
provide that the Escrowed Funds shall be released only pursuant to the terms of the Escrow
Agreement. Unless the Escrowed Funds are released by the Escrow Agent to effectuate a
Special Redemption (as such term is defined in the Indenture), the Escrowed Funds shall be
released to Escrow Issuer at one time to be used in the manner described in the Time
of Sale Information (as defined herein) under the caption “Use of proceeds.”

 

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The Securities will be offered and sold to the Initial Purchasers pursuant to an
exemption from the registration requirements under the Securities Act of 1933, as amended
(the “Securities Act”). Escrow Issuer, RRI and Mirant have prepared a preliminary
offering memorandum dated September 13, 2010 (the “Preliminary Offering
Memorandum”) and supplements to the Preliminary Offering Memorandum dated September
16, 2010 and September 20, 2010 (the “Supplements”) and will prepare an offering
memorandum dated the date hereof (the “Offering Memorandum”) setting forth
information concerning Escrow Issuer, RRI, Mirant, GenOn and the Securities. Copies of
the Preliminary Offering Memorandum have been, and copies of the Offering Memorandum will
be, delivered by Escrow Issuer, RRI and Mirant to the Initial Purchasers pursuant to the
terms of this Agreement. Each of Escrow Issuer, RRI and Mirant hereby confirms that it
has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale
Information and the Offering Memorandum in connection with the offering and resale of the
Securities by the Initial Purchasers in the manner contemplated by this Agreement.
Capitalized terms used but not defined herein shall have the meanings given to such terms
in the Preliminary Offering Memorandum. References herein to the Preliminary Offering
Memorandum, the Time of Sale Information and the Offering Memorandum shall be deemed to
refer to and include any document incorporated by reference therein.

At or prior to the time when sales of the Securities are first made (the “Time of
Sale”), the following information shall have been prepared (collectively, the
“Time of Sale Information”): the Preliminary Offering Memorandum, as supplemented
and amended by the written communications listed on Annex A hereto.

Holders of the Securities (including the Initial Purchasers and their direct and
indirect transferees) will be entitled to the benefits of a Registration Rights Agreement,
to be dated the Closing Date (the “Registration Rights Agreement”), pursuant to
which RRI will agree to file one or more registration statements with the Securities and
Exchange Commission (the “Commission”) following the consummation of the Mergers
providing for the registration under the Securities Act of the Securities or the Exchange
Securities referred to (and as defined) in the Registration Rights Agreement.

Each of Escrow Issuer, RRI and Mirant, severally and not jointly, hereby confirms its
agreement with the several Initial Purchasers concerning the purchase and resale of the
Securities, as follows:

1. Purchase and Resale of the Securities. (a) Escrow Issuer agrees to issue
and sell the Securities to the several Initial Purchasers as provided in this Agreement,
and each Initial Purchaser, on the basis of the representations, warranties and agreements
of Escrow Issuer, RRI and Mirant set forth herein and subject to the conditions set forth
herein, agrees, severally and not jointly, to purchase from Escrow Issuer the respective
principal amount of Securities set forth opposite such Initial Purchaser’s name in
Schedule 1 hereto at a price equal to (i) 96.873% of the principal amount thereof
plus accrued interest, if any, from October 4, 2010 to the Closing Date in the case of the
2018 Securities (the “2018 Securities Purchase Price”) and (ii) 95.926% of the
principal amount thereof plus accrued interest, if any, from October 4, 2010 to the
Closing Date in the case of the 2020 Securities (the “2020 Securities Purchase
Price”and, together with the 2018 Securities Purchase Price, the “Purchase
Prices”). Escrow Issuer will not be obligated to deliver any of the Securities except
upon payment for all the Securities to be purchased as provided herein.

 

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(b) Each of Escrow Issuer, RRI and Mirant understands that the Initial Purchasers
intend to offer the Securities for resale on the terms set forth in the Time of Sale
Information. Each Initial Purchaser, severally and not jointly, represents, warrants and
agrees that:

(i) it is a qualified institutional buyer within the meaning of Rule 144A
under the Securities Act (a “QIB”) and an accredited investor within the
meaning of Rule 501(a) under the Securities Act;

(ii) neither it nor any person acting on its behalf has solicited offers for,
or offered or sold, or will solicit offers for, or offer or sell, the Securities by
means of any form of general solicitation or general advertising within the meaning
of Rule 502(c) of Regulation D under the Securities Act (“Regulation D”) or
in any manner involving a public offering within the meaning of Section 4(2) of the
Securities Act; and

(iii) neither it nor any person acting on its behalf has solicited offers for,
or offered or sold, or will solicit offers for, or offer or sell, the Securities as
part of their initial offering except:

(A) within the United States to persons whom it reasonably believes to
be QIBs in transactions pursuant to Rule 144A under the Securities Act
(“Rule 144A”) and in connection with each such sale, it has taken or
will take reasonable steps to ensure that the purchaser of the Securities is
aware that such sale is being made in reliance on Rule 144A; or

(B) in accordance with the restrictions set forth in Annex C
hereto.

(c) Each Initial Purchaser acknowledges and agrees that each of Escrow Issuer, RRI
and Mirant, and for purposes of the “no registration” opinions to be delivered to the
Initial Purchasers pursuant to Sections 6(g) and 6(h), counsel for Escrow Issuer and
counsel for the Initial Purchasers, respectively, may rely upon the accuracy of the
representations and warranties of the Initial Purchasers, and compliance by the Initial
Purchasers with their agreements, contained in paragraph (b) above (including Annex
C hereto), and each Initial Purchaser hereby consents to such reliance.

(d) Subject to applicable securities laws, each of Escrow Issuer, RRI and Mirant
acknowledges and agrees that the Initial Purchasers may offer and sell Securities to or
through any affiliate of an Initial Purchaser and that any such affiliate may offer and
sell Securities purchased by it to or through any Initial Purchaser.

 

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(e) Each of Escrow Issuer, RRI and Mirant acknowledges and agrees that the Initial
Purchasers are acting solely in the capacity of an arm’s length contractual counterparty
to Escrow Issuer, RRI and Mirant with respect to the offering of Securities contemplated
hereby (including in connection with determining the terms of the offering) and not as
financial advisors or fiduciaries to, or agents of, Escrow Issuer, RRI, Mirant or any
other person. Additionally, neither the Representative nor any other Initial Purchaser is
advising Escrow Issuer, RRI, Mirant or any other person as to any legal, tax, investment,
accounting or regulatory matters in any jurisdiction. Each of Escrow Issuer, RRI and
Mirant shall consult with their own advisors concerning such matters and shall be
responsible for making their own independent investigation and appraisal of the
transactions contemplated hereby, and neither the Representative nor any other Initial
Purchaser shall have any responsibility or liability to Escrow Issuer, RRI or Mirant with
respect thereto. Any review by the Representative or any Initial Purchaser of Escrow
Issuer, RRI or Mirant, and the transactions contemplated hereby or other matters relating
to such transactions will be performed solely for the benefit of the Representative or
such Initial Purchaser, as the case may be, and shall not be on behalf of Escrow Issuer,
RRI, Mirant or any other person. Each of Escrow Issuer, RRI and Mirant agrees that it
will not claim that the Initial Purchasers, or any of them, has rendered services of any
nature, or owes a fiduciary or similar duty to Escrow Issuer, RRI or Mirant, in connection
with the purchase and sale of the Securities pursuant to this Agreement or the process
leading thereto.

2. Payment and Delivery. (a) Payment for and delivery of the Securities
will be made at the offices of Simpson Thacher & Bartlett LLP at 10:00 A.M., New York City
time, on October 4, 2010, or at such other time or place on the same or such other date,
not later than the fifth business day thereafter, as the Representative and Escrow Issuer,
RRI and Mirant may agree upon in writing. The time and date of such payment and delivery
is referred to herein as the “Closing Date”.

(b) Payment for the Securities shall be made by wire transfer by the Initial
Purchasers in immediately available funds to the Escrow Account against delivery to the
nominee of The Depository Trust Company (“DTC”), for the account of the Initial
Purchasers, of one or more global notes representing the Securities (collectively, the
“Global Note”) and having an aggregate principal amount corresponding to the
aggregate principal amount of the Securities, with any transfer taxes payable in
connection with the sale of the Securities duly paid by Escrow Issuer, RRI and Mirant.
The Global Note will be made available for inspection by the Representative not later than
the business day prior to the Closing Date.

(c) Delivery of the Securities by Escrow Issuer shall be made to the Initial
Purchasers against payment of the Purchase Prices by the Initial Purchasers pursuant to
Section 2(b).

 

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3. Representations and Warranties. (a) RRI represents and warrants to each
Initial Purchaser that:

	 	(i)	 	Preliminary Offering Memorandum, Time of Sale Information and
Offering Memorandum. The Preliminary Offering Memorandum, as amended by
the Supplements, as of its date, did not, the Time of Sale Information, at
the Time of Sale, did not, and at the Closing Date, will not, and the
Offering Memorandum, as of its date and as of the Closing Date, will not,
contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that (A) the representations and
warranties set forth in this paragraph 3(a)(i) are limited to statements or
omissions based upon information relating to RRI in the Preliminary Offering
Memorandum, the Time of Sale Information or the Offering Memorandum and (B)
RRI makes no representation or warranty with respect to any statements or
omissions made in reliance upon and in conformity with information relating
to any Initial Purchaser furnished to Escrow Issuer, RRI and Mirant in
writing by such Initial Purchaser through the Representative expressly for
use in the Preliminary Offering Memorandum, the Time of Sale Information or
the Offering Memorandum.
	 
	 	(ii)	 	Additional Written Communications. RRI (including its agents
and representatives, other than the Initial Purchasers in their capacity as
such) has not prepared, made, used, authorized, approved or referred to and
will not prepare, make, use, authorize, approve or refer to any written
communication that constitutes an offer to sell or solicitation of an offer
to buy the Securities (each such communication by RRI or its agents and
representatives (other than a communication referred to in clauses (i),
(ii) and (iii) below) an “RRI Written Communication”) other than
(i) the Preliminary Offering Memorandum, (ii) the Offering Memorandum,
(iii) the documents listed on Annex A hereto, including a term
sheet substantially in the form of Annex B hereto, which constitute
part of the Time of Sale Information, and (iv) any electronic road show or
other written communications, in each case used in accordance with Section
4(c). Each such RRI Written Communication, when taken together with the
Time of Sale Information, did not, and at the Closing Date will not,
contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided
that (A) the representations and warranties set forth in this paragraph
3(a)(ii) are limited to statements or omissions based upon information
relating to RRI in each such RRI Written Communication and (B) RRI makes no
representation and warranty with respect to any statements or omissions
made in each such RRI Written Communication in reliance upon and in
conformity with information relating to any Initial Purchaser furnished to
Escrow Issuer, RRI and Mirant in writing by such Initial Purchaser through
the Representative expressly for use in any RRI Written Communication.
	 
	 	(iii)	 	Incorporated Documents. The documents of RRI incorporated by
reference in each of the Time of Sale Information and the Offering
Memorandum, when filed with the Commission, conformed or will conform, as
the case may be, in all material respects to the applicable requirements of
the Exchange Act and the applicable rules and regulations of the Commission
thereunder, and did not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading.

 

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	 	(iv)	 	Financial Statements. The consolidated historical financial
statements and the related notes thereto of RRI and its subsidiaries
included or incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum present fairly, in all material
respects, the consolidated financial position of RRI and its subsidiaries
as of the dates indicated and the results of their respective operations
and the changes in their respective cash flows for the periods specified;
such financial statements have been prepared in conformity with United
States generally accepted accounting principles (“GAAP”) applied on
a consistent basis throughout the periods covered thereby except, with
respect to interim financial statements, subject to year-end audit
adjustments; and the other financial information of RRI included or
incorporated by reference in each of the Time of Sale Information and the
Offering Memorandum has been derived from the accounting records of RRI and
its subsidiaries and presents fairly, in all material respects, the
information shown thereby. For the avoidance of doubt, financial
statements for interim periods have been prepared in conformity with the
GAAP requirements applicable to interim periods rather than the
requirements applicable to annual financial statements.
	 
	 	(v)	 	No Material Adverse Change. Except as otherwise disclosed in
the Time of Sale Information, since the date of the most recent financial
statements of RRI included or incorporated by reference in each of the Time
of Sale Information and the Offering Memorandum, (i) there has not been any
change in the consolidated outstanding capital stock or long-term debt of
RRI and its subsidiaries (except for any vesting or exercise of options,
restricted stock units or other equity investments pursuant to equity
incentive compensation or benefit plans existing on the date of this
Agreement, and for the avoidance of doubt, any secondary trading of RRI’s
capital stock or its and its subsidiaries’ long-term debt), or any dividend
or distribution of any kind declared, set aside for payment, paid or made
by RRI on any class of capital stock, or any material adverse change, or to
RRI’s knowledge, any development involving a prospective material adverse
change, in or affecting the business, properties, management, financial
position, or results of operations of RRI and its subsidiaries taken as a
whole; (ii) neither RRI nor any of its subsidiaries has (x) entered into
any transaction or agreement not in the ordinary course of business (except
for the Merger or Refinancing Transactions which are described in the Time
of Sale Information) that is material to RRI and its subsidiaries taken as
a whole or (y) incurred any liability or obligation, direct or contingent,
that is material to RRI and its subsidiaries taken as a whole; and (iii)
neither RRI nor any of its subsidiaries, taken as a whole, has sustained
any loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or
arbitrator or governmental or regulatory authority, that would have an RRI
Material Adverse Effect (as defined herein).

 

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	 	(vi)	 	Organization and Good Standing. RRI and each of its
subsidiaries have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization,
except, in the case of subsidiaries
that are not RRI Significant Subsidiaries (as defined below), where the
failure to be so duly organized, validly existing and in good standing would
not, individually or in the aggregate, have a material adverse effect on the
business, properties, financial management, financial condition or results
of operations of RRI and its subsidiaries, taken as a whole (an “RRI
Material Adverse Effect”). RRI and each of its subsidiaries are duly
qualified to do business and are in good standing in each jurisdiction in
which their respective ownership or lease of property or the conduct of
their respective businesses requires such qualification, and have all power
and authority necessary to own or hold their respective properties and to
conduct the businesses in which they are engaged, except where the failure
to be so duly qualified, in good standing, or have such power or authority
would not, individually or in the aggregate, have an RRI Material Adverse
Effect. RRI has no subsidiaries other than the subsidiaries that are listed
on Schedule 2A to this Agreement. In this Agreement, “RRI
Significant Subsidiaries” shall mean the “significant subsidiaries” (as
defined in Rule 405 under the Act) of RRI for the year ended December 31,
2009, which are listed on Schedule 2B hereto.
	 
	 	(vii)	 	Capitalization. RRI has an authorized capitalization as set
forth in each of the Time of Sale Information and the Offering Memorandum;
and all the outstanding shares of capital stock or other equity interests
of each subsidiary of RRI (A) have been duly and validly authorized and
issued, are fully paid and non-assessable except, in the case of
subsidiaries that are not RRI Significant Subsidiaries, as would not,
individually or in the aggregate, have an RRI Material Adverse Effect and
(B) are owned directly or indirectly by RRI, free and clear of any lien,
charge, encumbrance, security interest, restriction on voting or transfer
or any other claim in the nature of a security interest of any third party,
except, in each case, as otherwise described in each of the Time of Sale
Information and the Offering Memorandum, including, without limitation, the
liens, charges, encumbrances, security interests, restrictions on voting or
transfer related to the June 2007 credit facilities, the 6.75% notes and
the guarantees under the PEDFA Bonds, each as defined in the Preliminary
Offering Memorandum, or related to RRI Energy Mid-Atlantic Power Holdings,
LLC (“REMA”) leases.
	 
	 	(viii)	 	Due Authorization. RRI has full right, power and authority to execute
and deliver this Agreement, the Exchange Securities, the Registration
Rights Agreement, the Supplemental Indenture, the Escrow Agreement and the
Agreement and Plan of Merger between Escrow Issuer and RRI (the “Escrow
Merger Agreement”) (collectively, the “RRI Transaction
Documents”) and to perform its obligations hereunder and thereunder;
and all action required to be taken for the due and proper authorization,
execution and delivery of each of the RRI Transaction Documents and the
consummation of the transactions contemplated thereby has been duly and
validly taken.

 

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	 	(ix)	 	Supplemental Indenture. The Supplemental Indenture has been
duly authorized by RRI and, at the date the Merger is consummated (the
“Merger Closing Date”),
will have been duly executed and delivered by RRI and, when duly executed
and delivered in accordance with its terms by each of the parties thereto,
the Securities Indenture, as supplemented by the Supplemental Indenture,
will constitute a valid and legally binding agreement of RRI enforceable
against RRI in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting the enforcement of creditors’ rights generally or by
general principles of equity regardless of whether enforceability is
considered in a proceeding in equity or at law (the “Enforceability
Exceptions”), and on the Merger Closing Date, the Indenture will conform
in all material respects to the applicable requirements of the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”), and
the applicable rules and regulations of the Commission relating to an
indenture that is qualified thereunder.
	 
	 	(x)	 	Securities. Upon consummation of the Mergers (including the
assumption by RRI of all of the obligations of Escrow Issuer under the
Securities Indenture and the execution and delivery of the Supplemental
Indenture) and, assuming that the Securities have been duly executed,
issued and delivered by Escrow Issuer and authenticated by the Trustee as
provided in the Securities Indenture and paid for as provided herein, the
Securities will be valid and legally binding obligations of RRI,
enforceable against RRI in accordance with their terms, subject to the
Enforceability Exceptions, and will be entitled to the benefits of the
Indenture.
	 
	 	(xi)	 	Exchange Securities. On the Closing Date, the Exchange
Securities will have been duly authorized by RRI and, when duly executed,
authenticated, issued and delivered as contemplated by the Indenture and
the Registration Rights Agreement, will constitute valid and legally
binding obligations of RRI, as issuer, enforceable against RRI in
accordance with their terms, subject to the Enforceability Exceptions, and
will be entitled to the benefits of the Indenture.
	 
	 	(xii)	 	Purchase and Registration Rights Agreements. This Agreement
has been duly authorized, executed and delivered by RRI. The Registration
Rights Agreement has been duly authorized by RRI and, on the Closing Date,
will be duly executed and delivered by RRI and, when duly executed and
delivered in accordance with its terms by each of the other parties
thereto, will constitute a valid and legally binding agreement of RRI,
enforceable against RRI in accordance with its terms, subject to the
Enforceability Exceptions, and except as enforceability of indemnity and
contribution provisions may be limited by applicable law or public policy.
	 
	 	(xiii)	 	Merger Agreement. The Merger Agreement has been duly authorized,
executed and delivered by each of RRI and Merger Sub and the statements in
each of the Time of Sale Information and the Offering Memorandum, insofar
as such statements purport to summarize certain provisions of the Merger
Agreement, fairly summarize such provisions in all material respects.

 

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	 	(xiv)	 	Credit Agreement. The Credit Agreement has been duly
authorized and has been, or as of the Closing Date will be, executed and
delivered by RRI and, when duly executed and delivered in accordance with
its terms by each of the other parties thereto, will constitute a valid and
legally binding agreement of RRI, enforceable against RRI in accordance
with its terms, subject to the Enforceability Exceptions.
	 
	 	(xv)	 	Other Transaction Documents. Each of the Escrow Agreement and
the Escrow Merger Agreement have been duly authorized by RRI and, when duly
executed and delivered in accordance with its terms by each of the other
parties thereto and when the action of Mirant, as the sole stockholder of
Escrow Issuer, is delivered to Escrow Issuer approving the Escrow Merger,
will constitute a valid and legally binding agreement of RRI, enforceable
against RRI in accordance with its terms, subject to the Enforceability
Exceptions.
	 
	 	(xvi)	 	Descriptions of the RRI Transaction Documents. The statements
contained in each of the Time of Sale Information and the Offering
Memorandum, insofar as such statements purport to summarize certain
provisions of the RRI Transaction Documents (or in the case of the Exchange
Securities, the Supplemental Indenture and the Escrow Merger Agreement, the
specimen Exchange Securities or forms of agreements examined by RRI),
fairly summarize such provisions in all material respects.
	 
	 	(xvii)	 	Description of the Credit Agreement. The statements contained in each of
the Time of Sale Information and the Offering Memorandum, insofar as such
statements purport to summarize certain provisions of the Credit Agreement,
fairly summarize such provisions in all material respects.
	 
	 	(xviii)	 	No Violation or Default. Neither RRI nor any of its subsidiaries is
(i) in violation of its charter or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or
lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in
any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which RRI or any of its subsidiaries is a party or by
which RRI or any of its subsidiaries is bound or to which any of the
property or assets of RRI or any of its subsidiaries is subject; or (iii)
except as set forth in each of the Time of Sale Information and the
Offering Memorandum, in violation of any law or statute or any judgment,
order, rule or regulation of any court or arbitrator or governmental or
regulatory authority, except, in the case of clause (i) with respect to
only those subsidiaries that are not RRI Significant Subsidiaries, and in
the case of clauses (ii) and (iii) above, for any such default or violation
that would not, individually or in the aggregate, have an RRI Material
Adverse Effect.

 

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	 	(xix)	 	No Conflicts. The execution, delivery and performance by RRI
of the RRI Transaction Documents and compliance by RRI with the terms
thereof and the consummation of the transactions contemplated by the RRI
Transaction Documents
will not (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property
or assets of RRI or any of any of its subsidiaries pursuant to, any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which RRI or any of its subsidiaries is a party or by which
RRI or any of its subsidiaries is bound or to which any of the property or
assets of RRI or any of its subsidiaries is subject (other than any lien,
charge or encumbrance created or imposed pursuant to the Escrow Agreement),
(ii) result in any violation of the provisions of the charter or by-laws or
similar organizational documents of RRI or any of its subsidiaries or (iii)
result in the violation of any law or statute or any judgment, order, rule
or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (i) and (iii) above or in the case
of clause (ii) with respect to only those subsidiaries that are not RRI
Significant Subsidiaries, for any such conflict, breach, violation, default,
lien, charge or encumbrance that would not, individually or in the
aggregate, have an RRI Material Adverse Effect.
	 
	 	(xx)	 	No Consents Required. No consent, approval, authorization,
notice, order, registration or qualification of or with any court or
arbitrator or governmental or regulatory authority is required for the
execution, delivery and performance by RRI of each of the RRI Transaction
Documents and compliance by RRI with the terms thereof and the consummation
of the transactions contemplated by the RRI Transaction Documents, except
for such consents, approvals, authorizations, notices, orders,
registrations or qualifications (i) relating to the Exchange Securities or
relating to the shelf registration statement contemplated by the
Registration Rights Agreement under the Securities Act and the Trust
Indenture Act, (ii) as have been obtained or will be obtained prior to the
Closing Date and will be in full force and effect or (iii) as may be
required under applicable state securities or “blue sky” laws in connection
with the purchase and distribution of the Securities by the Initial
Purchasers.
	 
	 	(xxi)	 	Legal Proceedings. Except as described in each of the Time of
Sale Information and the Offering Memorandum, there are no legal,
governmental or regulatory investigations, actions, suits or proceedings
pending to which RRI or any of its subsidiaries is a party or to which any
property of RRI or any of its subsidiaries is the subject that,
individually or in the aggregate, if determined adversely to RRI or any of
its subsidiaries, would reasonably be expected to have an RRI Material
Adverse Effect; and no such investigations, actions, suits or proceedings
are threatened or, to the knowledge of RRI, contemplated by any
governmental or regulatory authority or by others.
	 
	 	(xxii)	 	Independent Accountants. KPMG LLP, who has certified certain financial
statements of RRI and its subsidiaries, is an independent registered public
accounting firm with respect to RRI within the meaning of the Securities
Act and the applicable rules and regulations adopted thereunder by the
Commission and
the rules and regulations of Public Company Accounting Oversight Board
(United States).

 

11

 

	 	(xxiii)	 	Title to Real and Personal Property. RRI and its subsidiaries have good
and defeasible title, or have valid rights to lease or otherwise use, all
items of real and personal property that are material to the respective
businesses of RRI and its subsidiaries, in each case free and clear of all
liens, encumbrances, claims and defects and imperfections of title (other
than Liens (as defined in the Credit Agreement) permitted under the Credit
Agreement or Liens that will be released as of the Closing Date) except
those that (i) do not materially interfere with the use made and proposed
to be made of such property by RRI and its subsidiaries, taken as a whole,
or (ii) would not, individually or in the aggregate, have an RRI Material
Adverse Effect.
	 
	 	(xxiv)	 	Title to Intellectual Property. Except as would not have an RRI Material
Adverse Effect, (a) RRI and its subsidiaries own or possess adequate rights
to use all United States intellectual property, including, without
limitation, all patents, patent applications, trademarks, service marks,
trade names, trademark registrations, service mark registrations, domain
names, trade dress and other source indicators (and the goodwill of the
business symbolized thereby), copyrights, works of authorship in any media,
licenses and know-how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or
procedures) (collectively, “Intellectual Property”) necessary for
the conduct of their respective businesses as currently conducted; (b) to
the knowledge of RRI, all Intellectual Property owned by RRI and its
subsidiaries is valid, unexpired and enforceable; and (c) the conduct of
the respective businesses of RRI and its subsidiaries as currently
conducted do not infringe or otherwise violate any Intellectual Property
rights of others, nor has RRI and its subsidiaries received any written
notice of any claim of infringement or violation with any such rights of
others.
	 
	 	(xxv)	 	No Undisclosed Relationships. No relationship, direct or
indirect, exists between or among RRI or any of its subsidiaries, on the
one hand, and the directors, officers, stockholders or other affiliates of
RRI or any of its subsidiaries, on the other, that would be required by the
Securities Act to be described in a registration statement to be filed with
the Commission and that is not so described in each of the Time of Sale
Information and the Offering Memorandum.
	 
	 	(xxvi)	 	Investment Company Act. Neither RRI nor any of its subsidiaries is, and
after giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in each of the Time of
Sale Information and the Offering Memorandum none of them will be, an
“investment company” or an entity “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940, as amended, and
the rules and regulations of the Commission thereunder (collectively, the
“Investment Company Act”).

 

12

 

	 	(xxvii)	 	Federal Power Act. Neither RRI nor any of its subsidiaries that is not
a “public utility” as defined in the Federal Power Act is subject to any
requirement of the Federal Power Act restricting its ability to incur
Indebtedness (as such term is defined in the Indenture) or to execute or
perform its obligations under the RRI Transaction Documents. Each
subsidiary of RRI that is a “public utility” as defined in the Federal
Power Act has received blanket authorization, which authorization is in
effect, for the issuance of securities pursuant to Section 204 of the
Federal Power Act.
	 
	 	(i)	 	Taxes. (i) Except as would not have an RRI Material Adverse
Effect, RRI and its subsidiaries have filed all tax returns required to be
filed through the date hereof and have accrued or paid all federal, state,
local and foreign taxes shown as due and owing on such returns, and (ii)
except as otherwise disclosed in each of the Time of Sale Information and
the Offering Memorandum or as would not have an RRI Material Adverse
Effect, neither RRI, any of its subsidiaries, nor any of their respective
properties or assets are, or could reasonably be expected to be, subject to
any additional tax liabilities in excess of amounts shown in such
documents.
	 
	 	(xxviii)	 	Licenses and Permits. RRI and its subsidiaries possess all licenses,
certificates, permits and other approvals and authorizations issued by, and
have made all declarations and filings with, the appropriate federal,
state, local or foreign governmental or regulatory authorities that are
necessary for the ownership or lease of their respective properties or the
conduct of their respective businesses as described in each of the Time of
Sale Information and the Offering Memorandum, except where the failure to
possess or make the same would not, individually or in the aggregate, have
an RRI Material Adverse Effect; and except as described in each of the Time
of Sale Information and the Offering Memorandum or as will not have an RRI
Material Adverse Effect, neither RRI nor any of its subsidiaries has
received notice of any revocation or modification of any such license,
certificate, permit or authorization or has any reason to believe that any
such license, certificate, permit or authorization will not be renewed in
the ordinary course.
	 
	 	(xxix)	 	No Labor Disputes. Except as described in each of the Time of Sale
Information and the Offering Memorandum, no labor disturbance by or dispute
with employees of RRI or any of its subsidiaries exists or, to the
knowledge of RRI, is contemplated or threatened and RRI is not aware of any
existing or imminent labor disturbance by, or dispute with, the employees
of any of its or any of its subsidiaries’ principal suppliers, contractors
or customers, except as would not have an RRI Material Adverse Effect.

 

13

 

	 	(xxx)	 	Compliance with Environmental Laws. (i) RRI and its
subsidiaries (x) are in compliance with any and all applicable federal,
state, local and foreign laws, rules, regulations, requirements, decisions
and orders relating to the protection of human health or safety, the
environment, natural resources, hazardous or toxic substances or wastes,
pollutants or contaminants (collectively, “Environmental 
Laws”), (y) have received and are in compliance with all permits,
licenses, certificates or other authorizations or approvals required of them
under applicable Environmental Laws to conduct their respective businesses,
and (z) have not received notice of any actual or potential liability under
or relating to any Environmental Laws, including for the investigation or
remediation of any disposal or release of hazardous or toxic substances or
wastes, pollutants or contaminants, and (ii) there are no costs or
liabilities associated with Environmental Laws of or relating to RRI or its
subsidiaries, except in the case of each of (i) and (ii) above, for any such
failure to comply, or failure to receive required permits, licenses or
approvals, or cost or liability, as would not, individually or in the
aggregate, have an RRI Material Adverse Effect; and (iii) except as
described in each of the Time of Sale Information and the Offering
Memorandum, (x) there are no proceedings that are pending, or that are known
to be contemplated, against RRI or any of its subsidiaries under any
Environmental Laws in which a governmental entity is also a party, other
than such proceedings regarding which it is reasonably believed no monetary
sanctions of $100,000 or more will be imposed and (y) RRI and its
subsidiaries are not aware of any issues regarding compliance with
Environmental Laws, or liabilities or other obligations under Environmental
Laws or concerning hazardous or toxic substances or wastes, pollutants or
contaminants, that could reasonably be expected to have a material effect on
the capital expenditures, earnings or competitive position of RRI and its
subsidiaries.
	 
	 	(xxxi)	 	Compliance with ERISA. (i) Each employee benefit plan, within the
meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), for which RRI or any member of its
“Controlled Group” (defined as any organization which is a member of a
controlled group of corporations within the meaning of Sections 414(b),
(c), (m) or (o) of the Internal Revenue Code of 1986, as amended (the
“Code”)) would have any liability (each, a “Plan”) has been
maintained in material compliance with its terms and the requirements of
any applicable statutes, orders, rules and regulations, including but not
limited to ERISA and the Code; (ii) no prohibited transaction, within the
meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred
with respect to any Plan excluding transactions effected pursuant to a
statutory or administrative exemption; (iii) for each Plan that is subject
to the funding rules of Sections 412 or 430 of the Code or Section 302 of
ERISA, no failure to satisfy the minimum funding standards as defined in
Sections 412 or 430 of the Code, whether or not waived, has occurred or is
reasonably expected to occur; and (iv) no “reportable event” (within the
meaning of Section 4043(c) of ERISA), other than any reportable event with
respect to which the PBGC has waived the 30-day notice requirement of
Section 4043(a) of ERISA by regulation, has occurred or is reasonably
expected to occur; except, in the case of each of the foregoing clauses (i)
through (iv) above, as would not have an RRI Material Adverse Effect.

 

14

 

	 	(xxxii)	 	Disclosure Controls. RRI maintains a system of “disclosure controls and
procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is
designed
to ensure that information required to be disclosed by RRI in reports that
it files or submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the
Commission’s rules and forms, including controls and procedures designed to
ensure that such information is accumulated and communicated to RRI’s
management as appropriate to allow timely decisions regarding required
disclosure. As of June 30, 2010, RRI’s management carried out an evaluation
of the effectiveness of RRI’s disclosure controls and procedures as required
by Rule 13a-15 of the Exchange Act and based on this evaluation has
concluded that, as of June 30, 2010, RRI’s disclosure controls and
procedures were effective.
	 
	 	(xxxiii)	 	Accounting Controls. RRI maintains systems of “internal control over
financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act)
that comply with the requirements of the Exchange Act and have been
designed by, or under the supervision of, RRI’s principal executive and
principal financial officers, or persons performing similar functions, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. RRI maintains
internal accounting controls sufficient to provide reasonable assurance
that (i) transactions are executed in accordance with management’s general
or specific authorizations; (ii) transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally
accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management’s general
or specific authorization; and (iv) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. Except as
disclosed in each of the Time of Sale Information and the Offering
Memorandum, RRI is not aware of any material weaknesses in RRI’s internal
controls.
	 
	 	(xxxiv)	 	Insurance. RRI and its subsidiaries on a consolidated basis maintain
with financially sound and reputable insurance companies (or through
prudent self-insurance programs or prudent captive insurance arrangements)
insurance on all its property in at least such amounts and against at least
such risks as are usually insured against in the same general area by
companies engaged in the same or a similar business to the extent available
on commercially reasonable terms; and neither RRI nor any of its
subsidiaries has any reason to believe that they will not be able to obtain
the same or similar coverage at reasonable cost from similar insurers as
may be necessary to continue their business.
	 
	 	(xxxv)	 	No Unlawful Payments. None of RRI, any of its subsidiaries nor, to the
knowledge of RRI, any director, officer, agent, employee or other person
associated with or acting on behalf of it or any of its subsidiaries has
(i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity;
(ii) made any direct or indirect unlawful payment to any foreign or
domestic government official or employee from corporate funds; (iii)
violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977 (the “FCPA”); or (iv) made any bribe, rebate,
payoff, influence payment, kickback or other unlawful payment.

 

15

 

	 	(xxxvi)	 	Compliance with Money Laundering Laws. The operations of RRI and its
subsidiaries are and have been conducted at all times in material
compliance with applicable financial recordkeeping and reporting
requirements of the Currency and Foreign Transactions Reporting Act of
1970, as amended, the money laundering statutes of all jurisdictions, the
rules and regulations thereunder and any related or similar rules,
regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and
no action, suit or proceeding by or before any court or governmental
agency, authority or body or any arbitrator involving RRI or any of its
subsidiaries with respect to the Money Laundering Laws is pending or, to
the best knowledge of RRI, threatened.
	 
