Document:

Exhibit 10.5

 

EMPLOYMENT AGREEMENT

 

 

Between

Mirant Corporation

and

Robert E. Driscoll

 

THIS AGREEMENT is made as of
                             
      , 2006 between Mirant Corporation (the “Company”),
Mirant Services, LLC (“Services”) and Robert E. Driscoll (“Executive”).

 

In consideration of the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1. Employment.
The Company and Services shall employ Executive, and Executive hereby accepts
employment with the Company and Services, upon the terms and conditions set
forth in this Agreement, for the period beginning on January 3, 2006 (the “Commencement
Date”) and ending as provided in Section 4 hereof (the “Employment
Period”).

 

2. Position and
Duties.

 

(a) During
the Employment Period, Executive shall serve as Mirant’s Senior Vice President
and Head of Asset Management – US Region. During the Employment Period,
Executive shall render such administrative, financial and other executive and
managerial services to the Company and its affiliates (the “Company Group”)
as are consistent with Executive’s position and the by-laws of the Company and
as the Chief Executive Officer (“CEO”) and Executive Vice President and US
Region Head may from time to time reasonably direct. Executive shall also
serve for no additional compensation or remuneration as an officer or director
of such subsidiaries of the Company as may from time to time be designated
by the Board.

 

(b) During
the Employment Period, Executive shall report to the Executive Vice President
and US Region Head and shall devote his best efforts and his full business time
and attention (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the business and affairs of the Company.
Executive shall perform his duties, responsibilities and functions to the
Company hereunder to the best of his abilities in a diligent, trustworthy,
professional and efficient manner and shall comply with the Company’s policies
and procedures in all material respects. In performing his duties and
exercising his authority under this Agreement, Executive shall support and
implement the business and strategic plans approved from time to time by the
Board and shall support and cooperate with the Company’s efforts to operate
profitably and in conformity with the business and strategic plans approved by
the Board. During the Employment Period, Executive shall not serve as an
officer or director of, or otherwise perform services for compensation
for, any other entity without the prior written

 

 

consent of the Board
which shall not be unreasonably withheld; provided, however, that
the Board hereby consents to Executive’s service on and after the Commencement
Date as a director of each of the corporations listed on Exhibit A.
Executive may serve as an officer or director of or otherwise participate
in purely educational, welfare, social, religious and civic organizations so
long as such activities do not materially interfere with Executive’s regular
performance of duties and responsibilities hereunder. Nothing contained herein
shall preclude Executive from (i) engaging in charitable and community
activities, (ii) participating in industry and trade organization
activities, (iii) managing his and his family’s personal investments and
affairs, and (iv) delivering lectures, fulfilling speaking engagements or
teaching at educational institutions, provided that such activities do not
materially interfere with the regular performance of his duties and
responsibilities under this Agreement.

 

3. Compensation
and Benefits.

 

(a)                                  The Company shall pay Executive an annual
salary (the “Base Salary”) at the rate of $280,000.00 in regular
installments in accordance with the Company’s ordinary payroll practices (in
effect from time to time), but in any event no less frequently than monthly.

 

(a) Bonuses
and Incentive Compensation.

 

(i)                                     Annual Bonus. For each fiscal year during the
Employment Period, Executive will be eligible to earn an annual bonus based on
achievement of performance criteria that are applicable to members of the
Company’s Executive Committee established by the Board as soon as
administratively practicable following the beginning of each such fiscal year
(the “Annual Bonus”). The target amount (the “Target Bonus”) of
Executive’s Annual Bonus shall equal 50% of Executive’s Base Salary (at the
annual rate in effect at the start of the fiscal year), with a maximum Annual
Bonus in an amount equal to 100% of Executive’s Base Salary (at the annual rate
in effect at the start of the fiscal year). The Company shall pay the Annual
Bonus for each fiscal year in a single cash lump sum after the end of the
Company’s fiscal year in accordance with procedures established by the Board,
but in no event later than two and a half months following the end of such
fiscal year.

 

(ii)                                  Emergence Equity Grant. The Company shall grant Executive a
combination of restricted stock units (“Restricted Stock Units”) that
are to be settled in common stock of the Company (“Common Stock”) and
options to purchase Common Stock (“Stock Options”) with an aggregate
economic value of $800,000 (such grant of Restricted Stock Units and Stock
Options are together referred to as the “Executive LTIP”). The $800,000
aggregate economic value of the Restricted Stock Units and Stock Options to be
awarded under the Executive LTIP shall be determined in the good faith judgment
of the Compensation Committee of the Board taking into account the requirements
set forth in (A) and (B) below.

 

(A)                              Ten days following the Company’s
emergence from bankruptcy protection (the “Emergence Date”) under
Chapter 11 of Title 11 of the United States Code, Executive shall be awarded
Restricted Stock Units and Stock Options with an aggregate value of

 

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$400,000, with
one-third of such value to consist of Restricted Stock Units. The exact number
of Restricted Stock Units to be awarded ten days following the Emergence Date
shall be determined solely based on the average of the daily closing price of a
share of Common Stock on The New York Stock Exchange or, if the Common Stock is
not traded on The New York Stock Exchange, the average of the midpoint of the
daily bid and ask price of a share of Common Stock on the OTC Bulletin Board,
from the Emergence Date to the date of grant of such Restricted Stock Units,
without any discount based on vesting requirements or lack of transferability.
The Stock Options granted ten days following the Emergence Date shall have an
exercise price per share equal to the closing price of a share of Common Stock
on The New York Stock Exchange or, if the Common Stock is not traded on The New
York Stock Exchange, the midpoint of the bid and ask price of a share of Common
Stock on the OTC Bulletin Board, on the date of grant of such Stock Options.
Such Stock Options shall have a ten-year term. The exact number of Stock
Options granted ten days following the Emergence Date shall be determined based
upon a Black-Scholes or other valuation model, using reasonable assumptions as
determined in good faith by the Compensation Committee of the Board.

 

(B)                                Forty five days after the Emergence Date,
Executive shall be awarded Restricted Stock Units and Stock Options with an
aggregate value of $400,000, with one-third of such value to consist of
Restricted Stock Units. The exact number of Restricted Stock Units to be
awarded 45 days after the Emergence Date shall be determined solely based on
the average of the daily closing price of a share of Common Stock on The New
York Stock Exchange or, if the Common Stock is not traded on The New York Stock
Exchange, the average of the midpoint of the daily bid and ask price of a share
of Common Stock on the OTC Bulletin Board, from the Emergence Date to the date
of grant of such Restricted Stock Units, without any discount based on vesting
requirements or lack of transferability. The Stock Options granted 45 days
after the Emergence Date shall have an exercise price equal to the closing
price of a share of Common Stock on The New York Stock Exchange or, if the
Common Stock is not traded on The New York Stock Exchange, the midpoint of the
bid and ask price of a share of Common Stock on the OTC Bulletin Board, on the
date of grant of such Stock Options. Such Stock Options shall have a ten-year
term. The exact number of Stock Options granted 45 days after the Emergence
Date shall be determined based upon a Black-Scholes or other valuation model,
using reasonable assumptions as determined in good faith by the Compensation
Committee of the Board.

 

3

 

The terms and conditions of the Executive LTIP shall
be governed by and subject to the award agreements to be entered into between
Executive and the Company, substantially in the forms of Exhibits B and C
respectively (the “LTIP Award Agreements”). The Restricted Stock Units
and Options granted pursuant to the Executive LTIP shall, subject to the
treatment of the Executive LTIP upon termination of Executive’s employment as
provided in the LTIP Award Agreement, vest over a period of three years, with
25% to vest six months after the Emergence Date, 25% to vest one year after the
Emergence Date, 25% to vest two years after the Emergence Date and 25% to vest
three years after the Emergence Date.

 

(iii)                               Annual Equity Grant. Beginning with fiscal year 2007 and for
each fiscal year thereafter during the Employment Period, Executive shall be
eligible to receive additional equity-based compensation under the long term
incentive plan of the Company in effect at the time of such award, the amount,
terms and conditions of such award to be set by the Board at the time of grant.
Such awards shall otherwise be governed by the terms and conditions set forth
in the long term incentive plan of the Company as may be in effect at the
time of such award and the corresponding award agreement and shall be made at
such time as grants are made to other senior executives of the Company.

 

(b) During
the Employment Period, the Company shall reimburse Executive for all reasonable
business expenses incurred by him in the course of performing his duties and
responsibilities under this Agreement in accordance with the Company’s policies
in effect from time to time with respect to travel, entertainment and other
business expenses for senior executives.

 

(c) Executive
shall also be entitled to the following benefits during the Employment Period,
unless otherwise modified by the Board:

 

(i)                                     participation in the Company’s retirement
plans, health and welfare plans, disability insurance plans and other benefit
plans of the Company as in effect from time to time, under the terms of such
plans and to the same extent and under the same conditions such participation
and coverages are provided generally to other senior executives of the Company;

 

(ii)                                  reimbursement for the reasonable cost of
temporary living accommodations for Executive and his spouse in Atlanta,
Georgia for up to six months and relocation expenses reimbursed in accordance
with the Company’s then existing Relocation Policy for senior executives;

 

(iii)                               coverage for services rendered to the
Company, its subsidiaries and affiliates while Executive is a director or
officer of the Company, or of any of its subsidiaries or affiliates, under any
director and officer liability insurance policy(ies) maintained by the Company
from time to time; and

 

(iv)                              four weeks of vacation per year.