	 	(xxxvii)	 	Compliance with OFAC. None of RRI, any of its subsidiaries or, to the
knowledge of RRI, any director, officer, agent, employee or affiliate of
RRI or any of its subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Department
of the Treasury (“OFAC”); and RRI will not directly or indirectly
use the proceeds of the offering of the Securities hereunder, or lend,
contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other person or entity, for the purpose of
financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
	 
	 	(xxxviii)	 	Energy Regulatory Laws. (i) None of RRI nor any of its subsidiaries
is subject to regulation under the laws of any state of the United States
by any public service commission (or similar body responsible for the
regulation of public utilities) with respect to securities issuances or
requiring any notice, consent or approval by such body for the consummation
of any transactions contemplated by the RRI Transaction Documents; and (ii)
none of RRI or any of its subsidiaries is subject to regulation under the
laws of any state of the United States with respect to rates for utility
service.
	 
	 	(xxxix)	 	No Restrictions on Subsidiaries. Except as described in or contemplated
by each of the Time of Sale Information and the Offering Memorandum, no
subsidiary of RRI is currently prohibited, directly or indirectly, under
any agreement or other instrument to which it is a party or is subject,
from paying any dividends to RRI, from making any other distribution on
such subsidiary’s capital stock to RRI, from repaying to RRI any loans or
advances to such subsidiary from RRI.
	 
	 	(xl)	 	No Broker’s Fees. Except as described in the section entitled
“Plan of distribution” in the Time of Sale Information and in the Offering
Memorandum, neither RRI nor any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than this
Agreement) that would give rise to a
valid claim against any of them or any Initial Purchaser for a brokerage
commission, finder’s fee or like payment in connection with the offering and
sale of the Securities.

 

16

 

	 	(xli)	 	Rule 144A Eligibility. On the Merger Closing Date, the
Securities will not be of the same class, within the meaning of Rule 144A
under the Securities Act, as securities issued by RRI listed on a national
securities exchange registered under Section 6 of the Exchange Act or
quoted in an automated inter-dealer quotation system; and each of the
Preliminary Offering Memorandum and the Offering Memorandum, as of its
respective date, contains or will contain all the information that, if
requested by a prospective purchaser of the Securities, would be required
to be provided to such prospective purchaser pursuant to Rule 144A(d)(4)
under the Securities Act.
	 
	 	(xlii)	 	No Integration. Neither RRI nor any of its affiliates (as defined in
Rule 501(b) of Regulation D) has, directly or through any agent, sold,
offered for sale, solicited offers to buy or otherwise negotiated in
respect of, any security (as defined in the Securities Act), that is or
will be integrated with the sale of the Securities in a manner that would
require registration of the Securities under the Securities Act.
	 
	 	(xliii)	 	No General Solicitation or Directed Selling Efforts. Neither RRI nor
any of its affiliates or any other person acting on its or their behalf
(other than the Initial Purchasers, as to which no representation is made)
has (i) solicited offers for, or offered or sold, the Securities by means
of any form of general solicitation or general advertising within the
meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act or (ii)
engaged in any directed selling efforts within the meaning of Regulation S
under the Securities Act (“Regulation S”), and all such persons
have complied with the offering restrictions requirement of Regulation S.
	 
	 	(xliv)	 	No Stabilization. Neither RRI nor any of its affiliates has taken,
directly or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the
price of the Securities.
	 
	 	(xlv)	 	Statistical and Market Data. Nothing has come to the attention
of RRI that has caused RRI to believe that the statistical and
market-related data included or incorporated by reference in each of the
Time of Sale Information and the Offering Memorandum, insofar as it relates
to RRI, is not based on or derived from sources that are reliable and
accurate in all material respects.
	 
	 	(xlvi)	 	Sarbanes-Oxley Act. There is and has been no failure on the part of RRI
or any of its directors or officers, in their capacities as such, to comply
in all material respects with any presently applicable provision of the
Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in
connection therewith
(the “Sarbanes-Oxley Act”), including Section 402 related to loans
and Sections 302 and 906 related to certifications.

 

17

 

	 	(xlvii)	 	Forward-Looking Statements. No facts have come to the attention of RRI
that have caused RRI to believe that the forward-looking statements about
the combined company included or incorporated by reference in the Time of
Sale Information or the Offering Memorandum that were provided by RRI or
jointly by RRI and Mirant have been made without a reasonable basis or
based on assumptions RRI did not believe to be reasonable at the time made,
it being understood that such forward-looking statements speak only as of
the date on which they were made and are subject to the statements set
forth in the Preliminary Offering Memorandum under the caption “Cautionary
statement regarding forward-looking statements”.

(b) Mirant represents and warrants to each Initial Purchaser that:

	 	(i)	 	Preliminary Offering Memorandum, Time of Sale Information and
Offering Memorandum. The Preliminary Offering Memorandum, as amended by
the Supplements, as of its date, did not, the Time of Sale Information, at
the Time of Sale, did not, and at the Closing Date, will not, and the
Offering Memorandum, as of its date and as of the Closing Date, will not,
contain any untrue statement of a material fact or omit to state a material
fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided
that (A) the representations and warranties set forth in this paragraph
3(b)(i) are limited to statements or omissions based upon information
relating to Mirant in the Preliminary Offering Memorandum, the Time of Sale
Information or the Offering Memorandum and (B) Mirant makes no
representation or warranty with respect to any statements or omissions made
in reliance upon and in conformity with information relating to any Initial
Purchaser furnished to Escrow Issuer, RRI and Mirant in writing by such
Initial Purchaser through the Representative expressly for use in the
Preliminary Offering Memorandum, the Time of Sale Information or the
Offering Memorandum.
	 
	 	(ii)	 	Additional Written Communications. Mirant (including its agents
and representatives, other than the Initial Purchasers in their capacity as
such) has not prepared, made, used, authorized, approved or referred to and
will not prepare, make, use, authorize, approve or refer to any written
communication that constitutes an offer to sell or solicitation of an offer
to buy the Securities (each such communication by Mirant or its agents and
representatives (other than a communication referred to in clauses (i),
(ii) and (iii) below) a “Mirant Written Communication”) other than
(i) the Preliminary Offering Memorandum, (ii) the Offering Memorandum,
(iii) the documents listed on Annex A hereto, including a term
sheet substantially in the form of Annex B hereto, which constitute
part of the Time of Sale Information, and (iv) any electronic road show or
other written communications, in each case used in accordance with Section
4(c). Each such Mirant Written Communication, when taken together with the
Time of Sale
Information, did not, and at the Closing Date will not, contain any untrue
statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that (A) the
representations and warranties set forth in this paragraph 3(b)(ii) are
limited to statements or omissions based upon information relating to Mirant
in each such Mirant Written Communication and (B) Mirant makes no
representation and warranty with respect to any statements or omissions made
in each such Mirant Written Communication in reliance upon and in conformity
with information relating to any Initial Purchaser furnished to Escrow
Issuer, RRI and Mirant in writing by such Initial Purchaser through the
Representative expressly for use in any Mirant Written Communication.

 

18

 

	 	(iii)	 	Incorporated Documents. The documents of Mirant incorporated
by reference in each of the Time of Sale Information and the Offering
Memorandum, when filed with the Commission, conformed or will conform, as
the case may be, in all material respects to the applicable requirements of
the Exchange Act and the applicable rules and regulations of the Commission
thereunder, and did not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading;
	 
	 	(iv)	 	Financial Statements. The consolidated historical financial
statements and the related notes thereto of Mirant and its subsidiaries
included or incorporated by reference in each of the Time of Sale
Information and the Offering Memorandum present fairly, in all material
respects, the consolidated financial position of Mirant and its
subsidiaries as of the dates indicated and the results of their respective
operations and the changes in their respective cash flows for the periods
specified; such financial statements have been prepared in conformity with
GAAP applied on a consistent basis throughout the periods covered thereby
except, with respect to interim financial statements, subject to year-end
audit adjustments; and the other financial information of Mirant included
or incorporated by reference in each of the Time of Sale Information and
the Offering Memorandum has been derived from the accounting records of
Mirant and its subsidiaries and presents fairly, in all material respects
the information shown thereby. For the avoidance of doubt, financial
statements for interim periods have been prepared in conformity with the
GAAP requirements applicable to interim periods rather than the
requirements applicable to annual financial statements.
	 
	 	(v)	 	No Material Adverse Change. Except as otherwise disclosed in
the Time of Sale Information, since the date of the most recent financial
statements of Mirant included or incorporated by reference in each of the
Time of Sale Information and the Offering Memorandum (i) there has not been
any change in the consolidated outstanding capital stock or long-term debt
of Mirant and its subsidiaries (except
for any vesting or exercise of options, restricted stock units or other
equity investments pursuant to equity incentive compensation or benefit
plans existing on the date of this Agreement, and for the avoidance of
doubt, any secondary trading of Mirant’s capital stock or its and its
subsidiaries’ long-term debt), or any dividend or distribution of any kind
declared, set aside for payment, paid or made 

 

19

 

	 	 	 	by Mirant on any class of
capital stock, or any material adverse change, or to Mirant’s knowledge,
any development involving a prospective material adverse change, in or
affecting the business, properties, management, financial position, or
results of operations of Mirant and its subsidiaries taken as a whole; (ii)
neither Mirant nor any of its subsidiaries has (x) entered into any
transaction or agreement not in the ordinary course of business (except for
the Merger or Refinancing Transactions which are described in the Time of
Sale Information) that is material to Mirant and its subsidiaries taken as a
whole or (y) incurred any liability or obligation, direct or contingent,
that is material to Mirant and its subsidiaries taken as a whole; and (iii)
neither Mirant nor any of its subsidiaries, taken as a whole, has sustained
any loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, or from any labor
disturbance or dispute or any action, order or decree of any court or
arbitrator or governmental or regulatory authority, that would have a Mirant
Material Adverse Effect (as defined herein).
	 
	 	(vi)	 	Organization and Good Standing. Mirant and each of its
subsidiaries have been duly organized and are validly existing and in good
standing under the laws of their respective jurisdictions of organization,
except in the case of subsidiaries that are not Mirant Significant
Subsidiaries (as defined below), where the failure to be so duly organized,
validly existing and in good standing would not, individually or in the
aggregate, have a material adverse effect on the business, properties,
financial management, financial condition or results of operations of
Mirant and its subsidiaries, taken as a whole (a “Mirant Material
Adverse Effect”). Mirant and each of its subsidiaries are duly
qualified to do business and are in good standing in each jurisdiction in
which their respective ownership or lease of property or the conduct of
their respective businesses requires such qualification, and have all power
and authority necessary to own or hold their respective properties and to
conduct the businesses in which they are engaged, except where the failure
to be so duly qualified, in good standing, or have such power or authority
would not, individually or in the aggregate, have a Mirant Material Adverse
Effect. Mirant has no subsidiaries other than the subsidiaries that are
listed on Schedule 3A to this Agreement. In this Agreement,
“Mirant Significant Subsidiaries” shall mean the “significant
subsidiaries” (as defined in Rule 405 under the Act) of Mirant for the year
ended December 31, 2009, which are listed on Schedule 3B hereto.
	 
	 	(vii)	 	Capitalization. All the outstanding shares of capital stock or
other equity interests of each subsidiary of Mirant (A) have been duly and
validly authorized and issued, are fully paid and non-assessable except, in
the case of subsidiaries that are not Mirant Significant Subsidiaries, as
would not, individually or in the aggregate,
have a Mirant Adverse Effect and (B) are owned directly or indirectly by
Mirant, free and clear of any lien, charge, encumbrance, security interest,
restriction on voting or transfer or any other claim in the nature of a
security interest of any third party, except, in each case, as otherwise
described in each of the Time of Sale Information and the Offering
Memorandum, including, without limitation, the liens, charges, encumbrances,
security interests, restrictions on voting or transfer of any third party
related to the MNA senior secured credit facilities, as defined in the
Preliminary Offering Memorandum, or related to the Mirant Mid-Atlantic, LLC
leveraged leases, the MNA senior secured credit facilities and any project
financing for the Mirant Marsh Landing LLC generating facility.

 

20

 

	 	(viii)	 	Due Authorization. Mirant has full right, power and authority to execute
and deliver this Agreement and the Escrow Agreement (together, the
“Mirant Transaction Documents”) and to perform its obligations
hereunder and thereunder; and all action required to be taken for the due
and proper authorization, execution and delivery of each of the Mirant
Transaction Documents and the consummation of the transactions contemplated
thereby has been duly and validly taken.
	 
	 	(ix)	 	Purchase Agreement. This Agreement has been duly authorized,
executed and delivered by Mirant.
	 
	 	(x)	 	Merger Agreement. The Merger Agreement has been duly
authorized, executed and delivered by Mirant and the statements in each of
the Time of Sale Information and the Offering Memorandum, insofar as such
statements purport to summarize certain provisions of the Merger Agreement,
fairly summarize such provisions in all material respects.
	 
	 	(xi)	 	Other Transaction Documents. The Escrow Agreement will have
been duly authorized by Mirant and, when duly executed and delivered in
accordance with its terms by each of the other parties thereto, will
constitute a valid and legally binding agreement of Mirant, enforceable
against Mirant in accordance with its terms, subject to the Enforceability
Exceptions.
	 
	 	(xii)	 	Descriptions of the Mirant Transaction Documents. The
statements contained in each of the Time of Sale Information and the
Offering Memorandum, insofar as such statements purport to summarize
certain provisions of the Mirant Transaction Documents, fairly summarize
such provisions in all material respects.
	 
	 	(xiii)	 	No Violation or Default. Neither Mirant nor any of its subsidiaries is
(i) in violation of its charter or by-laws or similar organizational
documents; (ii) in default, and no event has occurred that, with notice or
lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in
any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which Mirant or any of its subsidiaries is a party or by
which Mirant or any of its subsidiaries is bound or to which any of the
property
or assets of Mirant or any of its subsidiaries is subject; or (iii) except
as set forth in each of the Time of Sale Information and the Offering
Memorandum, in violation of any law or statute or any judgment, order, rule
or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clause (i) with respect to only those
subsidiaries that are not Mirant Significant Subsidiaries, and in the case
of clauses (ii) and (iii) above, for any such default or violation that
would not, individually or in the aggregate, have a Mirant Material Adverse
Effect.

 

21

 

	 	(xiv)	 	No Conflicts. The execution, delivery and performance by
Mirant of each of the Mirant Transaction Documents and compliance by Mirant
with the terms thereof and the consummation of the transactions
contemplated by the Mirant Transaction Documents will not (i) conflict with
or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of Mirant or any of
any of its subsidiaries pursuant to, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which Mirant or
any of its subsidiaries is a party or by which Mirant or any of its
subsidiaries is bound or to which any of the property or assets of Mirant
or any of its subsidiaries is subject (other than any lien, charge or
encumbrance created or imposed pursuant to the Escrow Agreement), (ii)
result in any violation of the provisions of the charter or by-laws or
similar organizational documents of Mirant or any of its subsidiaries or
(iii) result in the violation of any law or statute or any judgment, order,
rule or regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (i) and (iii) above or in the
case of clause (ii) with respect to only those subsidiaries that are not
Mirant Significant Subsidiaries, for any such conflict, breach, violation,
default, lien, charge or encumbrance that would not, individually or in the
aggregate, have a Mirant Material Adverse Effect.
	 
	 	(xv)	 	No Consents Required. No consent, approval, authorization,
notice, order, registration or qualification of or with any court or
arbitrator or governmental or regulatory authority is required for the
execution, delivery and performance by Mirant of each of the Mirant
Transaction Documents and compliance by Mirant with the terms thereof and
the consummation of the transactions contemplated by the Mirant Transaction
Documents, except for such consents, approvals, authorizations, notices,
orders, registrations or qualifications (i) relating to the Exchange
Securities or relating to the shelf registration statement contemplated by
the Registration Rights Agreement under the Securities Act and the Trust
Indenture Act, (ii) as have been obtained or will be obtained prior to the
Closing Date and will be in full force and effect or (iii) as may be
required under applicable state securities or “blue sky” laws in connection
with the purchase and distribution of the Securities by the Initial
Purchasers.
	 
	 	(xvi)	 	Legal Proceedings. Except as described in each of the Time of
Sale Information and the Offering Memorandum, there are no legal,
governmental or regulatory investigations, actions, suits or proceedings
pending to which Mirant or
any of its subsidiaries (other than Escrow Issuer) is a party or to which
any property of Mirant or any of its subsidiaries is the subject that,
individually or in the aggregate, if determined adversely to Mirant or any
of its subsidiaries, would reasonably be expected to have a Mirant Material
Adverse Effect; and no such investigations, actions, suits or proceedings
are threatened or, to the knowledge of Mirant, contemplated by any
governmental or regulatory authority or by others.

 

22

 

	 	(xvii)	 	Independent Accountants. KPMG LLP, who has certified certain financial
statements of Mirant and its subsidiaries, is an independent registered
public accounting firm with respect to Mirant within the meaning of the
Securities Act and the applicable rules and regulations adopted thereunder
by the Commission and the rules and regulations of Public Company
Accounting Oversight Board (United States).
	 
	 	(xviii)	 	Title to Real and Personal Property. Mirant and its subsidiaries (other
than Escrow Issuer) have good and defeasible title, or have valid rights to
lease or otherwise use, all items of real and personal property that are
material to the respective businesses of Mirant and its subsidiaries, in
each case free and clear of all liens, encumbrances, claims and defects and
imperfections of title (other than Liens (as defined in the Credit
Agreement) permitted under the Credit Agreement or Liens that will be
released as of the Closing Date) except those that (i) do not materially
interfere with the use made and proposed to be made of such property by
Mirant and its subsidiaries, taken as a whole, or (ii) would not,
individually or in the aggregate, have a Mirant Material Adverse Effect.
	 
	 	(xix)	 	Title to Intellectual Property. Except as would not have an
Mirant Material Adverse Effect, (a) Mirant and its subsidiaries own or
possess adequate rights to use all Intellectual Property necessary for the
conduct of their respective businesses as currently conducted; (b) to the
knowledge of Mirant, all Intellectual Property owned by Mirant and its
subsidiaries is valid, unexpired and enforceable; and (c) the conduct of
the respective businesses of Mirant and its subsidiaries as currently
conducted do not infringe or otherwise violate any Intellectual Property
rights of others, nor has Mirant and its subsidiaries received any written
notice of any claim of infringement or violation with any such rights of
others.
	 
	 	(xx)	 	No Undisclosed Relationships. No relationship, direct or
indirect, exists between or among Mirant or any of its subsidiaries, on the
one hand, and the directors, officers, stockholders or other affiliates of
Mirant or any of its subsidiaries, on the other, that would be required by
the Securities Act to be described in a registration statement to be filed
with the Commission and that is not so described in each of the Time of
Sale Information and the Offering Memorandum.
	 
	 	(xxi)	 	Federal Power Act. Neither Mirant nor any of its subsidiaries
that is not a “public utility” as defined in the Federal Power Act is
subject to any requirement of the Federal Power Act restricting its ability
to incur Indebtedness (as such term
is defined in the Indenture) or to execute or perform its obligations under
the Mirant Transaction Documents. Each subsidiary of Mirant that is a
“public utility” as defined in the Federal Power Act has received blanket
authorization, which authorization is in effect, for the issuance of
securities pursuant to Section 204 of the Federal Power Act.

 

23

 

	 	(xxii)	 	Taxes. (i) Except as would not have a Mirant Material Adverse Effect,
Mirant and its subsidiaries (other than Escrow Issuer) have filed all tax
returns required to be filed through the date hereof and have accrued or
paid all federal, state, local and foreign taxes shown as due and owing on
such returns, and (ii) except as otherwise disclosed in each of the Time of
Sale Information and the Offering Memorandum or as would not have a Mirant
Material Adverse Effect, neither Mirant, any of its subsidiaries, nor any
of their respective properties or assets are, or could reasonably be
expected to be, subject to any additional tax liabilities in excess of
amounts shown in such documents.
	 
	 	(xxiii)	 	Licenses and Permits. Mirant and its subsidiaries (other than Escrow
Issuer) possess all licenses, certificates, permits and other approvals and
authorizations issued by, and have made all declarations and filings with,
the appropriate federal, state, local or foreign governmental or regulatory
authorities that are necessary for the ownership or lease of its respective
properties or the conduct of their respective businesses as described in
each of the Time of Sale Information and the Offering Memorandum, except
where the failure to possess or make the same would not, individually or in
the aggregate, have a Mirant Material Adverse Effect; and except as
described in each of the Time of Sale Information and the Offering
Memorandum or as will not have a Mirant Material Adverse Effect, neither
Mirant nor any of its subsidiaries has received notice of any revocation or
modification of any such license, certificate, permit or authorization or
has any reason to believe that any such license, certificate, permit or
authorization will not be renewed in the ordinary course.
	 
	 	(xxiv)	 	No Labor Disputes. Except as described in each of the Time of Sale
Information and the Offering Memorandum, no labor disturbance by or dispute
with employees of Mirant or any of its subsidiaries (other than Escrow
Issuer) exists or, to the knowledge of Mirant, is contemplated or
threatened and Mirant is not aware of any existing or imminent labor
disturbance by, or dispute with, the employees of any of its or any of its
subsidiaries’ principal suppliers, contractors or customers, except as
would not have a Mirant Material Adverse Effect.
	 
	 	(xxv)	 	Compliance with Environmental Laws. (i) Mirant and its
subsidiaries (other than Escrow Issuer) (x) are in compliance with
Environmental Laws, (y) have received and are in compliance with all
permits, licenses, certificates or other authorizations or approvals
required of them under applicable Environmental Laws to conduct their
respective businesses, and (z) have not received notice of any actual or
potential liability under or relating to any Environmental Laws, including
for the investigation or remediation of any
disposal or release of hazardous or toxic substances or wastes, pollutants
or contaminants, and (ii) there are no costs or liabilities associated with
Environmental Laws of or relating to Mirant or its subsidiaries (other than
Escrow Issuer), except in the case of each of (i) and (ii) above, for any
such failure to comply, or failure to receive required permits, licenses or
approvals, or cost or liability, as would not, individually or in the
aggregate, have a Mirant Material Adverse Effect; and (iii) except as
described in each of the Time of Sale Information and the Offering
Memorandum, (x) there are no 

 

24

 

	 	 	 	proceedings that are pending, or that are known
to be contemplated, against Mirant or any of its subsidiaries (other than
Escrow Issuer) under any Environmental Laws in which a governmental entity
is also a party, other than such proceedings regarding which it is
reasonably believed no monetary sanctions of $100,000 or more will be
imposed and (y) Mirant and its subsidiaries (other than Escrow Issuer) are
not aware of any issues regarding compliance with Environmental Laws, or
liabilities or other obligations under Environmental Laws or concerning
hazardous or toxic substances or wastes, pollutants or contaminants, that
could reasonably be expected to have a material effect on the capital
expenditures, earnings or competitive position of Mirant and its
subsidiaries (other than Escrow Issuer).
	 
	 	(xxvi)	 	Compliance with ERISA. (i) Each employee benefit plan, within the
meaning of Section 3(3) of ERISA, for which Mirant or any member of its
“Controlled Group” (defined as any organization which is a member of a
controlled group of corporations within the meaning of Sections 414(b),
(c), (m) or (o) of the Code) would have any liability (each, a
“Plan”) has been maintained in material compliance with its terms
and the requirements of any applicable statutes, orders, rules and
regulations, including but not limited to ERISA and the Code; (ii) no
prohibited transaction, within the meaning of Section 406 of ERISA or
Section 4975 of the Code, has occurred with respect to any Plan excluding
transactions effected pursuant to a statutory or administrative exemption;
(iii) for each Plan that is subject to the funding rules of Sections 412 or
430 of the Code or Section 302 of ERISA, no failure to satisfy the minimum
funding standards as defined in Sections 412 or 430 of the Code, whether or
not waived, has occurred or is reasonably expected to occur; and (iv) no
“reportable event” (within the meaning of Section 4043(c) of ERISA), other
than any reportable event with respect to which the PBGC has waived the
30-day notice requirement of Section 4043(a) of ERISA by regulation, has
occurred or is reasonably expected to occur; except, in the case of each of
the foregoing clauses (i) through (iv) above, as would not have a Mirant
Material Adverse Effect.
	 
	 	(xxvii)	 	Disclosure Controls. Mirant maintains a system of “disclosure controls
and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that is
designed to ensure that information required to be disclosed by Mirant in
reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the
Commission’s rules and forms, including controls and procedures designed to
ensure that such information is accumulated and communicated to Mirant’s
management as
appropriate to allow timely decisions regarding required disclosure. As
required by Exchange Act Rule 13a-15(b), Mirant’s management, including
Mirant’s Chief Executive Officer and Mirant’s Chief Financial Officer,
conducted an assessment of the effectiveness of the design and operation of
Mirant’s disclosure controls and procedures (as defined by Rules 13a-15(e)
and 15d-15(e) under the Exchange Act), as of June 30, 2010. Based upon this
assessment, Mirant’s management concluded that, as of June 30, 2010, the
design and operation of these disclosure controls and procedures were
effective.

 

25

 

	 	(xxviii)	 	Accounting Controls. Mirant maintains systems of “internal control
over financial reporting” (as defined in Rule 13a-15(f) of the Exchange
Act) that comply with the requirements of the Exchange Act and have been
designed by, or under the supervision of, Mirant’s principal executive and
principal financial officers, or persons performing similar functions, to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes
in accordance with generally accepted accounting principles. Mirant
maintains internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii) transactions are
recorded as necessary to permit preparation of financial statements in
accordance with GAAP and to maintain asset accountability; (iii) access to
assets is permitted only in accordance with management’s general or
specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate
action is taken with respect to any differences. Except as disclosed in
each of the Time of Sale Information and the Offering Memorandum, Mirant is
not aware of any material weaknesses in Mirant’s internal controls.
	 
	 	(xxix)	 	Insurance. Mirant and its subsidiaries (other than Escrow Issuer) on a
consolidated basis maintain with financially sound and reputable insurance
companies (or through prudent self-insurance programs or prudent captive
insurance arrangements) insurance on all its property in at least such
amounts and against at least such risks as are usually insured against in
the same general area by companies engaged in the same or a similar
business to the extent available on commercially reasonable terms; and
neither Mirant nor any of its subsidiaries has any reason to believe that
they will not be able to obtain the same or similar coverage at reasonable
cost from similar insurers as may be necessary to continue their business.
	 
	 	(xxx)	 	No Unlawful Payments. None of Mirant nor any of its
subsidiaries nor, to the knowledge of Mirant, any director, officer, agent,
employee or other person associated with or acting on behalf of it or any
of its subsidiaries has (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expense relating to
political activity; (ii) made any direct or indirect unlawful payment to
any foreign or domestic government official or employee from corporate
funds; (iii) violated or is in violation of any provision of the FCPA; or
(iv) made any bribe, rebate, payoff, influence payment, kickback or other
unlawful payment.
	 
	 	(xxxi)	 	Compliance with Money Laundering Laws. The operations of Mirant and its
subsidiaries are and have been conducted at all times in compliance with
Money Laundering Laws and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving
Mirant or any of its subsidiaries with respect to the Money Laundering Laws
is pending or, to the best knowledge of Mirant, threatened.

 

26

 

	 	(xxxii)	 	Compliance with OFAC. None of Mirant, any of its subsidiaries or, to
the knowledge of Mirant, any director, officer, agent, employee or
affiliate of RRI or any of its subsidiaries is currently subject to any
U.S. sanctions administered by OFAC; and Mirant will not directly or
indirectly use the proceeds of the offering of the Securities hereunder, or
lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC.
	 
	 	(xxxiii)	 	Energy Regulatory Laws. (i) None of Mirant or any of its subsidiaries
is subject to regulation under the laws of any state of the United States
by any public service commission (or similar body responsible for the
regulation of public utilities) (x) with respect to securities issuances
(other than such subsidiaries that may be subject to the jurisdiction of
the New York State Public Service Commission) or (y) requiring any notice,
consent or approval by such body for the consummation of any transactions
contemplated by the Mirant Transaction Documents; and (ii) none of Mirant
or any of its subsidiaries is subject to regulation under the laws of any
state of the United States with respect to rates for utility service.
	 
	 	(xxxiv)	 	No Restrictions on Subsidiaries. Except as described in or contemplated
by each of the Time of Sale Information and the Offering Memorandum, no
subsidiary of Mirant is currently prohibited, directly or indirectly, under
any agreement or other instrument to which it is a party or is subject,
from paying any dividends to Mirant, from making any other distribution on
such subsidiary’s capital stock to Mirant, from repaying to Mirant any
loans or advances to such subsidiary from Mirant.
	 
	 	(xxxv)	 	No Broker’s Fees. Except as described in the section entitled “Plan of
distribution” in the Time of Sale Information and in the Offering
Memorandum, neither Mirant nor any of its subsidiaries (other than Escrow
Issuer) is a party to any contract, agreement or understanding with any
person (other than this Agreement) that would give rise to a valid claim
against any of them or any Initial Purchaser for a brokerage commission,
finder’s fee or like payment in connection with the offering and sale of
the Securities.
	 
	 	(xxxvi)	 	No Integration. Neither Mirant nor any of its affiliates (as defined in
Rule 501(b) of Regulation D) has, directly or through any agent, sold,
offered for sale, solicited offers to buy or otherwise negotiated in
respect of, any security (as
defined in the Securities Act), that is or will be integrated with the sale
of the Securities in a manner that would require registration of the
Securities under the Securities Act.

 

27

 

	 	(xxxvii)	 	No General Solicitation or Directed Selling Efforts. Neither Mirant
nor any of its affiliates or any other person acting on its or their behalf
(other than the Initial Purchasers, as to which no representation is made)
has (i) solicited offers for, or offered or sold, the Securities by means
of any form of general solicitation or general advertising within the
meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act or (ii)
engaged in any directed selling efforts within the meaning of Regulation S,
and all such persons have complied with the offering restrictions
requirement of Regulation S.
	 
	 	(xxxviii)	 	No Stabilization. Neither Mirant nor any of its affiliates has taken,
directly or indirectly, any action designed to or that could reasonably be
expected to cause or result in any stabilization or manipulation of the
price of the Securities.
	 
	 	(xxxix)	 	Statistical and Market Data. Nothing has come to the attention of
Mirant that has caused Mirant to believe that the statistical and
market-related data included or incorporated by reference in each of the
Time of Sale Information and the Offering Memorandum insofar as it relates
to Mirant is not based on or derived from sources that are reliable and
accurate in all material respects.
	 
	 	(xl)	 	Sarbanes-Oxley Act. There is and has been no failure on the
part of Mirant or any of its directors or officers, in their capacities as
such, to comply in all material respects with any presently applicable
provision of the Sarbanes-Oxley Act, including Section 402 related to loans
and Sections 302 and 906 related to certifications.
	 
	 	(xli)	 	Forward-Looking Statements. No facts have come to the
attention of Mirant that have caused Mirant to believe that the
forward-looking statements about the combined company included or
incorporated by reference in the Time of Sale Information or the Offering
Memorandum that were provided by Mirant or jointly by RRI and Mirant have
been made without a reasonable basis or based on assumptions Mirant did not
believe to be reasonable at the time made, it being understood that such
forward-looking statements speak only as of the date on which they were
made and are subject to the statements set forth in the Preliminary
Offering Memorandum under the caption “Cautionary statement regarding
forward-looking statements”.

(c) Escrow Issuer represents and warrants to each Initial Purchaser that:

	 	(i)	 	Preliminary Offering Memorandum, Time of Sale Information and
Offering Memorandum. The Preliminary Offering Memorandum, as amended by the
Supplements, as of its date, did not, the Time of Sale Information, at the
Time of
Sale, did not, and at the Closing Date, will not, and the Offering
Memorandum, as of its date and as of the Closing Date, will not, contain any
untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided
that (A) the representations and warranties set forth in this paragraph
3(c)(i) are limited to statements or omissions based upon information
relating to Escrow Issuer and GenOn in the Preliminary Offering Memorandum,
the Time of Sale Information and the Offering Memorandum and (B) Escrow
Issuer makes no representation or warranty with respect to any statements or
omissions made in reliance upon and in conformity with information relating
to any Initial Purchaser furnished to Escrow Issuer, RRI and Mirant in
writing by such Initial Purchaser through the Representative expressly for
use in the Preliminary Offering Memorandum, the Time of Sale Information or
the Offering Memorandum.

 

28

 

	 	(ii)	 	Additional Written Communications. Escrow Issuer (including its
agents and representatives, other than the Initial Purchasers in their
capacity as such) has not prepared, made, used, authorized, approved or
referred to and will not prepare, make, use, authorize, approve or refer to
any written communication that constitutes an offer to sell or solicitation
of an offer to buy the Securities (each such communication by Escrow Issuer
or its agents and representatives (other than a communication referred to in
clauses (i), (ii) and (iii) below) an “Escrow Written Communication”)
other than (i) the Preliminary Offering Memorandum, (ii) the Offering
Memorandum, (iii) the documents listed on Annex A hereto, including a
term sheet substantially in the form of Annex B hereto, which
constitute part of the Time of Sale Information, and (iv) any electronic road
show or other written communications, in each case used in accordance with
Section 4(c). Each such Escrow Written Communication, when taken together
with the Time of Sale Information, did not, and at the Closing Date, will
not, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, insofar as
they relate to Escrow Issuer or to GenOn, in the light of the circumstances
under which they were made, not misleading; provided that (A) the
representations and warranties set forth in this paragraph 3(c)(ii) are
limited to statements or omissions based upon information relating to Escrow
Issuer and GenOn in each such Escrow Written Communication and (B) Escrow
Issuer makes no representation and warranty with respect to any statements or
omissions made in each such Escrow Written Communication in reliance upon and
in conformity with information relating to any Initial Purchaser furnished to
Escrow Issuer, RRI and Mirant in writing by such Initial Purchaser through
the Representative expressly for use in any Escrow Written Communication.
	 
	 	(iii)	 	Financial Statements. The pro forma financial
statements and the related notes thereto included or incorporated by
reference in each of the Time of Sale Information and the Offering Memorandum
have been prepared in accordance with the applicable requirements of Rule
11-02 of Regulation S-X promulgated
by the Commission, except that Rule 11-02 of Regulation S-X does not provide
for presentation of periods covering the latest twelve months, the
comparable six-month period of the preceding year, or pro forma “EBITDA” or
capital expenditures, and the assumptions underlying such pro
forma financial information are reasonable and are set forth in each
of the Time of Sale Information and the Offering Memorandum.

 

29

 

	 	(iv)	 	No Material Adverse Change. Except as otherwise disclosed in the
Time of Sale Information, since the date of the most recent financial
statements of RRI and Mirant included or incorporated by reference in each of
the Time of Sale Information and the Offering Memorandum (i) there has not
been any material adverse change, or to Escrow Issuer’s knowledge, any
development involving a prospective material adverse change, in or affecting
the business, properties, management, financial position or results of
operations of Escrow Issuer or of GenOn and its subsidiaries taken as a
whole; (ii) Escrow Issuer has not entered into any transaction or agreement
that is material to Escrow Issuer or to GenOn and its subsidiaries taken as a
whole or incurred any liability or obligation, direct or contingent, that is
material to Escrow Issuer or to GenOn and its subsidiaries taken as a whole;
and (iii) neither Escrow Issuer nor GenOn and its subsidiaries taken as a
whole, has sustained any loss or interference with its business from fire,
explosion, flood or other calamity, whether or not covered by insurance, or
from any labor disturbance or dispute or any action, order or decree of any
court or arbitrator or governmental or regulatory authority, that would have
an Escrow Issuer Material Adverse Effect (as defined herein).
	 
	 	(v)	 	Organization and Good Standing. Escrow Issuer has been duly
organized and is validly existing and in good standing under the laws of its
jurisdiction of organization, and is duly qualified to do business and is,
and has all power and authority necessary to own or hold its properties and
to conduct the business in which it is engaged, except where the failure to
be so qualified, in good standing or have such power or authority would not,
individually or in the aggregate, have a material adverse effect on the
business, properties, management, financial condition or results of
operations of Escrow Issuer or on the performance by Escrow Issuer of its
obligations under the Securities (an “Escrow Issuer Material Adverse
Effect”). Escrow Issuer is a newly formed wholly-owned subsidiary of
Mirant created solely to issue the notes and has not carried on any other
business other than that related to issuing the notes and performing its
obligations under each of the Escrow Issuer Transaction Documents (as defined
below). Escrow Issuer does not have any subsidiaries.
	 
	 	(vi)	 	Capitalization. Assuming the consummation of the Refinancing
Transactions on the terms described therein, GenOn will have, as of June 30,
2010, the pro forma capitalization as set forth in each of the Time of Sale
Information and the Offering Memorandum under the heading “Capitalization”.
	 
	 	(vii)	 	Due Authorization. Escrow Issuer has full right, power and
authority to execute and deliver this Agreement, the Securities, the
Securities Indenture, the Supplemental Indenture, the Escrow Agreement and
the Escrow Merger Agreement (collectively, the “Escrow Issuer Transaction
Documents”) and to perform its obligations hereunder and thereunder; and
all action required to be taken for the due and proper authorization,
execution and delivery of each of the Escrow Issuer Transaction Documents and
the consummation of the transactions contemplated thereby has been duly and
validly taken.

 

30

 

	 	(viii)	 	Securities Indenture. The Securities Indenture has been duly authorized by
Escrow Issuer and, when duly executed and delivered in accordance with its
terms by each of the other parties thereto, will constitute a valid and
legally binding agreement of Escrow Issuer enforceable against Escrow Issuer
in accordance with its terms, subject to the Enforceability Exceptions; and
on the Closing Date, the Securities Indenture will conform in all material
respects to the requirements of the Trust Indenture Act, and the rules and
regulations of the Commission applicable to an indenture that is qualified
thereunder.
	 
	 	(ix)	 	Supplemental Indenture. The Supplemental Indenture has been duly
authorized by Escrow Issuer and, at the Merger Closing Date, will have been
duly executed and delivered by Escrow Issuer and, when duly executed and
delivered in accordance with its terms by each of the parties thereto, the
Securities Indenture, as supplemented by the Supplemental Indenture, will
constitute a valid and legally binding agreement of Escrow Issuer enforceable
against Escrow Issuer in accordance with its terms, except as enforceability
may be limited by the Enforceability Exceptions.
	 
	 	(x)	 	Securities. The Securities have been duly authorized by Escrow
Issuer and, when duly executed, authenticated, issued and delivered as
provided in the Indenture and paid for as provided herein, will be duly and
validly issued and outstanding and will constitute valid and legally binding
obligations of Escrow Issuer enforceable against Escrow Issuer in accordance
with their terms, subject to the Enforceability Exceptions, and will be
entitled to the benefits of the Indenture.
	 
	 	(xi)	 	Escrow Agreement. The Escrow Agreement has been duly authorized by
Escrow Issuer, and, when duly executed and delivered in accordance with its
terms by each of the other parties thereto, will constitute a valid and
legally binding agreement of Escrow Issuer enforceable against Escrow Issuer
in accordance with its terms, subject to the Enforceability Exceptions.
	 
	 	(xii)	 	Purchase Agreement. This Agreement has been duly authorized,
executed and delivered by Escrow Issuer.
	 
	 	(xiii)	 	Other Transaction Documents. The Escrow Merger Agreement has been duly
authorized by Escrow Issuer and, when duly executed and delivered in
accordance with its terms by each of the parties thereto and approved by the
sole stockholder of
Escrow Issuer, will constitute a valid and legally binding agreement of
Escrow Issuer, enforceable against Escrow Issuer in accordance with its
terms, subject to the Enforceability Exceptions.

 

31

 

	 	(xiv)	 	Ownership of Escrow Property; Escrow Agreement. On the Closing
Date, Escrow Issuer will own, have rights in, and have the power and
authority to collectively assign rights in, the Escrow Property (as defined
in the Escrow Agreement), free and clear of any liens, to the Escrow Agent.
(A) It is understood that the parties to the Escrow Agreement intend to
create a true escrow, with Escrow Issuer having no ownership of, or rights
in, the Escrow Account and the Escrowed Funds other than the limited
contractual right to receive the Special Redemption Price (as defined in the
Offering Memorandum) and (B)(1) in the event that the Escrow and Security
Agreement does not, as intended by such parties, create a true escrow, (2)
the Escrow Agreement is characterized as an arrangement for security (and not
a true escrow), and (3) Escrow Issuer is determined to have any interest in
the Escrow Account or the Escrowed Funds, upon the execution and delivery of
the Escrow Agreement by all parties thereto and the filing of a financing
statement naming Escrow Issuer as debtor and the Trustee as secured party
that describes the Escrow Property in the Secretary of State of the State of
Delaware, the Trustee will have a first-priority (except for any ordinary
course liens of bank on customer accounts under account documentation)
perfected security interest in Escrow Issuer’s rights to the Escrow Property
prior to any other security interest created by Escrow Issuer under the
U.C.C.
	 
	 	(xv)	 	Descriptions of the Escrow Issuer Transaction Documents. The
description of each Escrow Issuer Transaction Document contained in each of
the Time of Sale Information and the Offering Memorandum conforms (or in the
case of the Escrow Merger Agreement, will conform upon due execution of the
underlying document) to the underlying Escrow Issuer Transaction Document in
all material respects.
	 
	 	(xvi)	 	No Violation or Default. Escrow Issuer is not (i) in violation of
its charter or by-laws; (ii) in default, and no event has occurred that, with
notice or lapse of time or both, would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any
indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument to which Escrow Issuer is a party or by which Escrow Issuer is
bound or to which any of the property or assets of Escrow Issuer is subject;
or (iii) in violation of any law or statute or any judgment, order, rule or
regulation of any court or arbitrator or governmental or regulatory
authority, except, in the case of clauses (ii) and (iii) above, for any such
default or violation that would not, individually or in the aggregate, have
an Escrow Issuer Material Adverse Effect.
	 
	 	(xvii)	 	No Conflicts. The execution, delivery and performance by Escrow Issuer of
each of the Escrow Issuer Transaction Documents, the issuance and sale of the
Securities
and compliance by Escrow Issuer with the terms thereof and the consummation
of the transactions contemplated by the Escrow Issuer Transaction Documents
will not (i) conflict with or result in a breach or violation of any of the
terms or provisions of, or constitute a default under, or result in the
creation or imposition of any lien, charge or encumbrance upon any property
or assets of Escrow Issuer, pursuant to, any indenture, mortgage, deed of
trust, loan agreement or other agreement or instrument to which Escrow
Issuer is a party or by which Escrow Issuer is bound or to which any of the
property or assets of Escrow Issuer are subject (other 

 

32

 

	 	 	 	than any lien, charge
or encumbrance created or imposed pursuant to the Escrow Agreement), (ii)
result in any violation of the provisions of the charter or by-laws of
Escrow Issuer or (iii) result in the violation of any law or statute or any
judgment, order, rule or regulation of any court or arbitrator or
governmental or regulatory authority, except, in the case of clauses (ii)
and (iii) above, for any such conflict, breach, violation, default, lien,
charge or encumbrance that would not, individually or in the aggregate, have
an Escrow Issuer Material Adverse Effect.
	 
	 	(xviii)	 	No Consents Required. No consent, approval, authorization, order,
registration or qualification of or with any court or arbitrator or
governmental or regulatory authority is required for the execution, delivery
and performance by Escrow Issuer of each of the Escrow Issuer Transaction
Documents, the issuance and sale of the Securities and compliance by Escrow
Issuer with the terms thereof and the consummation of the transactions
contemplated by the Escrow Issuer Transaction Documents, except for such
consents, approvals, authorizations, orders and registrations or
qualifications (i) relating to the perfection of security interests purported
to be granted in the Escrow Property pursuant to the Escrow Agreement, in the
event that the Escrow Agreement does not, as intended by the parties thereto,
create a true escrow, (ii) as have been obtained or will be obtained prior to
the Closing Date and will be in full force and effect or (iii) as may be
required under applicable state securities laws in connection with the
purchase and distribution of the Securities by the Initial Purchasers.
	 
	 	(xix)	 	GenOn Solvency. On and immediately after the Merger Closing Date,
GenOn (after giving effect to the Mergers, including GenOn’s assumption of
Escrow Issuer’s obligations under the Securities, and the other transactions
related thereto as described in each of the Time of Sale Information and the
Offering Memorandum) will be Solvent. As used in this paragraph, the term
“Solvent” means, with respect to a particular date, that on such date
(i) the present fair market value (or present fair saleable value) of the
assets of GenOn and its subsidiaries is not less than the total amount
required to pay the liabilities of GenOn and its subsidiaries on their total
existing debts and liabilities (including contingent liabilities) as they
become absolute and matured; (ii) GenOn and its subsidiaries are able to
realize upon its assets and pay its debts and other liabilities, contingent
obligations and commitments as they mature and become due in the normal
course of business; (iii) assuming consummation of the issuance of the
Securities as contemplated by this Agreement, the Time of Sale Information
and the Offering Memorandum and the borrowings under the Credit Facility, if
any, neither GenOn nor any its subsidiaries is incurring
debts or liabilities beyond its ability to pay as such debts and liabilities
mature; (iv) neither GenOn nor any of its subsidiaries is engaged in any
business or transaction, nor propose to engage in any business or
transaction, for which its property would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the
industry in which GenOn and its subsidiaries are engaged; and (v) neither
GenOn nor any of its subsidiaries is not a defendant in any civil action
that would result in a judgment that either GenOn or any of its subsidiaries
is or would become unable to satisfy.

 

33

 

	 	(xx)	 	Legal Proceedings. Except as described in each of the Time of Sale
Information and the Offering Memorandum, there are no legal, governmental or
regulatory investigations, actions, suits or proceedings pending to which
Escrow Issuer is a party or to which any property of Escrow Issuer is the
subject that, individually or in the aggregate, if determined adversely to
Escrow Issuer, would reasonably be expected to have an Escrow Issuer Material
Adverse Effect; and no such investigations, actions, suits or proceedings are
threatened or, to the knowledge of Escrow Issuer, contemplated by any
governmental or regulatory authority or by others.
	 
	 	(xxi)	 	Investment Company Act. Escrow Issuer is not, and after giving
effect to the offering and sale of the Securities and the application of the
proceeds thereof as described in each of the Time of Sale Information and the
Offering Memorandum will not be, an “investment company” or an entity
“controlled” by an “investment company” within the meaning of the Investment
Company Act.
	 
	 	(xxii)	 	Federal Power Act. Escrow Issuer is not a “public utility” as defined in
the Federal Power Act and is not is subject to any requirement of the Federal
Power Act restricting their ability to incur Indebtedness (as such term is
defined in the Indenture) or execute or perform their obligations under any
of the Escrow Issuer Transaction Documents.
	 
	 	(xxiii)	 	Compliance with OFAC. None of Escrow Issuer or, to the knowledge of
Escrow Issuer, any director, officer, agent, employee or affiliate of Escrow
Issuer is currently subject to any U.S. sanctions administered by OFAC; and
Escrow Issuer will not directly or indirectly use the proceeds of the
offering of the Securities hereunder, or lend, contribute or otherwise make
available such proceeds to any other person or entity for the purpose of
financing the activities of any person currently subject to any U.S.
sanctions administered by OFAC.
	 
	 	(xxiv)	 	Energy Regulatory Laws. (i) Escrow Issuer is not subject to regulation
under the laws of any state of the United States by any public service
commission (or similar body responsible for the regulation of public
utilities) with respect to securities issuances or requiring any notice,
consent or approval by such body for the consummation of any transactions
contemplated by the Escrow Issuer Transaction Documents; and (ii) Escrow
Issuer is not subject to regulation under the laws of any state of the United
States with respect to rates for utility service.
	 
	 	(xxv)	 	No Broker’s Fees. Except as described in the section entitled
“Plan of distribution” in the Time of Sale Information and in the Offering
Memorandum, Escrow Issuer is not a party to any contract, agreement or
understanding with any person (other than this Agreement) that would give
rise to a valid claim against any of them or any Initial Purchaser for a
brokerage commission, finder’s fee or like payment in connection with the
offering and sale of the Securities.

 

34

 

	 	(xxvi)	 	Rule 144A Eligibility. On the Closing Date, the Securities will not be of
the same class, within the meaning of Rule 144A under the Securities Act, as
securities of Escrow Issuer listed on a national securities exchange
registered under Section 6 of the Exchange Act or quoted in an automated
inter-dealer quotation system; and each of the Preliminary Offering
Memorandum and the Offering Memorandum, as of the Closing Date, contains or
will contain all the information that, if requested by a prospective
purchaser of the Securities, would be required to be provided to such
prospective purchaser pursuant to Rule 144A(d)(4) under the Securities Act.
	 
	 	(xxvii)	 	No Integration. Neither Escrow Issuer nor any of its affiliates (as
defined in Rule 501(b) of Regulation D) has, directly or through any agent,
sold, offered for sale, solicited offers to buy or otherwise negotiated in
respect of, any security (as defined in the Securities Act), that is or will
be integrated with the sale of the Securities in a manner that would require
registration of the Securities under the Securities Act.
	 
	 	(xxviii)	 	No General Solicitation or Directed Selling Efforts. Neither Escrow
Issuer nor any of its affiliates or any other person acting on its or their
behalf (other than the Initial Purchasers, as to which no representation is
made) has (i) solicited offers for, or offered or sold, the Securities by
means of any form of general solicitation or general advertising within the
meaning of Rule 502(c) of Regulation D or in any manner involving a public
offering within the meaning of Section 4(2) of the Securities Act or (ii)
engaged in any directed selling efforts within the meaning of Regulation S,
and all such persons have complied with the offering restrictions requirement
of Regulation S.
	 
	 	(xxix)	 	Securities Law Exemptions. Assuming the accuracy of the representations
and warranties of the Initial Purchasers contained in Section 1(b) (including
Annex C hereto) and their compliance with their agreements set forth
therein, it is not necessary, in connection with the issuance and sale of the
Securities to the Initial Purchasers and the offer, resale and delivery of
the Securities by the Initial Purchasers in the manner contemplated by this
Agreement, the Time of Sale Information and the Offering Memorandum, to
register the Securities under the Securities Act or to qualify the Indenture
under the Trust Indenture Act.
	 
	 	(xxx)	 	No Stabilization. Escrow Issuer has not taken, directly or
indirectly, any action designed to or that could reasonably be expected to
cause or result in any stabilization or manipulation of the price of the
Securities.
	 
	 	(xxxi)	 	Margin Rules. Neither the issuance, sale and delivery of the Securities
nor the application of the proceeds thereof by Escrow Issuer as described in
each of the Time of Sale Information and the Offering Memorandum will violate
Regulation T, U or X of the Board of Governors of the Federal Reserve System
or any other regulation of such Board of Governors.

 

35

 

	 	(xxxii)	 	Statistical and Market Data. Nothing has come to the attention of Escrow
Issuer that has caused Escrow Issuer to believe that the statistical and
market-related data included or incorporated by reference in each of the Time
of Sale Information and the Offering Memorandum insofar as it relates to
Escrow Issuer or GenOn is not based on or derived from sources that are
reliable and accurate in all material respects.
	 
	 	(xxxiii)	 	Forward-Looking Statements. The forward-looking statements about the
combined company included or incorporated by reference in the Time of Sale
Information and the Offering Memorandum have been made in good faith and
based on assumptions believed to be reasonable at the time made, it being
understood that such forward-looking statements speak only as of the date on
which they were made and are subject to the statements set forth in the
Preliminary Offering Memorandum under the caption “Cautionary statement
regarding forward-looking statements”.

4. Further Agreements of Escrow Issuer, RRI and Mirant. The covenants and
agreements set forth in this Section 4 by (i) Escrow Issuer are limited to the covenants
and agreements relating specifically to Escrow Issuer, (ii) RRI are limited to the
covenants and agreements relating specifically to RRI and (iii) Mirant are limited to the
covenants and agreements relating specifically to Mirant; provided,
however, that Mirant covenants and agrees also to cause its subsidiary, Escrow
Issuer, to perform all covenants and agreements of Escrow Issuer in this Section 4. Each
of Escrow Issuer, RRI and Mirant, severally and not jointly, covenants and agrees with
each Initial Purchaser that:

(a) Delivery of Copies. Each of Escrow Issuer, RRI and Mirant will deliver, without
charge, to the Initial Purchasers as many copies of the Preliminary Offering Memorandum,
any other Time of Sale Information, any Escrow Written Communication, RRI Written
Communication, Mirant Written Communication and the Offering Memorandum (including all
amendments and supplements thereto) as the Representative may reasonably request.

(b) Offering Memorandum, Amendments or Supplements. Before finalizing the Offering
Memorandum or making or distributing any amendment or supplement to any of the Time of
Sale Information or the Offering Memorandum or with respect to Current Reports on Form
8-K, if deemed appropriate in the good faith judgment of RRI or Mirant, as the case may
be, filing with the Commission any document that will be incorporated by reference
therein,
Escrow Issuer, RRI and/or Mirant as applicable, will provide to the Representative and
counsel for the Initial Purchasers will be provided a copy of the proposed Offering
Memorandum or such amendment or supplement or document to be incorporated by reference
therein for review, and each of Escrow Issuer, RRI and Mirant will not distribute any such
proposed Offering Memorandum, amendment or supplement or file any such document with the
Commission to which the Representative reasonably objects.

 

36

 

(c) Additional Written Communications. Before making, preparing, using, authorizing,
approving or referring to any RRI Written Communication, Mirant Written Communication or
Escrow Written Communications, each of Escrow Issuer, RRI and Mirant will furnish to the
Representative and counsel for the Initial Purchasers a copy of such written communication
for review and will not make, prepare, use, authorize, approve or refer to any such
written communication to which the Representative reasonably objects.

(d) Notice to the Representative. Each of Escrow Issuer, RRI and Mirant will advise
the Representative promptly, and confirm such advice in writing, (i) of the issuance by
any governmental or regulatory authority of any order preventing or suspending the use of
any of the Time of Sale Information, any RRI Written Communication, any Mirant Written
Communication, any Escrow Written Communication or the Offering Memorandum or the
initiation or threatening of any proceeding for that purpose; and (ii) of the occurrence
of any event at any time prior to the completion of the initial offering of the Securities
as a result of which any of the Time of Sale Information, any RRI Written Communication,
any Mirant Written Communication, any Escrow Written Communication or the Offering
Memorandum as then amended or supplemented would include any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances existing when such Time of Sale Information,
RRI Written Communication, Mirant Written Communication, Escrow Written Communication or
the Offering Memorandum is delivered to a purchaser, not misleading; and (iii) of the
receipt by Escrow Issuer, RRI or Mirant of any notice with respect to any suspension of
the qualification of the Securities for offer and sale in any jurisdiction or the
initiation or threatening of any proceeding for such purpose; and Escrow Issuer, RRI and
Mirant will use their reasonable best efforts to prevent the issuance of any such order
preventing or suspending the use of any of the Time of Sale Information, any RRI Written
Communication, Mirant Written Communication, Escrow Written Communication or the Offering
Memorandum or suspending any such qualification of the Securities and, if any such order
is issued, will obtain as soon as possible the withdrawal thereof.

(e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which any of the Time of Sale
Information as then amended or supplemented would include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading or
(ii) it is necessary to amend or supplement any of the Time of Sale Information to comply
with applicable law, each of Escrow Issuer, RRI and Mirant will immediately notify the
Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above,
furnish to the Initial Purchasers such amendments or supplements to any of the Time of
Sale Information (or any document to be filed with the Commission and incorporated by
reference therein) as may be necessary so that the statements in
any of the Time of Sale Information as so amended or supplemented will not, in the light
of the circumstances under which they were made, be misleading or so that any of the Time
of Sale Information will comply with applicable law.

 

37

 

(f) Ongoing Compliance of the Offering Memorandum. If at any time prior to the
completion of the initial offering of the Securities (i) any event shall occur or
condition shall exist as a result of which the Offering Memorandum as then amended or
supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements therein, in the light of the
circumstances existing when the Offering Memorandum is delivered to a purchaser, not
misleading or (ii) it is necessary to amend or supplement the Offering Memorandum to
comply with applicable law, each of Escrow Issuer, RRI and Mirant will immediately notify
the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above,
furnish to the Initial Purchasers such amendments or supplements to the Offering
Memorandum (or any document to be filed with the Commission and incorporated by reference
therein) as may be necessary so that the statements in the Offering Memorandum as so
amended or supplemented (including such document to be incorporated by reference therein)
will not, in the light of the circumstances existing when the Offering Memorandum is
delivered to a purchaser, be misleading or so that the Offering Memorandum will comply
with applicable law.

(g) Blue Sky Compliance. Escrow Issuer will qualify the Securities for offer and
sale under the securities or Blue Sky laws of such jurisdictions as the Representative
shall reasonably request and will continue such qualifications in effect so long as
required for the offering and resale of the Securities; provided that Escrow
Issuer shall not be required to (i) qualify as a foreign corporation or other entity or as
a dealer in securities in any such jurisdiction where it would not otherwise be required
to so qualify, (ii) file any general consent to service of process in any such
jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not
otherwise so subject.

(h) Clear Market. During the period from the date hereof through and including the
date that is 60 days after the date hereof, none of Escrow Issuer, RRI or Mirant will and
will not permit their respective subsidiaries (except for Mirant Marsh Landing, LLC),
without the prior written consent of the Representative, to offer, sell, contract to sell
or otherwise dispose of in any transaction required to be registered under the Securities
Act or pursuant to Rule 144A any debt securities (for the avoidance of doubt, excluding
the Credit Facility) issued or guaranteed by Escrow Issuer, RRI or Mirant or any of their
respective subsidiaries and having a term of more than one year provided, however, that
the foregoing restriction shall not apply to the issuance of letters of credit or any
other refinancing transaction described in the Preliminary Offering Memorandum.

(i) Use of Proceeds. Escrow Issuer and RRI, as applicable, will apply the net
proceeds from the sale of the Securities released to Escrow Issuer, from the Escrow
Account in the manner described in each of the Time of Sale Information and the Offering
Memorandum under the heading “Use of proceeds”.

(j) Supplying Information. While the Securities remain outstanding and are
“restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act,
each of Escrow Issuer and RRI, as applicable, will, during any period in which Escrow
Issuer or RRI is not subject to and in compliance with Section 13 or 15(d) of the Exchange
Act, furnish to holders of the Securities and prospective purchasers of the Securities
designated by such holders, upon the request of such holders or such prospective
purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the
Securities Act.

(k) DTC. Escrow Issuer will assist the Initial Purchasers in arranging for the
Securities to be eligible for clearance and settlement through DTC.

 

38

 

(l) No Resales. None of Escrow Issuer, RRI or Mirant, will, and will not permit any
of their affiliates (as defined in Rule 144 under the Securities Act) to, resell any of
the Securities that have been acquired by any of them, except for Securities purchased by
Escrow Issuer, RRI, Mirant or any of their respective affiliates and resold in a
transaction registered under the Securities Act.

(m) No Integration. None of Escrow Issuer, RRI, Mirant or any of their respective
affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any
agent, sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of,
any security (as defined in the Securities Act), that is or will be integrated with the
sale of the Securities in a manner that would require registration of the Securities under
the Securities Act.

(n) No General Solicitation or Directed Selling Efforts. None of Escrow Issuer, RRI,
Mirant, or any of their respective affiliates or any other person acting on their behalf
(other than the Initial Purchasers, as to which no covenant is given) will (i) solicit
offers for, or offer or sell, the Securities by means of any form of general solicitation
or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner
involving a public offering within the meaning of Section 4(2) of the Securities Act or
(ii) engage in any directed selling efforts within the meaning of Regulation S, and all
such persons will comply with the offering restrictions requirement of Regulation S.

(o) No Stabilization. None of Escrow Issuer, RRI or Mirant will take, directly or
indirectly, any action designed to or that could reasonably be expected to cause or result
in any stabilization or manipulation of the price of the Securities.

(p) Escrow Security Interest Perfection. The parties to the Escrow Agreement intend
to create a true escrow, with Escrow Issuer having no ownership of, or rights in, the
Escrow Account and all the assets therein other than the limited contractual right to
receive the Special Redemption Price (as defined in the Escrow Agreement). In the event
that the Escrow Agreement does not, as intended by the parties, create a true escrow, and
Escrow Issuer is determined to have any interest in the Escrow Account or the assets
therein, each of Escrow Issuer, RRI and Mirant will (i) complete or deliver to the Escrow
Agent on the Closing Date all filings and take all other similar actions required by it in
connection with the perfection of the security interests to be granted in the Escrow
Property under the Escrow Agreement as and only to the extent required by the Escrow
Agreement and the Indenture and (ii) take all actions to maintain
such security interests and to perfect such security interests in any Escrow Property, in
each case as and only to the extent required by the Escrow Agreement and the Indenture.

(q) Escrow Merger Agreement. Unless the Special Mandatory Redemption Payment is
made, each of Escrow Issuer and RRI will execute and deliver the Escrow Merger Agreement
and Mirant will approve the Escrow Merger Agreement as sole stockholder of Escrow Issuer
prior to the Merger Closing Date.

 

39

 

5. Certain Agreements of the Initial Purchasers. Each Initial Purchaser
hereby represents and agrees that it has not and will not use, authorize use of, refer to,
or participate in the planning for use of, any written communication that constitutes an
offer to sell or the solicitation of an offer to buy the Securities other than (i) the
Preliminary Offering Memorandum and the Offering Memorandum, (ii) a written communication
that contains no “issuer information” (as defined in Rule 433(h)(2) under the Securities
Act) that was not included (including through incorporation by reference) in the
Preliminary Offering Memorandum or the Offering Memorandum, (iii) any written
communication listed on Annex A or prepared pursuant to Section 4(c) above
(including any electronic road show), (iv) any written communication prepared by such
Initial Purchaser and approved by each of Escrow Issuer, RRI and Mirant in advance in
writing or (v) any written communication relating to or that contains the terms of the
Securities and/or other information that was included (including through incorporation by
reference) in the Preliminary Offering Memorandum or the Offering Memorandum.

6. Conditions of Initial Purchasers’ Obligations. The obligation of each
Initial Purchaser to purchase Securities on the Closing Date as provided herein is subject
to the performance by Escrow Issuer, RRI and Mirant of their respective covenants and
other obligations hereunder and to the following additional conditions:

(a) Representations and Warranties. The representations and warranties of each of
Escrow Issuer, RRI and Mirant contained herein shall be true and correct on the date
hereof and on the Closing Date; and the statements of Escrow Issuer, RRI, Mirant and their
respective officers made in any certificates delivered pursuant to this Agreement shall be
true and correct on the Closing Date.

(b) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the
execution and delivery of this Agreement, (i) no downgrading shall have occurred in the
rating accorded the Securities or any other debt securities or preferred stock issued or
guaranteed by Escrow Issuer, RRI, Mirant or any of their respective subsidiaries (except
relating to securities that are being discharged or defeased) by any nationally recognized
statistical rating organization; and (ii) no such organization shall have publicly
announced that it has under surveillance or review, or has changed its outlook with
respect to its rating of the Securities or of any other debt securities or preferred stock
issued or guaranteed by Escrow Issuer, RRI, Mirant or any of their respective
subsidiaries (other than an announcement with positive implications of a possible
upgrading).

(c) No Termination of Merger Agreement. Neither RRI, on the one hand, nor Mirant, on
the other hand, shall have terminated the Merger Agreement or delivered a written notice
to the other party stating their intent to terminate the Merger Agreement.

(d) No Material Adverse Change. No event or condition of a type described in
Sections 3(a)(v), 3(b)(v) or 3(c)(iv) hereof shall have occurred or shall exist, which
event or condition is not described in each of the Time of Sale Information (excluding any
amendment or supplement thereto) and the Offering Memorandum (excluding any amendment or
supplement thereto) the effect of which in the judgment of the Representative makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the
Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale
Information and the Offering Memorandum.

 

40

 

(e) Officers’ Certificates. A. The Representative shall have received on the Closing
Date a certificate of the Chief Financial Officer and the Treasurer or such other officer
of RRI as is reasonably satisfactory to the Representative (i) confirming that such
officers have carefully reviewed the Time of Sale Information and the Offering Memorandum
and, to the knowledge of such officers, the representations set forth in Sections 3(a)(i)
and 3(a)(ii) hereof are true and correct, (ii) confirming that the other representations
and warranties of RRI in this Agreement are true and correct and that RRI has complied
with all agreements and satisfied all conditions on its part to be performed or satisfied
hereunder at or prior to the Closing Date and (iii) subsequent to the earlier of (A) the
Time of Sale and (B) the execution and delivery of this Agreement (x) no downgrading has
occurred in the rating accorded the Securities or any other debt securities or preferred
stock issued or guaranteed by RRI or any of its subsidiaries (except relating to
securities that are being discharged or defeased) by any nationally recognized statistical
rating organization; and (y) no such organization has publicly announced that it has under
surveillance or review, or has changed its outlook with respect to its rating of the
Securities or of any other debt securities or preferred stock issued or guaranteed by RRI
or any of its subsidiaries (other than an announcement with positive implications of a
possible upgrading).

B. The Representative shall have received on the Closing Date a management letter of
the Chief Financial Officer of RRI with respect to the numbers on the pages of the
Preliminary Offering Memorandum attached thereto to the effect set forth in Annex
E hereto.

C. The Representative shall have received on the Closing Date a certificate of the
Chief Financial Officer and the Treasurer or such other officer of Mirant as is reasonably
satisfactory to the Representative (i) confirming that such officers have carefully
reviewed the Time of Sale Information and the Offering Memorandum and, to the knowledge of
such officers, the representations set forth in Sections 3(b)(i) and 3(b)(ii) hereof are
true and correct, (ii) confirming that the other representations and warranties of Mirant
in this Agreement are true and correct and that Mirant has complied with all agreements
and satisfied all conditions on their part to be performed or satisfied hereunder at or
prior to the Closing Date and (iii) subsequent to the earlier of (A) the Time of Sale and
(B) the execution and delivery of this Agreement (x) no downgrading has occurred in the
rating accorded the Securities or any other debt securities or preferred stock issued or
guaranteed by Mirant or any of its subsidiaries (except relating to securities that are
being discharged or defeased) by any nationally recognized statistical rating
organization; and (y) no such organization has publicly announced that it has under
surveillance or review, or has changed its outlook with respect to its rating of the
Securities or of any other debt securities or preferred stock issued or guaranteed by
Mirant or any of its subsidiaries (other than an announcement with positive implications
of a possible upgrading).

D. The Representative shall have received on the Closing Date a certificate of the
Chief Financial Officer, Treasurer or such other officer of Escrow Issuer as is reasonably
satisfactory to the Representative (i) confirming that such officer has carefully reviewed
the Time of Sale Information and the Offering Memorandum and, to the knowledge of such
officer, the representations set forth in Sections 3(c)(i) and 3(c)(ii) hereof are true
and correct, (ii) confirming that the other representations and warranties of Escrow
Issuer and GenOn in this Agreement are true and correct and that Escrow Issuer has
complied with all agreements and satisfied all conditions on their part to be performed or
satisfied hereunder at or prior to the Closing Date and (iii) subsequent to the earlier of
(A) the Time of Sale and (B) the execution and delivery of this Agreement (x) no
downgrading has occurred in the rating accorded the Securities or any other debt
securities or preferred stock issued or guaranteed by Escrow Issuer by any nationally
recognized statistical rating organization; and (y) no such organization has publicly
announced that it has under surveillance or review, or has changed its outlook with
respect to its rating of the Securities or of any other debt securities or preferred stock
issued or guaranteed by Escrow Issuer (other than an announcement with positive
implications of a possible upgrading).