 

4. Termination.
The Employment Period shall end on the third anniversary of the Commencement Date;
provided, however, that the Employment Period shall be automatically

 

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renewed for successive
one-year terms thereafter on the same terms and conditions set forth herein
unless either party provides the other party with notice that it has elected
not to renew the Employment Period at least 90 days prior to the end of the
initial Employment Period or any subsequent extension thereof. Notwithstanding
the foregoing, (i) the Employment Period shall terminate immediately upon
Executive’s resignation (with or without Good Reason, as defined herein), death
or Disability (as defined herein) and (ii) the Employment Period may be
terminated by the Company at any time prior to such date for Cause (as defined
herein) or without Cause. Except as otherwise provided herein, any termination
of the Employment Period by the Company shall be effective as specified in a
written notice from the Company to Executive, but in no event more than
90 days from the date of such notice. The termination of the Employment
Period shall not affect the respective rights and obligations of the parties
which, pursuant to the terms of this Agreement, apply following the date of
Executive’s termination of employment with the Company.

 

5. Severance.

 

(a) Termination
Without Cause, Non-Renewal or for Good Reason. In the event of Executive’s
termination of employment with the Company (1) by the Company without
Cause (as defined herein), (2) by reason of the failure of the Company to
offer to renew the Agreement on terms that are based on competitive practices
for companies of comparable size and standing in the same industry, or (3) by
Executive for Good Reason (as defined herein), subject to execution of a
Release substantially in the form attached as Exhibit D, Executive
shall be entitled to the benefits set forth below in this Section 5(a).

 

(i)                                     The Company shall pay Executive an amount
equal to 1.0 times Executive’s Base Salary plus 1.0 times Executive’s Target
Bonus (as in effect on the date of Executive’s termination). The severance
amount described in the previous sentence shall be paid over a period of two
years from the date of termination in accordance with the payroll practices of
the Company (in effect from time to time); provided, however,
that, in the event that Executive is considered a “Specified Employee” as
defined in Section 409A of the Internal Revenue Code of 1986, as amended
(the “JOBS Act”), and payments under this Section 5(a) are
considered “deferred compensation” under the JOBS Act, the first payment shall
be delayed for six months, in which event Executive shall receive a lump sum
payment equal to one times his Base Salary six months after the date his
employment terminates (plus interest on such payment of one times Base Salary
at a floating rate equal to LIBOR, from the date of termination of Executive’s
employment to the date that is six months after termination of Executive’s
employment), and the remainder of such severance amount shall be paid in equal
installments over a period of 18 months thereafter in accordance with the
ordinary payroll practices of the Company (in effect from time to time).

 

(ii)                                  The Executive LTIP shall be governed by
the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay Executive the
amounts described in Section 5(d) within 14 days of the date of
termination.

 

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(iv)                              During the period of 12 months following
Executive’s termination of employment in accordance with Section 5(a), the
Company shall provide to Executive continued coverage under the retirement,
life insurance, long-term disability, medical, dental and other group health
benefits and plans in effect for senior executives of the Company, as in effect
on the date of Executive’s termination of employment (or substantially
comparable coverage) for Executive and, where applicable, Executive’s spouse,
dependents and beneficiaries, at the same contribution or premium rate as may be
charged from time to time to senior executives of the Company generally, as if
Executive had continued in employment during such period. As an alternative,
the Company may elect to pay Executive cash in lieu of such contributions
or coverage in an amount equal to Executive’s after-tax cost of receiving such
contributions or continuing such coverage, where such contributions or coverage
may not be continued (or where such continuation would adversely affect
the tax status of the plan pursuant to which the contribution or coverage is
provided). The COBRA health care continuation coverage period under Section 4980B
of the Internal Revenue Code of 1986, as amended, (the “Code”), or any
replacement or successor provision of United States tax law, shall commence
immediately after the 12 month period.

 

(v)                                 The Company shall provide a release
substantially in the form attached hereto as Exhibit G. If the
Company does not provide the release required pursuant to this subsection (v),
the Release by the Executive shall be null, void and without effect, and Executive
shall still receive all of the payments and benefits described in subsections (i) through
(iv) above.

 

(b) Termination
for Cause or Voluntary Resignation. In the event that Executive’s
employment with the Company is terminated (i) by the Board for Cause or (ii) by
Executive’s resignation from the Company for any reason other than Good Reason
or Disability (as defined herein), subject to applicable law, the Company
agrees to the following:

 

(i)                                     The Executive LTIP shall be governed by
the terms of the applicable LTIP Award Agreements.

 

(ii)                                  The Company shall pay Executive the
amounts described in Section 5(d) within 14 days of the date of
termination.

 

For purposes of this Agreement, Executive’s
retirement shall be considered Executive’s resignation from the Company without
Good Reason.

 

(c) Death
or Disability. In the event that Executive’s employment with the Company is
terminated as a result of Executive’s death or Disability, the Company agrees
to the following:

 

(i)                                     The Company shall pay Executive (or his
estate or legal representative, if applicable) in a lump sum payment an amount
equal to his target Annual Bonus for the year of termination prorated for the
number of days during such year that Executive was employed by the Company; provided,
however, that, in the event that Executive is considered a “Specified
Employee” as defined in the JOBS Act and

 

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payments under
this Section 5(c) are considered “deferred compensation” under the
JOBS Act, such payment shall be delayed for six months, and Executive shall
receive interest on such payment at a floating rate equal to LIBOR, from the
date of termination of Executive’s employment to the date that is six months
after termination of Executive’s employment.

 

(ii)                                  The Executive LTIP shall be governed by
the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay Executive the
amounts described in Section 5(d) within 14 days of the date of
termination.

 

(d) In the
case of any termination of Executive’s employment with the Company, Executive
or his estate or legal representative shall be entitled to receive, to the
extent permitted by applicable law, from the Company (i) Executive’s Base
Salary through the date of termination to the extent not previously paid, (ii) to
the extent not previously paid, the amount of any bonus, incentive
compensation, and other compensation earned or accrued by Executive as of the
date of termination under any compensation and benefit plans, programs or
arrangements maintained in force by the Company (for this purpose, Executive’s
Annual Bonus, if any, for any fiscal year of the Company ended prior to the
year of termination that is then unpaid, and in the case of a termination under
Section 5(a) or (c) a pro-rata portion of the Target Bonus for
the fiscal year in which the date of termination occurs based on the number of
days in that fiscal year during which Executive was employed, shall be deemed
to be earned), (iii) any vacation pay, expense reimbursements and other
cash entitlements accrued by Executive, in accordance with Company policy for
senior executives, as of the date of termination to the extent not previously
paid, (iv) any Restricted Stock Units, Stock Options and other equity
awards outstanding under any Company long term incentive plans or arrangements
(other than the Executive LTIP), in accordance with the terms of the plans or
arrangements under which such awards were created or maintained, and (v) all
benefits accrued by Executive under all benefit plans and qualified and
nonqualified retirement, pension, 401(k) and similar plans and arrangements of
the Company, in such manner and at such times as are provided under the terms
of such plans and arrangements.

 

(e) Termination
Without Cause, Non-Renewal or for Good Reason Following a Change of Control.
In the event of Executive’s termination of employment with the Company (1) by
the Company without Cause, (2) as a result of the failure of the Company
to offer to renew the Agreement on terms that are consistent with competitive
practices for companies of comparable size and standing in the same industry,
or (3) by Executive for Good Reason, in any case, during the period
beginning six months before and ending two years following a Change of Control
(as defined herein) of the Company, subject to execution of a Release
substantially in the form attached as Exhibit D, Executive shall be
entitled to the benefits set forth below in this Section 5(e).

 

(i)                                     The Company shall pay Executive the
payments set forth in Section 5(a)(i), except the applicable multiplier
shall be 3; provided, however, that in determining the amount of
payment due under Section 5(a)(i), Executive’s actual Annual Bonus for the
year preceding the Change of Control shall be used, if higher than his Target
Bonus; and provided, further, that payment shall be made in a
lump sum on the

 

7

 

later of the date
of the Change of Control or 10 business days after Executive’s termination
of employment; provided, however, that, in the event Executive is
considered a “Specified Employee” as defined in the JOBS Act, and payments
under this Section 5(e) are considered “deferred compensation” under
the JOBS Act, the payment shall be delayed for six months from the date of
Executive’s termination of employment and Executive shall receive interest at a
floating rate equal to LIBOR from the date of termination of Executive’s
employment to the date that is six months after termination of Executive’s
employment.

 

(ii)                                  The Company shall provide the benefits
set forth in Section 5(a)(iv) except the applicable period shall be
24 months.

 

(iii)                               The Executive LTIP shall fully vest, to
the extent not already vested, and otherwise be governed by the terms of the
applicable LTIP Award Agreements.

 

(iv)                              The Company shall pay Executive the
amounts described in Section 5(d).

 

(v)                                 The Company shall provide a release
substantially in the form attached hereto as Exhibit G. If the
Company does not provide the release required pursuant to this subsection (v),
the Release by the Executive shall be null, void and without effect, and
Executive shall still receive all of the payments and benefits described in
subsections (i) through (iv) above.

 

(f) Excess
Parachute Payments.