 

41

 

(f) Comfort Letters. A. On the date of this Agreement and on the Closing Date, KPMG
LLP shall have furnished to the Representative, at the request of RRI, letters, dated the
respective dates of delivery thereof and addressed to the Initial Purchasers, in form and
substance reasonably satisfactory to the Representative, containing statements and
information of the type customarily included in accountants’ “comfort letters” to
underwriters with respect to the financial statements and certain financial information
contained or incorporated by reference in each of the Time of Sale Information and the
Offering Memorandum; provided that the letter delivered on the Closing Date shall
use a “cut-off” date no more than three business days prior to the Closing Date.

B. On the date of this Agreement and on the Closing Date, KPMG LLP shall have
furnished to the Representative, at the request of Mirant, letters, dated the respective
dates of delivery thereof and addressed to the Initial Purchasers, in form and substance
reasonably satisfactory to the Representative, containing statements and information of
the type customarily included in accountants’ “comfort letters” to underwriters with
respect to the financial statements and certain financial information contained or
incorporated by reference in each of the Time of Sale Information and the Offering
Memorandum; provided that the letter delivered on the Closing Date shall use a
“cut-off” date no more than three business days prior to the Closing Date.

(g) Opinions and Letter for Escrow Issuer, RRI and Mirant. Skadden, Arps, Slate,
Meagher & Flom LLP, counsel for Escrow Issuer, RRI and Mirant, shall have furnished to the
Representative, at the request of Escrow Issuer, RRI and Mirant, its written opinion,
negative assurance letter, tax opinion and UCC opinion dated the Closing Date and
addressed to the Initial
Purchasers, in form and substance reasonably satisfactory to the Representative, to the
effect set forth in Annex D-1, 2, 3 and 4 hereto.

(h) Opinion and Letter for the Initial Purchasers. The Representative shall have
received on and as of the Closing Date an opinion and 10b-5 statement of Simpson Thacher &
Bartlett LLP, counsel for the Initial Purchasers, with respect to such matters as the
Representative may reasonably request, and such counsel shall have received such documents
and information as they may reasonably request to enable them to pass upon such matters.

(i) No Legal Impediment to Issuance. No action shall have been taken and no statute,
rule, regulation or order shall have been enacted, adopted or issued by any federal, state
or foreign governmental or regulatory authority that would, as of the Closing Date,
prevent the issuance or sale of the Securities; and no injunction or order of any federal,
state or foreign court shall have been issued that would, as of the Closing Date, prevent
the issuance or sale of the Securities.

 

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(j) Good Standing. The Representative shall have received on and as of the Closing
Date satisfactory evidence of the good standing of Escrow Issuer, RRI, each RRI
Significant Subsidiary, Mirant and each Mirant Significant Subsidiary in their respective
jurisdictions of organization and, in each case in writing or any standard form of
telecommunication, from the appropriate governmental authorities of such jurisdictions.

(k) Escrow Agreement, Escrow Deposit and Perfection of Security Interests. The
Initial Purchasers shall have received a counterpart of the Escrow Agreement in form and
substance reasonably satisfactory to the Representative, which Escrow Agreement shall have
been duly executed and delivered by a duly authorized officer of Escrow Issuer. The
Initial Purchasers shall have received evidence that the Escrow Account has been
established and the Additional Escrow Amount shall have been deposited or on the Closing
Date will be concurrently deposited into the Escrow Account. To the extent Escrow Issuer
is determined to have any interest in the Escrow Account or the assets therein and only to
the extent required by the Escrow Agreement and the Indenture, the actions to perfect such
security interests in any Escrow Property shall have been taken.

(l) Registration Rights Agreement. The Initial Purchasers shall have received a
conformed counterpart of the Registration Rights Agreement in form and substance
reasonably satisfactory to the Representative, which Registration Rights Agreement shall
have been duly executed and delivered by a duly authorized officer of RRI and which shall
provide that such Registration Rights Agreement shall become effective on the Merger
Closing Date.

(m) The Securities Indenture and Securities. The Securities Indenture shall have
been duly executed and delivered by a duly authorized officer of each of Escrow Issuer and
the Trustee, and the Securities shall have been duly executed and delivered by a duly
authorized officer of Escrow Issuer and duly authenticated by the Trustee.

(n) DTC. The Securities shall be eligible for clearance and settlement through DTC.

(o) Additional Documents. At or prior to the Closing Date, Escrow Issuer, RRI and
Mirant shall have furnished to the Representative such further certificates and documents
as the Representative may reasonably request.

All opinions, letters, certificates and evidence mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are
in form and substance reasonably satisfactory to counsel for the Initial Purchasers.

 

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7. Indemnification and Contribution.

(a) Indemnification of the Initial Purchasers. Escrow Issuer agrees (it being
understood that, after the Mergers, GenOn will assume all of the obligations of Escrow
Issuer) to indemnify and hold harmless each Initial Purchaser, its affiliates, directors
and officers and each person, if any, who controls such Initial Purchaser within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an
“Initial Purchaser Indemnified Person”), from and against any and all losses,
claims, damages and liabilities (including, without limitation, reasonable legal fees and
other expenses incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred) (collectively, the “Losses”),
that arise out of, or are based upon, any untrue statement or alleged untrue statement of
a material fact contained in the Preliminary Offering Memorandum, any of the other Time of
Sale Information, any Escrow Written Communication, RRI Written Communication, Mirant
Written Communication or the Offering Memorandum (or any amendment or supplement thereto)
(collectively, the “Indemnification Documents”) or any omission or alleged
omission to state therein a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading, in
each case except insofar as such losses, claims, damages or liabilities arise out of, or
are based upon, any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information relating to any Initial
Purchaser furnished to Escrow Issuer, RRI and Mirant in writing by such Initial Purchaser
through the Representative expressly for use therein; provided, however, that, if, prior
to the closing of the Merger, (i) any Losses arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission in any information relating
solely to RRI (in the good faith determination of the Representative (after consultation
with outside counsel to the Representative) in the absence of any final judgment of a
court) contained in or omitted from, or allegedly contained in or omitted from, the
Indemnification Documents, then, at the option of the Representative, RRI (in lieu of
Escrow Issuer) agrees to provide the indemnification provided in this Section 7(a) only to
the extent of such Losses, (ii) any Losses arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission in any information relating
solely to Mirant (in the good faith determination of the Representative (after
consultation with outside counsel to the Representative) in the absence of any final
judgment of a court) contained in or omitted from, or allegedly contained in or omitted
from, the Indemnification Documents, then, at the option of the Representative, Mirant (in
lieu of Escrow Issuer) agrees to provide the indemnification provided in this Section 7(a)
only to the extent of such Losses, or (iii) (x) any Losses arise out of, or are based
upon, any untrue statement or omission or alleged untrue statement or omission in any
information relating neither solely to RRI nor solely to Mirant and (y) Escrow Issuer’s
indemnification under this Section 7(a) is insufficient in respect of such Losses, then
RRI agrees
to provide indemnification of 50% of the remaining balance of such Losses and Mirant
agrees to provide indemnification of the other 50% of such balance (it being understood
that the indemnification is this clause (iii) is not joint and several and RRI shall have
no liability for Mirant’s failure to fully indemnify under this clause (iii) and Mirant
shall have no liability for RRI’s failure to fully indemnify under this clause (iii)).

(b) Indemnification of Escrow Issuer, RRI and Mirant. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless Escrow Issuer, RRI, Mirant, each
of their respective directors and officers and each person, if any, who controls Escrow
Issuer, RRI or Mirant within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above,
but only with respect to any Losses that arise out of, or are based upon, any untrue
statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with any information relating to such Initial Purchaser furnished to Escrow
Issuer, RRI and Mirant in writing by such Initial Purchaser through the Representative
expressly for use in the Indemnification Documents, it being understood and agreed that
the only such information consists of the following: the third paragraph, the fourth and
fifth sentences of the seventh paragraph, and the eighth paragraph, in each case, found
under the heading “Plan of distribution” in the Preliminary Offering Memorandum and the
Offering Memorandum.

 

44

 

(c) Notice and Procedures. If any suit, action, proceeding (including any
governmental or regulatory investigation), claim or demand (collectively, a
“proceeding”) shall be brought or asserted against any person in respect of which
indemnification may be sought pursuant to paragraph (a) or (b) above, such person (the
“Indemnified Person”) shall promptly notify the person against whom such
indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person shall not relieve it
from any liability that it may have under paragraph (a) or (b) above except to the extent
that it has been materially prejudiced (through the forfeiture of substantive rights or
defenses) by such failure; and provided, further, that the failure to
notify the Indemnifying Person shall not relieve it from any liability that it may have to
an Indemnified Person otherwise than under paragraph (a) or (b) above. If any such
proceeding shall be brought or asserted against an Indemnified Person and it shall have
notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of
the Indemnified Person, be counsel to the Indemnifying Person) to represent the
Indemnified Person and any others entitled to indemnification pursuant to this Section 7
that the Indemnifying Person may designate in such proceeding and shall pay the fees and
expenses of such proceeding and shall pay the reasonable fees and expenses of such counsel
related to such proceeding, as incurred. In any such proceeding, any Indemnified Person
shall have the right to retain its own counsel, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and
the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying
Person has failed within a reasonable time to retain counsel reasonably satisfactory to
the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or in addition to
those available to the Indemnifying Person; or (iv) the named parties in any such
proceeding (including any impleaded parties) include both the Indemnifying Person and the
Indemnified Person and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is
understood and agreed that the Indemnifying Person shall not, in connection with any
proceeding or related proceeding in the same jurisdiction, be liable for the fees and
expenses of more than one separate firm (in addition to any local counsel) for all
Indemnified Persons, and that all such fees and expenses shall be reimbursed as they are
incurred. Any such separate firm for any Initial Purchaser, its affiliates, directors and
officers and any control persons of such Initial Purchaser shall be designated in writing
by J.P. Morgan Securities LLC and any such separate firm for Escrow Issuer, RRI and/or
Mirant, as applicable, their respective directors and officers and any control persons of
Escrow Issuer, RRI and/or Mirant, as applicable, shall be designated in writing by Escrow
Issuer, RRI and/or Mirant, as applicable, before the closing of the Merger and by GenOn
after the closing of the Merger. The Indemnifying Person shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with
such consent or if there be a final judgment for the plaintiff, the Indemnifying Person
agrees to indemnify each Indemnified Person from and against any loss or liability by
reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any
time an Indemnified Person shall have requested that an Indemnifying Person reimburse the
Indemnified Person for fees and expenses of counsel as contemplated by this paragraph, the
Indemnifying Person shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 45 days after receipt
by the Indemnifying Person of such request and (ii) the Indemnifying Person shall not have
reimbursed the Indemnified Person in accordance with such request prior to the date of
such settlement and (iii) such Indemnified Party shall have given the Indemnifying Party
at least 45 days’ prior notice of its intention to settle. No Indemnifying Person shall,
without the written consent of the Indemnified Person, effect any settlement of any
pending or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such Indemnified
Person, unless such settlement (x) includes an unconditional release of such Indemnified
Person, in form and substance reasonably satisfactory to such Indemnified Person, from all
liability on claims that are the subject matter of such proceeding and (y) does not
include any statement as to or any admission of fault, culpability or a failure to act by
or on behalf of any Indemnified Person.

 

45

 

(d) Contribution. If the indemnification provided for in paragraphs (a) or (b) above
is unavailable to an Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then each Indemnifying Person under such
paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such losses, claims,
damages or liabilities (i) in such proportion as is appropriate to reflect the relative
benefits received by Escrow Issuer, RRI and Mirant on the one hand and the Initial
Purchasers on the other from the offering of the Securities or (ii) if the allocation
provided by clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) but also
the relative fault of Escrow Issuer, RRI and Mirant on the one hand and the Initial
Purchasers on the other in connection with the statements or omissions that resulted in
such losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative benefits received by Escrow Issuer, RRI and Mirant on the
one hand and the Initial Purchasers on the other shall be deemed to be in the same
respective proportions as the net proceeds (before deducting expenses) received by Escrow
Issuer and/or RRI from the sale of the Securities and the total discounts and commissions
received by the Initial Purchasers in
connection therewith, as provided in this Agreement, bear to the aggregate offering price
of the Securities. The relative fault of Escrow Issuer, RRI and Mirant on the one hand
and the Initial Purchasers on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission
or alleged omission to state a material fact relates to information supplied by Escrow
Issuer, RRI and Mirant or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or
omission.

(e) Limitation on Liability. Escrow Issuer, RRI, Mirant and the Initial Purchasers
agree that it would not be just and equitable if contribution pursuant to this Section 7
were determined by pro rata allocation (even if the Initial Purchasers
were treated as one entity for such purpose) or by any other method of allocation that
does not take account of the equitable considerations referred to in paragraph (d) above.
The amount paid or payable by an Indemnified Person as a result of the losses, claims,
damages and liabilities referred to in paragraph (e) above shall be deemed to include,
subject to the limitations set forth above, any legal or other expenses incurred by such
Indemnified Person in connection with any such action or claim. Notwithstanding the
provisions of this Section 7, in no event shall an Initial Purchaser be required to
contribute any amount in excess of the amount by which the total discounts and commissions
received by such Initial Purchaser with respect to the offering of the Securities exceeds
the amount of any damages that such Initial Purchaser has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of
such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute
pursuant to this Section 7 are several in proportion to their respective purchase
obligations hereunder and not joint.

 

46

 

(f) Non-Exclusive Remedies. The remedies provided for in this Section 7 are not
exclusive and shall not limit any rights or remedies that may otherwise be available to
any Indemnified Person at law or in equity.

8. Termination. This Agreement may be terminated in the absolute discretion
of the Representative, by notice to Escrow Issuer, RRI and Mirant if after the execution
and delivery of this Agreement and on or prior to the Closing Date (i) trading generally
shall have been suspended or materially limited on the New York Stock Exchange or the
over-the-counter market; (ii) trading of any securities issued or guaranteed by any of
Escrow Issuer, RRI or Mirant or their respective subsidiaries shall have been suspended on
any exchange or in any over-the-counter market; (iii) a general moratorium on commercial
banking activities shall have been declared by federal or New York State authorities or a
material disruption in commercial banking or securities settlement or clearance services
in the United States shall have occurred; or (iv) there shall have occurred any outbreak
or escalation of hostilities or any change in financial markets or any calamity or crisis,
either within or outside the United States, that, in the judgment of the Representative,
is material and adverse and makes it impracticable or inadvisable to proceed with the
offering, sale or delivery, of the Securities on the terms and in the manner contemplated
by this Agreement, the Time of Sale Information and the Offering Memorandum.

9. Defaulting Initial Purchaser. (a) If, on the Closing Date, any Initial
Purchaser defaults on its obligation to purchase the Securities that it has agreed to
purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange
for the purchase of such Securities by other persons satisfactory to RRI and Mirant on the
terms contained in this Agreement. If, within 36 hours after any such default by any
Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase
of such Securities, then RRI and Mirant shall be entitled to a further period of 36 hours
within which to procure other persons satisfactory to the non-defaulting Initial
Purchasers to purchase such Securities on such terms. If other persons become obligated
or agree to purchase the Securities of a defaulting Initial Purchaser, either the
non-defaulting Initial Purchasers or RRI and Mirant may postpone the Closing Date for up
to five full business days in order to effect any changes that in the opinion of counsel
for RRI and Mirant or counsel for the Initial Purchasers may be necessary in the Time of
Sale Information, the Offering Memorandum or in any other document or arrangement, and RRI
and Mirant agree to promptly prepare any amendment or supplement to the Time of Sale
Information or the Offering Memorandum that effects any such changes. As used in this
Agreement, the term “Initial Purchaser” includes, for all purposes of this
Agreement unless the context otherwise requires, any person not listed in Schedule
1 hereto that, pursuant to this Section 9, purchases Securities that a defaulting
Initial Purchaser agreed but failed to purchase.

 

47

 

(b) If, after giving effect to any arrangements for the purchase of the Securities of
a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial
Purchasers and RRI and Mirant as provided in paragraph (a) above, the aggregate principal
amount of such Securities that remains unpurchased does not exceed one-eleventh of the
aggregate principal amount of all the Securities, then Escrow Issuer, RRI and Mirant shall
have the right to require each non-defaulting Initial Purchaser to purchase the principal
amount of Securities that such Initial Purchaser agreed to purchase hereunder plus such
Initial Purchaser’s pro rata share (based on the principal amount of
Securities that such Initial Purchaser agreed to purchase hereunder) of the Securities of
such defaulting Initial Purchaser or Initial Purchasers for which such arrangements have
not been made.

(c) If, after giving effect to any arrangements for the purchase of the Securities of
a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial
Purchasers and RRI and Mirant as provided in paragraph (a) above, the aggregate principal
amount of such Securities that remains unpurchased exceeds one-eleventh of the aggregate
principal amount of all the Securities, or if RRI and Mirant shall not exercise the right
described in paragraph (b) above, then this Agreement shall terminate without liability on
the part of the non-defaulting Initial Purchasers. Any termination of this Agreement
pursuant to this Section 9 shall be without liability on the part of RRI and Mirant,
except that RRI and Mirant will continue to be liable for the payment of expenses as set
forth in Section 10 hereof and except that the provisions of Section 7 hereof shall not
terminate and shall remain in effect.

(d) Nothing contained herein shall relieve a defaulting Initial Purchaser of any
liability it may have to Escrow Issuer, RRI and Mirant or any non-defaulting Initial
Purchaser for damages caused by its default.

10. Payment of Expenses. (a) Whether or not the transactions contemplated
by this Agreement are consummated or this Agreement is terminated, Escrow Issuer, RRI and
Mirant
jointly and severally agree to pay or cause to be paid all costs and expenses incident to
the performance of their respective obligations hereunder, including without limitation,
(i) the costs incident to the authorization, issuance, sale, preparation and delivery of
the Securities and any taxes payable in connection therewith; (ii) the costs incident to
the preparation and printing of the Preliminary Offering Memorandum, any other Time of
Sale Information, any RRI Written Communication, any Mirant Written Communication, any
Escrow Written Communication and the Offering Memorandum (including any amendment or
supplement thereto) and the distribution thereof; (iii) the costs of reproducing and
distributing each of the RRI Transaction Documents, the Mirant Transaction Documents, the
Escrow Issuer Transaction Documents and the fees and expenses attributable to creating and
perfecting the security interest in the Escrow Agreement; (iv) the fees and expenses of
RRI’s, Mirant’s and Escrow Issuer’s counsel and independent accountants; (v) the fees and
expenses incurred in connection with the registration or qualification and determination
of eligibility for investment of the Securities under the laws of such jurisdictions as
the Representative may designate and the preparation, printing and distribution of a Blue
Sky Memorandum (including the related fees and expenses of counsel for the Initial
Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the
fees and expenses of the Trustee, any paying agent and the Escrow Agent (including related
fees and expenses of any counsel to such parties); (viii) all expenses and application
fees incurred in connection with the approval of the Securities for book-entry transfer by
DTC; and (ix) all expenses incurred by the Escrow Issuer, RRI and Mirant in connection
with any “road show” presentation to potential investors; provided that
the Initial Purchasers will pay, except as contemplated in clause (v) above, their own
counsel fees and their own travel expenses in connection with any “road show” presentation
to potential investors, including 50% of the cost of any chartered aircraft.

 

48

 

(b) If (i) this Agreement is terminated pursuant to Section 8, (ii) Escrow Issuer for
any reason fails to tender the Securities for delivery to the Initial Purchasers or (iii)
the Initial Purchasers decline to purchase the Securities for any reason permitted under
this Agreement, Escrow Issuer, RRI and Mirant, jointly and severally, agree to reimburse
the Initial Purchasers for all out-of-pocket costs and expenses (including the fees and
expenses of their counsel) reasonably incurred by the Initial Purchasers in connection
with this Agreement and the offering contemplated hereby.

11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective successors and
any controlling persons referred to herein, and the affiliates, officers and directors of
each Initial Purchaser referred to in Section 7 hereof. Nothing in this Agreement is
intended or shall be construed to give any other person any legal or equitable right,
remedy or claim under or in respect of this Agreement or any provision contained herein.
No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor
merely by reason of such purchase.

12. Survival. The respective indemnities, rights of contribution,
representations, warranties and agreements of Escrow Issuer, RRI and Mirant and the
Initial Purchasers contained in this Agreement or made by or on behalf of Escrow Issuer,
RRI and Mirant or the Initial Purchasers pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the Securities and
shall remain in full force and effect, regardless of any
termination of this Agreement or any investigation made by or on behalf of Escrow
Issuer, RRI and Mirant or the Initial Purchasers.

13. Certain Defined Terms. For purposes of this Agreement, (a) except where
otherwise expressly provided, the term “affiliate” has the meaning set forth in Rule 405
under the Securities Act; (b) the term “business day” means any day other than a day on
which banks are permitted or required to be closed in New York City; (c) the term
“Exchange Act” means the Securities Exchange Act of 1934, as amended; (d) the term
“subsidiary” has the meaning set forth in Rule 405 under the Securities Act; and (e) the
term “written communication” has the meaning set forth in Rule 405 under the Securities
Act. For the avoidance of doubt, the phrase “transactions contemplated by”, with respect
to each of this Agreement, the RRI Transaction Documents, the Mirant Transaction Documents
and the Escrow Issuer Transaction Documents, shall exclude the Merger and the Credit
Agreement.

 

49

 

14. Miscellaneous. (a) Authority of the Representative. Any action by the
Initial Purchasers hereunder may be taken by J.P. Morgan Securities LLC on behalf of the
Initial Purchasers, and any such action taken by J.P. Morgan Securities LLC shall be
binding upon the Initial Purchasers.

(b) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Initial Purchasers shall be given to
the Representative c/o J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179
(fax: (212)-270-1063); Attention: Lawrence Landry. Notices to Escrow Issuer, RRI and
Mirant shall be given to them at (i) RRI at (A) RRI Energy, Inc., 1000 Main Street,
Houston, TX 77002 (fax: (832) 357-2032), Attention: General Counsel, (B) with a copy for
information purposes only to Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square,
New York, NY 10036 (fax: 917-777-4112), Attention: Richard Aftanas and (ii) Escrow Issuer
and Mirant at (A) Mirant Corporation, 1155 Perimeter Center West, Suite 100, Atlanta, GA
30338 (fax: (678) 579-5951), Attention: General Counsel and (B) with a copy for
information purposes only to Wachtell, Lipton, Rosen & Katz, 51 West 52nd
Street, New York, NY 10019 (fax: (212) 403-2364), Attention: Gregory E. Ostling.

(c) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

(d) Counterparts. This Agreement may be signed in counterparts (which may include
counterparts delivered by any standard form of telecommunication), each of which shall be
an original and all of which together shall constitute one and the same instrument.

(e) Amendments or Waivers. No amendment or waiver of any provision of this
Agreement, nor any consent or approval to any departure therefrom, shall in any event be
effective unless the same shall be in writing and signed by the parties hereto.

(f) Headings. The headings herein are included for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.

(g) Patriot Act. In accordance with the requirements of the USA Patriot Act (Title
III of Pub. L. 107-56 (signed into law October 26, 2001)), the Initial Purchasers are
required to obtain, verify and record information that identifies their respective
clients, including Escrow Issuer, which information may include the name and address of
their respective clients, as well as other information that will allow the Initial
Purchasers to properly identify their respective clients.

 

50

 

If the foregoing is in accordance with your understanding, please indicate your
acceptance of this Agreement by signing in the space provided below.

	 	 	 	 	 
	 	Very truly yours,

GenOn Escrow Corp.

 	 
	 	By:  	/s/ G. Gary Garcia
 	 
	 	 	Name:  	G. Gary Garcia 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	RRI Energy, Inc.

 	 
	 	By:  	/s/ Andrew Johannesen
 	 
	 	 	Name:  	Andrew Johannesen 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	Mirant Corporation

 	 
	 	By:  	/s/ J. William Holden III
 	 
	 	 	Name:  	J. William Holden III 	 
	 	 	Title:  	Senior Vice President

and Chief Financial Officer 	 

 

51

 

Accepted: September 20, 2010

J.P. MORGAN SECURITIES LLC

For itself and on behalf of the

several Initial Purchasers listed

in Schedule 1 hereto.

	 	 	 	 	 
	By:

	 	/s/ Mark H. Radin
 

Authorized Signatory
	 	 

 

52

 

Schedule 1

	 	 	 	 	 	 	 	 	 
	 	 	Principal Amount	 	 	Principal Amount	 
	 	 	of 2018 Notes to	 	 	of 2020 Notes to Be	 
	Initial Purchasers	 	Be Purchased	 	 	Purchased	 
	 
	J.P. Morgan Securities LLC
	 	US$	137,700,000	 	 	US$	112,200,000	 
	Credit Suisse (USA) Securities LLC
	 	 	109,012,500	 	 	 	88,825,000	 
	Deutsche Bank Securities Inc.
	 	 	109,012,500	 	 	 	88,825,000	 
	Goldman, Sachs & Co.
	 	 	109,012,500	 	 	 	88,825,000	 
	Morgan Stanley & Co. Incorporated
	 	 	109,012,500	 	 	 	88,825,000	 
	RBC Capital Markets Corporation
	 	 	50,625,000	 	 	 	41,250,000	 
	RBS Securities Inc.
	 	 	50,625,000	 	 	 	41,250,000	 
	 
	 	 	 	 	 	 
	Total
	 	US$	675,000,000	 	 	US$	550,000,000	 
	 
	 	 	 	 	 	 

 

53

 

Schedule 2A

RRI Subsidiaries

Orion Power Holdings, Inc.

Orion Power Midwest GP, Inc.

Orion Power Midwest LP, LLC

Orion Power Midwest, L.P.

Orion Power New York GP, Inc.

Orion Power New York LP, LLC

Orion Power New York, L.P.

Orion Power Operating Services MidWest, Inc.

RRI Energy Asset Management, LLC

RRI Energy Broadband, Inc.

RRI Energy California Holdings, LLC

RRI Energy Channelview (Delaware) LLC

RRI Energy Channelview (Texas) LLC

RRI Energy Channelview LP

RRI Energy Communications, Inc.

RRI Energy Corporate Services, LLC

RRI Energy Florida, LLC

RRI Energy Foundation, Inc.

RRI Energy Key/Con Fuels, LLC

RRI Energy Mid-Atlantic Power Holdings, LLC

RRI Energy Mid-Atlantic Power Services, Inc.

RRI Energy Northeast Generation, Inc.

RRI Energy Northeast Holdings, Inc.

RRI Energy Northeast Management Company

RRI Energy Power Generation, Inc.

RRI Energy Sabine (Delaware), Inc.

RRI Energy Sabine (Texas), Inc.

RRI Energy Services Channelview LLC

RRI Energy Services Desert Basin, LLC

RRI Energy Services, Inc.

RRI Energy Solutions East, LLC

RRI Energy Trading Exchange, Inc.

RRI Energy Ventures, Inc.

RRI Energy West, Inc.

RRI Energy Wholesale Generation, LLC

Sabine Cogen, LP

San Gabriel Power Generation, LLC

A subsidiary formed in connection with reserving the name “GenOn Energy, Inc.”

 

54

 

Schedule 2B

RRI Significant Subsidiaries

Orion Power Holdings, Inc.

Orion Power Midwest LP, LLC

Orion Power Midwest, L.P.

RRI Energy Florida, LLC

RRI Energy Mid-Atlantic Power Holdings, LLC

RRI Energy Power Generation, Inc.

RRI Energy Northeast Holdings, Inc.

RRI Energy Services, Inc.

RRI Energy Wholesale Generation, LLC

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 56

Schedule 3A

Mirant Subsidiaries

CEPA Slipform Power System Limited (Philippines)

Cheng Power Systems, Inc.

Coyote Springs 2, LLC

Hudson Valley Gas Corporation

MC Asset Recovery, LLC

Mirant Americas, Inc.

Mirant Americas Generation, LLC

Mirant Americas Procurement, Inc.

Mirant AP Investments Limited

Mirant Asia-Pacific Construction (Hong Kong) Limited

Mirant Asia-Pacific Ventures, LLC

Mirant (Bermuda), LTD

Mirant Bowline, LLC

Mirant California, LLC

Mirant Canal, LLC

Mirant Capital, Inc.

Mirant Chalk Point, LLC

Mirant Corporation Political Action Committee, Inc.

Mirant Delta, LLC

Mirant Dickerson Development, LLC

Mirant Energy Trading, LLC

Mirant Fund 2001, LLC

Mirant Gibbons Road, LLC

Mirant Intellectual Asset Management and Marketing, LLC

Mirant International Investments, Inc.

Mirant Kendall, LLC

Mirant Lovett, LLC

Mirant Marsh Landing, LLC

Mirant MD Ash Management, LLC

Mirant Mid-Atlantic, LLC

Mirant Navotas Corporation

Mirant (Navotas II) Corporation

Mirant New York, LLC

Mirant New York Services, LLC

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 57

Mirant North America, LLC

Mirant Piney Point, LLC

Mirant Potomac River, LLC

Mirant Potrero, LLC

Mirant Power Purchase, LLC

Mirant Services, LLC

Mirant Special Procurement, Inc.

Mirant Tank Farm, LLC.

Mirant Trust I

Mirant Willow Pass, LLC

Mirant Wrightsville Investments, Inc.

Mirant Wrightsville Management, Inc.

MNA Finance Corp.

Sual Construction Corporation

Wrightsville Development and Funding, L.L.C.

Wrightsville Power Facility, L.L.C.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 58

Schedule 3B

Mirant Significant Subsidiaries

Mirant Americas Inc.

Mirant Americas Generation, LLC

Mirant Chalk Point, LLC

Mirant Energy Trading, LLC

Mirant Mid-Atlantic, LLC

Mirant North America, LLC

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 59

ANNEX A

	a.	 	Additional Time of Sale Information

	1.	 	Supplement to the Preliminary Offering Memorandum, dated September 16, 2010
	 
	2.	 	Supplement to the Preliminary Offering Memorandum, dated September 20, 2010
	 
	3.	 	Term sheet containing the terms of the securities, substantially in the form of
Annex B.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 60

ANNEX B

GenOn Escrow Corp.

Pricing Term Sheet

$675,000,000 9.500% Senior Notes due 2018

$550,000,000 9.875% Senior Notes due 2020

	 	 	 
	Issuer:

	 	GenOn Escrow Corp.
	 
	 	 
	Securities Description:

	 	$675,000,000 9.500% Senior Notes due 2018 (the “2018 Notes”)
$550,000,000 9.875% Senior Notes due 2020 (the “2020 Notes”
and, together with the 2018 Notes, the “Notes”)
	 
	 	 
	Ranking:

	 	The Notes will be the Issuer’s senior unsecured obligations
and will rank equally in right of payment with all of its
existing and future senior debt
	 
	 	 
	Distribution:

	 	144A and Regulation S with registration rights as set forth
in the Preliminary Offering Memorandum.
	 
	 	 
	Maturity:

	 	The 2018 Notes will mature on October 15, 2018

The 2020 Notes will mature on October 15, 2020
	 
	 	 
	Coupon:

	 	9.500% for the 2018 Notes

9.875% for the 2020 Notes
	 
	 	 
	Prices:

	 	98.623% of face amount for the 2018 Notes

97.676% of face amount for the 2020 Notes
	 
	 	 
	Yield to Maturity:

	 	9.750% for the 2018 Notes

10.250% for the 2020 Notes
	 
	 	 
	Spread to Benchmark Treasury:

	 	2018 Notes: T+736 bps

2020 Notes: T+752 bps

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 61

	 	 	 
	Benchmark Treasury:

	 	2018 Notes: UST 3.75% due 11/15/2018

2020 Notes: UST 2.625% due 08/15/2020
	 
	 	 
	Interest Payment Dates:

	 	October 15 and April 15, commencing April 15, 2011 for each
of the 2018 Notes and the 2020 Notes
	 
	 	 
	Optional Redemption:

	 	Some or all of the 2018 Notes at any time prior to maturity
and some or all of the 2020 Notes at any time prior to
October 15, 2015 may be redeemed at a redemption price
equal to 100% of the principal amount of the notes
redeemed, plus the Applicable Premium (defined below),
accrued and unpaid interest and Additional Interest, if
any, to, but excluding, the redemption date, subject to the
rights of holders of the Notes on the relevant record date
to receive interest due on the relevant interest payment
date. Some or all of the 2020 Notes at any time on or
after October 15, 2015, may be redeemed at the following
redemption prices, plus accrued and unpaid interest and
Additional Interest, if any, to, but excluding, the
redemption date, if redeemed during the 12-month period
commencing on October 15 of the years set forth below:

	 	 	 	 	 
	Year	 	Redemption Price	 
	2015
	 	 	104.938	%
	2016
	 	 	103.292	%
	2017
	 	 	101.646	%
	2018 and thereafter
	 	 	100.000	%

	 	 	 
	Applicable Premium:

	 	The greater of (i) 1.0% of the principal amount of the
Notes being redeemed and (ii) the excess of a make-whole at
T+50 bps over the principal amount of the Notes being
redeemed
	 
	 	 
	Change of Control:

	 	Puttable at 101% of principal plus accrued interest for
both the 2018 Notes and 2020 Notes
	 
	 	 
	Trade Date:

	 	September 20, 2010
	 
	 	 
	Settlement Date:

	 	T+10; October 4, 2010

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 62

	 	 	 
	Escrow:

	 	The net proceeds of this offering, together with cash or
Government Securities in an amount sufficient to fund the
special mandatory redemption payment (when and if due),
will be deposited into a segregated escrow account on the
closing date and will be held as collateral security for
the Issuer’s obligations in respect of the Notes during the
escrow period. If (1) the merger is not completed on or
before December 31, 2010 (or, subject to the deposit with
the escrow agent of such additional amounts of cash or
Government Securities as are sufficient to fund the special
mandatory redemption payment thereon, March 31, 2011) (the
“Merger Termination Date”), (2) the refinancing
transactions are not completed at or before the Merger
Termination Date, (3) the merger agreement is terminated
before the Merger Termination Date, (4) an event of default
shall have occurred and be continuing under the indenture
governing the Notes, or (5) at any time, RRI and Mirant, in
their sole judgment, determine jointly that the refinancing
transactions will not be completed on or before the Merger
Termination Date, the Issuer will be required to redeem the
Notes of each series at 100% of the issue price of the
Notes of such series, plus accrued and unpaid interest to,
but excluding, the redemption date.
	 
	 	 
	CUSIP:

	 	2018 Notes

144A: 37244D AA7

RegS: U3720G
AA2

2020 Notes

144A: 37244D AD1

RegS: U3720G AB0

	 
	 	 
	ISIN:

	 	2018 Notes

144A:
US37244DAA72

RegS:
USU3720GAA23

2020 Notes

144A:
US37244DAD12

RegS:
USU3720GAB06

	 
	 	 
	Denominations/Multiple:

	 	2,000 x 1,000
	 
	 	 
	Ratings:

	 	B3/B

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 63

	 	 	 
	Bookrunners:

	 	J.P. Morgan Securities LLC

Credit Suisse Securities (USA) LLC

Deutsche Bank Securities Inc.

Goldman, Sachs & Co.

Morgan Stanley & Co. Incorporated
	 
	 	 
	Co-Managers:

	 	RBC Capital Markets Corporation

RBS Securities Inc.

Additional Changes to the Preliminary Offering Memorandum:

In addition to pricing information set forth above, the Preliminary Offering Memorandum dated
as of September 13, 2010, as supplemented by supplements dated September 16, 2010 and
September 20, 2010 will be updated to reflect the following changes (and other information is
deemed to have changed to the extent affected thereby):

	 	 	 
	Notes Offered Hereby:

	 	The aggregate principal amount of the Notes will be $1.225
billion rather than $1.4 billion.
	 
	New Term Loan Facility:

	 	The new term loan facility is expected to provide for a
$700 million seven-year senior secured Tranche B term loan
facility, rather than $500 million. The interest rate on
the new term loan facility is expected to be, at our
option, either a base rate plus a margin of 3.25% or the
Eurodollar rate (not to be less than 1.75% per annum) plus
a margin of 4.25% rather than, at our option, either a base
rate plus a margin of 3.50% or the Eurodollar rate (not to
be less than 1.75% per annum) plus a margin of 4.50%.
	 
	New Revolving Facility:

	 	The new revolving facility is expected to provide for a
$788 million senior secured revolving credit facility,
rather than up to $1.0 billion. An incremental $212
million in commitments is expected to be available until
six months after the closing of the Merger.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 64

	 	 	 
	Pro Forma Interest Expense:

	 	The pro forma financial information (including information
presented on a pro forma basis giving effect to the
Transactions) in the Preliminary Offering Memorandum
assumed $1.4 billion aggregate principal amount of the
Notes at a 9% annual interest rate with an 8-year maturity,
a $500 million seven-year new term loan facility at a
floating interest rate of LIBOR + 3.50% (including a LIBOR
floor of 1.50%) and up to a $1.0 billion five-year senior
secured revolving credit facility. Based on $675 million
aggregate principal amount of 2018 Notes with an annual
interest rate of 9.500% and $550 million aggregate
principal amount of 2020 Notes with an annual interest rate
of 9.875%, a $700 million seven-year new term loan facility
at a floating interest rate of LIBOR + 4.25% (including a
LIBOR floor of 1.75%) and a $788 million five-year new
revolving facility, the combined company’s pro forma annual
interest expense would have increased by approximately $9
million from the comparable figure included in the
Preliminary Offering Memorandum.

Sources and Uses:

	 	 	 	 	 	 	 	 	 	 	 
	(Dollars in millions)	 	 	 	 	 	 	 	 
	Sources of funds	 	Amount	 	 	Uses of funds	 	Amount	 
	 
	Notes offered hereby(a)
	 	$	1,203	 	 	Redeem RRI senior secured notes(d)	 	$	289	 
	New revolving credit facility(b)
	 	 	—	 	 	Purchase PEDFA fixed-rate bonds due 2036(e)	 	 	397	 
	New term loan facility(c)
	 	 	700	 	 	Redeem Mirant North America senior unsecured notes(f)	 	 	881	 
	 
	 	 	 	 	 	Repay Mirant North America senior secured term loan(g)	 	 	306	 
	Cash
	 	 	111	 	 	Estimated fees and expenses(h)	 	 	141	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total sources
	 	$	2,014	 	 	Total uses
	 	$	2,014	 
	 
	 	 	 	 	 	 	 	 

	 	 	 
	(a)	 	Reflects original issue discount.
	 
	(b)	 	Expected to provide for up to $788 million of
borrowings and letters of credit, with the ability to
increase commitments to $1 billion for up to six months
following closing. Availability of borrowings under the
new revolving credit facility is reduced by any outstanding
letters of credit. At June 30, 2010, on a pro forma basis
giving effect to the transactions, outstanding letters of
credit were approximately $304 million and availability of
borrowings under our new revolving credit facility would be
$484 million at closing after giving effect to outstanding
letters of credit. In connection with the closing of the
notes, we intend to enter into a new credit agreement
governing our new revolving credit facility and term loan
facility. Based on expected cash balances and liquidity,
we do not expect to draw down on our new revolving credit
facility at closing.
	 
	(c)	 	Expected to provide for a $700 million seven-year
senior secured Tranche B term loan facility, which will be
funded on the closing date.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 65

	 	 	 
	(d)	 	Assumes all $279 million aggregate principal amount of
RRI’s senior secured notes due 2014 will be discharged at
or before the closing of the merger and redeemed at the
current call price of 103.375% of the principal amount
thereof within 30 to 60 days after the closing date of the
merger. The call price for any redemption on or after
December 15, 2010 is 102.25%. Does not include accrued and
unpaid interest on the notes to, but excluding, the
redemption date even though such interest must be paid to
the holders of the notes on the redemption date.
	 
	(e)	 	Assumes all $371 million aggregate principal amount of
PEDFA fixed-rate bonds due 2036 will be defeased at
approximately 107% (including premium of 3% of principal
and accrued and unpaid interest to the redemption date in
June 2011) at or before the closing of the merger. We
expect to redeem the PEDFA bonds when they become
redeemable in June 2011. PEDFA is the Pennsylvania
Economic Development Financing Authority. These bonds were
issued for RRI’s Seward plant and are guaranteed by RRI and
its subsidiaries.
	 
	(f)	 	Assumes all $850 million aggregate principal amount of
Mirant North America’s senior unsecured notes due December
2013 will be discharged at or before the closing of the
merger and redeemed by Mirant North America at the current
call price of 103.688% of the principal amount thereof
within 30 to 60 days after the closing date of the merger.
The call price for any redemption on or after December 31,
2010 is 101.844%. Does not include accrued and unpaid
interest on the notes to, but excluding, the redemption
date even though such interest must be paid to the holders
of the notes on the redemption date.
	 
	(g)	 	Represents the repayment of all outstanding borrowings
as of June 30, 2010 under Mirant North America’s senior
secured term loan maturing in 2013. Mirant North America’s
senior secured term loan maturing in 2013 had an initial
principal balance of $700 million, which had amortized to
$306 million as of June 30, 2010. In addition to quarterly
principal installments, which are currently $0.8 million,
Mirant North America is required to make annual principal
prepayments under its senior secured term loan equal to a
specified percentage of its excess free cash flow, which is
based on adjusted EBITDA less capital expenditures and as
further defined in the loan agreement. On March 10, 2010,
Mirant North America made a mandatory principal prepayment
of approximately $66 million on its senior secured term
loan. At June 30, 2010, the current estimate of the
mandatory principal prepayment on Mirant North America’s
senior secured term loan in March 2011 was approximately
$21 million. If any principal repayments are made before
the repayment date, which is expected to be the closing
date of the merger, outstanding borrowings under Mirant
North America’s senior secured term loan on the repayment
date will be less than the $306 million amortized balance
as of June 30, 2010.
	 
	(h)	 	Includes (i) initial purchasers’ discount in connection
with this offering and other estimated offering expenses,
(ii) fees and expenses in connection with our proposed new
revolving credit facility and term loan facility, (iii)
other fees and expenses in connection with the RRI and
Mirant debt redemptions, repayments and terminations and
(iv) $75 million of merger expenses. Does not include
accrued and unpaid interest on RRI’s senior secured notes
due 2014 and Mirant North America’s senior unsecured notes
due December 2013, to, but excluding, their respective
redemption dates even though such interest must be paid to
debtholders on their respective redemption dates.
	 
	 	 	
Certain affiliates of the initial purchasers are lenders
under Mirant North America’s senior secured credit
facilities and will receive a portion of the proceeds of
this offering in connection with the termination of those
facilities. In addition, certain of the initial purchasers
and their affiliates may hold portions of the notes being
redeemed with the net proceeds of this offering. Certain
affiliates of the initial purchasers will act as
administrative agents and/or lenders with respect to the
new credit facilities. See “Plan of distribution.”

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 66

This communication is intended for the sole use of the person to whom it is provided by the sender.

These securities have not been registered under the Securities Act of 1933, as amended, and may
only be sold to qualified institutional buyers pursuant to Rule 144A or pursuant to another
applicable exemption from registration.

The information in this term sheet supplements the Issuer’s preliminary offering memorandum, dated
September 13, 2010, as supplemented by the supplement, dated September 16, 2010 and the supplement,
dated September 20, 2010, (the “Preliminary Memorandum”) and supersedes the information in the
Preliminary Memorandum to the extent inconsistent with the information in the Preliminary
Memorandum. This term sheet is qualified in its entirety by reference to the Preliminary
Memorandum. Terms used herein but not defined herein shall have the respective meanings as set
forth in the Preliminary Memorandum.

A securities rating is not a recommendation to buy, sell or hold securities and may be subject to
revision or withdrawal at any time.

ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND
SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT
OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 67

ANNEX C

Restrictions on Offers and Sales Outside the United States

In connection with offers and sales of Securities outside the United States:

(a) Each Initial Purchaser acknowledges that the Securities have not been
registered under the Securities Act and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons except pursuant to an
exemption from, or in transactions not subject to, the registration requirements of the
Securities Act.

(b) Each Initial Purchaser, severally and not jointly, represents, warrants and
agrees that:

(i) Such Initial Purchaser has offered and sold the Securities, and will
offer and sell the Securities, (A) as part of their distribution at any time and
(B) otherwise until 40 days after the later of the commencement of the offering
of the Securities and the Closing Date, only in accordance with Regulation S
under the Securities Act (“Regulation S”) or Rule 144A or any other available
exemption from registration under the Securities Act.

(ii) None of such Initial Purchaser or any of its affiliates or any other
person acting on its or their behalf has engaged or will engage in any directed
selling efforts with respect to the Securities, and all such persons have
complied and will comply with the offering restrictions requirement of
Regulation S.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 68

(iii) At or prior to the confirmation of sale of any Securities sold in
reliance on Regulation S, such Initial Purchaser will have sent to each
distributor, dealer or other person receiving a selling concession, fee or other
remuneration that purchases Securities from it during the distribution
compliance period a confirmation or notice to substantially the following
effect:

“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933, as amended (the
“Securities Act”), and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. persons (i) as
part of their distribution at any time or (ii) otherwise until 40 days
after the later of the commencement of the offering of the Securities
and the date of original issuance of the Securities, except in
accordance with Regulation S or Rule 144A or any other available
exemption from registration under the Securities Act. Terms used above
have the meanings given to them by Regulation S.”

(iv) Such Initial Purchaser has not and will not enter into any contractual
arrangement with any distributor with respect to the distribution of the
Securities, except with its affiliates or with the prior written consent of RRI
and Mirant.

Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this
Agreement have the meanings given to them by Regulation S.

(c) Each Initial Purchaser, severally and not jointly, represents, warrants and
agrees that:

(i) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated any invitation or inducement to engage
in investment activity (within the meaning of Section 21 of the United Kingdom
Financial Services and Markets Act 2000 (the “FSMA”)) received by it in
connection with the issue or sale of any Securities in circumstances in which
Section 21(1) of the FSMA does not apply to RRI or Mirant; and

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 69

(ii) it has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Securities in, from
or otherwise involving the United Kingdom.

(d) Each Initial Purchaser acknowledges that no action has been or will be taken by
Escrow Issuer, RRI or Mirant that would permit a public offering of the Securities, or
possession or distribution of any of the Time of
Sale Information, the Offering Memorandum, any RRI Written Communication any Mirant
Written Communication, any Escrow Written Communication or any other offering or
publicity material relating to the Securities, in any country or jurisdiction where
action for that purpose is required.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 70

ANNEX D-1

Form of Opinion of Counsel for Escrow Issuer, RRI and Mirant

October 4, 2010

J.P. Morgan Securities LLC

383 Madison Avenue

New York, NY 10179

as Representative of the several Initial Purchasers

				
	 	Re:	 	GenOn Escrow Corp.

$675,000,000 9.500% Senior Notes due 2018

$550,000,000 9.875% Senior Notes due 2020

Ladies and Gentlemen:

We have acted as special counsel to GenOn Escrow Corp., a Delaware corporation (“Escrow
Issuer”), RRI Energy, Inc., a Delaware corporation (“RRI”) and Mirant Corporation, a
Delaware corporation (“Mirant”), in connection with the Purchase Agreement, dated September
20, 2010 (the “Purchase Agreement”), among you, as representative of the several initial
purchasers named therein (the “Initial Purchasers”), Escrow Issuer, RRI and Mirant,
relating to the sale by Escrow Issuer to the Initial Purchasers of $675,000,000 aggregate principal
amount of Escrow Issuer’s 9.500% Senior Notes due 2018 and $550,000,000 aggregate principal amount
of Escrow Issuer’s 9.875% Senior Notes due 2020 (collectively, the “Securities”) to be
issued under the Indenture, dated as of October
4, 2010 (the “Indenture”), between Escrow Issuer and Wilmington Trust Company, as
Trustee (the “Trustee”).

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 71

The Purchase Agreement contemplates that (i) Escrow Issuer will merge with and into RRI (to be
renamed GenOn Energy, Inc.), with RRI as the surviving corporation (the “Escrow Merger”),
pursuant to a merger agreement to be entered into between RRI and Escrow Issuer (the “Escrow
Merger Agreement”), (ii) upon consummation of the Escrow Merger, RRI will assume all of Escrow
Issuer’s obligations under the Securities and the Indenture (such assumption to be effected by
RRI’s execution of a supplemental indenture to the Indenture in connection therewith (the
“Supplemental Indenture”)) and (iii) the funds held in escrow will be released to GenOn
Energy, Inc. upon consummation of the Escrow Merger.

This opinion is being furnished to you pursuant to Section 6(g) of the Purchase Agreement.

In rendering the opinions set forth herein, we have examined and relied on originals or copies
of the following:

(a) the preliminary offering memorandum, dated September 13, 2010, relating to the offering of
the Securities (together with the Incorporated Documents (as defined below), the “Preliminary
Offering Memorandum”); the first Supplement, dated September 16, 2010 (“Supplement No.
1”), to the Preliminary Offering Memorandum, (iii) the second Supplement, dated September 20,
2010 (“Supplement No. 2”), to the Preliminary Offering Memorandum;

(b) the final offering memorandum, dated September 20, 2010, relating to the offering of the
Securities (together with the Incorporated Documents, the “Offering Memorandum”);

(c) the Pricing Term Sheet attached as Annex B to the Purchase Agreement (the “Final Term
Sheet”);

(d) the documents identified on Schedule A hereto filed by RRI and Mirant, with the
Commission pursuant to the Securities Exchange Act of 1934 and incorporated by reference into the
Offering Memorandum or Preliminary Offering Memorandum, as the case may be, as of the date hereof
or the date of the Purchase Agreement, respectively (collectively, the “Incorporated
Documents”);

(e) an executed copy of the Purchase Agreement;

 

 

 

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(f) an executed copy of the Indenture;

(g) a form of the Supplemental Indenture;

(h) the global certificates evidencing the Securities;

(i) an executed copy of the Escrow and Security Agreement, dated the date hereof, between
Escrow Issuer, RRI, Mirant, the Trustee and J.P. Morgan Securities LLC, as representative of the
Initial Purchasers (the “Escrow Agreement”);

(j) an executed copy of the Registration Rights Agreement, dated the date hereof, between RRI
and J.P. Morgan Securities LLC, as representative of the Initial Purchasers (the “Registration
Rights Agreement”);

(k) a form of the Escrow Merger Agreement;

(l) the Third Restated Certificate of Incorporation of RRI, as certified by the Secretary of
State of the State of Delaware (the “RRI Certificate of Incorporation”);

(m) the Sixth Amended and Restated Bylaws of RRI, as certified by Michael L. Jines, Executive
Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer of RRI (the
“RRI Bylaws”);

(n) (i) the Certificate of Incorporation of Orion Power Holdings, Inc.; (ii) the Certificate
of Formation of Orion Power Midwest LP, LLC; (iii) the Certificate of Formation of RRI Energy
Florida, LLC; (iv) the Certificate of Formation of RRI Energy Mid-Atlantic Power Holdings, LLC; (v)
the Certificate of Incorporation of RRI Energy Power Generation Inc.; (vi) the Certificate of
Incorporation of RRI Northeast Holdings, Inc.; (vii) the Certificate of Incorporation of RRI Energy
Services, Inc.; (viii) the Certificate of Formation of RRI Energy Wholesale Generation, LLC; and
(ix) the Certificate of Limited Partnership of Orion Power Midwest, L.P., in each case as
certified by the Secretary of State of the State of Delaware (collectively, the “RRI
Significant Subsidiary Charters”);

 

 

 

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(o) (i) the Bylaws of Orion Power Holdings, Inc.; (ii) the Limited Liability Company Agreement
of Orion Power Midwest LP, LLC; (iii) the Limited Liability Company Agreement of RRI Energy
Florida, LLC; (iv) the Limited Liability Company Agreement of RRI Energy Mid-Atlantic Power
Holdings, LLC;
(v) the Bylaws of RRI Energy Power Generation Inc; (vi) the Bylaws of RRI Northeast Holdings,
Inc.; (vii) the Bylaws of RRI Energy Services, Inc.; (viii) the Limited Liability Company Agreement
of RRI Energy Wholesale Generation, LLC, in each case as certified by Michael L. Jines, Vice
President, General Counsel and Corporate Secretary of the applicable RRI Significant Subsidiary (as
defined below); and (ix) the Limited Partnership Agreement of Orion Power Midwest L.P., as
certified by Michael L. Jines, Vice President, General Counsel and Corporate Secretary of Orion
Power Midwest L.P.’s general partner, Orion Power Midwest GP, Inc. (collectively, the “RRI
Significant Subsidiary Bylaws” and, together with the RRI Certificate of Incorporation, the RRI
Bylaws and the RRI Significant Subsidiary Charters, the “RRI and RRI Significant Subsidiary
Organizational Documents”);

(p) resolutions of the Board of Directors of RRI, adopted September 10, 2010, as certified by
Michael L. Jines, Executive Vice President, General Counsel, Corporate Secretary and Chief
Compliance Officer of RRI;

(q) resolutions of the Board of Directors of RRI, adopted September 22, 2010, as certified by
Michael L. Jines, Executive Vice President, General Counsel, Corporate Secretary and Chief
Compliance Officer of RRI;

(r) the certificate of Rick J. Dobson, Executive Vice President and Chief Financial Officer of
RRI, dated the date hereof, a copy of which is attached as Exhibit A hereto (the “RRI
Certificate”);

(s) the certificate of Michael L. Jines, Executive Vice President, General Counsel, Corporate
Secretary and Chief Compliance Officer of RRI, dated the date hereof;

(t) copies of each of the agreements or instruments identified in Schedule B-1 hereto
(the “RRI Applicable Contracts”);

(u) a certificate, dated the date hereof, from the Secretary of State of the State of Delaware
as to RRI’s due incorporation, legal corporate existence and good standing under the laws of the
State of Delaware (the “RRI Delaware Certificate”);

(v) certificates, dated the date hereof, from the Comptroller of Public Accounts of the State
of Texas and the Secretary of State of Texas, as to RRI’s good standing and existence as a foreign
for-profit corporation under the laws of the State of Texas (the “RRI Qualification
Certificates”);

 

 

 

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(w) a certificate for each of RRI’s subsidiaries listed on Schedule C-1 hereto (the
“RRI Significant Subsidiaries”) from the Secretary of State of the State of Delaware as to
the status of each such RRI Significant Subsidiary listed on Schedule C-1 hereto under the
laws of the State of Delaware (the “RRI Significant Subsidiary Delaware Certificates”);

(x) the Amended and Restated Certificate of Incorporation of Mirant, as certified by the
Secretary of State of the State of Delaware (the “Mirant Certificate of Incorporation”);

(y) the Amended and Restated Bylaws of Mirant, as certified by Julia A. Houston, Senior Vice
President, General Counsel, Chief Compliance Officer and Corporate Secretary of Mirant (the
“Mirant Bylaws”);

(z) (i) the Certificate of Incorporation of Mirant Americas, Inc.; (ii) the Certificate of
Formation of Mirant Americas Generation, LLC; (iii) the Certificate of Formation of Mirant Chalk
Point, LLC; (iv) the Certificate of Formation of Mirant Energy Trading, LLC; (v) the Certificate of
Formation of Mirant Mid-Atlantic, LLC; and (vi) the Certificate of Formation of Mirant North
America, LLC, in each case as certified by the Secretary of State of the State of Delaware
(collectively, the “Mirant Significant Subsidiary Charters”);

(aa) (i) the Bylaws of Mirant Americas, Inc., (ii) the Limited Liability Company Agreement of
Mirant Americas Generation, LLC, (iii) the Limited Liability Company Agreement of Mirant Chalk
Point, LLC, (iv) the Limited Liability Company Agreement of Mirant Energy Trading, LLC, (v) the
Limited Liability Company Agreement of Mirant Mid-Atlantic, LLC, and (vi) the Limited Liability
Company Agreement of Mirant North America, LLC, in each case as certified by David E. Howard,
Secretary of the applicable Mirant Significant Subsidiary (as defined below) (collectively the
“Mirant Significant Subsidiary Bylaws” and, together with the Mirant Certificate of
Incorporation, the Mirant Bylaws and Mirant Significant Subsidiary Charters, the “Mirant and
Mirant Significant Subsidiary Organizational Documents”);

(bb) resolutions of the Board of Directors of Mirant, adopted by unanimous written consent,
dated September 10, 2010, as certified by Julia A. Houston, Senior Vice President, General Counsel,
Chief Compliance Officer and Corporate Secretary of Mirant;

 

 

 

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(cc) the certificate of J. William Holden, III, Senior Vice President and Chief Financial
Officer of Mirant, dated the date hereof, a copy of which is attached as Exhibit B hereto
(the “Mirant Certificate”);

(dd) the certificate of Julia A. Houston, Senior Vice President, General Counsel, Chief
Compliance Officer and Corporate Secretary of Mirant, dated the date hereof;

(ee) copies of each of the agreements or instruments identified in Schedule B-2 hereto
(the “Mirant Applicable Contracts”);

(ff) a certificate, dated the date hereof, from the Secretary of State of the State of
Delaware as to Mirant’s due incorporation, legal corporate existence and good standing under the
laws of the State of Delaware (the “Mirant Delaware Certificate”);

(gg) a certificate from the Secretary of State of the State of Georgia as to Mirant’s
authorization to transact business as a foreign profit corporation under the laws of the State of
Georgia (the “Mirant Qualification Certificate”);

(hh) a certificate for each of Mirant’s subsidiaries listed on Schedule C-2 hereto
(the “Mirant Significant Subsidiaries”) from the Secretary of State of the State of
Delaware as to the status of each such Mirant Significant Subsidiary listed on Schedule C-2
hereto under the laws of the State of Delaware (the “Mirant Significant Subsidiary Delaware
Certificates”);

(ii) the Certificate of Incorporation of Escrow Issuer, as certified by the Secretary of State
of the State of Delaware (the “Escrow Issuer Certificate of Incorporation”);

(jj) the Bylaws of Escrow Issuer, as certified by Julia A. Houston, Senior Vice President and
Secretary of Escrow Issuer (the “Escrow Issuer Bylaws” and, together with the Escrow Issuer
Certificate of Incorporation, the “Escrow Issuer Organizational Documents”);

(kk) resolutions of the Board of Directors of Escrow Issuer, adopted September 10, 2010, as
certified by Julia A. Houston, Senior Vice President and Secretary of Escrow Issuer;

 

 

 

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(ll) resolutions of the Pricing Committee of the Board of Directors of Escrow Issuer, adopted
on September 20, 2010, as certified by Julia A. Houston, Senior Vice President and Secretary of
Escrow Issuer;

(mm) the certificate of J. William Holden, III, Senior Vice President and Chief Financial
Officer of Escrow Issuer, dated the date hereof, a copy of which is attached as Exhibit C
hereto (the “Escrow Issuer Certificate”);

(nn) the certificate of Julia A. Houston, Senior Vice President and Secretary of Escrow
Issuer, dated the date hereof; and

(oo) a certificate, dated the date hereof, from the Secretary of State of the State of
Delaware as to Escrow Issuer’s due incorporation, legal corporate existence and good standing under
the laws of the State of Delaware (the “Escrow Issuer Delaware Certificate”).

We have also examined originals or copies, certified or otherwise identified to our
satisfaction, of such records of each of RRI, Mirant and Escrow Issuer and such agreements,
certificates and receipts of public officials, certificates of officers or other representatives of
each of RRI, Mirant and Escrow Issuer and others, and such other documents as we have deemed
necessary or appropriate as a basis for the opinions set forth below.

In our examination, we have assumed the legal capacity of all natural persons, the genuineness
of all signatures, the authenticity of all documents submitted to us as originals, the conformity
to original documents of all documents submitted to us as facsimile, electronic, certified or
photostatic copies, and the authenticity of the originals of such copies. In making our
examination of executed documents, we have assumed that the parties thereto, other than RRI, Mirant
and Escrow Issuer, had the power, corporate or other, to enter into and perform all obligations
thereunder and have also assumed the due authorization by all requisite action, corporate or other,
and the execution and delivery by such parties of such documents and the validity and binding
effect thereof on such parties. As to any facts material to the opinions expressed herein that we
did not independently establish or verify, we have relied upon statements and representations of
officers and other representatives of each of RRI, Mirant, Escrow Issuer and others and of public
officials, including the facts set forth in each of the RRI Certificate, Mirant Certificate and
Escrow Issuer Certificate.

 

 

 

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The Purchase Agreement, the Securities, the Indenture, the Supplemental Indenture, the Escrow
Agreement and the Registration Rights Agreement are referred to herein collectively as the
“Transaction Documents”. The Purchase Agreement, the Escrow Agreement and the Registration
Rights Agreement are referred to herein collectively as the “RRI Transaction Documents”.
The Purchase Agreement and the Escrow Agreement are referred to herein collectively as the
“Mirant Transaction Documents”. The Purchase Agreement, the Securities, the Indenture, the
Supplemental Indenture and the Escrow Agreement are referred to herein collectively as the
“Escrow Issuer Transaction Documents”. As used herein, (i) “Applicable Laws” means
the General Corporation Law of the State of Delaware (the “DGCL”), the Limited Liability
Company Act as in effect in the State of Delaware (“DLLC”) and the Revised Uniform Limited
Partnership Act as in effect in the State of Delaware (the “DRULPA”) and those laws, rules
and regulations of the State of New York and those federal laws, rules and regulations of the
United States of America, in each case that, in our experience, are normally applicable to
transactions of the type contemplated by the Purchase Agreement and the other Transaction Documents
(other than the United States federal securities laws, state securities or blue sky laws, antifraud
laws and the rules and regulations of the Financial Industry Regulatory Authority, Inc. and other
than matters within the jurisdiction of the U.S. Federal Energy Regulatory Commission under the
Federal Power Act), but without our having made any special investigation as to the applicability
of any specific law, rule or regulation; (ii) “Governmental Authorities” means any court,
regulatory body, administrative agency or governmental body of the States of Delaware or New York
or the United States of America having jurisdiction over RRI, Mirant or Escrow Issuer under
Applicable Laws; (iii) “Governmental Approval” means any consent, approval, license,
authorization or validation of, or filing, qualification or registration with, any Governmental
Authority required to be made or obtained by RRI, Mirant or Escrow Issuer pursuant to Applicable
Laws, other than any consent, approval, license, authorization, validation, filing, qualification
or registration that may have become applicable as a result of the involvement of any party (other
than RRI, Mirant and Escrow Issuer) in the transactions contemplated by the Purchase Agreement and
the other Transaction Documents or because of such parties’ legal or regulatory status or because
of any other facts specifically pertaining to such parties; (iv) “RRI Applicable Orders”
means those judgments, orders, decrees identified on Schedule D-1 hereto; (v) “Mirant
Applicable Orders” means those judgments, orders, decrees identified on Schedule D-2
hereto; (vi) “General Disclosure Package” means the means the Preliminary Offering
Memorandum, Supplement No. 1, Supplement No. 2 and the Final Term Sheet, all considered together;
and (vii) “Special Redemption

 

 

 

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Date”,
“Extended Special Redemption Date” and “Special Redemption Date” shall each
have the meaning as defined in the Escrow Agreement. For the avoidance of doubt, the phrase
“transactions contemplated by” with respect to the Purchase Agreement, the Transaction Documents,
the RRI Transaction Documents, the Mirant Transaction Documents and the Escrow Issuer Transaction
Documents shall exclude (i) the Agreement and Plan of Merger, dated April 11, 2010, among RRI,
Mirant and RRI Energy Holdings, Inc., a Delaware corporation, pursuant to which RRI Energy
Holdings, Inc., a wholly-owned subsidiary of RRI, is contemplated to merge with and into Mirant,
with Mirant as the surviving corporation and a wholly-owned subsidiary of RRI (the
“Merger”), (ii) the Escrow Merger Agreement and (iii) the Credit Agreement entered into
among GenOn Energy, Inc., as a borrower, GenOn Mirant Americas, Inc., as a borrower, the subsidiary
guarantors party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders and
other agents party thereto, dated September 20, 2010.