 

(i)                                     In the event any payment granted to
Executive pursuant to the terms of this Agreement or otherwise (a “Payment”)
is determined to be subject to any excise tax (“Excise Tax”) imposed by Section 4999
of the Code (or any successor to such Section), the Company shall pay to
Executive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount (a “Gross-Up
Payment”) which, after the imposition of all income, employment, excise and
other taxes, penalties and interest thereon, is equal to the sum of (A) the
Excise Tax on such Payment plus (B) any penalty and interest assessments
associated with such Excise Tax; provided, however, that the amount of the
Gross Up Payment shall not exceed $2 million.

 

(ii)                                  The determinations to be made with
respect to this Section 5(f) shall be made by a certified public
accounting firm designated by the Company and reasonably acceptable to
Executive and Executive may rely on such determination in making payments
to the Internal Revenue Service.

 

(g) No
Other Payments. Except as provided in Sections 5(a), (b), (c), (d), (e) and
(f) above, all of Executive’s rights to salary, bonuses, employee benefits
and other compensation hereunder which would have accrued or become payable after
the termination or expiration of the Employment Period shall cease upon such
termination or expiration, other than those expressly required under applicable
law (such as COBRA).

 

8

 

(h) No
Mitigation, No Offset. In the event of Executive’s termination of
employment for whatever reason, Executive shall be under no obligation to seek
other employment, and there shall be no offset against amounts due him under
this Agreement or otherwise on account of any remuneration attributable to any
subsequent employment or claims asserted by the Company or any affiliate,
provided that this provision shall not apply with respect to any amounts that
Executive owes to the Company or any member of the Company Group on account of
any loan, advance or other payment, in respect of any of which Executive is
obligated to make repayment to the Company or any member of the Company Group.

 

(i) Definitions.
For purposes of this Agreement, the following terms shall have the following meanings:

 

“Cause” shall mean one or more of the
following:

 

(A)                              the conviction of, or an agreement to a
plea of nolo contendere to, a
crime involving moral turpitude or any felony;

 

(B)                                Executive’s willful refusal substantially
to perform duties as reasonably directed by the CEO under this or any
other agreement;

 

(C)                                in carrying out his duties, Executive
engages in conduct that constitutes fraud, willful neglect or willful
misconduct which, in either case, would result in demonstrable harm to the
business, operations, prospects or reputation of the Company;

 

(D)                               a material violation of the requirements
of the Sarbanes-Oxley Act of 2002 (“SOX”) or other federal or state
securities law, rule or regulation; or

 

(E)                                 any other material breach of this
Agreement.

 

For purpose of this Agreement, the Company is not
entitled to assert that Executive’s termination is for Cause unless the Company
gives Executive written notice describing the facts which are the basis for
such termination and such grounds for termination (if susceptible to
correction) are not corrected by Executive within 30 days of Executive’s
receipt of such notice to the reasonable, good faith satisfaction of the CEO.

 

“Change of Control” shall mean the first to
occur of any of the following events:

 

(A)                              any “person” (as that term is used in
Sections 13 and 14(d)(2) of the Securities Exchange Act of 1934 (“Exchange
Act”)) becomes the beneficial owner (as that term is used in Section 13(d) of
the Exchange Act), directly or indirectly, of fifty percent (50%) or more of
the Company’s capital stock entitled to vote in the election of directors;

 

9

 

(B)                                persons who on the day following the
Emergence Date constitute the Board (the “Emergence Directors”) cease for
any reason, including, without limitation, as a result of a tender offer, proxy
contest, merger or similar transaction, to constitute at least a majority
thereof, provided, however, that any person who becomes a director of the
Company subsequent to the Emergence Date shall be considered an Emergence
Director if such person’s election or nomination for election was approved by a
vote of at least two-thirds (2/3) of the Emergence Directors; but provided
further that any such person whose initial assumption of office is in
connection with an actual or threatened election contest relating to the
election of members of the Board or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board, including
by reason of agreement intended to avoid or settle any such actual or
threatened contest or solicitation, shall not be considered an Emergence
Director;

 

(C)                                consummation of a reorganization, merger,
consolidation, sale or other disposition of all or substantially all of the
assets of the Company (a “Business Combination”), in each case, unless,
following such Business Combination, all or substantially all of the
individuals and entities who were the beneficial owners of outstanding voting
securities of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the company resulting
from such Business Combination (including, without limitation, a company which,
as a result of such transaction, owns the Company or all or substantially all
of the Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the outstanding voting securities of the Company;
and

 

(D)                               the shareholders of the Company approve
any plan or proposal for the liquidation or dissolution of the Company.

 

Notwithstanding the foregoing, in no event shall the
confirmation of the plan of reorganization confirmed under 11 U.S.C. § 1129
(the “Plan of Reorganization”), the implementation of the transactions
contemplated by the Plan of Reorganization on or after the Emergence Date or
the effectuation of the corporate governance provisions set forth therein,
including the implementation of the Board of Directors as specified therein, be
considered a Change of Control.

 

“Disability” shall mean Executive’s (i) being
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental

 

10

 

impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months or (ii) by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than three months under an accident and health plan covering employees of the
Company.

 

“Good Reason” shall mean Executive’s
resignation from employment with the Company prior to the end of the Employment
Period as a result of one or more of the following reasons:

 

(A)                              the Company reduces the amount of
Executive’s then current Base Salary or the target for his Annual Bonus (it
being understood that Executive shall not have a basis to resign for Good
Reason if no bonus is paid, or the amount of the bonus is reduced as a result
of the failure of Executive or the Company to achieve applicable performance
targets for such bonus);

 

(B)                                a material diminution in Executive’s
title, authority, duties or responsibilities or the assignment of duties to
Executive which are materially inconsistent with his position; provided,
however, that, following a Change of Control, any diminution of
Executive’s title, duties or responsibilities shall constitute Good Reason;

 

(C)                                the failure of the Company to obtain in
writing the obligation to perform this Agreement by any successor to the
Company or a purchaser of all or substantially all of the assets of the Company
within 15 days after a merger, consolidation, sale or similar transaction;

 

(D)                               the failure of the Company to grant
Executive the Executive LTIP within 60 days after the Effective Date; or

 

(E)                                 following a Change in Control, the
requirement that Executive move his principal place of business by more than 50
miles from that previously the case without his consent.

 

Notwithstanding the foregoing, Executive agrees that
he shall not be entitled to terminate his employment for Good Reason in the
event he is subject to any unintended or adverse tax consequences under the
JOBS Act, the Company amends this Agreement or the terms of any employee
benefit plan, program arrangement or agreement to avoid such adverse tax
consequences or he is required to forfeit incentive or other compensation
pursuant to Section 304 of SOX. For purposes of this Agreement, Executive
is not entitled to assert that his termination is for Good Reason unless
Executive gives the CEO written notice describing the event or events which are
the basis for such termination within ninety (90) days after the event or
events occur and such grounds for termination (if susceptible to correction)
are not corrected by

 

11

 

the
Company within 30 days of the Company’s receipt of such notice to the
reasonable, good faith satisfaction of Executive.

 

6. Indemnification.

 

(a) The
Company agrees that (i) if Executive is made a party, or is threatened to
be made a party, to any threatened or actual action, suit or proceeding,
whether civil, criminal, administrative, investigative, appellate or other
(each, a “Proceeding”) by reason of the fact that he is or was a
director, officer, employee, agent, manager, or representative of the Company
or is or was serving at the request of the Company as a director, officer, member,
employee, agent, manager, or representative of any member of the Company Group
or (ii) if any claim, demand, request, investigation, dispute,
controversy, threat, discovery request or request for testimony or information
(each, a “Claim”) is made, or threatened to be made, that arises out of
or relates to Executive’s service in any of the foregoing capacities, then
Executive shall be indemnified and held harmless by the Company to the fullest
extent legally permitted or authorized by the Company’s certificate of
incorporation, by-laws, Board resolutions or, if greater, by applicable law,
against any and all costs, expenses, liabilities and losses (including, without
limitation, attorney’s fees, judgments, interest, expenses of investigation,
penalties, fines, ERISA excise taxes or penalties and amounts paid or to be
paid in settlement) incurred or suffered by Executive in connection therewith,
and such indemnification shall continue as to Executive even if he has ceased
to be a director, member, employee, agent, manager, or representative of the
Company or any member of the Company Group and shall inure to the benefit of
Executive’s heirs, executors and administrators. To the extent permitted by
applicable law, the Company shall advance to Executive all costs and expenses
incurred by him in connection with any such Proceeding or Claim within
15 days after receiving written notice requesting such an advance. Such
notice shall include, to the extent required by applicable law, an undertaking
by Executive to repay the amount advanced if he is ultimately determined not to
be entitled to indemnification against such costs and expenses.

 

(b)                                 Neither the failure of the Company
(including the Board, independent legal counsel or stockholders) to have made a
determination in connection with any request for indemnification or advancement
under Section 6(a) that Executive has satisfied any applicable
standard of conduct nor a determination by the Company (including the Board,
independent legal counsel or stockholders) that Executive has not met any
applicable standard of conduct shall create a presumption that Executive has or
has not met an applicable standard of conduct.

 

(c)                                  The Company agrees to use reasonable
commercial efforts to maintain director’s and officer’s liability insurance
covering the Executive for services rendered to the Company, its subsidiaries
and affiliates while Executive is a director or officer of the Company or any
of its subsidiaries or affiliates.