The opinions set forth below are subject to the following further qualifications, assumptions
and limitations:

(a) the opinions set forth in paragraph 1 below are based solely upon the RRI Delaware
Certificate, Mirant Delaware Certificate and Escrow Issuer Certificate;

(b) the opinions set forth in paragraph 3 below with respect to the status of RRI in the State
of Texas and the status of Mirant in the State of Georgia are based solely upon the RRI
Qualification Certificates and the Mirant Qualification Certificate;

(c) the opinion set forth in paragraph 4 below with respect to the status of each of the RRI
Significant Subsidiaries in the jurisdictions set forth opposite the name of such RRI Significant
Subsidiary in Schedule C-1 hereto and the opinion set forth in paragraph 4 below with
respect to the status of each of the Mirant Significant Subsidiaries in the jurisdictions set forth
opposite the name of such Mirant Significant Subsidiary in Schedule C-2 hereto are based
solely upon the RRI Significant Subsidiary Delaware Certificates and the Mirant Significant
Subsidiary Delaware Certificates, respectively;

(d) in rendering the opinion set forth in paragraph 15 below, we have assumed that the
Securities, in the forms delivered to the Trustee for authentication and delivery, will have been
manually authenticated and signed by one of the Trustee’s authorized officers;

 

 

 

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(e) we do not express any opinion as to the effect on the opinion expressed herein of (i) the
compliance or noncompliance of any party to any of the Transaction Documents (other than with
respect to RRI, Mirant and Escrow Issuer to the extent necessary to render the opinions set forth
herein) with any state, federal or other laws or regulations applicable to it or them or (ii) the
legal or regulatory status or the nature of the business of any such party (other than with respect
to RRI, Mirant and Escrow Issuer to the extent necessary to render the opinions set forth herein);

(f) the opinion set forth in paragraph 24 below is based solely on our discussions with the
officers of each of RRI and Mirant responsible for the matters discussed therein, our review of
documents furnished to us by RRI and Mirant and our reliance on the representations and warranties
of RRI and Mirant contained in the Purchase Agreement, the RRI Officer’s Certificate and the Mirant
Officer’s Certificate; we have not made any other inquiries or investigations or any search of the
public docket records of any court, governmental agency or body or administrative agency. In
addition, we note that we have not been engaged by, nor have we rendered any advice to, either RRI
or Mirant in connection with any legal or governmental proceedings except for representation of RRI
in a consolidated shareholder litigation proceeding related to the Merger filed in the Superior
Court of Fulton County, Georgia under the caption In re Mirant Corporation Shareholder Litigation,
No 2010CV184223; accordingly, we do not have any special knowledge with respect to such matters
except for the aforementioned shareholder litigation proceeding in Georgia; furthermore, we
understand that such matters have been and are being handled by other counsel;

(g) we have assumed that the execution and delivery by RRI of the each of the RRI Transaction
Documents and the performance by RRI of its obligations thereunder did not, do not and will not
violate, conflict with or constitute a default under (i) any agreement or instrument to which RRI
or any of its properties is subject (except that we do not make the assumption set forth in this
clause (i) with respect to the RRI and RRI Significant Subsidiary Organizational Documents or the
RRI Applicable Contracts), (ii) any law, rule, or regulation to which RRI or any of its properties
is subject (except that we do not make the assumption set forth in this clause (ii) with respect to
the DGCL, the DLLC, the DRULPA and those laws, rules and regulations of the State of New York and
those federal laws, rules and regulations of the United States of America, in each case that, in
our experience, are normally applicable to transactions of the type contemplated by the Purchase
Agreement and the other RRI Transaction Documents, but without our having made
any special investigation as to the applicability of any specific law, rule or regulation),
(iii) any judicial or regulatory order or decree of any governmental authority (except that we do
not make the assumption in this clause (iii) with respect to RRI Applicable Orders) or (iv) any
consent, approval, license, authorization or validation of, or filing, recording or registration
with any governmental authority (except that we do not make the assumption set forth in this clause
(iv) to the extent set forth in our opinion in paragraph 14 below);

 

 

 

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(h) we have assumed that the execution and delivery by Mirant of the each of the Mirant
Transaction Documents and the performance by Mirant of its obligations thereunder did not, do not
and will not violate, conflict with or constitute a default under (i) any agreement or instrument
to which Mirant or any of its properties is subject (except that we do not make the assumption set
forth in this clause (i) with respect to the Mirant and Mirant Significant Subsidiary
Organizational Documents or the Mirant Applicable Contracts), (ii) any law, rule, or regulation to
which Mirant or any of its properties is subject (except that we do not make the assumption set
forth in this clause (ii) with respect to the DGCL, the DLLC and those laws, rules and regulations
of the State of New York and those federal laws, rules and regulations of the United States of
America, in each case that, in our experience, are normally applicable to transactions of the type
contemplated by the Purchase Agreement and the other Mirant Transaction Documents, but without our
having made any special investigation as to the applicability of any specific law, rule or
regulation), (iii) any judicial or regulatory order or decree of any governmental authority (except
that we do not make the assumption in this clause (iii) with respect to Mirant Applicable Orders)
or (iv) any consent, approval, license, authorization or validation of, or filing, recording or
registration with any governmental authority (except that we do not make the assumption set forth
in this clause (iv) to the extent set forth in our opinion in paragraph 14 below);

(i) we have assumed that the execution and delivery by Escrow Issuer of the each of the Escrow
Issuer Transaction Documents and the performance by Escrow Issuer of its obligations thereunder did
not, do not and will not violate, conflict with or constitute a default under (i) any agreement or
instrument to which Escrow Issuer or any of its properties is subject (except that we do not make
the assumption set forth in this clause (i) with respect to the Escrow Issuer Organizational
Documents), (ii) any law, rule, or regulation to which Escrow Issuer or any of its properties is
subject (except that we do not make the assumption set forth in this clause (ii) with respect to
the DGCL and those laws, rules and regulations of the State of New York and those federal laws,
rules and regulations of
the United States of America, in each case that, in our experience, are normally applicable to
transactions of the type contemplated by the Purchase Agreement and the other Escrow Issuer
Transaction Documents, but without our having made any special investigation as to the
applicability of any specific law, rule or regulation), (iii) any judicial or regulatory order or
decree of any governmental authority or (iv) any consent, approval, license, authorization or
validation of, or filing, recording or registration with any governmental authority (except that we
do not make the assumption set forth in this clause (iv) to the extent set forth in our opinion in
paragraph 14 below);

 

 

 

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(j) we note that certain of the RRI Applicable Contracts and Mirant Applicable Contracts are
governed by laws other than the Applicable Laws; our opinions expressed herein are based solely
upon our understanding of the plain language of such agreement or instrument, and we do not express
any opinion with respect to the validity, binding nature or enforceability of any such agreement or
instrument, and we do not assume any responsibility with respect to the effect on the opinions or
statements set forth herein of any interpretation thereof inconsistent with such understanding;

(k) the validity or enforcement of any agreements or instruments may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’
rights generally and by general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law);

(l) we do not express any opinion as to the applicability or effect of any fraudulent
transfer, preference or similar law on each of the Transaction Documents or any transactions
contemplated thereby;

(m) we do not express any opinion as to the enforceability of any rights to indemnification or
contribution that may be violative of the public policy underlying any law, rule or regulation
(including any federal or state securities law, rule or regulation);

(n) the enforceability of provisions imposing a payment obligation pending the ability of RRI
to comply timely with its registration obligations under the Registration Rights Agreement and the
Indenture may be limited by applicable laws;

 

 

 

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(o) we do not express any opinion herein with respect to the validity, perfection or priority
of any security interest;

(p) we do not express any opinion herein with respect to Section 11(n) of the Escrow Agreement
to the extent it establishes a standard of care for collateral in the possession or control of the
Escrow Agent to the extent such standard of care is unenforceable under Sections 1-102 and 9-207 of
the Uniform Commercial Code (the “UCC”);

(q) we do not express any opinion herein as to the enforceability of Section 15 of the Escrow
Agreement to the extent that the same provides that (i) the rights of the Trustee, Deutsche Bank AG
or its affiliates, as a “bank” and a “securities intermediary” (as each term is defined in the UCC
as in effect from time to time in the State of New York), the holders of the Securities and the
Initial Purchasers (collectively, the “Secured Parties”) and the security interests under
the Escrow Agreement and (ii) all obligations of Escrow Issuer under the Escrow Agreement, are
absolute and unconditional irrespective of the validity or enforceability of the obligations of
Escrow Issuer under the Indenture, the Securities and the Escrow Agreement to redeem the Securities
on the Special Redemption Date or, if applicable, the Extended Special Redemption Date pursuant to
the terms of the Indenture and to pay the Special Redemption Price, or the amendment or termination
of the Escrow Agreement or the effect thereof on the opinions herein stated;

(r) for purposes of paragraphs 8 and 17 below, we have assumed that (i) each of the
Supplemental Indenture and the Escrow Merger Agreement, at the time of execution and delivery, will
conform to the forms of such agreements examined by us and (ii) the authority of each of RRI and
Escrow Issuer to perform their respective obligations under each of the Supplemental Indenture and
the Escrow Merger Agreement will not have been modified, rescinded or revoked;

(s) we have assumed that at the time of the execution and delivery of the Supplemental
Indenture or the Escrow Merger Agreement, as applicable, there will not have occurred any change in
law affecting the validity, legally binding character or enforceability of the Supplemental
Indenture or the Escrow Merger Agreement and that (i) the execution and delivery of the
Supplemental Indenture or the Escrow Merger Agreement, (ii) all the terms therein and (iii) the
performance by each of RRI and Escrow Issuer of their respective obligations thereunder will, in
each case, comply with applicable laws and with each requirement or restriction imposed by any
court or governmental body having jurisdiction over RRI or Escrow Issuer, and will not result in a
default under or a breach of any agreement or
instrument then binding upon each of RRI and Escrow Issuer or their respective properties;

 

 

 

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(t) we have assumed that the refinancing transactions (as defined in the Offering Memorandum)
will have been effected at the times and in the manner described in the Offering Memorandum; and

(u) to the extent any opinion relates to the enforceability of the choice of New York law and
choice of New York forum provisions of the Transaction Documents, our opinion is rendered in
reliance upon N.Y. Gen. Oblig. Law §§ 5-1401, 5-1402 (McKinney 2001) and N.Y. C.P.L.R. 327(b)
(McKinney 2001) and is subject to the qualification that such enforceability may be limited by
public policy considerations.

We do not express any opinion as to any laws other than Applicable Laws and the federal laws
of the United States of America to the extent referred to specifically herein. Insofar as the
opinions expressed herein relate to matters governed by laws other than those set forth in the
preceding sentence, we have assumed, without having made any independent investigation, that such
laws do not affect any of the opinions set forth herein. The opinions expressed herein are based
on laws in effect on the date hereof, which laws are subject to change with possible retroactive
effect.

Based upon the foregoing and subject to the limitations, qualifications, exceptions and
assumptions set forth herein, we are of the opinion that:

1. Each of RRI, Mirant and Escrow Issuer has been duly incorporated and is validly existing in
good standing under the laws of the State of Delaware.

2. Each of RRI, Mirant and Escrow Issuer has the full corporate power and authority to conduct
its business as described in the Offering Memorandum.

3. RRI is in good standing under the laws of State of Texas and is a foreign for-profit
corporation in existence in the State of Texas. Mirant is a foreign profit corporation authorized
to transact business in the State of Georgia.

 

 

 

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October 4, 2010

Page 84

4. Each of the RRI Significant Subsidiaries has the status set forth on Schedule C-1
hereto set forth opposite the States listed thereon. Each of the Mirant Significant Subsidiaries
has the status set forth on Schedule C-2 hereto set forth opposite the States listed
thereon.

5. RRI has the corporate power and corporate authority to execute and deliver each of the RRI
Transaction Documents and to consummate the transactions contemplated thereby. Mirant has the
corporate power and corporate authority to execute and deliver each of the Mirant Transaction
Documents and to consummate the transactions contemplated thereby. Escrow Issuer has the corporate
power and corporate authority to execute and deliver each of the Escrow Issuer Transaction
Documents and to consummate the transactions contemplated thereby.

6. The Purchase Agreement has been duly authorized, executed and delivered by each of RRI,
Mirant and Escrow Issuer.

7. The Indenture has been duly authorized, executed and delivered by Escrow Issuer and is a
valid and binding agreement of Escrow Issuer, enforceable against Escrow Issuer in accordance with
its terms.

8. The Supplemental Indenture has been duly authorized by each of RRI and Escrow Issuer and,
when duly executed and delivered in accordance with its terms by the parties thereto, will be a
valid and binding agreement of each of RRI and Escrow Issuer, enforceable against each of RRI and
Escrow Issuer in accordance with its terms.

9. The Registration Rights Agreement has been duly authorized, executed and delivered by RRI
and constitutes a valid and binding agreement of RRI, enforceable against RRI in accordance with
its terms.

10. The Escrow Agreement has been duly authorized, executed and delivered by each of RRI,
Mirant and Escrow Issuer and constitutes a valid and binding agreement of each of RRI, Mirant and
Escrow Issuer, enforceable against each of RRI, Mirant and Escrow Issuer in accordance with its
terms, except that certain of the remedial provisions with respect to the security contained in the
Escrow Agreement may be unenforceable in whole or in part, but the inclusion of such provisions
does not affect the validity of the Escrow Agreement, taken as a whole, and the Escrow Agreement,
taken as a whole, together with applicable law, contains adequate provisions for the practical
realization of the benefits of the security.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 85

11. The execution and delivery by RRI of each of the RRI Transaction Documents and the
consummation by RRI of the transactions contemplated thereby, will not (i) conflict with the RRI
and RRI Significant Subsidiary Organizational Documents, (ii) constitute a violation of, or a
breach or default under, the terms of any RRI Applicable Contract or (iii) violate or conflict
with, or result in any contravention of, any Applicable Law or any RRI Applicable Order. We,
however, do not express any opinion as to whether the execution and delivery by RRI of the each of
the RRI Transaction Documents or the consummation by RRI of the transactions contemplated thereby
will constitute a violation of, or a default under, any covenant, restriction or provision with
respect to financial ratios or tests or any aspect of the financial condition or results of
operations of RRI and its subsidiaries.

12. The execution and delivery by Mirant of each of the Mirant Transaction Documents and the
consummation by Mirant of the transactions contemplated thereby, including the issuance and sale by
the Escrow Issuer of the Securities, will not (i) conflict with the Mirant and Mirant Significant
Subsidiary Organizational Documents, (ii) constitute a violation of, or a breach or default under,
the terms of any Mirant Applicable Contract or (iii) violate or conflict with, or result in any
contravention of, any Applicable Law or any Mirant Applicable Order. We, however, do not express
any opinion as to whether the execution and delivery by Mirant of the each of the Mirant
Transaction Documents or the consummation by Mirant of the transactions contemplated thereby will
constitute a violation of, or a default under, any covenant, restriction or provision with respect
to financial ratios or tests or any aspect of the financial condition or results of operations of
Mirant and its subsidiaries.

13. The execution and delivery by Escrow Issuer of each of the Escrow Issuer Transaction
Documents and the consummation by Escrow Issuer of the transactions contemplated thereby, including
the issuance and sale of the Securities, will not (i) conflict with the Escrow Issuer
Organizational Documents or (ii) violate or conflict with, or result in any contravention of, any
Applicable Law.

14. No Governmental Approval, which has not been obtained or taken and is not in full force
and effect, is required to authorize, or is required for, the execution or delivery of each of the
(a) RRI Transaction Documents by RRI or the consummation by RRI of the transactions contemplated
thereby, (b) Mirant Transaction Documents by Mirant or the consummation by Mirant of the
transactions contemplated thereby and (c) Escrow Issuer Transaction Documents by
Escrow Issuer or the consummation by Escrow Issuer of the transactions contemplated thereby,
including the issuance and sale of the Securities.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 86

15. The Securities have been duly authorized and executed by Escrow Issuer and, when duly
authenticated by the Trustee and issued and delivered by Escrow Issuer against payment therefor in
accordance with the terms of the Purchase Agreement and the Indenture, the Securities will
constitute valid and binding obligations of Escrow Issuer entitled to the benefits of the Indenture
and enforceable against Escrow Issuer in accordance with their terms.

16. Assuming (i) the accuracy of the representations and warranties of Escrow Issuer set forth
in Sections 3(c)(xxvi), (xxvii) and (xviii), of RRI set forth in Sections 3(a)(xli), (xlii) and
(xliii), of Mirant set forth in Sections 3(b)(xxxvi) and (xxxvii), and of the Initial Purchasers in
Section 1(b), in each case of the Purchase Agreement, (ii) the due performance by Escrow Issuer,
RRI and Mirant of the covenants and agreements set forth in Section 4 of the Purchase Agreement and
the due performance by the Initial Purchasers of the covenants and agreements set forth in Sections
1(b) and 5 of the Purchase Agreement, and (iii) the Initial Purchasers’ compliance with the
offering and transfer procedures and restrictions described in the Offering Memorandum, the offer,
sale and delivery of the Securities to you in the manner contemplated by the Purchase Agreement and
the Offering Memorandum and the initial resale of the Securities by the Initial Purchasers in the
manner contemplated in the Offering Memorandum and the Purchase Agreement, do not require
registration under the Securities Act of 1933, as amended, or qualification of the Indenture under
the Trust Indenture Act of 1939, it being understood that we do not express any opinion as to any
subsequent reoffer or resale of any Securities.

17. The Escrow Merger Agreement has been duly authorized by each of RRI and Escrow Issuer and,
when duly executed and delivered in accordance with its terms by the parties thereto and approved
by Mirant, as the sole stockholder of Escrow Issuer, will be a valid and binding agreement of each
of RRI and Escrow Issuer, enforceable against each of RRI and Escrow Issuer in accordance with its
terms.

18. The statements in the Offering Memorandum and the General Disclosure Package under the
caption “Plan of distribution”, insofar as such statements purport to summarize certain provisions
of the Purchase Agreement, fairly summarize such provisions in all material respects.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 87

19. The statements in the Offering Memorandum and the General Disclosure Package under the
caption “Description of notes” and “Exchange offer; registration rights”, insofar as such
statements purport to summarize certain provisions of the Indenture, the Securities and the Escrow
Agreement, fairly summarize such provisions in all material respects.

20. The statements in the Offering Memorandum and the General Disclosure Package under the
caption “Exchange offer; registration rights”, insofar as such statements purport to summarize
certain provisions of the Registration Rights Agreement, fairly summarize such provisions in all
material respects.

21. Each of RRI, Mirant and Escrow Issuer is not and, solely after giving effect to the
offering and sale of the Securities and the application of the proceeds therefor as described in
the Offering Memorandum and the General Disclosure Package, will not be an “investment company” as
such term is defined in the Investment Company Act of 1940.

22. Assuming the consummation of the Escrow Merger, the due execution and delivery of the
Supplemental Indenture and that the Securities have been duly authenticated by the Trustee and
issued and delivered by Escrow Issuer against payment therefor in accordance with the terms of the
Purchase Agreement and the Indenture, the Securities (upon effectiveness of the Supplemental
Indenture) will constitute valid and binding obligations of RRI entitled to the benefits of the
Indenture, as supplemented by the Supplemental Indenture, and enforceable against RRI in accordance
with their terms.

23. The issuance of the securities (the “Exchange Securities”) to be issued with terms
substantially identical to the Securities, except that the Exchange Securities will not be subject
to additional interest provisions or the restrictions on ownership or transfer set forth on the
Securities, pursuant to the exchange offer registration statement on Form S-4 contemplated by the
Registration Rights Agreement, has been duly authorized by RRI.

24. To our knowledge, there are no legal or governmental proceedings pending to which RRI,
Mirant or Escrow Issuer is a party that would have been required to be disclosed pursuant to Item
103 of Regulation S-K of the General Rules and Regulations under the Securities Act in a
registration statement filed under the Securities Act relating to an offering of debt securities of
the type of the Securities, that are not so disclosed in the Offering Memorandum.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 88

This opinion is furnished only to you as representative of the Initial Purchasers and is
solely for the Initial Purchasers’ benefit in connection with the closing occurring today and the
offering of the Securities, in each case pursuant to the Purchase Agreement. Without our prior
written consent, this opinion may not be used, circulated, quoted or otherwise referred to for any
other purpose or relied upon by, or assigned to, any other person for any purpose, including any
other person that acquires any Securities or that seeks to assert an Initial Purchaser’s rights in
respect of this opinion (other than an Initial Purchaser’s successor in interest by means of
merger, consolidation, transfer of a business or other similar transaction).

Very truly yours,

 

 

 

Schedule A

Incorporated Documents

	1.	 	RRI’s Annual Report on Form 10-K for the year ended December 31, 2009 (including the portions
of the Proxy Statement on Schedule 14A for the 2010 annual meeting of stockholders filed with
the Securities and Exchange Commission (“SEC”) on April 6, 2010, as amended, that are
incorporated by reference therein but excluding the consolidated financial statements of RRI
Energy Mid-Atlantic Power Holdings, LLC and subsidiaries and Orion Power Holdings, Inc. and
subsidiaries, in each case as of December 31, 2009 and 2008, and for each of the years in the
three-year period ended December 31, 2009, that are included therein)

	2.	 	RRI’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010

	3.	 	RRI’s Current Reports on Form 8-K filed with the SEC on April 12, 2010 (excluding Item 7.01
and Exhibits 99.1 and 99.2), May 21, 2010 and July 16, 2010

	4.	 	Mirant’s Annual Report on Form 10-K for the year ended December 31, 2009 (including the
portions of the Proxy Statement on Schedule 14A for the 2010 annual meeting of stockholders
filed with the SEC on March 26, 2010, as amended, that are incorporated by reference therein)

	5.	 	Mirant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010

	6.	 	Mirant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 (as amended on
August 6, 2010 and September 8, 2010)

	7.	 	Mirant’s Current Reports on Form 8-K filed with the SEC on February 26, 2010 (excluding Item
2.02 and Exhibit 99.1), April 12, 2010 (excluding Item 7.01 and Exhibits 99.1 and 99.2), April
28, 2010, May 11, 2010 and July 16, 2010

Documents incorporated by reference into the Offering Memorandum as of the date hereof, but after
the Applicable Time

	8.	 	RRI’s Current Report on Form 8-K filed with the SEC on September 21, 2010 (excluding Item
7.01 and Exhibit 99.1)*

	9.	 	Mirant’s Current Report on Form 8-K filed with the SEC on September 21, 2010 (excluding Item
7.01 and Exhibit 99.1)*

	 	 	 
	*	 	— Relates to (i) RRI’s entering into the credit agreement governing the proposed new senior
secured term loan facility and revolving credit facility (described in the General Disclosure
Package and Offering Memorandum) and (ii) RRI’s and Mirant’s entering into the Purchase Agreement.

 

A-1

 

Schedule B-1

RRI Applicable Contracts

Agreement and Plan of Merger, among RRI Energy, Inc., Mirant Corporation and RRI Energy Holdings,
Inc., a wholly-owned subsidiary of RRI Energy, Inc., dated as of April 11, 2010

Credit Agreement entered into among GenOn Energy, Inc., as a borrower, GenOn Mirant Americas, Inc.,
as a borrower, the subsidiary guarantors party thereto, JPMorgan Chase Bank, N.A., as
administrative agent, and the lenders and other agents party thereto, dated September 20, 2010

Senior Indenture among Reliant Energy, Inc. and Wilmington Trust Company, dated as of December 22,
2004

First Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among Reliant
Energy, Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of December 22,
2004

Second Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among Reliant
Energy, Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of September 21,
2006

Third Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among Reliant
Energy, Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of December 1,
2006

Sixth Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among RRI Energy,
Inc., The Guarantors listed therein and Wilmington Trust Company, dated as of June 1, 2009

Seventh Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among RRI
Energy, Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of August 20,
2009

Eighth Supplemental Indenture relating to the 6.75% Senior Secured Notes due 2014, among RRI
Energy, Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of December 1,
2009

Fourth Supplemental Indenture relating to the 7.625% Senior Notes due 2014, among Reliant Energy,
Inc., the Guarantors listed therein and Wilmington Trust Company, dated as of June 13, 2007

Fifth Supplemental Indenture relating to the 7.875% Senior Notes due 2017, among Reliant Energy,
Inc., the Guarantors listed therein and Wilmington Trust Company,
dated as of June 13, 2007

Master Separation Agreement between Reliant Resources, Inc. and Reliant Energy, Incorporated, dated
as of December 31, 2000

 

B-1-i

 

Schedules to Master Separation Agreement between Reliant Resources, Inc. and Reliant Energy,
Incorporated, dated as of December 31, 2000

Tax Allocation Agreement between Reliant Resources, Inc. and Reliant Energy, Incorporated, dated as
of December 31, 2000

Exhibit to Tax Allocation Agreement between Reliant Resources, Inc. and Reliant Energy,
Incorporated, dated as of December 31, 2000

Participating Preferred Stock Purchase Agreement by and between Reliant Energy, Inc. and FR Reliant
Holdings LP dated as of October 10, 2008

Guarantee Agreement relating to Pennsylvania Economic Development Financing Authority’s Exempt
Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2001A, among Reliant Energy,
Inc., the Subsidiary Guarantors defined therein and J.P. Morgan Trust Company, National
Association, as trustee, dated as of December 22, 2004

Guarantee Agreement relating to Pennsylvania Economic Development Financing Authority’s Exempt
Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002A, among Reliant Energy,
Inc., the Subsidiary Guarantors defined therein and J.P. Morgan Trust Company, National
Association, as trustee, dated as of December 22, 2004

Exhibit C to Exhibit B to Guarantee Agreement relating to Pennsylvania Economic Development
Financing Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project),
Series 2002A, among Reliant Energy, Inc., the Subsidiary Guarantors defined therein and J.P. Morgan
Trust Company, National Association, as trustee, dated as of December 22, 2004

Guarantee Agreement relating to Pennsylvania Economic Development Financing Authority’s Exempt
Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002B, among Reliant Energy,
Inc., the Subsidiary Guarantors defined therein and J.P. Morgan Trust Company, National
Association, as trustee, dated as of December 22, 2004

Exhibit C to Exhibit B to Guarantee Agreement relating to Pennsylvania Economic Development
Financing Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project),
Series 2002B, among Reliant Energy, Inc., the Subsidiary Guarantors defined therein and J.P. Morgan
Trust Company, National Association, as trustee, dated as of December 22, 2004

 

B-1-ii

 

Guarantee Agreement relating to Pennsylvania Economic Development Financing Authority’s Exempt
Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2003A, among Reliant Energy,
Inc., the Subsidiary Guarantors defined therein and J.P. Morgan Trust Company, National
Association, as trustee, dated as of December 22, 2004

Exhibit C to Exhibit B to Guarantee Agreement relating to Pennsylvania Economic Development
Financing Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project),
Series 2003A, among Reliant Energy, Inc., the Subsidiary Guarantors defined therein and J.P. Morgan
Trust Company, National Association, as trustee, dated as of December 22, 2004

Guarantee Agreement relating to Pennsylvania Economic Development Financing Authority’s Exempt
Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2004A, among Reliant Energy,
Inc., the Subsidiary Guarantors defined therein and J.P. Morgan Trust Company, National
Association, as trustee, dated as of December 22, 2004

Exhibit C to Exhibit B to Guarantee Agreement relating to Pennsylvania Economic Development
Financing Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project),
Series 2004A, among Reliant Energy, Inc., the Subsidiary Guarantors defined therein and J.P. Morgan
Trust Company, National Association, as trustee, dated as of December 22, 2004

Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2001A,
among Reliant Energy Power Supply, LLC, Reliant Energy, Inc., the Subsidiary Guarantors as defined
in the Guarantee Agreement and J.P. Morgan Trust Company, National Association, as trustee, dated
as of September 21, 2006

Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002A,
among Reliant Energy Power Supply, LLC, Reliant Energy, Inc., the Subsidiary Guarantors as defined
in the Guarantee Agreement and J.P. Morgan Trust Company, National Association, as trustee, dated
as of September 21, 2006

Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002B,
among Reliant Energy Power Supply, LLC, Reliant Energy, Inc., the Subsidiary Guarantors as defined
in the Guarantee Agreement and J.P. Morgan Trust Company, National Association, as trustee, dated
as of September 21, 2006

Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2003A,
among Reliant Energy Power Supply, LLC, Reliant Energy, Inc., the Subsidiary Guarantors as defined
in the Guarantee Agreement and J.P. Morgan Trust Company, National Association, as trustee, dated
as of September 21, 2006

 

B-1-iii

 

Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2004A,
among Reliant Energy Power Supply, LLC, Reliant Energy, Inc., the Subsidiary Guarantors as defined
in the Guarantee Agreement and J.P. Morgan Trust Company, as trustee, dated as of September 21,
2006

Second Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2001A,
among Reliant Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of December 1, 2006

Second Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002A,
among Reliant Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of December 1, 2006

Second Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002B,
among Reliant Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of December 1, 2006

Second Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2003A,
among Reliant Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of December 1, 2006

Third Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2004A,
among Reliant Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of December 1, 2006

Third Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2001A,
among RRI Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of June 1, 2009

Third Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002A,
among RRI Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of June 1, 2009

 

B-1-iv

 

Third Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2002B,
among RRI Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee
Agreement and The Bank of New York Trust Company, N.A., as trustee, dated as of June 1, 2009

Third Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2003A,
among RRI Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of June 1, 2009

Fourth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s Exempt Facilities Revenue Bonds (Reliant Energy Seward, LLC Project), Series 2004A,
among RRI Energy, Inc., the Subsidiary Guarantors as defined in the Guarantee Agreement and The
Bank of New York Trust Company, N.A., as trustee, dated as of June 1, 2009

Fourth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2001A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of August 20, 2009

Fourth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2002A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of August 20, 2009

Fourth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2002B,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of August 20, 2009

Fourth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2003A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of August 20, 2009

 

B-1-v

 

Fifth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2004A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of
August 20, 2009

Fifth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2001A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of December 1, 2009

Fifth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2002A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of December 1, 2009

Fifth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2002B,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of December 1, 2009

Fifth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2003A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of December 1, 2009

Sixth Supplemental Guarantee Agreement relating to Pennsylvania Economic Development Financing
Authority’s exempt facilities revenues bonds (Reliant Energy Seward, LLC Project), Series 2004A,
among RRI Energy, Inc. the Subsidiary Guarantors as defined in the Guarantee Agreement and the Bank
of New York Mellon Trust Company, N.A., as Trustee, dated as of December 1, 2009

Credit and Guaranty Agreement among Reliant Energy, Inc., as Borrower, the Other Loan Parties
referred to therein as guarantors, the lenders party thereto, Deutsche Bank AG New York Branch, as
Administrative Agent and Collateral Agent, Deutsche Bank Securities Inc. and J.P. Morgan Securities
Inc., as Joint Lead Arrangers, Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Goldman
Sachs Credit Partners L.P., Merrill Lynch Capital Corporation and ABN AMRO Bank N.V., as Joint
Bookrunners with respect to the Revolving Credit Facility and Deutsche Bank Securities Inc.,
J.P. Morgan Securities Inc., Goldman Sachs Credit Partners L.P., Merrill Lynch Capital Corporation
and Bear, Sterns & Co. Inc., as Joint Bookrunners with respect to the Pre-Funded L/C Facility,
dated as of June 12, 2007

 

B-1-vi

 

Exhibits and Schedules to Credit and Guaranty Agreement among Reliant Energy, Inc., as Borrower,
the Other Loan Parties referred to therein as guarantors, the lenders party thereto, Deutsche Bank
AG New York Branch, as Administrative Agent and Collateral Agent, Deutsche Bank Securities Inc. and
J.P. Morgan Securities Inc., as Joint Lead Arrangers, Deutsche Bank Securities Inc., J.P. Morgan
Securities Inc., Goldman Sachs Credit Partners L.P., Merrill Lynch Capital Corporation and ABN AMRO
Bank N.V., as Joint Bookrunners with respect to the
Revolving Credit Facility and Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Goldman
Sachs Credit Partners L.P., Merrill Lynch Capital Corporation and Bear, Sterns & Co. Inc., as Joint
Bookrunners with respect to the Pre-Funded L/C Facility, dated as of June 12, 2007 (Portions of
this Exhibit have been omitted pursuant to a request for confidential treatment)

Pass Through Trust Agreement between Reliant Energy Mid-Atlantic Power Holdings, LLC and Bankers
Trust Company, made with respect to the formation of the Series A Pass Through Trust and the
issuance of 8.554% Series A Pass Through Certificates, dated as of August 24, 2000

Participation Agreement among (i) Conemaugh Lessor Genco LLC, as Owner Lessor; (ii) Reliant Energy
Mid-Atlantic Power Holdings, LLC, as Facility Lessee; (iii) Wilmington Trust Company, as Lessor
Manager; (iv) PSEGR Conemaugh Generation, LLC, as Owner Participant; (v) Bankers Trust Company, as
Lease Indenture Trustee; and (vi) Bankers Trust Company, as Pass Through Trustee, dated as of
August 24, 2000

First Amendment to Participation Agreement, dated as of November 15, 2001

Exhibit M to First Amendment to Participation Agreement, dated as of November 15, 2001

Second Amendment to Participation Agreement, dated as of June 18, 2003

Lease Indenture of Trust, Mortgage and Security Agreement between Conemaugh Lessor Genco LLC, as
Owner Lessor, and Bankers Trust Company, as Lease Indenture Trustee, dated as of August 24, 2000

Settlement and Release of Claims Agreement among each of the Reliant Parties, OMOI, each of the
California Parties, each of the Additional Claimants, each of the Class Action Parties and each of
the Local Governmental Parties (each as defined therein), dated as of October 12, 2005

Exhibits to Settlement and Release of Claims Agreement among each of the Reliant Parties, OMOI,
each of the California Parties, each of the Additional Claimants, each of the Class Action Parties
and each of the Local Governmental Parties (each as defined therein), dated as of October 12, 2005

Guarantee by NRG Energy, Inc., as Guarantor, in favor of Reliant Energy, Inc. dated as of
February 28, 2009

Agreement Regarding Prosecution of Litigation by and among Merrill Lynch Commodities, Inc., Merrill
Lynch & Co., Inc., Reliant Energy Power Supply, LLC, RERH Holdings, LLC, Reliant Energy Retail
Holdings, LLC, Reliant Energy Retail Services, LLC, RE Retail Receivables, LLC and Reliant Energy
Solutions East, LLC dated as of February 28, 2009

 

B-1-vii

 

Schedule B-2

Mirant Applicable Contracts

Agreement and Plan of Merger, among RRI Energy, Inc., Mirant Corporation and
RRI Energy Holdings, Inc., a wholly-owned subsidiary of RRI Energy, Inc.,
dated as of April 11, 2010

Credit Agreement entered into among GenOn Energy, Inc., as a borrower, GenOn
Mirant Americas, Inc., as a borrower, the subsidiary guarantors party
thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders
and other agents party thereto, dated September 20, 2010

Form of Warrant Agreement between Mirant Corporation and Mellon Investor
Services LLC, as Warrant Agent, including Exhibit A-1 thereto, a Form of
Series A Warrant Agreement, to which J. William Holden III and Anne M. Cleary
are parties

Rights Agreement, dated as of March 26, 2009, between Mirant Corporation and
Mellon Investor Services LLC

First Amendment to the Rights Agreement, dated as of February 25, 2010,
between Mirant Corporation and Mellon Investor Services LLC

Indenture between Mirant Americas Generation, Inc. and Bankers Trust Company,
as Trustee, relating to the Notes (the “MAG Indenture”)

Second Supplemental Indenture to the MAG Indenture

Third Supplemental Indenture to the MAG Indenture

Fifth Supplemental Indenture to the MAG Indenture

Form of Sixth Supplemental Indenture to the MAG Indenture

Form of Seventh Supplemental Indenture to the MAG Indenture

Form of Senior Note Indenture between Mirant North America, LLC, Mirant North
America Escrow, LLC, MNA Finance Corp. and Law Debenture Trust Company of New
York, as Trustee

Rights Agreement, dated as of March 26, 2009, between Mirant Corporation and
Mellon Investor Services LLC

First Amendment to the Rights Agreement, dated as of February 25, 2010,
between Mirant Corporation and Mellon Investor Services LLC.

Settlement Agreement and Release dated May 30, 2006 by and between Mirant
Corporation and PEPCO

 

B-2

 

Mirant North America, LLC—Credit Agreement with Deutsche Bank Securities
Inc., Goldman Sachs Credit Partners L.P., and JPMorgan Chase Bank, N.A

Assignment and Assumption Agreement
(Dickerson) between Southern Energy
Mid-Atlantic, LLC, Dickerson OL1 LLC,
Dickerson OL2 LLC, Dickerson OL3 LLC, and
Dickerson OL4 LLC, dated as of
December 19, 2000

Assignment and Assumption Agreement
(Morgantown) between Southern Energy
Mid-Atlantic, LLC, Morgantown OL1 LLC,
Morgantown OL2 LLC, Morgantown OL3 LLC,
Morgantown OL4 LLC, Morgantown OL5 LLC,
Morgantown OL6 LLC, and Morgantown OL7
LLC, dated as of December 19, 2000

Ownership and Operation Agreement
(Dickerson) between Southern Energy
Mid-Atlantic, LLC, Dickerson OL1 LLC,
Dickerson OL2 LLC, Dickerson OL3 LLC, and
Dickerson OL4 LLC, dated as of
December 18, 2000

Ownership and Operation Agreement
(Morgantown) between Southern Energy
Mid-Atlantic, LLC, Morgantown OL1 LLC,
Morgantown OL2 LLC, Morgantown OL3 LLC,
Morgantown OL4 LLC, Morgantown OL5 LLC,
Morgantown OL6 LLC, and Morgantown OL7
LLC, dated as of December 18, 2000

Guaranty Agreement (Dickerson L1) between
Southern Energy, Inc. and Dickerson OL1
LLC dated as of December 19, 2000

Guaranty Agreement (Morgantown L1) between
Southern Energy, Inc. and Morgantown OL1
LLC dated as of December 19, 2000

 

B-2

 

Schedule C-1

RRI Significant Subsidiary Delaware Certificates

	 	 	 	 	 	 	 	 	 
	Entity	 	State	 	Office	 	Date	 	Status
	Orion Power
Holdings, Inc.

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly incorporated,
validly existing
and in good
standing
	Orion Power Midwest
LP, LLC

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly formed,
validly existing
and in good
standing
	Orion Power
Midwest, L.P.

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly formed,
validly existing
and in good
standing
	RRI Energy Florida,
LLC

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly formed,
validly existing
and in good
standing
	RRI Energy
Mid-Atlantic Power
Holdings, LLC

	 	Delaware
	 	Secretary of State
	 	10/01/2010
	 	Duly formed,
validly existing
and in good
standing
	RRI Energy Power
Generation, Inc.

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly incorporated,
validly existing
and in good
standing
	RRI Energy
Northeast Holdings,
Inc.

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly incorporated,
validly existing
and in good
standing
	RRI Energy
Services, Inc.

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly incorporated,
validly existing
and in good
standing
	RRI Energy
Wholesale
Generation, LLC

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly formed,
validly existing
and in good
standing

 

C-1

 

Schedule C-2

Mirant Significant Subsidiary Delaware Certificates

	 	 	 	 	 	 	 	 	 
	Entity	 	State	 	Office	 	Date	 	Status
	Mirant Americas, Inc.

	 	Delaware
	 	Secretary of State
	 	9/16/2010
	 	Duly incorporated,
validly existing
and in good
standing
	Mirant Americas
Generation, LLC

	 	Delaware
	 	Secretary of State
	 	10/01/2010
	 	Duly formed,
validly existing
and in good
standing
	Mirant Chalk Point,
LLC

	 	Delaware
	 	Secretary of State
	 	10/01/2010
	 	Duly formed,
validly existing
and in good
standing
	Mirant Energy
Trading, LLC

	 	Delaware
	 	Secretary of State
	 	10/01/2010
	 	Duly formed,
validly existing
and in good
standing
	Mirant Mid-Atlantic,
LLC

	 	Delaware
	 	Secretary of State
	 	10/01/2010
	 	Duly formed,
validly existing
and in good
standing
	Mirant North
America, LLC

	 	Delaware
	 	Secretary of State
	 	9/15/2010
	 	Duly formed,
validly existing
and in good
standing

 

C-2

 

Schedule D-1

RRI Applicable Orders

None

 

D-1

 

Schedule D-2

Mirant Applicable Orders

None

 

D-2

 

Exhibit A

RRI Certificate

 

 

 

Exhibit B

Mirant Certificate

 

 

 

Exhibit C

Escrow Issuer Certificate

 

 

 

ANNEX D-2

Form of Negative Assurance Letter of Counsel for Escrow Issuer, RRI and
Mirant

October 4, 2010

J.P. Morgan Securities LLC

383 Madison Avenue

New York, NY 10179

as Representative of the several Initial Purchasers

				
	 	Re:	 	GenOn Escrow Corp.

$675,000,000 9.500% Senior Notes due 2018

$550,000,000
9.875% Senior Notes due 2020

Ladies and Gentlemen:

We have acted as special counsel to GenOn Escrow Corp., a Delaware corporation (“Escrow
Issuer”), RRI Energy, Inc., a Delaware corporation (“RRI”), and Mirant Corporation, a
Delaware corporation (“Mirant”), in connection with the Purchase Agreement, dated September
20, 2010 (the “Purchase Agreement”), among you, as representative of the several initial
purchasers named therein (the “Initial Purchasers”), Escrow Issuer, RRI and Mirant,
relating to the sale by Escrow Issuer to the Initial Purchasers of $675,000,000 aggregate principal
amount of Escrow Issuer’s 9.500% Senior Notes due 2018 and $550,000,000 aggregate principal amount
of Escrow Issuer’s 9.875% Senior Notes due 2020 (collectively, the “Securities”) to be
issued under the Indenture, dated as of October 4, 2010 (the “Indenture”), between Escrow
Issuer and Wilmington Trust Company, as Trustee.

This letter is being furnished to you pursuant to Section 6(g) of the Purchase Agreement.

 

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 2

In the above capacity, we have reviewed (i) the preliminary offering memorandum, dated
September 13, 2010, relating to the offering of the Securities
(together with the Incorporated Documents (as defined below), the “Preliminary Offering
Memorandum”), (ii) the first Supplement, dated September 16, 2010 (“Supplement No. 1”),
to the Preliminary Offering Memorandum, (iii) the second Supplement, dated September 20, 2010,
(“Supplement No. 2”), to the Preliminary Offering Memorandum, (iv) the Pricing Term Sheet
attached as Annex B to the Purchase Agreement (the “Final Term Sheet”) and (iv) the final
offering memorandum, dated September 20, 2010, relating to the Securities (together with the
Incorporated Documents, the “Offering Memorandum”). We also have reviewed the documents
identified on Schedule A hereto filed by RRI and Mirant, pursuant to the Securities
Exchange Act of 1934 and incorporated by reference into the Offering Memorandum or the Preliminary
Offering Memorandum, as the case may be, as of the date hereof or as of the Applicable Time (as
defined below), as the case may be (collectively, the “Incorporated Documents”), and such
other documents as we deemed appropriate.

In addition, we have participated in conferences with officers and other representatives of
Escrow Issuer, RRI and Mirant, special counsel for Mirant, representatives of the independent
registered public accountants of RRI and Mirant and representatives of the Initial Purchasers and
counsel for the Initial Purchasers at which the contents of the Offering Memorandum, the General
Disclosure Package (as defined below) and related matters were discussed. We did not participate
in the preparation of the Incorporated Documents but have, however, reviewed such documents and
discussed the business and affairs of Escrow Issuer, RRI and Mirant with officers and other
representatives of Escrow Issuer, RRI and Mirant. We do not pass upon, or assume any
responsibility for, the accuracy, completeness or fairness of the statements contained or
incorporated by reference in the Offering Memorandum or the General Disclosure Package and have
made no independent check or verification thereof (except to the limited extent referred to in (i)
paragraphs 18, 19 and 20 of our opinion to you dated the date hereof and (ii) our tax opinion to
you, dated the date hereof).

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 3

On the basis of the foregoing, no facts have come to our attention that have caused us to
believe that the Offering Memorandum, as of its date or as of the date hereof, contained or
contains an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading (except that in each case we do not express any view as to the
financial statements, schedules and other financial information included or incorporated
by reference therein or excluded therefrom, the reports of management’s assessment of the
effectiveness of internal controls over financial reporting or the auditors’ attestation reports
thereon, or the statements contained in the exhibits to the Incorporated Documents). In addition,
on
the basis of the foregoing, no facts have come to our attention that have caused us to believe
that the General Disclosure Package, as of the Applicable Time, contained an untrue statement of a
material fact or omitted to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading (except that
we do not express any view as to the financial statements, schedules and other financial
information included or incorporated by reference therein or excluded therefrom, the reports of
management’s assessment of the effectiveness of internal controls over financial reporting or the
auditors’ attestation reports thereon or the statements contained in the exhibits to the
Incorporated Documents).

As used herein, “Applicable Time” means 12:55 p.m. (Eastern time) on September 20,
2010, which you advised us is the time of the first contract of sale of the Securities, and
“General Disclosure Package” means the Preliminary Offering Memorandum, Supplement No. 1,
Supplement No. 2 and the Final Term Sheet, all considered together.

This letter is furnished only to you as representative of the Initial Purchasers and is solely
for the Initial Purchasers’ benefit in connection with the closing occurring today and the offering
of the Securities, in each case pursuant to the Purchase Agreement. Without our prior written
consent, this letter may not be used, circulated, quoted or otherwise referred to for any other
purpose or relied upon by, or assigned to, any other person for any purpose, including any other
person that acquires any Securities or that seeks to assert an Initial Purchaser’s rights in
respect of this letter (other than an Initial Purchaser’s successor in interest by means of merger,
consolidation, transfer of a business or other similar transaction).

Very truly yours,

 

 

Schedule A

Incorporated Documents

	10.	 	RRI’s Annual Report on Form 10-K for the year ended December 31, 2009 (including the portions
of the Proxy Statement on Schedule 14A for the 2010 annual meeting of stockholders filed with
the Securities and Exchange Commission (“SEC”) on April 6, 2010, as amended, that are
incorporated by reference therein but excluding the consolidated financial statements of RRI
Energy Mid-Atlantic Power Holdings, LLC and subsidiaries and Orion Power Holdings, Inc. and
subsidiaries, in each case as of December 31, 2009 and 2008, and for each of the years in the
three-year period ended December 31, 2009, that are included therein)

	11.	 	RRI’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010 and June 30, 2010

	12.	 	RRI’s Current Reports on Form 8-K filed with the SEC on April 12, 2010 (excluding Item 7.01
and Exhibits 99.1 and 99.2), May 21, 2010 and July 16, 2010

	13.	 	Mirant’s Annual Report on Form 10-K for the year ended December 31, 2009 (including the
portions of the Proxy Statement on Schedule 14A for the 2010 annual meeting of stockholders
filed with the SEC on March 26, 2010, as amended, that are incorporated by reference therein)

	14.	 	Mirant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010

	15.	 	Mirant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 (as amended on
August 6, 2010 and September 8, 2010)

	16.	 	Mirant’s Current Reports on Form 8-K filed with the SEC on February 26, 2010 (excluding Item
2.02 and Exhibit 99.1), April 12, 2010 (excluding Item 7.01 and Exhibits 99.1 and 99.2), April
28, 2010, May 11, 2010 and July 16, 2010

Documents incorporated by reference into the Offering Memorandum as of the date hereof, but after
the Applicable Time

	17.	 	RRI’s Current Report on Form 8-K filed with the SEC on September 21, 2010 (excluding Item
7.01 and Exhibit 99.1)*

	18.	 	Mirant’s Current Report on Form 8-K filed with the SEC on September 21, 2010 (excluding Item
7.01 and Exhibit 99.1)*

	 	 	 
	*	 	— Relates to (i) RRI’s entering into the credit agreement governing the proposed new senior
secured term loan facility and revolving credit facility (described in the General Disclosure
Package and Offering Memorandum) and (ii) RRI’s and Mirant’s entering into the Purchase Agreement.

 

 

ANNEX D-3

Form of Tax Opinion of Counsel for Escrow Issuer, RRI and Mirant

October 4, 2010

J.P. Morgan Securities LLC

383 Madison Avenue

New York, NY 10179

as Representative of the several Initial Purchasers

				
	 	Re:	 	GenOn Escrow Corp.

$675,000,000
91/2%
Senior Notes due 2018

$550,000,000 97/8% Senior Notes due 2020

Ladies and Gentlemen:

We have acted as special counsel to GenOn Escrow Corp., a Delaware corporation (“Escrow
Issuer”), RRI Energy, Inc., a Delaware corporation (“RRI”), and Mirant Corporation, a
Delaware corporation (“Mirant”), in connection with the Purchase Agreement, dated September
20, 2010, (the “Purchase Agreement”), among you, as representative of the several initial
purchasers named therein (the “Initial Purchasers”), Escrow Issuer, RRI and Mirant,
relating to the sale by Escrow Issuer to the Initial Purchasers of $675,000,000 aggregate principal
amount of Escrow Issuer’s 91/2% Senior Notes due 2018 and $550,000,000 aggregate principal amount of
Escrow Issuer’s 97/8% Senior Notes due 2020 (collectively, the “Securities”) to be issued
under the Indenture, dated as of October 4, 2010 (the “Indenture”), between Escrow Issuer
and Wilmington Trust Company, as Trustee.

This opinion is being furnished to you pursuant to Sections 6(g) of the Purchase Agreement.

In the above capacity, we have reviewed (i) the preliminary offering memorandum, dated
September 13, 2010 (the “Preliminary Offering Memorandum”), relating to the offering of the
Securities, (ii) the final offering memorandum, dated September 20, 2010, relating to the
Securities (the “Offering Memorandum”) and (iii) such other documents as we have deemed
necessary or appropriate as a basis for the opinion set forth below. Our opinion is conditioned
on, among other things, the initial and continuing accuracy of the facts, information, and analyses
set forth in such documents and records.

In addition, we have relied upon statements and representations of the officers and other
representatives of Escrow Issuer, RRI, Mirant and others, and we have assumed that such statements
and representations are and will continue to be correct without regard to any qualification as to
knowledge or belief.

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 6

For purposes of our opinion, we have assumed the legal capacity of all natural persons, the
genuineness of all signatures, the authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us as facsimile, electronic,
certified, conformed, or photostatic copies, and the authenticity of the originals of such latter
documents. In making our examination of documents executed, or to be executed, we have assumed
that such parties had, or will have, the power, corporate or other, to enter into and perform all
obligations thereunder, and we have also assumed the due authorization by all requisite action,
corporate or other, and execution and delivery by such parties of such documents and that such
documents constitute, or will constitute, valid and binding obligations of such parties.

Our opinion is based on the Internal Revenue Code of 1986, as amended, Treasury Department
regulations promulgated thereunder, judicial decisions, published positions of the Internal Revenue
Service, and such other authorities as we have considered relevant, all as in effect as of the date
of this opinion and all of which are subject to differing interpretations or change at any time
(possibly with retroactive effect). A change in the authorities or the truth, accuracy, or
completeness of any of the facts, information, documents, corporate records, covenants, statements,
representations, or assumptions upon which our opinion is based could affect the conclusions
expressed herein. There can be no assurance, moreover, that our opinion expressed herein will be
accepted by the Internal Revenue Service or, if challenged, by a court.

Based upon the foregoing and subject to the qualifications, exceptions, assumptions and
limitations contained herein and in the Offering Memorandum, we are of the opinion that, under
current United States federal income tax law, although the discussion set forth in the Offering
Memorandum under the heading “Certain United States federal income tax consequences” does not
purport to discuss all possible United States federal income tax consequences of the purchase,
ownership and disposition of the Securities, such discussion constitutes, in all material respects,
a fair and accurate summary of the United States federal income tax consequences of the purchase,
ownership and disposition of the Securities.

Except as set forth above, we express no other opinion. This opinion is furnished to you
solely for your benefit in connection with the transaction referred to herein and is not to be
relied upon by anyone else without our prior written consent. This opinion is expressed as of the
date hereof, and we are under no obligation to supplement or revise our opinion to reflect any
legal developments or factual matters arising subsequent to the date hereof or the impact of any
information, document, certificate, record, statement, representation, covenant, or assumption
relied upon herein that becomes incorrect or untrue.

Very truly yours,

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 7

ANNEX D-4

Form of UCC Opinion of Counsel for Escrow Issuer

October 4, 2010

J.P. Morgan Securities LLC

383 Madison Avenue

New York, NY 10179

as Representative of the several Initial Purchasers listed in Schedule 1 to the
Purchase Agreement referred to below

				
	 	Re:	 	GenOn Escrow Corp.

$675,000,000 9.500% Senior Notes due 2018

$550,000,000 9.875% Senior Notes due 2020

Ladies and Gentlemen:

We have acted as special counsel to GenOn Escrow Corp., a Delaware corporation (the
“Pledgor”), in connection with the preparation, execution and delivery of the Escrow and
Security Agreement, dated the date hereof (the “Escrow and Security Agreement”), among the
Pledgor, RRI Energy, Inc. “RRI”), Mirant Corporation (“Mirant”), Deutsche Bank
Trust Companies America (“Deutsche Bank), a New York banking corporation and a wholly-owned
subsidiary of Deutsche Bank AG, as “bank” and “securities intermediary” (each term as defined in
the UCC (as defined below)) (in such capacity, the “Financial Institution”), Deutsche Bank,
as escrow agent, Wilmington Trust Company, as trustee under the Indenture (as defined below) (in
such capacity, the “Trustee”), and J.P. Morgan Securities LLC, as representative (the
“Representative”) of the initial purchasers listed in Schedule 1 thereto. This opinion is
being delivered pursuant to Section 6(g) of the Purchase Agreement, dated September 20, 2010 (the
“Purchase Agreement”), among the Representative, Escrow Issuer, RRI and Mirant.

In our examination we have assumed the genuineness of all signatures including endorsements,
the legal capacity and competency of natural persons, the authenticity of all documents submitted
to us as originals, the conformity to original documents of all documents submitted to us as
facsimile, electronic, certified or photostatic copies, and the authenticity of the originals of
such copies. As to any facts relevant to this opinion which we did not independently establish or
verify, we have relied upon statements and representations of the Pledgor and its officers and
other representatives and of public officials, including the facts and conclusions set forth
therein.

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 8

In rendering the opinions set forth herein, we have examined and relied on originals or copies
of the following:

(a) the Escrow and Security Agreement; and

(b) such other documents as we have deemed necessary or appropriate as a basis for the
opinions set forth below.

Capitalized terms used herein and not otherwise defined herein shall have the same meanings
herein as set forth in the Escrow and Security Agreement. As used herein:

	 	(i)	 	“Account” means account number S60899.1, established and
maintained by the Financial Institution in the name of GenOn Escrow Corp.
Account.

	 	(ii)	 	“UCC” means the Uniform Commercial Code as in effect on
the date hereof in the State of New York (without regard to laws referenced in
Section 9-201 thereof).

	 	(iii)	 	“Indenture” means the indenture, dated as of the date
hereof, between the Pledgor and the Trustee, relating to the issuance of
$675,000,000 aggregate principal amount of Escrow Issuer’s 9.500% Senior Notes
due 2018 and $550,000,000 aggregate principal amount of Escrow Issuer’s 9.875%
Senior Notes due 2020.

We express no opinion with respect to any laws other than the UCC.

We have this date delivered to you our opinion with respect to the enforceability of the
Escrow and Security Agreement and certain other transaction agreements (the “Enforceability
Opinion”). We call to your attention that the opinions set forth herein with respect to the
security interest of the Trustee are subject to the qualifications contained in such other opinion.

You have asked for our opinion with respect to the security interest granted by the Pledgor
under the Escrow and Security Agreement. We note that the Escrow and Security Agreement purports
to serve the dual functions of both a security agreement and an escrow agreement. We express no
opinion as to the effect on the opinions expressed herein of purporting to have the Escrow and
Security Agreement function as an escrow agreement. Based upon the foregoing and subject to the
other qualifications set forth herein, we are of the opinion that:

1. Under the UCC, Section 1.4 of the Escrow and Security Agreement is effective to create a
security interest in all of the Pledgor’s rights, title and interest in the Account.

2. Under the UCC, Section 1.4 of the Escrow and Security Agreement is effective to perfect the
security interest of the Trustee in the Pledgor’s rights in the Account.

Our opinions are subject to the following qualifications:

(a) We have assumed that the Pledgor has rights in the Account, and we express no opinion as
to the nature or extent of the Pledgor’s rights in the Account.

 

 

J.P. Morgan Securities LLC

as Representative of the several Initial Purchasers

October 4, 2010

Page 9

(b) We note that pursuant to Section 8(b) of the Escrow and Security Agreement, the Financial
Institution represents that it is a “Securities Intermediary” (as defined in Section 8-102 of the
UCC) with respect to the Account. Based on such representation, we have assumed that the Financial
Institution is a “securities intermediary” as defined in Section 8-102(a)(14) of the UCC.

(c) We have assumed that the Account is a “securities account” as defined in Section 8-501(a)
of the UCC.

(d) Our opinion with respect to proceeds is subject to the limitations set forth in Section
9-315 of the UCC and, in addition, we call to your attention that in the case of certain types of
proceeds, other parties such as holders in due course, protected purchasers of securities, persons
who obtain control over securities entitlements may acquire a superior interest or may take their
interest free of the security interest of a secured party.

(e) We express no opinion with respect to any property or assets now or hereafter credited to
the Account except to the extent that (i) a “securities entitlement” (as such term is defined in
Section 8-102(a)(17) of the UCC) has been created by the Financial Institution and (ii) such asset
is a “financial asset” (as such term is defined in Section 8-102(a)(9) of the UCC). Furthermore,
we express no opinion with respect to the nature or extent of the Financial Institution’s rights
in, or title to, the securities or other financial assets underlying any “security entitlement” now
or hereafter credited to the Account. We note that to the extent the Financial Institution
maintains any financial asset in a “clearing corporation” (as defined in Section 8-102(5) of the
UCC), pursuant to Section 8-111 of the UCC, the rules of such clearing corporation may affect the
rights of the Financial Institution.

(f) We have assumed that the Escrow and Security Agreement is the valid, binding and
enforceable obligation of each of the parties thereto (other than the Pledgor, as to which we
express our opinion in the Enforceability Opinion).

(g) We express no opinion with respect to the choice of law governing perfection, the effect
of perfection and non-perfection or priority of the security interest.

This opinion is being furnished only to you in connection with the Purchase Agreement and is
solely for your benefit and is not to be used, circulated, quoted or otherwise referred to for any
other purpose or relied upon by any other person or entity for any purpose without our prior
written consent.

Very truly yours,

 

 

Annex E

Form of RRI Energy, Inc.

Management Letter of the Chief Financial Officer

Capitalized terms not defined in this certificate have the meaning ascribed to them in the
Purchase Agreement among RRI Energy, Inc., a Delaware corporation (the “Company”), GenOn Escrow
Corp., a Delaware corporation, Mirant Corporation, a Delaware corporation, and J.P. Morgan
Securities LLC, as representative of the initial purchasers named in Schedule 1 thereto
(collectively, the “Initial Purchasers”), dated September 20, 2010 (the “Purchase Agreement”).

In connection with the offering by GenOn Escrow Corp. of $675,000,000 aggregate principal
amount of its 9.500% Senior Notes Due 2018 (the “2018 Securities”) and $550,000,000 aggregate
principal amount of its 9.875% Senior Notes Due 2020 (the “2020 Securities” and together, with the
2018 Securities, the “Securities”) pursuant to the Preliminary Offering Memorandum and the
Supplements, I, Rick J. Dobson, Executive Vice President and Chief financial Officer of the
Company, have been asked to deliver this certificate to the Initial Purchasers and, based on my
examination of the Company’s financial records and schedules undertaken by me and members of my
staff who are responsible for the Company’s financial and accounting matters, I hereby certify
that:

1. For purposes of this certificate, the undersigned or persons supervised by him
have also read the items identified by the Initial Purchasers on the pages of the
Preliminary Offering Memorandum attached hereto as Exhibit A and have compared or
recomputed the indicated dollar amounts shown to a schedule prepared by the
Company’s management performance reporting personnel and recomputed the dollar
amounts based on market data and found them to be in agreement; and

2. Skadden, Arps, Slate, Meagher & Flom LLP and Simpson Thacher & Bartlett LLP are
entitled to rely on this certificate in connection with the opinions that such
firms are rendering pursuant to Sections 6(g) and 6(h), respectively, of the
Purchase Agreement.

This certificate is to assist the Initial Purchasers in conducting and documenting their
investigation of the affairs of the Company in connection with the offering of the Securities
covered by the Preliminary Offering Memorandum, the Supplements and the Offering Memorandum.

 

 

 

IN WITNESS WHEREOF, I have hereunto signed my name on this
 _____ 

day of
 _____ 

, 2010.

	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[Signature Page to Management Letter of RRI’s CFO]Exhibit 10.2

Exhibit 10.2

REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT dated October 4, 2010 (the “Agreement”) is entered
into by and among RRI Energy, Inc. (the “Company,” to be renamed GenOn Energy, Inc.), a
Delaware corporation, and J.P. Morgan Securities LLC (“J.P. Morgan”), Credit Suisse
Securities (USA) LLC (“Credit Suisse”), Deutsche Bank Securities Inc. (“Deutsche
Bank”), Goldman, Sachs & Co. (“Goldman Sachs”), Morgan Stanley & Co. Incorporated
(“Morgan Stanley”), RBC Capital Markets Corporation (“RBC”) and RBS Securities Inc.
(“RBS” and, together with J.P. Morgan, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan
Stanley and RBC, the “Initial Purchasers”).

The Company, GenOn Escrow Corp., a Delaware corporation (“Escrow Issuer”), Mirant
Corporation, a Delaware corporation (“Mirant”), and the Initial Purchasers are parties to
the Purchase Agreement (the “Purchase Agreement”) dated September 20, 2010, which provides
for the sale by Escrow Issuer to the Initial Purchasers of (i) $675,000,000 aggregate principal
amount of Escrow Issuer’s 9.500% Senior Notes due 2018 (the “2018 Securities”) and (ii)
$550,000,000 aggregate principal amount of Escrow Issuer’s 9.875% Senior Notes due 2020 (the
“2020 Securities” and, together with the 2018 Securities, the “Securities”).

The Securities are being issued in connection with a proposed merger of RRI Energy Holdings,
Inc., a direct wholly-owned subsidiary of the Company, with and into Mirant, with Mirant continuing
as the surviving corporation and a wholly-owned subsidiary of the Company (the “Merger”).
The Securities will be initially issued by Escrow Issuer pursuant to the Indenture, dated as of the
date hereof, and as the same may be amended from time to time in accordance with the terms thereof
(the “Indenture”), between Escrow Issuer and Wilmington Trust Company, as trustee
(“Trustee”). Escrow Issuer will merge with and into the Company, with the Company as the
surviving entity (the “Escrow Merger”) concurrently with the completion of the Merger and
the Refinancing Transactions (as defined in the Purchase Agreement). Upon consummation of the
Escrow Merger, the Company will assume all of the obligations of Escrow Issuer, including the
Securities.

As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company
has agreed to provide to the Initial Purchasers and their direct and indirect transferees the
registration rights set forth in this Agreement. The execution and delivery of this Agreement is a
condition to the closing under the Purchase Agreement.

In consideration of the foregoing, the parties hereto agree as follows:

1. Definitions. As used in this Agreement, the following terms shall have the
following meanings:

“Additional Interest” shall have the meaning set forth in Section 2(d).

 

 

 

“Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed.

“Company” shall have the meaning set forth in the preamble and shall also include the
Company’s successors.

“Escrow Issuer” shall have the meaning set forth in the preamble.

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

“Exchange Dates” shall have the meaning set forth in Section 2(a)(ii) hereof.

“Exchange Offer” shall mean the exchange offer by the Company of Exchange Securities for
Registrable Securities pursuant to Section 2(a) hereof.

“Exchange Offer Registration” shall mean a registration under the Securities Act effected
pursuant to Section 2(a) hereof.

“Exchange Offer Registration Statement” shall mean an exchange offer registration statement on
Form S-4 (or, if applicable, on another appropriate form) and all amendments and supplements to
such registration statement, in each case including the Prospectus contained therein or deemed a
part thereof, all exhibits thereto and any document incorporated by reference therein.

“Exchange Securities” shall mean senior notes issued by the Company under the Indenture
containing terms identical to the Securities (except that the Exchange Securities will not be
subject to restrictions on transfer or to any increase in interest rate for failure to comply with
this Agreement) and to be offered to Holders of Registrable Securities in exchange for Securities
pursuant to the Exchange Offer.

“Free Writing Prospectus” means each free writing prospectus (as defined in Rule 405 under the
Securities Act) prepared by or on behalf of the Company or used or referred to by the Company in
connection with the sale of the Securities or the Exchange Securities.

“Holders” shall mean the Initial Purchasers, for so long as they directly own any Registrable
Securities, and each of their successors, assigns and direct and indirect transferees who become
owners of Registrable Securities under the Indenture; provided that for purposes of
Section 4 and Section 5 of this Agreement, the term “Holders” shall include Participating
Broker-Dealers.

“Indemnified Person” shall have the meaning set forth in Section 5(c) hereof.

“Indemnifying Person” shall have the meaning set forth in Section 5(c) hereof.

 

2

 

“Indenture” shall have the meaning set forth in the preamble.

“Initial Purchasers” shall have the meaning set forth in the preamble.

“Inspector” shall have the meaning set forth in Section 3(a)(xiii) hereof.

“Issuer Information” shall have the meaning set forth in Section 5(a) hereof.

“J.P. Morgan” shall have the meaning set forth in the preamble.

“Majority Holders” shall mean the Holders of a majority of the aggregate principal amount of
the outstanding Registrable Securities; provided that whenever the consent or approval of
Holders of a specified percentage of Registrable Securities is required hereunder, any Registrable
Securities owned directly or indirectly by the Company or any of its affiliates shall not be
counted in determining whether such consent or approval was given by the Holders of such required
percentage or amount; and provided, further, that if the Company shall issue any
additional Securities under the Indenture prior to consummation of the Exchange Offer or, if
applicable, the effectiveness of any Shelf Registration Statement, such additional Securities and
the Registrable Securities to which this Agreement relates shall be treated together as one class
for purposes of determining whether the consent or approval of Holders of a specified percentage of
Registrable Securities has been obtained.

“Notice and Questionnaire” shall mean a notice of registration statement and selling security
holder questionnaire distributed to a Holder by the Company upon receipt of a Shelf Request from
such Holder.

“Participating Broker-Dealers” shall have the meaning set forth in Section 4(a) hereof.

“Participating Holder” shall mean any Holder of Registrable Securities that has returned a
completed and signed Notice and Questionnaire to the Company in accordance with Section 2(b)
hereof.

“Person” shall mean an individual, partnership, limited liability company, corporation, trust
or unincorporated organization, or a government or agency or political subdivision thereof.

“Prospectus” shall mean the prospectus included in, or, pursuant to the rules and regulations
of the Securities Act, deemed a part of, a Registration Statement, including any preliminary
prospectus, and any such prospectus as amended or supplemented by any prospectus supplement,
including a prospectus supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all other amendments and
supplements to such prospectus, and in each case including any document incorporated by reference
therein.

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

 

3

 

“Registrable Securities” shall mean the Securities; provided that the Securities shall
cease to be Registrable Securities (i) when a Registration Statement with respect to such
Securities has become effective under the Securities Act and such Securities have been exchanged or
disposed of pursuant to such Registration Statement, (ii) when such Securities are sold pursuant to
Rule 144 under the Securities Act, (iii) when such Securities cease to be outstanding, (iv) if,
when the Exchange Offer is consummated, on or after the Exchange Date with respect to Holders that
are eligible to participate in the Exchange Offer but fail to tender such Securities in the
Exchange Offer or (v) on October 4, 2012.

“Registration Default” shall mean the occurrence of any of the following: (i) the Exchange
Offer is not completed on or prior to the Target Registration Date, (ii) the Shelf Registration
Statement, if required pursuant to Section 2(b)(i) or Section 2(b)(ii) hereof, has not become
effective on or prior to the Target Registration Date, (iii) if the Company receives a Shelf
Request pursuant to Section 2(b)(ii), the Shelf Registration Statement required to be filed thereby
has not become effective by the later of (a) the Target Registration Date and (b) 90 days after
delivery of such Shelf Request, (iv) the Shelf Registration Statement, if required by this
Agreement, has become effective and thereafter either ceases to be effective or the Prospectus
contained therein ceases to be usable, in each case whether or not permitted by this Agreement, at
any time during the Shelf Effectiveness Period, and such failure to remain effective or usable
exists for more than 30 days (whether or not consecutive) in any 12-month period or (v) the Shelf
Registration Statement, if required by this Agreement, has become effective and thereafter, on more
than two occasions in any 12-month period during the Shelf Effectiveness Period, the Shelf
Registration Statement ceases to be effective or the Prospectus contained therein ceases to be
usable, in each case whether or not permitted by this Agreement; provided that the
suspension of a Registration Statement pursuant to notices provided by the Company in accordance
with Section 3(d) hereof shall not constitute or trigger a Registration Default.

“Registration Expenses” shall mean any and all expenses incident to performance of or
compliance by the Company with this Agreement, including without limitation: (i) all SEC, stock
exchange or Financial Industry Regulatory Authority registration and filing fees, (ii) all fees
and expenses incurred in connection with compliance with state securities or blue sky laws
(including reasonable fees and disbursements of counsel for any Underwriters or Holders in
connection with blue sky qualification of any Exchange Securities or Registrable Securities), (iii)
all expenses of any Persons in preparing or assisting in preparing, word processing, printing and
distributing any Registration Statement, any Prospectus and any amendments or supplements thereto,
any underwriting agreements or other similar agreements and any other documents relating to the
performance of and compliance with this Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable securities laws, (vi)
the fees and disbursements of the Trustee and its counsel, (vii) the fees and disbursements of
counsel for the Company and, in the case of a Shelf Registration Statement, the reasonable fees and
disbursements of one counsel for the Holders (which counsel shall be a nationally recognized law
firm experienced in securities law matters and which shall be selected
by the Majority Holders and which counsel may also be counsel for the Initial Purchasers) and
(viii) the fees and disbursements of the independent registered public accountants of the Company,
including the expenses of any special audits or “comfort” letters required by or incident to the
performance of and compliance with this Agreement, but excluding fees and expenses of counsel to
the Underwriters or the Holders (other than fees and expenses set forth in clauses (ii) or (vii)
above) and underwriting discounts and commissions, brokerage commissions and transfer taxes, if
any, relating to the sale or disposition of Registrable Securities by a Holder.

 

4

 

“Registration Statement” shall mean any registration statement of the Company that covers any
of the Exchange Securities or Registrable Securities pursuant to the provisions of this Agreement
and all amendments and supplements to any such registration statement, including post-effective
amendments, in each case including the Prospectus contained therein or deemed a part thereof, all
exhibits thereto and any document incorporated by reference therein.

“SEC” shall mean the United States Securities and Exchange Commission.

“Securities” shall have the meaning set forth in the preamble.

“Securities Act” shall mean the Securities Act of 1933, as amended from time to time.

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

“Shelf Registration” shall mean a registration effected pursuant to Section 2(b) hereof.

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Company that
covers all or a portion of the Registrable Securities (but no other securities unless approved by a
majority of the Holders whose Registrable Securities are to be covered by such Shelf Registration
Statement to the extent such Shelf Registration Statement is not an automatic Shelf Registration
Statement) on an appropriate form under Rule 415 under the Securities Act, or any similar rule that
may be adopted by the SEC, and all amendments and supplements to such registration statement,
including post-effective amendments, in each case including the Prospectus contained therein or
deemed a part thereof, all exhibits thereto and any document incorporated by reference therein.
For the avoidance of doubt, “Shelf Registration Statement” shall include any previously filed
registration statement of the Company that is amended or supplemented to satisfy the foregoing.

“Shelf Request” shall have the meaning set forth in Section 2(b) hereof.

“Staff” shall mean the staff of the SEC.

“Target Registration Date” shall mean 360 days after October 4, 2010 (or if such date is not a
Business Date, the next succeeding Business Day.

 

5

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended from time to
time.

“Trustee” shall mean the trustee with respect to the Securities under the Indenture.

“Underwriter” shall have the meaning set forth in Section 3(e) hereof.