 

7. Confidential
Information. Executive agrees to enter into the Confidentiality Agreement
attached as Exhibit E simultaneously with the execution of this Agreement.

 

8. Intellectual
Property, Inventions and Patents. Executive agrees to enter into the
Intellectual Property Agreement attached as Exhibit F
simultaneously with the execution of this Agreement.

 

12

 

9. Non-Compete, Non-Solicitation.

 

(a) In
further consideration of the compensation to be paid to Executive hereunder,
Executive acknowledges that during the course of his employment with the
Company, he shall become familiar with the Company Group’s trade secrets and
with other confidential information concerning the Company Group and that his
services shall be of special, unique and extraordinary value to the Company
Group, and, therefore, Executive agrees that, during the Employment Period and
for one (1) year thereafter (the “Noncompete Period”), he shall not
directly or indirectly own any interest in, manage, control, be employed in an
executive, managerial or administrative capacity by, or otherwise render
executive, managerial or administrative services to, any company engaged in the
business of owning and operating power generation facilities or energy trading
and marketing operations which competes with the businesses of the Company on
the date of the termination or expiration of the Employment Period, within any
geographical area in which the Company engages in such businesses. Nothing
herein shall prohibit Executive from being a passive owner of not more than 2%
of the outstanding stock of any class of a corporation which is publicly
traded, so long as Executive has no active participation in the business of
such corporation.

 

(b) During
the Noncompete Period, Executive shall not directly or indirectly through
another person or entity (i) induce or attempt to induce any employee of
the Company to leave the employ of the Company, or in any way interfere with
the relationship between the Company and any employee thereof; (ii) hire
any person who was a managerial or higher level employee of the Company during
the last six months of the Employment Period; or (iii) induce or attempt
to induce any customer, supplier, licensee, licensor, franchisee or other
business relation of the Company to cease doing business with the Company, or
in any way interfere with the relationship between any such customer, supplier,
licensee or business relation of the Company (including, without limitation,
making any negative or disparaging statements or communications regarding the
Company. The Company covenants that it will not, and it will advise members of
senior management of the Company and the Board not to, make any negative or
disparaging statements or communications regarding Executive.

 

(c) If, at
the time of enforcement of this Section 9, a court shall hold that the
duration, scope or area restrictions stated herein are unreasonable under
circumstances then existing, the parties agree that the maximum duration, scope
or area reasonable under such circumstances shall be substituted for the stated
duration, scope or area and that the court shall be allowed to revise the
restrictions contained herein to cover the maximum period, scope and area
permitted by law. Executive acknowledges that the restrictions contained in
this Section 9 are reasonable and that he has reviewed the provisions of
this Agreement with his legal counsel.

 

(d) Executive
acknowledges that in the event of the breach or a threatened breach by
Executive of any of the provisions of this Section 9, the Company would
suffer irreparable harm, and, in addition and supplementary to other rights and
remedies existing in its favor, the Company shall be entitled to specific
performance and/or injunctive or other equitable relief from a court of
competent jurisdiction in order to enforce or prevent any violations of the
provisions hereof (without posting a bond or other security). In addition, in
the event of a breach or violation by Executive of Section 9(a), the
Noncompete Period shall be automatically

 

13

 

extended by the amount of
time between the initial occurrence of the breach or violation and when such
breach or violation has been duly cured.

 

10. Executive’s
Representations. Executive hereby represents and warrants to the Company
that (i) the execution, delivery and performance of this Agreement by
Executive do not and shall not conflict with, breach, violate or cause a
default under, any contract, agreement, instrument, order, judgment or decree
to which Executive is a party or by which he is bound which has not been
waived; (ii) Executive is not a party to or bound by any employment
agreement, noncompete agreement or confidentiality agreement with any other
person or entity which has not been waived; (iii) Executive has consulted
with the Executive Vice President and General Counsel and does not have any
financial involvement with or financial interest in any of the Company’s
suppliers, vendors, customers, partners, subcontractors or competitors that
would be considered a conflict of interest under the Company’s Global
Compliance Policy relating to Conflicts of Interest and (iv) on the
Commencement Date, this Agreement shall be the valid and binding obligation of
Executive, enforceable in accordance with its terms. Executive hereby
acknowledges and represents that he has consulted with independent legal
counsel regarding his rights and obligations under this Agreement and that he
fully understands the terms and conditions contained herein.

 

11. Notices.
All notices or communications hereunder shall be in writing, addressed as
follows:

 

To the Company:

 

Mirant Corporation

Chief Executive Officer

1155 Perimeter Center West

Atlanta, GA 30338-5416

 

with a copy to:                                                                 Legal Department

Mirant Services, LLC

1155 Perimeter Center West

Atlanta, GA 30338-5416

Fax: 678-579-5589

 

To Executive:

 

To the address on file with Company

 

All such notices shall be conclusively deemed to be
received and shall be effective (i) if sent by hand delivery, upon receipt
or (ii) if sent by electronic mail or facsimile, upon confirmation of
receipt by the sender of such transmission.

 

12. Severability.
In the event any provision or part of this Agreement is found to be
invalid or unenforceable, only that particular provision or part so found,
and not the entire Agreement, will be inoperative.

 

14

 

13. Complete
Agreement. This Agreement, the LTIP Award Agreements and those documents
expressly referred to herein embody the complete agreement and understanding
among the parties and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

14. No Strict
Construction. The language used in this Agreement shall be deemed to be the
language chosen by the parties hereto to express their mutual intent, and no rule of
strict construction shall be applied against any party.

 

15. Counterparts.
This Agreement may be executed in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the
same agreement.

 

16. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit
of the beneficiaries, heirs and representatives of Executive and the successors
and assigns of the Company. The Company shall require any successor (whether
direct or indirect, by purchase, merger, reorganization, consolidation,
acquisition of property or stock, liquidation, or otherwise) to all or a
majority of its assets, by agreement in form and substance satisfactory to
Executive, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform this
Agreement if no such succession had taken place. Executive may not assign
his rights (except by will or the laws of descent and distribution) or delegate
his duties or obligations hereunder. Except as provided by this Section 16,
this Agreement is not assignable by any party and no payment to be made
hereunder shall be subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or other charge.

 

17. Choice of
Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the
State of Georgia.

 

18. Amendment
and Waiver. The provisions of this Agreement may be amended, modified
or waived only with the prior written consent of the Company and Executive, and
no course of conduct or course of dealing or failure or delay by any party
hereto in enforcing or exercising any of the provisions of this Agreement
(including, without limitation, the Company’s right to terminate the Employment
Period for Cause) shall affect the validity, binding effect or enforceability
of this Agreement or be deemed to be an implied waiver of any provision of this
Agreement.

 

19. JOBS Act
Compliance. If any provision of this Agreement would result in unintended
or adverse tax consequences to Executive or the Company or would, in the
judgment of the Board, contravene the final regulations anticipated to be
promulgated under the JOBS Act or other Department of Treasury guidance, the
Company may reform this Agreement or any provisions hereof to
maintain to the maximum extent practicable the original purpose of the
provision without violating the provisions of the JOBS Act.

 

15

 

20. Insurance.
The Company may, at its discretion, apply for and procure in its own name and
for its own benefit life and/or disability insurance on Executive in any amount
or amounts considered advisable. Executive agrees to cooperate in any medical
or other examination, supply any information and execute and deliver any
applications or other instruments in writing as may be reasonably
necessary to obtain and constitute such insurance. Executive hereby represents
that he has no reason to believe that his life is not insurable at rates now
prevailing for healthy men of his age.

 

21. Withholding.
Any payments made or benefits provided to Executive under this Agreement shall
be reduced by any applicable withholding taxes or other amounts required to be
withheld by law or contract.

 

22. Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
or otherwise in connection with the Executive’s employment by the Company that
cannot be mutually resolved by the parties to this Agreement and their
respective advisors and representatives shall be settled exclusively by
arbitration in Atlanta, Georgia in accordance with the rules of the
American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive, or
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association. The Company shall
reimburse Executive’s reasonable legal fees if he prevails on a material issue
in an arbitration.

 

23. Corporate
Opportunity. During the Employment Period, Executive shall submit to the
Board all business, commercial and investment opportunities or offers presented
to Executive that relate to the business of power companies (“Corporate
Opportunities”), if Executive wishes to accept or pursue, directly or
indirectly, such Corporate Opportunities on Executive’s own behalf. This Section 23
shall not apply to purchases of publicly traded stock by Executive.

 

24. Executive’s
Cooperation.
During the Employment Period and thereafter, Executive shall cooperate with the
Company and its affiliates, upon the Company’s reasonable request, with respect
to any internal investigation or administrative, regulatory or judicial
proceeding involving matters within the scope of Executive’s duties and
responsibilities to the Company Group during the Employment Period (including,
without limitation, Executive being available to the Company upon reasonable
notice for interviews and factual investigations, appearing at the Company’s
reasonable request to give testimony without requiring service of a subpoena or
other legal process, and turning over to the Company all relevant Company
documents which are or may come into Executive’s possession during the
Employment Period); provided, however, that any such request by
the Company shall not be unduly burdensome or interfere with Executive’s
personal schedule or ability to engage in gainful employment. In the event
the Company requires Executive’s cooperation in accordance with this Section 24,
the Company shall reimburse Executive for reasonable out-of-pocket expenses
(including travel, lodging and meals) incurred by Executive in connection with
such cooperation, subject to reasonable documentation.

 

16

 

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

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Driscoll

  

 

17

 

Exhibit A

 

LIST OF APPROVED DIRECTORSHIPS

 

A-1

 

Exhibit B

 

MIRANT CORPORATION

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This Restricted Stock Unit Award (this “Award”) is made as of
[INSERT DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT
CORPORATION, a
                     corporation
(the “Company”) to Robert E. Driscoll (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of
[                        ,
2006] (the “Agreement”) providing for the grant to Executive of
restricted stock units (“Restricted Stock Units”) upon the Company’s
emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Restricted Stock Units to promote Executive’s
long-term interests in the success of the Company;

 

NOW THEREFORE, the Company awards Restricted Stock Units to Executive
pursuant to the following terms and conditions:

 

1. Restricted Stock Unit Award. The
Company hereby grants to Executive an award of
[           ] Restricted
Stock Units that are to be settled in common stock of the Company (“Common
Stock”). The Restricted Stock Units shall be transferable only in
accordance with the provisions of Section 8 of this Award and subject to
the restrictions and other conditions set forth herein. The shares to be
delivered to Executive in settlement of the Restricted Stock Units shall be
issued under the Company’s then existing omnibus incentive plan and, if the
Common Stock is then traded on a national securities exchange or inter-dealer
quotation system, including without limitation, NASDAQ, or if the Company is
subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act. Capitalized terms used, but not otherwise defined, shall have
the meaning set forth in the Agreement.

 

2. Restrictions. Except as provided in
Section 3 below, the Restricted Stock Units shall vest and become
transferable as follows:

 

a.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is six months
after the Company’s emergence from bankruptcy protection];

 

B-1

 

b.              twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is one year
after the Company’s emergence from bankruptcy protection];

 

c.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is two years
after the Company’s emergence from bankruptcy protection]; and

 

d.              twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is three years
after the Company’s emergence from bankruptcy protection].

 

3. Change
in Employment Status.

 

a. Termination
Without Cause, Non-Renewal, for Good Reason, Death or Disability. In the
event of Executive’s termination of employment with the Company (regardless of
whether such termination is in connection with a Change in Control (as defined
in the Agreement)) (i) by the Company without Cause (as defined in the
Agreement), (ii) by reason of the failure of the Company to offer to renew
the Agreement (as provided in the Agreement), (iii) by Executive for Good
Reason (as defined in the Agreement) or (iv) as a result of Executive’s
death or Disability (as defined in the Agreement), all Restricted Stock Units
that have not already vested, as of the date of such termination, shall vest
immediately and become nonforfeitable.

 

b. Termination
for Cause, Voluntary Resignation Without Good Reason. In the event of
Executive’s termination of employment with the Company (i) by the Company
for Cause or (ii) by reason of Executive’s resignation from the Company
for any reason other than Good Reason, all Restricted Stock Units that have not
already vested as of the date of such termination shall be immediately
forfeited by Executive.

 

4. Book Entry Account. Within a
reasonable time after the date of this Award, the Company shall instruct its
transfer agent to establish a book entry account representing the Restricted
Stock Units in Executive’s name effective as of the grant date, provided that
the Company shall retain control of such account until the Restricted Stock
Units have become vested in accordance with this Award.

 

5. Distribution of Shares. Consistent
with the provisions of Section 3 of this Award, on the day following
Executive’s termination of employment with the Company or immediately prior to
the occurrence of a Change of Control, Executive shall receive one share of the
Company’s common stock, as provided in Section 1 above in satisfaction of
each Restricted Stock Unit credited to his account under Section 4 above
and vested either theretofore or by reason of the event resulting in such
termination.

 

6. Stockholder Rights. Executive shall
not have any of the rights of a stockholder with respect to the Restricted
Stock Units, including the right to vote the Common Stock that will be issued
upon vesting of the Restricted Stock Units, other than the right to receive
dividends or other distributions paid or made available with respect to Common
Stock of the Company when otherwise paid to shareholders; provided, however,
until such Restricted Stock Units are vested, any dividends shall be credited
to Executive’s account under Section 4 and paid in a lump sum when such
Restricted Stock Units to which the dividends are attributable vest.

 

B-2

 

7. Withholding.  Executive shall pay all applicable federal,
state and local income and employment taxes (including taxes of any foreign
jurisdiction), which the Company is required to withhold at any time with
respect to the Restricted Stock Units. 
Such payment shall be made in full, at Executive’s election, in cash or
check, by withholding from Executive’s next normal payroll check, or by the
tender of shares of Common Stock (including shares then vesting under this
Award).  Shares tendered as payment of
required withholding shall be valued at the closing price per share of Common
Stock on the date such withholding obligation arises.

 

8. 
Transferability. 
Except as otherwise provided in this Section 8, the Restricted
Stock Units shall not be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner, whether by the operation of law or otherwise.  Executive may transfer the Restricted Stock
Units, in whole or in part, to a spouse or lineal descendant (a “Family
Member”), a trust for the exclusive benefit of Executive and/or Family
Members, a partnership or other entity in which all the beneficial owners are
Executive and/or Family Members, or any other entity affiliated with Executive
that may be approved by the Compensation Committee (a “Permitted Transferee”).  Subsequent transfers of the Restricted Stock
Units shall be prohibited except in accordance with this Section 8.  All terms and conditions of the Restricted
Stock Units, including provisions relating to the termination of Executive’s
employment with the Company, shall continue to apply following a transfer made
in accordance with this Section 8. 
Any attempted transfer of the Restricted Stock Units prohibited by this Section 8
shall be null and void.

 

9.  Adjustments.  In the event that the outstanding shares
of Common Stock are subject to a stock split or changed into or exchanged for a
different number or kind of shares or other securities of the Company or other
corporation by reason of a merger, consolidation, reorganization,
recapitalization, reclassification, combination of shares or a dividend payable
in capital stock, or a similar corporate structural change, then the rights of
the Executive shall be appropriately adjusted as to the number of shares of
Common Stock subject to the Restricted Stock Unit Award.  The granting of the Restricted Stock Units
pursuant to this Award shall not affect in any way the right or power of the
Company to make adjustments, reorganizations, reclassifications, or changes of
its capital or business structure or to merge, consolidate, dissolve,
liquidate, or sell or transfer all or any part of its business or assets.

 

10. Change in Control.  Subject to the provisions of Section 3
of this Award, the Compensation Committee, in its sole discretion, may at any
time prior to, coincident with or after the time of a Change in Control:

 

(i)            provide for the acceleration of any
vesting of the Restricted Stock Units upon a Change in Control; or

 

(ii)           provide that such Restricted Stock
Units shall vest in accordance with the provisions of this Agreement as though
no Change in Control had occurred, except that, as appropriate, the shares of
Common Stock represented by the Restricted Stock Units shall be treated in the
same manner as other shares of Common Stock in any transaction constituting a
Change in Control; or

 

B-3

 

(iii)          cause new rights to be substituted for
the Restricted Stock Units by the surviving corporation in such Change in
Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to
what actions shall be taken and the extent thereof, shall be final.

 

11. Agreement Provisions.  In addition to the terms and conditions set
forth herein, this Award is subject to and governed by the terms and conditions
set forth in the Agreement, which is incorporated herein by reference.  In the event of any conflict between the
provisions of this Award and the Agreement, the Agreement shall control.

 

12. Notice.  Any written notice required or permitted by
this Award shall be mailed, certified mail (return receipt requested) or
hand-delivered, addressed to Company’s Senior Vice President – Administration
at Company’s North American headquarters at 1155 Perimeter Center West, Atlanta,
Georgia 30338, with a copy to Legal Department, Mirant Services LLC 1155
Perimeter Center West, Atlanta, Georgia 30338. or to Executive at his most
recent home address on record with the Company. 
Notices are effective upon receipt.

 

13. Miscellaneous.

 

(a)           Limitation of
Rights.  The granting of this Award
shall not give Executive any rights to similar grants in future years or any
right to be retained in the employ or service of the Company or its subsidiary
or interfere in any way with the right of the Company or any such subsidiary to
terminate Executive’s services at any time, or the right of Executive to
terminate his services at any time.

 

(b)           Severability.  If any term, provision, covenant or
restriction contained in this Award is held by a court or a federal regulatory
agency of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions contained in
this Award shall remain in full force and effect, and shall in no way be affected,
impaired or invalidated.

 

(c)           Controlling Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Award shall be
governed by, and construed in accordance with, the laws of the State of
Georgia.

 

(d)           Arbitration.  Any dispute or controversy arising under or
in connection with the Agreement or this Award or otherwise in connection with
the Executive’s employment by the Company that cannot be mutually resolved by
the parties to the Agreement or this Award and their respective advisors and
representatives shall be settled exclusively by arbitration in Atlanta, Georgia
in accordance with the rules of the American Arbitration Association
before one arbitrator of exemplary qualifications and stature, who shall be
selected jointly by an individual to be designated by the Company and an
individual to be selected by Executive, or if such two individuals cannot agree
on the selection of the arbitrator, who shall be selected by the American
Arbitration Association.  The Company
shall reimburse Executive’s reasonable legal fees if he prevails on a material
issue in an arbitration.

 

B-4

 

(e)           Construction.  This Award contains the entire understanding
between the parties and supersedes any prior understanding and agreements
between them representing the subject matter hereof, except that this Award
shall be subject to the terms and conditions set forth in the Agreement.  There are no other representations,
agreements, arrangements or understandings, oral or written, between and among
the parties hereto relating to the subject matter hereof which are not fully
expressed herein.