“Underwritten Offering” shall mean an offering in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

2. Registration Under the Securities Act. (a) To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Company shall use commercially
reasonable efforts to (i) cause to be filed an Exchange Offer Registration Statement covering an
offer to the Holders to exchange all the Registrable Securities for Exchange Securities and (ii)
have such Registration Statement become and remain effective until 180 days after the last Exchange
Date for use by one or more Participating Broker-Dealers. The Company shall commence the Exchange
Offer promptly after the Exchange Offer Registration Statement is declared effective by the SEC and
use commercially reasonable efforts to complete the Exchange Offer not later than 60 days after
such effective date.

The Company shall commence the Exchange Offer by mailing or delivering the related Prospectus,
appropriate letters of transmittal and other accompanying documents, if any, in compliance with the
applicable procedures of the depositary holding the Securities stating, in addition to such other
disclosures as are required by applicable law, substantially the following:

	(i)	 	that the Exchange Offer is being made pursuant to this Agreement and that all Registrable
Securities validly tendered and not properly withdrawn will be accepted for exchange;

	(ii)	 	the dates of acceptance for exchange (which shall be a period of at least 20 Business Days
from the date the Exchange Offer is commenced) (the “Exchange Dates”);

	(iii)	 	that any Registrable Security not tendered will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement, except as otherwise specified
herein;

	(iv)	 	that any Holder electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to (A) surrender such Registrable Security, together with the
appropriate letters of transmittal, to the institution and at the address (located in the
Borough of Manhattan, The City of New York) and in the manner specified in the notice, or
(B) effect such exchange otherwise in compliance with the applicable procedures of the
depositary for such Registrable Security, in each case prior to the close of business on the
last Exchange Date; and

 

6

 

	(v)	 	that any Holder will be entitled to withdraw its election, not later than the close of
business on the last Exchange Date, by (A) delivering to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the notice, facsimile
transmission or letter setting forth the name of such Holder, the principal amount of
Registrable Securities delivered for exchange and a statement that such Holder is withdrawing
its election to have such Securities exchanged or (B) effecting such withdrawal in compliance
with the applicable procedures of the depositary for the Registrable Securities.

As a condition to participating in the Exchange Offer, a Holder will be required to represent
to the Company that (i) any Exchange Securities to be received by it will be acquired in the
ordinary course of its business, (ii) at the time of the commencement of the Exchange Offer it has
no arrangement or understanding with any Person to participate in the distribution (within the
meaning of the Securities Act) of the Exchange Securities in violation of the provisions of the
Securities Act, (iii) it is not an “affiliate” (within the meaning of Rule 405 under the Securities
Act) of the Company and (iv) if such Holder is a broker-dealer that will receive Exchange
Securities for its own account in exchange for Registrable Securities that were acquired as a
result of market-making or other trading activities, then such Holder will deliver a Prospectus
(or, to the extent permitted by law, make available a Prospectus to purchasers) in connection with
any resale of such Exchange Securities.

As soon as practicable after the last Exchange Date, the Company shall:

	(i)	 	accept for exchange Registrable Securities or portions thereof validly tendered and not
properly withdrawn pursuant to the Exchange Offer; and

	(ii)	 	deliver, or cause to be delivered, to the Trustee for cancellation all Registrable Securities
or portions thereof so accepted for exchange by the Company and issue, and cause the Trustee
to promptly authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Registrable Securities tendered by such Holder.

The Company shall use commercially reasonable efforts to complete the Exchange Offer as
provided above and shall comply with the applicable requirements of the Securities Act, the
Exchange Act and other applicable laws and regulations in connection with the Exchange Offer. The
Exchange Offer shall not be subject to any conditions, other than that the Exchange Offer does not
violate any applicable law or applicable interpretations of the Staff.

(b) In the event that (i) the Company determines that the Exchange Offer Registration provided
for in Section 2(a) hereof is not available or may not be completed as soon as practicable after
the last Exchange Date because it would violate any applicable law or applicable interpretations of
the Staff, (ii) after the filing of the Exchange Offer Registration Statement with the SEC, upon
receipt of a written request (a “Shelf Request”) from any Initial Purchaser or Holder
representing that it holds Registrable Securities that is prohibited by applicable law or SEC
policy from
participating in the Exchange Offer to be exchanged in the Exchange Offer, the Company shall
use commercially reasonable efforts to cause to be filed as soon as practicable after such
determination date or Shelf Request, as the case may be, a Shelf Registration Statement providing
for the sale of all the Registrable Securities by the Holders thereof and to have such Shelf
Registration Statement become effective; provided that no Holder will be entitled to have
any Registrable Securities included in any Shelf Registration Statement, or entitled to use the
prospectus forming a part of such Shelf Registration Statement, until such Holder shall have
delivered a completed and signed Notice and Questionnaire and provided such other information
regarding such Holder to the Company as is contemplated by Section 3(b) hereof.

 

7

 

In the event that the Company is required to file a Shelf Registration Statement pursuant to
clause (ii) of the preceding sentence, the Company shall use commercially reasonable efforts to
file and have become effective both an Exchange Offer Registration Statement pursuant to
Section 2(a) hereof with respect to all Registrable Securities and a Shelf Registration Statement
(which may be a combined Registration Statement with the Exchange Offer Registration Statement)
with respect to offers and sales of Registrable Securities held by Participating Holders after
completion of the Exchange Offer.

The Company agrees to use commercially reasonable efforts to keep the Shelf Registration
Statement continuously effective until the earlier of (x) the first anniversary of the date the
Shelf Registration Statement is declared by the SEC or otherwise became effective and (y) the
Securities cease to be Registrable Securities (the “Shelf Effectiveness Period”). The
Company further agrees to supplement or amend the Shelf Registration Statement and the related
Prospectus if required by the rules, regulations or instructions applicable to the registration
form used by the Company for such Shelf Registration Statement or by the Securities Act or by any
other rules and regulations thereunder or if reasonably requested in writing pursuant to the notice
provision hereof by a Holder of Registrable Securities with respect to information relating to such
Holder prior to the end of the Shelf Effectiveness Period, and to use commercially reasonable
efforts to cause any such amendment to become effective, if required, and such Shelf Registration
Statement and Prospectus to become usable as soon as thereafter practicable. The Company agrees to
furnish to the Participating Holders copies of any such supplement or amendment promptly after its
being used or filed with the SEC.

(c) The Company shall pay all Registration Expenses in connection with any registration
pursuant to Section 2(a) or Section 2(b) hereof. Each Holder shall pay all underwriting discounts
and commissions, brokerage commissions and transfer taxes, if any, relating to the sale or
disposition of such Holder’s Registrable Securities pursuant to the Shelf Registration Statement.

(d) An Exchange Offer Registration Statement pursuant to Section 2(a) hereof will not be
deemed to have become effective unless it has been declared effective by the SEC or otherwise
becomes effective pursuant to SEC rules. A Shelf Registration Statement pursuant to Section 2(b)
hereof will not be deemed to have become effective unless it has been declared effective by the SEC
or is automatically effective upon filing
with the SEC as provided by Rule 462 under the Securities Act or otherwise becomes effective
pursuant to SEC rules.

 

8

 

If a Registration Default occurs, the interest rate on the applicable Registrable Securities
will be increased by (i) 0.25% per annum for the first 90-day period beginning on the day
immediately following the day such Registration Default occurred and (ii) an additional 0.25% per
annum with respect to each subsequent 90-day period, in each case until and including the date such
Registration Default ends, up to a maximum increase of 1.00% per annum (collectively, the
“Additional Interest”). A Registration Default ends when the Securities cease to be Registrable
Securities or, if earlier, (1) in the case of a Registration Default under clause (i) of the
definition thereof, when the Exchange Offer is completed, (2) in the case of a Registration Default
under clause (ii) or clause (iii) of the definition thereof, when the Shelf Registration Statement
becomes effective or (3) in the case of a Registration Default under clause (iv) of the definition
thereof, when the Shelf Registration Statement again becomes effective or the Prospectus again
becomes usable. Notwithstanding the foregoing, (i) the Company shall in no event be required to
pay additional interest in excess of the amount described above because more than one Registration
Default has occurred and is pending and (ii) a Holder of Registrable Securities who is not entitled
to the benefits of a Shelf Registration Statement shall not be entitled to additional interest with
respect to a Registration Default that pertains to a Registration Default relating to such Shelf
Registration Statement.

(e) Any amounts paid pursuant to Section 2(d) above shall be paid in cash semi-annually in
arrears, with the first semi-annual payment due on the first date a interest payment is made
pursuant to the Indenture following the date of such Registration Default.

(f) Without limiting the remedies available to the Initial Purchasers and the Holders, the
Company acknowledges that any failure by the Company to comply with its obligations under
Section 2(a) and Section 2(b) hereof may result in material irreparable injury to the Initial
Purchasers or the Holders for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event of any such failure,
the Initial Purchasers or any Holder may obtain such relief as may be required to specifically
enforce the Company’s obligations under Section 2(a) and Section 2(b) hereof.

(g) The Company represents, warrants and covenants that it (including its agents and
representatives) will not prepare, make, use, authorize, approve or refer to any Free Writing
Prospectus.

 

9

 

3. Registration Procedures. (a) In connection with its obligations pursuant to
Section 2(a) and Section 2(b) hereof, the Company shall in accordance with the terms of this
Agreement:

(i) prepare and file with the SEC a Registration Statement on the appropriate form under the
Securities Act, which form (x) shall be selected by the Company, (y)
shall, in the case of a Shelf Registration, be available for the sale of the Registrable
Securities by the Holders thereof and (z) shall comply as to form in all material respects with the
requirements of the applicable form and include all financial statements required by the SEC to be
filed therewith; and use commercially reasonable efforts to cause such Registration Statement to
become effective and remain effective for the applicable period in accordance with Section 2
hereof;

(ii) prepare and file with the SEC such amendments and post-effective amendments to each
Registration Statement as may be necessary to keep such Registration Statement effective (subject
to the provisions of Section 3(d) hereof) for the applicable period in accordance with Section 2
hereof and cause each Prospectus to be supplemented by any required prospectus supplement and, as
so supplemented, to be filed pursuant to Rule 424 under the Securities Act; and keep each
Prospectus current during the period described in Section 4(3) of and Rule 174 under the Securities
Act that is applicable to transactions by brokers or dealers with respect to the Registrable
Securities or Exchange Securities;

(iii) in the case of a Shelf Registration, furnish to each Participating Holder, to counsel
for the Initial Purchasers, to counsel for such Participating Holders and to each Underwriter of an
Underwritten Offering of Registrable Securities, if any, without charge, as many copies of each
Prospectus or preliminary prospectus, and any amendment or supplement thereto, as such
Participating Holder, counsel or Underwriter may reasonably request in order to facilitate the sale
or other disposition of the Registrable Securities thereunder; and, subject to Section 3(c) hereof,
the Company consents to the use of such Prospectus or preliminary prospectus and any amendment or
supplement thereto in accordance with applicable law by each of the Holders of Registrable
Securities and any such Underwriters in connection with the offering and sale of the Registrable
Securities covered by and in the manner described in such Prospectus or preliminary prospectus or
any amendment or supplement thereto in accordance with applicable law;

(iv) use commercially reasonable efforts to register or qualify the Registrable Securities
under all applicable state securities or blue sky laws of such jurisdictions as any Holder of
Registrable Securities covered by a Registration Statement shall reasonably request in writing by
the time the applicable Registration Statement becomes effective; cooperate with such Holders in
connection with any filings required to be made with the Financial Industry Regulatory Authority;
and do any and all other acts and things that may be reasonably necessary or advisable to enable
each Holder to complete the disposition in each such jurisdiction of the Registrable Securities
owned by such Holder; provided that the Company shall not be required to (1) qualify as a
foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it
would not otherwise be required to so qualify, (2) file any general consent to service of process
in any such jurisdiction or (3) subject itself to taxation in any such jurisdiction if it is not so
subject;

 

10

 

(v) notify counsel for the Initial Purchasers (such counsel being the counsel on the date of
the Agreement unless the Initial Purchasers notify the Company in writing
otherwise) and, in the case of a Shelf Registration, notify each Participating Holder and
counsel for such Participating Holders promptly and, if requested by any such Participating Holder
or counsel, confirm such advice in writing promptly (1) when a Registration Statement has become
effective, when any post-effective amendment thereto has been filed and becomes effective and when
any amendment or supplement to the Prospectus has been filed, (2) of any request by the SEC or any
state securities authority for amendments and supplements to a Registration Statement or Prospectus
or for additional information, in each case after the Registration Statement has become effective,
(3) of the issuance by the SEC or any state securities authority of any stop order suspending the
effectiveness of a Registration Statement or the initiation of any proceedings for that purpose,
including the receipt by the Company of any notice of objection of the SEC to the use of a Shelf
Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the
Securities Act, (4) if, between the applicable effective date of a Shelf Registration Statement and
the closing of any sale of Registrable Securities covered thereby, the representations and
warranties of the Company contained in any underwriting agreement, securities sales agreement or
other similar agreement, if any, relating to an offering of such Registrable Securities cease to be
true and correct in all material respects or if the Company receives any notification with respect
to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction
or the initiation of any proceeding for such purpose, (5) of the happening of any event during the
period a Registration Statement is effective that makes any statement made in such Registration
Statement or the related Prospectus untrue in any material respect or that requires the making of
any changes in such Registration Statement or Prospectus in order to make the statements therein
not misleading and (6) of any determination by the Company that a post-effective amendment to a
Registration Statement or any amendment or supplement to the Prospectus would be appropriate;

(vi) use commercially reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of a Registration Statement or, in the case of a Shelf Registration, the resolution
of any objection of the SEC pursuant to Rule 401(g)(2), including by filing an amendment to such
Shelf Registration Statement on the proper form, at the earliest possible moment and provide prompt
notice to each Participating Holder of the withdrawal of any such order or such resolution;

(vii) in the case of a Shelf Registration, furnish to each Participating Holder, without
charge, at least one conformed copy of each Registration Statement and any post-effective amendment
thereto (without any documents incorporated therein by reference or exhibits thereto, unless
reasonably requested), in each case, if not available on EDGAR;

(viii) in the case of a Shelf Registration, unless the Registrable Securities are in
book-entry or global certificate only form, cooperate (if applicable) with the Participating
Holders to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends and enable such Registrable
Securities to be issued in such denominations and registered in such names (consistent with the
provisions of the Indenture) as such Participating Holders
may reasonably request at least two Business Days prior to the closing of any sale of
Registrable Securities;

 

11

 

(ix) in the case of a Shelf Registration, upon the occurrence of any event contemplated by
Section 3(a)(v)(5) hereof, use commercially reasonable efforts to prepare and file with the SEC a
supplement or post-effective amendment to such Shelf Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other required document so
that, as thereafter delivered (or, to the extent permitted by law, made available) to purchasers of
the Registrable Securities, such Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; and the Company shall notify (it being
understood and agreed that no such notice or any notice under Section 3(a)(v)(5) shall include any
material non-public information with respect to the relevant event) the Participating Holders to
suspend use of the Prospectus as promptly as practicable after the occurrence of such an event, and
such Participating Holders hereby agree to suspend use of the Prospectus until the Company has
amended or supplemented the Prospectus to correct such misstatement or omission; provided
that the Company shall not be required to take any action pursuant this Section 3(a)(ix) during any
suspension period pursuant to Section 3(d) hereof;

(x) a reasonable time prior to the filing of any Registration Statement, any Prospectus, any
amendment to a Registration Statement or amendment or supplement to a Prospectus or of any document
that is to be incorporated by reference into a Registration Statement or a Prospectus after initial
filing of a Registration Statement (except for current reports filed on Form 8-K filed in the
ordinary course of business), provide copies of such document to the Initial Purchasers and their
counsel (and, in the case of a Shelf Registration Statement, to the Holders of Registrable
Securities and their counsel to the extent that the Company has been provided with contact
information for such counsel) and make such of the representatives of the Company as shall be
reasonably requested by the Initial Purchasers or their counsel (and, in the case of a Shelf
Registration Statement, the Participating Holders or their counsel) available for discussion of
such document at reasonable times and upon reasonable notice; and the Company shall not, at any
time after initial filing of a Registration Statement, use or file any Prospectus, any amendment of
or supplement to a Registration Statement or a Prospectus, or any document that is to be
incorporated by reference into a Registration Statement or a Prospectus, of which the Initial
Purchasers and their counsel (and, in the case of a Shelf Registration Statement, the Holders of
Registrable Securities and their counsel) shall not have previously been advised and furnished a
copy or to which the Initial Purchasers or their counsel (and, in the case of a Shelf Registration
Statement, the Holders of Registrable Securities or their counsel) shall reasonably object;

(xi) obtain a CUSIP number for all Exchange Securities or Registrable Securities in the case
of a Shelf Registration, as the case may be, not later than the initial effective date of a
Registration Statement;

 

12

 

(xii) cause the Indenture to be qualified under the Trust Indenture Act in connection with the
registration of the Exchange Securities or Registrable Securities, as the case may be; provide
cooperation with the Trustee and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of the Trust Indenture
Act; and execute, and use commercially reasonable efforts to cause the Trustee to execute, all
documents as may be required to effect such changes and all other forms and documents required to
be filed with the SEC to enable the Indenture to be so qualified in a timely manner;

(xiii) in the case of a Shelf Registration, make available for inspection by a representative
of the Participating Holders (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, any attorneys and accountants designated
by a majority of the Participating Holders and any attorneys and accountants designated by such
Underwriter, at reasonable times and in a reasonable manner, all pertinent financial and other
records, documents and properties of the Company and its subsidiaries, and cause the respective
officers, directors and employees of the Company to supply all information reasonably requested by
any such Inspector, Underwriter, attorney or accountant in connection with a Shelf Registration
Statement in each case, as is customary for similar “due diligence” examinations of underwritten
offerings; provided that if any such information is identified by the Company as being
confidential or proprietary, each Person receiving such information shall take such actions as are
reasonably necessary to protect the confidentiality of such information to the extent such action
is otherwise not inconsistent with, an impairment of or in derogation of the rights and interests
of any Inspector, Holder or Underwriter;

(xiv) in the case of a Shelf Registration, use its commercially reasonable efforts to cause
all Registrable Securities to be listed on any securities exchange or any automated quotation
system on which similar securities issued are then listed if requested by the Majority Holders, to
the extent such Registrable Securities satisfy applicable listing requirements;

(xv) if reasonably requested by any Participating Holder covered by a Shelf Registration
Statement pursuant to Section 2(b) hereof, promptly include in a Prospectus supplement or
post-effective amendment such information with respect to such Participating Holder as such
Participating Holder reasonably requests to be included therein and make all required filings of
such Prospectus supplement or such post-effective amendment as soon as the Company has received
notification of the matters to be so included in such filing; and

 

13

 

(xvi) in the case of a Shelf Registration, enter into such customary agreements and take all
such other actions in connection therewith (including those requested by the Participating Holders
of a majority in principal amount of the Registrable Securities covered by the Shelf Registration
Statement) in order to expedite or facilitate the disposition of such Registrable Securities
including, but not limited to, an Underwritten Offering and in such connection, (1) to the extent
possible, make such representations and warranties to the Participating Holders and any
Underwriters of such Registrable
Securities with respect to the business of the Company and its subsidiaries and the
Registration Statement, Prospectus and documents incorporated by reference or deemed incorporated
by reference, if any, in each case, in form, substance and scope as are customarily made by issuers
to underwriters in underwritten offerings and confirm the same if and when requested, (2) obtain
opinions of counsel to the Company (which counsel and opinions, in form, scope and substance, shall
be reasonably satisfactory to the Participating Holders and such Underwriters and their respective
counsel) addressed to each Participating Holder and Underwriter of Registrable Securities, covering
the matters customarily covered in opinions requested in underwritten offerings, (3) obtain
“comfort” letters from the independent registered public accountants of the Company (and, if
necessary, any other independent registered public accountant of any subsidiary of the Company, or
of any business acquired by the Company for which financial statements and financial data are or
are required to be included in the Registration Statement) addressed to each Participating Holder
(to the extent permitted by applicable professional standards) and Underwriter of Registrable
Securities, such letters to be in customary form and covering matters of the type customarily
covered in “comfort” letters in connection with underwritten offerings, including but not limited
to financial information contained in any preliminary prospectus or Prospectus and (4) deliver such
documents and certificates as may be reasonably requested by the Participating Holders of a
majority in principal amount of the Registrable Securities being sold or the Underwriters, and
which are customarily delivered in underwritten offerings, to evidence the continued validity of
the representations and warranties of the Company made pursuant to clause (1) above and to evidence
compliance with any customary conditions contained in an underwriting agreement; it being agreed
that the representations and warranties, opinions of counsel and comfort letters delivered in
connection with the initial offering of the Securities, including in connection with the release of
the escrow as provided by the Escrow and Security Agreement among Escrow Issuer, the Company,
Mirant, the Trustee, Deutsche Bank Trust Company Americas, as securities intermediary, bank and
escrow agent and the Initial Purchasers, are customary.

(b) In the case of a Shelf Registration Statement, the Company may require each Holder of
Registrable Securities to furnish to the Company such information regarding such Holder and the
proposed disposition by such Holder of such Registrable Securities as the Company may from time to
time reasonably request in writing; provided that if a Holder fails to provide the
requested information within 20 Business Days after receiving such request, the Company may exclude
such Holder’s Registrable Securities from such Shelf Registration Statement.

(c) Each Participating Holder agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(a)(v)(3), Section 3(a)(v)(4) or Section
3(a)(v)(5) hereof, such Person will forthwith discontinue disposition of Registrable Securities
pursuant to the Shelf Registration Statement until such Person’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(a)(ix) hereof and, if so directed by
the Company, such Person will deliver to the Company all copies in its possession, other than
permanent file copies then in such Person’s possession, of the Prospectus covering such Registrable
Securities that is current at the time of receipt of such notice.

 

14

 

(d) If the Company shall give any notice to suspend the disposition of Registrable Securities
pursuant to a Registration Statement pursuant to this Section 3(d), the Company shall extend the
period during which such Registration Statement shall be maintained effective pursuant to this
Agreement by the number of days during the period from and including the date of the giving of such
notice to and including the date when the Holders of such Registrable Securities shall have
received copies of the supplemented or amended Prospectus necessary to resume such dispositions.
The Company may give any such notice only twice during any 365-day period and any such suspensions
shall not exceed 30 days for each suspension and there shall not be more than two suspensions in
effect during any 365-day period.

(e) The Participating Holders who desire to do so may sell such Registrable Securities in an
Underwritten Offering. In any such Underwritten Offering, the investment bank or investment banks
and manager or managers (each an “Underwriter”) that will administer the offering will be
selected by the Holders of a majority in principal amount of the Registrable Securities included in
such offering, subject to the approval of the Company, which approval shall not be unreasonably
withheld.

4. Participation of Broker-Dealers in Exchange Offer. (a) The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own account in the
Exchange Offer in exchange for Securities that were acquired by such broker-dealer as a result of
market-making or other trading activities (a “Participating Broker-Dealer”) may be deemed
to be an “underwriter” within the meaning of the Securities Act and must deliver a prospectus
meeting the requirements of the Securities Act in connection with any resale of such Exchange
Securities.

The Company understands that it is the Staff’s position that if the Prospectus contained in
the Exchange Offer Registration Statement includes a plan of distribution containing a statement to
the above effect and the means by which Participating Broker-Dealers may resell the Exchange
Securities, without naming the Participating Broker-Dealers or specifying the amount of Exchange
Securities owned by them, such Prospectus may be delivered by Participating Broker-Dealers (or, to
the extent permitted by law, made available to purchasers) to satisfy their prospectus delivery
obligation under the Securities Act in connection with resales of Exchange Securities for their own
accounts, so long as the Prospectus otherwise meets the requirements of the Securities Act.

 

15

 

(b) In light of the above, and notwithstanding the other provisions of this Agreement, the
Company agrees to amend or supplement the Prospectus contained in the Exchange Offer Registration
Statement for a period of up to 180 days after the last Exchange Date (as such period may be
extended pursuant to Section 3(d) hereof), in order to expedite or facilitate the disposition of
any Exchange Securities by Participating Broker-Dealers consistent with the positions of the Staff
recited in Section 4(a) above.
The Company further agrees that Participating Broker-Dealers shall be authorized to deliver
such Prospectus (or, to the extent permitted by law, make available) during such period in
connection with the resales contemplated by this Section 4.

(c) The Initial Purchasers shall have no liability to the Company or any Holder with respect
to any request that they may make pursuant to Section 4(b) hereof.

5. Indemnification and Contribution. (a) The Company agrees to indemnify and hold
harmless each Initial Purchaser and each Holder, their respective affiliates, directors and
officers and each Person, if any, who controls any Initial Purchaser or any Holder within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any
and all losses, claims, damages and liabilities (including, without limitation, legal fees and
other expenses reasonably incurred in connection with any suit, action or proceeding or any claim
asserted, as such fees and expenses are incurred), joint or several, that arise out of, or are
based upon, (1) any untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements therein not misleading,
or (2) any untrue statement or alleged untrue statement of a material fact contained in any
Prospectus, any Free Writing Prospectus used in violation of this Agreement or any “issuer
information” (“Issuer Information”) filed or required to be filed pursuant to Rule 433(d)
under the Securities Act, or any omission or alleged omission to state therein a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, in each case except insofar as such losses, claims, damages or
liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any information relating to any
Initial Purchaser or information relating to any Holder furnished to the Company in writing through
J.P. Morgan or any selling Holder, respectively, expressly for use therein. In connection with any
Underwritten Offering permitted by Section 3, the Company will also indemnify the Underwriters, if
any, selling brokers, dealers and similar securities industry professionals participating in the
distribution, their respective affiliates and each Person who controls such Persons (within the
meaning of the Securities Act and the Exchange Act) to the same extent as provided above with
respect to the indemnification of the Holders, if requested in connection with any Registration
Statement, any Prospectus, any Free Writing Prospectus used in violation of this Agreement or any
Issuer Information.

(b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company,
the Initial Purchasers and the other selling Holders, the directors of the Company, each officer of
the Company who signed the Registration Statement and each Person, if any, who controls the
Company, any Initial Purchaser and any other selling Holder within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in
paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission
made in reliance upon and in conformity with any information
relating to such Holder furnished to the Company in writing by such Holder expressly for use
in any Registration Statement and any Prospectus.

 

16

 

(c) If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any Person in respect of which indemnification
may be sought pursuant to either paragraph (a) or (b) above, such Person (the “Indemnified
Person”) shall promptly notify the Person against whom such indemnification may be sought (the
“Indemnifying Person”) in writing; provided that the failure to notify the
Indemnifying Person shall not relieve it from any liability that it may have under paragraph (a) or
(b) above except to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further, that the failure to
notify the Indemnifying Person shall not relieve it from any liability that it may have to an
Indemnified Person otherwise than under paragraph (a) or (b) above. If any such proceeding shall
be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying
Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others entitled to indemnification
pursuant to this Section 5 that the Indemnifying Person may designate in such proceeding and shall
pay the fees and expenses of such proceeding and shall pay the reasonable fees and expenses of such
counsel related to such proceeding, as incurred. In any such proceeding, any Indemnified Person
shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified
Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a
reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the
Indemnified Person shall have reasonably concluded that there may be legal defenses available to it
that are different from or in addition to those available to the Indemnifying Person; or (iv) the
named parties in any such proceeding (including any impleaded parties) include both the
Indemnifying Person and the Indemnified Person and representation of both parties by the same
counsel would be inappropriate due to actual or potential differing interests between them. It is
understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or
related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one
separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such
fees and expenses shall be reimbursed as they are incurred. Any such separate firm (x) for any
Initial Purchaser, its affiliates, directors and officers and any control Persons of such Initial
Purchaser shall be designated in writing by J.P. Morgan, (y) for any other Holder, its directors
and officers and any control Persons of such Holder shall be designated in writing by the Majority
Holders (other than any Initial Purchaser) and (z) in all other cases shall be designated in
writing by the Company. The Indemnifying Person shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified
Person from and against any loss or liability by reason of such settlement or judgment. No
Indemnifying Person shall, without the written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or
could have been a party and indemnification could have been sought hereunder by
such Indemnified Person, unless such settlement (A) includes an unconditional release of such
Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from
all liability on claims that are the subject matter of such proceeding and (B) does not include any
statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person.

 

17

 

(d) If the indemnification provided for in paragraphs (a) and (b) above is unavailable to an
Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying
such Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the Company from the
offering of the Securities and the Exchange Securities, on the one hand, and by the Holders from
receiving Securities or Exchange Securities registered under the Securities Act, on the other hand,
or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred to in clause (i)
but also the relative fault of the Company on the one hand and the Holders on the other in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative fault of the
Company on the one hand and the Holders on the other shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Company or by the
Holders and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

(e) The Company and the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 5 were determined by pro rata allocation (even if the
Holders were treated as one entity for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in paragraph (d) above. The amount
paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities
referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such Indemnified Person in connection
with any such action or claim. Notwithstanding the provisions of this Section 5, in no event shall
a Holder be required to contribute any amount in excess of the amount by which the total price at
which the Securities or Exchange Securities sold by such Holder exceeds the amount of any damages
that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any Person who was not guilty of such fraudulent misrepresentation. The Holders’ obligations to
contribute pursuant to this Section 5 are several and not joint.

 

18

 

(f) The remedies provided for in this Section 5 are not exclusive and shall not limit any
rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

(g) The indemnity and contribution provisions contained in this Section 5 shall remain
operative and in full force and effect regardless of (i) any termination of this Agreement, (ii)
any investigation made by or on behalf of the Initial Purchasers or any Holder or any Person
controlling any Initial Purchaser or any Holder, or by or on behalf of the Company or the officers
or directors of or any Person controlling the Company, (iii) acceptance of any of the Exchange
Securities and (iv) any sale of Registrable Securities pursuant to a Shelf Registration Statement.

6. General.

(a) No Inconsistent Agreements. The Company represents, warrants and agrees that (i) the
rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of any other outstanding securities issued or guaranteed by
the Company under any other agreement and (ii) the Company has not entered into, or on or after the
date of this Agreement will not enter into, any agreement that is inconsistent with the rights
granted to the Holders of Registrable Securities in this Agreement or otherwise conflicts with the
provisions hereof.

(b) Amendments and Waivers. The provisions of this Agreement, including the provisions of
this sentence, may not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given unless the Company has obtained the written consent of
Holders of at least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or consent;
provided that no amendment, modification, supplement, waiver or consent to any departure
from the provisions of Section 5 hereof shall be effective as against any Holder of Registrable
Securities unless consented to in writing by such Holder. Any amendments, modifications,
supplements, waivers or consents pursuant to this Section 6(b) shall be by a writing executed by
each of the parties hereto.

(c) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand-delivery, first-class mail, telecopier/facsimile, or any courier
guaranteeing overnight delivery (i) if to a Holder, at the most current address given by such
Holder to the Company by means of a notice given in accordance with the provisions of this
Section 6(c), which address initially is, with respect to the Initial Purchasers, the address set
forth in the Purchase Agreement; (ii) if to the Company, initially at the Company’s address set
forth in the Purchase Agreement and thereafter at such other address, notice of which is given in
accordance with the provisions of this Section 6(c); and (iii) to such other persons at their
respective addresses as provided in the Purchase Agreement and thereafter at such other address,
notice of which is given in accordance with the provisions of this Section 6(c). All such notices
and communications shall be deemed to have been duly given: at the
time delivered by hand, if personally delivered; five Business Days after being deposited in
the mail, postage prepaid, if mailed; when receipt is acknowledged, if telecopied/faxed; and on the
next Business Day if timely delivered to an air courier guaranteeing overnight delivery. Copies of
all such notices, demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

 

19

 

(d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding
upon the successors, assigns and transferees of each of the parties, including, without limitation
and without the need for an express assignment, subsequent Holders; provided that nothing
herein shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the Indenture. If any transferee
of any Holder shall acquire Registrable Securities in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all the terms of this Agreement,
and by taking and holding such Registrable Securities such Person shall be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement and
such Person shall be entitled to receive the benefits hereof. The Initial Purchasers (solely in
their capacity as Initial Purchasers) shall have no liability or obligation to the Company with
respect to any failure by a Holder to comply with, or any breach by any Holder of, any of the
obligations of such Holder under this Agreement.

(e) Third Party Beneficiaries. Each Holder shall be a third party beneficiary to the
agreements made hereunder between the Company, on the one hand, and the Initial Purchasers, on the
other hand, and shall have the right to enforce such agreements directly to the extent it deems
such enforcement necessary or advisable to protect its rights or the rights of other Holders
hereunder.

(f) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same agreement.

(g) Headings. The headings in this Agreement are for convenience of reference only, are not a
part of this Agreement and shall not limit or otherwise affect the meaning hereof.

 

20

 

(h) Governing Law. This Agreement, and any claims, controversy or dispute arising under or
related to this Agreement shall be governed by and construed in accordance with the laws of the
State of New York.

(i) Entire Agreement; Severability. This Agreement contains the entire agreement between the
parties relating to the subject matter hereof and supersedes all oral statements and prior writings
with respect thereto. If any term, provision, covenant or restriction contained in this Agreement
is held by a court of competent jurisdiction to be invalid, void or unenforceable or against public
policy, the remainder of the terms, provisions, covenants and restrictions contained herein shall
remain in full force and
effect and shall in no way be affected, impaired or invalidated. The Company and the Initial
Purchasers shall endeavor in good faith negotiations to replace the invalid, void or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that
of the invalid, void or unenforceable provisions.

 

21

 

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

	 	 	 	 	 
	 	RRI ENERGY, INC.

 	 
	 	By: 	/s/ Andrew Johannesen 	 
	 	 	Name:  	Andrew Johannesen 	 
	 	 	Title:  	Vice President and Treasurer 	 

[Signature Page to Registration Rights Agreement]

 

 

 

Confirmed and accepted as of the date first above written:

	 	 	 	 
	J.P. MORGAN SECURITIES LLC

For itself and on behalf of the

several Initial Purchasers

 	 
	By:  	/s/ Mark H. Radin
 	 
	 	Name:  	Mark H. Radin 	 
	 	Title:  	Executive Director 	 

[Signature Page to Registration Rights Agreement]

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