 

(f)            Headings.  Section and other headings contained in
this Award are for reference purposes only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this Award
or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

B-5

 

Exhibit C

 

MIRANT CORPORATION

STOCK OPTION AWARD

 

This Stock Option Award (this “Award”) is made as of [INSERT
DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT CORPORATION,
a                       corporation
(the “Company”) to Robert E. Driscoll (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of [                      ,
2006] (the “Agreement”) providing for the grant to Executive of options
to purchase the common stock (“Common Stock”) of the Company (“Stock
Options”) upon the Company’s emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement, the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Stock Options to promote Executive’s long-term
interests in the success of the Company;

 

NOW THEREFORE, the Company awards Stock Options to Executive pursuant
to the following terms and conditions:

 

1.             Stock
Option Award.  Subject to
the terms and conditions contained herein and in the Agreement, the Company
hereby grants to the Executive an award of [          ]
Stock Options, at an exercise price of $[         ]
(the “Exercise Price”).  The Stock
Options are not intended to qualify as incentive stock options under Section 422
of the Internal Revenue Code of 1986, as amended.  Each such Stock Option shall entitle
Executive to purchase, upon payment of the Exercise Price, one share of Common
Stock.  Capitalized terms used, but not
otherwise defined, shall have the meaning set forth in the Agreement.

 

2.             Vesting.  Except as provided in Section 5 below,
the Stock Options shall vest and become transferable as follows:

 

e.     twenty-five percent (25%) of the Stock
Options shall vest on [insert date that is six months after the Company’s
emergence from bankruptcy protection];

 

f.      twenty-five percent (25%) of the Stock
Options shall vest on [insert date that is one year after the Company’s
emergence from bankruptcy protection];

 

g.     twenty-five percent (25%) of the Stock
Options shall vest on [insert date that is two years after the Company’s emergence
from bankruptcy protection];

 

h.     twenty-five percent (25%) of the Stock
Options shall vest on [insert date that is three years after the Company’s
emergence from bankruptcy protection].

 

C-1

 

3.             Term.  The Stock Options shall expire on the earlier
of 10 years from the date of grant or the date specified for termination of
such Stock Options, as provided in Section 5(c).

 

4.             Exercise,
Payment and Other Conditions. 
The Stock Options may be exercised in whole or in part to the extent
vested.  The Executive may exercise the
Stock Options by delivery to the Company of written notice providing:  (i) the name of Executive; (ii) the
address to which Common Stock certificates are to be mailed; and (iii) the
number of shares of Common Stock subject to the Stock Options to be
exercised.  Prior to the delivery to
Executive of any stock certificates, the Executive shall have paid to the
Company the Exercise Price of all shares of Common Stock purchased pursuant to
such exercise of the Stock Options as provided in this Award.  The Board may, in its discretion, require the
Executive to pay to the Company an amount equal to the federal, state and local
taxes, if any, required to be withheld or paid by the Company as a result of
such exercise.  All payments shall be in
United States dollars in the form of cash, certified check or bank draft, or,
with the consent of the Board by delivering to the Company (or by attesting to
the ownership of) shares of Common Stock which Executive has owned for at least
six months having a fair market value on the date of exercise equal to the
Exercise Price, plus the minimum withholding tax due in accordance with Section 7,
for the shares of Common Stock with respect to which Executive has exercised
such Stock Options.  The Stock Options
shall be considered exercised on the date the notice and payment are received
by the Chairman of the Compensation Committee of the Board (“Compensation
Committee”).  As promptly as
practicable after receipt of such notice and payment, the Company shall deliver
to Executive a certificate or certificates for the number of shares of Common
Stock with respect to which the Stock Options have been so exercised, issued in
Executive’s name.  Such delivery shall be
deemed effected for all purposes when a stock transfer agent of the Company
shall have deposited such certificate or certificates in the United States
mail, addressed to Executive, at the address specified in the notice.

 

5.             Change in
Employment Status.

 

a.             Termination Without Cause,
Non-Renewal, for Good Reason, Death or Disability.  In the event of Executive’s termination of
employment with the Company (regardless of whether such termination is in
connection with a Change in Control (as defined in the Agreement)) (i) by
the Company without Cause (as defined in the Agreement)), (ii) by reason
of the failure of the Company to offer to renew the Agreement (as provided in
the Agreement), (iii) by Executive for Good Reason (as defined in the
Agreement) or (iv) as a result of Executive’s death or Disability (as
defined in the Agreement), all Stock Options that have not already vested, as
of the date of such termination shall vest immediately and become
nonforfeitable.

 

b.             Termination for Cause, Voluntary
Resignation Without Good Reason.  In
the event that of Executive’s termination of employment with the Company (i) by
the Company for Cause or (ii) by reason of Executive’s resignation from
the Company for any reason other than Good Reason, all Stock Options that have
not already vested as of the date of such termination shall be immediately
forfeited by Executive and Executive shall have no further right or interest
therein.

 

c.             Post-Termination Exercise. Upon
termination of Executive’s employment for any reason other than that described
in subsection b above, Executive shall have one year to

 

C-2

 

exercise any Stock
Options that are vested or become vested as of the date of Executive’s
termination of employment, subject to earlier expiration of the Stock Option as
provided in Section 3.

 

6.             Stockholder
Rights.  Executive shall
not have any of the rights of a stockholder with respect to the Stock Options,
including the right to vote the Common Stock that will be issued upon the
exercise of the Stock Options or to receive dividends or other distributions
paid or made available with respect to Common Stock of the Company until such
Stock Options are exercised.

 

7.             Withholding.  Executive shall pay all applicable federal,
state and local income and employment taxes (including taxes of any foreign
jurisdiction), which the Company is required to withhold at any time with
respect to the Stock Options.  Such
payment shall be made in full, at Executive’s election, in cash or check, by
withholding from Executive’s next normal payroll check, or by the tender of
shares of Common Stock (including shares acquired upon exercise of the Stock
Options).  Shares tendered as payment of
required withholding shall be valued at the closing price per share of Common
Stock on the date such withholding obligation arises.

 

8.             Transferability.  Except as otherwise provided in this Section 8,
the Stock Options shall not be sold, pledged, assigned, hypothecated,
transferred or disposed of in any manner, whether by the operation of law or
otherwise.  Executive may transfer the
Stock Options, in whole or in part, to a spouse or lineal descendant (a “Family
Member”), a trust for the exclusive benefit of Executive and/or Family
Members, a partnership or other entity in which all the beneficial owners are
Executive and/or Family Members, or any other entity affiliated with Executive
that may be approved by the Compensation Committee (a “Permitted Transferee”).  Subsequent transfers of the Stock Options
shall be prohibited except in accordance with this Section 8.  All terms and conditions of the Stock
Options, including provisions relating to the termination of Executive’s
employment with the Company, shall continue to apply following a transfer made
in accordance with this Section 8. 
Any attempted transfer of the Stock Options prohibited by this Section 8
shall be null and void.  The shares to be
delivered to Executive upon the exercise of any Stock Options shall be issued
under the Company’s then existing omnibus incentive plan and, if the Common
Stock is then traded on a national securities exchange or inter-dealer
quotation system, including without limitation, NASDAQ, or if the Company is
subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act.

 

9.             Adjustments.  In the event that the outstanding shares of
Common Stock are subject to a stock split or changed into or exchanged for a
different number or kind of shares or other securities of the Company or other
corporation by reason of a merger, consolidation, reorganization,
recapitalization, reclassification, combination of shares or a dividend payable
in

 

C-3

 

capital stock, or a
similar corporate structural change, then the rights of the Executive shall be
appropriately adjusted as to the number of shares of Common Stock subject to
the Stock Options and/or as to the Exercise Price.  The granting of the Stock Options pursuant to
this Award shall not affect in any way the right or power of the Company to
make adjustments, reorganizations, reclassifications, or changes of its capital
or business structure or to merge, consolidate, dissolve, liquidate, or sell or
transfer all or any part of its business or assets.

 

10.           Change in Control.  Subject to the provisions of Section 5
of this Award, the Compensation Committee, in its sole discretion, may at any
time prior to, coincident with or after the time of a Change in Control:

 

(i)            provide for the acceleration of any
vesting conditions relating to the exercise of the Stock Option or that the
Stock Option may be exercised in full on or before a date fixed by the
Committee;

 

(ii)           provide for the purchase of the Stock
Option, upon Executive’s request, for an amount of cash equal to the amount, as
determined by the Compensation Committee in its sole discretion, which could
have been realized upon the exercise of the Stock Options had the option been
currently exercisable; or

 

(iii)          cause the Stock Options then to be
assumed, or new rights substituted therefore, by the surviving corporation in
such Change in Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to
what actions shall be taken and the extent thereof, shall be final.

 

11.           Agreement Provisions.  In addition to the terms and conditions set
forth herein, this Award is subject to and governed by the terms and conditions
set forth in the Agreement, which is incorporated herein by reference.  In the event of any conflict between the
provisions of this Award and the Agreement, the Agreement shall control.

 

12.           Notice.  Any written notice required or permitted by
this Award shall be mailed, certified mail (return receipt requested) or
hand-delivered, addressed to Company’s Senior Vice President – Administration
at Company’s North American headquarters at 1155 Perimeter Center West,
Atlanta, Georgia 30338, with a copy to Legal Department, Mirant Services, LLC,
1155 Perimeter Center West, Atlanta, GA 
30338, or to Executive at his most recent home address on record with
the Company.  Notices are effective upon
receipt.

 

13.           Miscellaneous.

 

(a)           Limitation of
Rights.  The granting of this Award
shall not give Executive any rights to similar grants in future years or any
right to be retained in the employ or service of the Company or its subsidiary
or interfere in any way with the right of the Company or any such subsidiary to
terminate Executive’s services at any time, or the right of Executive to
terminate his services at any time.

 

C-4

 

(b)           Severability.  If any term, provision, covenant or
restriction contained in this Award is held by a court or a federal regulatory
agency of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions contained in
this Award shall remain in full force and effect, and shall in no way be
affected, impaired or invalidated.

 

(c)           Controlling Law.  All issues and questions concerning the
construction, validity, enforcement and interpretation of this Award shall be
governed by, and construed in accordance with, the laws of the State of
Georgia.

 

(d)           Arbitration.  Any dispute or controversy arising under or
in connection with the Agreement or this Award or otherwise in connection with
the Executive’s employment by the Company that cannot be mutually resolved by
the parties to the Agreement or this Award and their respective advisors and
representatives shall be settled exclusively by arbitration in Atlanta, Georgia
in accordance with the rules of the American Arbitration Association
before one arbitrator of exemplary qualifications and stature, who shall be
selected jointly by an individual to be designated by the Company and an
individual to be selected by Executive, or if such two individuals cannot agree
on the selection of the arbitrator, who shall be selected by the American
Arbitration Association.  The Company
shall reimburse Executive’s reasonable legal fees if he prevails on a material
issue in an arbitration.

 

(e)           Construction.  This Award contains the entire understanding
between the parties and supersedes any prior understanding and agreements
between them representing the subject matter hereof, except that this Award
shall be subject to the terms and conditions set forth in the Agreement.  There are no other representations,
agreements, arrangements or understandings, oral or written, between and among
the parties hereto relating to the subject matter hereof which are not fully
expressed herein.

 

(f)            Headings.  Section and other headings contained in
this Award are for reference purposes only and are in no way intended to
describe, interpret, define or limit the scope, extent or intent of this Award
or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

C-5

 

Exhibit D

 

FORM OF RELEASE

 

This General Release of
all Claims (this “Agreement”) is entered into by Robert           .
Driscoll (“Executive”“) and Mirant Services, LLC and Mirant Corporation
(collectively, the “Company”), effective as of                              .

 

In further consideration
of the promises and mutual obligations set forth in the Employment Agreement
between Executive and the Company, dated                             
(the “Employment Agreement”), Executive and the Company agree as
follows:

 

2.             Return of Property.  All Company files, access keys, desk keys, ID
badges, computers, electronic devices, telephones and credit cards, and such
other property of the Company as the Company may reasonably request, in
Executive’s possession must be returned no later than the date of Executive’s
termination from the Company.

 

3.             General Release and Waiver of Claims.

 

(a)           Release.  In consideration of the payments and benefits
provided to Executive under the Employment Agreement and after consultation
with counsel, Executive, personally and on behalf of each of Executive’s
respective heirs, executors, administrators, representatives, agents,
successors and assigns (collectively, the “Releasors”) hereby
irrevocably and unconditionally releases and forever discharges the Company and
its subsidiaries and affiliates and each of their respective officers,
employees, directors, and agents (“Releasees”) from any and all claims,
actions, causes of action, rights, judgments, obligations, damages, demands,
accountings or liabilities of whatever kind or character (collectively, “Claims”),
including, without limitation, any Claims under any federal, state, local or
foreign law, that the Releasors had, have, may have, or in the future may
possess, arising out of (i) Executive’s employment relationship with and
service as an employee, officer or director of the Company, and the termination
of such relationship or service, and (ii) any event, condition,
circumstance or obligation that occurred, existed or arose on or prior to the
date hereof; provided, however, that Executive does not release,
discharge or waive any rights to payments and benefits provided under the
Employment Agreement that are contingent upon the execution by Executive of
this Agreement nor any rights to indemnification or as a shareholder of the
Company.

 

(b)           Specific
Release of ADEA Claims.  In further
consideration of the payments and benefits provided to Executive under the
Employment Agreement, the Releasors hereby unconditionally release and forever
discharge the Releasees from any and all Claims that the Releasors may have as
of the date Executive signs this Agreement arising under the Federal Age Discrimination
in Employment Act of 1967, as amended, and the applicable rules and
regulations promulgated thereunder (“ADEA”).  By signing this Agreement, Executive hereby
acknowledges and confirms the following: 
(i) Executive was advised by the Company in connection with his
termination to consult with an attorney of his choice prior to signing this
Agreement and to have such attorney explain to Executive the terms of this
Agreement, including, without limitation, the terms relating to Executive’s
release of claims arising  under

 

D-1

 

ADEA, and Executive has in fact consulted
with an attorney; (ii) Executive was given a period of not fewer than 21
days to consider the terms of this Agreement and to consult with an attorney of
his choosing with respect thereto; and (iii) Executive knowingly and
voluntarily accepts the terms of this Agreement.  Executive also understands that he has seven (7) days
following the date on which he signs this Agreement within which to revoke the
release contained in this paragraph, by providing the Company a written notice
of his revocation of the release and waiver contained in this paragraph.

 

(c)           No
Assignment.  Executive represents and
warrants that he has not assigned any of the Claims being released under this
Agreement.

 

4.             Proceedings. 
Executive has not filed, and agrees not to initiate or cause to be
initiated on his behalf, any complaint, charge, claim or proceeding against the
Releasees before any local, state or federal agency, court or other body
relating to his employment or the termination of his employment, other than
with respect to the obligations of the Company to Executive under the
Employment Agreement (each, individually, a “Proceeding”), and agrees
not to participate voluntarily in any Proceeding.  Executive waives any right he may have to
benefit in any manner from any relief (whether monetary or otherwise) arising
out of any Proceeding.

 

5.             Remedies. 
In the event Executive initiates or voluntarily participates in any
Proceeding, or if he fails to abide by any of the terms of this Agreement or
his post-termination obligations contained in the Employment Agreement, or if
he revokes the ADEA release contained in Paragraph 2(b) of this Agreement
within the seven-day period provided under Paragraph 2(b), the Company may, in
addition to any other remedies it may have, reclaim any amounts paid to him
under the severance provisions of the Employment Agreement or terminate any
benefits or payments that are subsequently due under the Employment Agreement,
without waiving the release granted herein. 
Executive acknowledges and agrees that the remedy at law available to
the Company for breach of any of his post-termination obligations under the
Employment Agreement or his obligations under Paragraphs 2 and 3 of this
Agreement would be inadequate and that damages flowing from such a breach may
not readily be susceptible to being measured in monetary terms.  Accordingly, Executive acknowledges, consents
and agrees that, in addition to any other rights or remedies that the Company
may have at law or in equity, the Company shall be entitled to seek a temporary
restraining order or a preliminary or permanent injunction, or both, without
bond or other security, restraining Executive from breaching his
post-termination obligations under the Employment Agreement or his obligations
under Paragraphs 2 and 3 of this Agreement. 
Such injunctive relief in any court shall be available to the Company,
in lieu of, or prior to or pending determination in, any arbitration
proceeding.

 

Executive understands
that by entering into this Agreement he will be limiting the availability of
certain remedies that he may have against the Company and limiting also his
ability to pursue certain claims against the Company.

 

D-2

 

6.             Severability Clause.  In the event any provision or part of this
Agreement is found to be invalid or unenforceable, only that particular
provision or part so found, and not the entire Agreement, will be inoperative.

 

7.             Non-admission. 
Nothing contained in this Agreement will be deemed or construed as an
admission of wrongdoing or liability on the part of the Company.

 

8.             Governing Law. 
All matters affecting this Agreement, including the validity thereof,
are to be governed by, and interpreted and construed in accordance with, the
laws of the State of Georgia applicable to contracts executed in and to be
performed in that State.

 

9.             Arbitration. 
Any dispute or controversy arising under or in connection with this
Agreement or otherwise in connection with Executive’s employment by the Company
that cannot be mutually resolved by the parties to this Agreement and their
respective advisors and representatives shall be settled exclusively by arbitration
in Atlanta, Georgia in accordance with the rules of the American
Arbitration Association before one arbitrator of exemplary qualifications and
stature, who shall be selected jointly by an individual to be designated by the
Company and an individual to be selected by Executive or, if such two
individuals cannot agree on the selection of the arbitrator, who shall be
selected by the American Arbitration Association.

 

10.           Notices.  All notices or communications hereunder shall
be in writing, addressed as follows:

 

To the Company:

 

Mirant Corporation

 

 

To Executive:

 

With a copy to:

 

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

EXECUTIVE ACKNOWLEDGES THAT HE
HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE
WILL.

 

D-3

 

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

 

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Driscoll

  

 

D-4

 

 

Exhibit E

 

CONFIDENTIALITY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Confidentiality Policy and this Confidentiality
Agreement, specifically:

 

1.             I agree that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Confidential
Information” means and includes items that the Company marks or treats as
confidential.  It also includes
information (other than Trade Secrets) that has any value to the Company, is
known to persons inside the Company for purposes of doing their jobs, and is
not generally made known to persons outside the Company.

 

d)                                     “Confidentiality
Policy” means the policies and procedures the Company uses to protect its
valuable information.  The
Confidentiality Policy may change periodically and all Mirant employees are
expected to comply with the current Confidentiality Policy at all times.

 

e)                                      “Employment”
means my present or future job with the Company.  Except during those times when my job may
have been subject to a valid employment agreement, Employment with the Company
is, has been, and after this Agreement continues to be “employment at will.”

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other than
the Company and its employees.

 

g)                                     “Trade
Secret(s)” means those things defined as trade secrets by law.  Trade Secrets include information about the
Company business that is valuable to the Company and gives the Company an
advantage in the market place.  This type
of information is not generally made known or available to people outside the

 

E-1

 

Company, and the Company protects it from
being disclosed.  Information that is a
Trade Secret may be found in such things as software (code and programs),
formulas, patterns, plans, charts, client lists (actual and possible), leads,
pricing information, confidential business arrangements, marketing plans, and
proposals.  Trade Secrets may be found in
other kinds of material as well.

 

2.                                       I
agree that during my Employment, I have been or may be given access to Trade
Secrets or Confidential Information belonging to the Company, its Affiliates,
or to Third Parties.  I agree that I will
only use this information for the benefit of the Company except as required by
applicable law or in any judicial or administrative process.  I understand and agree that I must not copy,
reveal, give or make known to anyone outside the Company any Trade Secret or
Confidential Information, without authorization by management and appropriate
safeguards.  I further understand and
agree that the Company is entitled to this protection:  (a) for Trade Secrets as long as it is a
Trade Secret under the law, and (b) for Confidential Information as long
as I am employed by the Company and for three (3) years after my Employment
ends.

 

3.                                       I
agree to not disclose any Confidential Information or Trade Secrets belonging
to Third Parties when:  (a) the
Company has agreed to protect such information, and (b) I am told or
determine that the Third Party’s information should be treated as
confidential.  I will keep the Third
Party’s information confidential in the manner required by the Company.

 

4.                                       I
agree that I will provide the Company all of its Confidential Information and
Trade Secrets I have or that are under my control (including any belonging to
any Affiliate or Third Party) at any time the Company requests it.

 

5.                                       I
agree to return the originals and all copies of the Confidential Information
whether in electronic, printed or any other form before the last day of my
Employment.

 

6.                                       I
agree that this Confidentiality Agreement (a) is governed by the law of
the State of Georgia; (b) is binding on my heirs and representatives; (c) may
be assigned by Mirant Corporation; (d) continues in effect after the end
of my Employment; and (e) cannot be amended or released except in a
document signed by me and the Company.

 

7.                                       I
agree that this Confidentiality Agreement is intended to replace any previous
agreement, or portions of any agreement that contains confidentiality
requirements, that conflicts with this one. 
I further agree that this Confidentiality Agreement is to be read to
give the Company the greatest protection possible without being contrary to
law.  If any court finds part of this
Confidentiality Agreement to be unenforceable, I

 

E-2

 

agree that part will be struck out and the remainder
of the Confidentiality Agreement will continue in effect.

 

In witness hereof, I have executed this
Confidentiality Agreement this                  
day of                          ,
2006.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
  Employee
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name & Title

  	
  Print
  Name

  

 

E-3

 

 

Exhibit F

 

INTELLECTUAL PROPERTY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation, and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Intellectual Property Policy and this Intellectual
Property Agreement (“Agreement”), specifically:

 

1.             I agree that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Employment”
means my present or future job with the Company.  Except during those times when my job may
have been subject to a valid employment agreement, Employment with the Company
is, has been, and after this Agreement continues to be “employment at will.”

 

d)                                     “Intellectual
Property” means any invention, discovery, creation, improvement or
design.  Such Intellectual Property
includes machines, processes, concepts, chemical compounds, computer programs,
authored material, trademarks, service marks, and improvements to any of these
items; Intellectual Property may also include other things not listed
here.  An individual’s work (and that of
those working together) will be considered the Company’s Intellectual Property
if it: (i) is related to any job the individual holds or has held with the
Company or its Affiliates, (ii) is created, worked on or implemented while
the individual is at work, or (iii) is created, worked on or implemented
using Company or Affiliate personnel, facilities, equipment knowledge,
information, resources or materials.

 

e)                                      “Intellectual
Property Policy” means the policies and procedures the Company uses to
protect its valuable Intellectual Property. 
The Intellectual Property Policy may change periodically and all Mirant
employees are expected to comply with the current Intellectual Property Policy
at all times.

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other
than the Company and its employees.

 

F-1

 

2.                                       I
agree that I will fully inform the Company about any material that might be
Intellectual Property at the earliest possible time.  I also agree that I will not disclose
innovations or potential Intellectual Property to Third Parties and will treat
it as covered by the Company’s Confidentiality Policy and my Confidentiality
Agreement with the Company.

 

3.                                       As
a part of this Agreement, I transfer to the Company all rights to Intellectual
Property which comes into existence during my Employment.  I agree that all Intellectual Property is a “work
for hire” (as defined in the United States Code) belonging exclusively to the
Company.  No Intellectual Property I
transfer will be considered “joint work” belonging to anyone other than the
Company.

 

4.                                       I
agree to sign any documents, and provide any assistance the Company may need to
protect the Intellectual Property, obtain registrations (including Patents,
Trademarks, Copyrights, etc.), and establish and maintain its title to the
Intellectual Property.  The Company will
pay expenses required to obtain these protections.

 

5.                                       I
understand that the Company may decide, for whatever reason, not to pursue
legal protection for Intellectual Property created by me.  The company may also choose to release its
interest in the Intellectual Property to me. 
If this happens, I agree to execute any documents necessary to give the
Company the perpetual right and license to use, maintain, modify, make
derivative works from, practice and market the Intellectual Property at no cost
to the Company.

 

6.                                       I
agree that I will provide the Company all of its Intellectual Property that I
have or that is under my control (including any belonging to any Affiliate or
Third Party) at any time the Company requests it.

 

7.                                       I
agree to return the originals and all copies of the Intellectual Property
information whether in electronic, printed or any other form before the last
day of my Employment.

 

8.                                       I
agree that this Agreement (a) is governed by the laws of the State of
Georgia; (b) is binding on my heirs and representatives; (c) may be
assigned by the Company; (d) continues in effect after the end of my
Employment; and (e) cannot be amended or released except in a document
signed by me and the Company.

 

9.                                       I
agree that this Agreement is intended to replace any previous agreement, or
portions of any agreement that contains intellectual property requirements,
that conflicts with this one.  I further
agree that this Agreement is be read to give the Company the greatest
protection possible without being contrary to law.  If any court finds part of this Agreement to
be unenforceable, I agree that part will be struck out and the remainder of the
Agreement will continue in effect.

 

F-2

 

In witness hereof, I have executed this
Confidentiality Agreement this               
day of                            ,
                                .

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
  Employee
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name & Title

  	
  Print
  Name

  

 

F-3

 

EXHIBIT G

 

FORM OF RELEASE BY
THE COMPANY

 

This Release of Claims
(this “Agreement”) is entered into by Robert E. Driscoll (“Executive”)
and Mirant Services, LLC and Mirant Corporation (collectively, the “Company”),
effective as of [DATE].

 

In consideration of the
promises and mutual obligations set forth in the Employment Agreement between
Executive and the Company, dated                                
(the “Employment Agreement”) and other good and valuable consideration,
Executive and the Company agree as follows:

 

1.             General Release and Waiver of Claims.

 

(a)           Release.  The Company and its subsidiaries and
affiliates (“Company Releasors”) hereby irrevocably and unconditionally
release and forever discharge Executive personally and each of Executive’s
heirs, executors, administrators, representatives, agents, successors and
assigns (collectively, the “Executive Releasees”) from any and all
claims, actions, causes of action, rights, judgments, obligations, damages,
demands, accountings or liabilities of whatever kind or character
(collectively, “Claims”), including, without limitation, any Claims
under any federal, state, local or foreign law, that the Company Releasors had,
have, may have, or in the future may possess, arising out of Executive’s
employment relationship with and service as an employee, officer or director of
the Company, and the termination of such relationship or service; provided,
however, that the Company Releasors do not release, discharge or waive
any Claims arising out of or resulting from Executive’s fraud, gross-negligence
or other violation of law.

 

(b)           No
Assignment.  The Company represents
and warrants that it has not assigned any of the Claims being released under
this Agreement.

 

2.             Proceedings.  The Company has not filed, and agrees not to
initiate or cause to be initiated on its behalf, any complaint, charge, claim
or proceeding against the Executive Releasees before any local, state or
federal agency, court or other body based on the Claims released under this
Agreement (a “Proceeding”) and agrees not to participate voluntarily in
any Proceeding.

 

3.             Remedies.  The Company acknowledges and agrees that the
remedy at law available to the Executive for breach of any of the Company’s
obligations under Paragraphs 1 and 2 of this Agreement would be inadequate
and that damages flowing from such a breach may not readily be susceptible to
being measured in monetary terms. 
Accordingly, the Company acknowledges, consents and agrees that, in
addition to any other rights or remedies that Executive may have at law or in
equity, Executive shall be entitled to seek a temporary restraining order or a
preliminary or permanent injunction, or both, without bond or other security,
restraining the Company from breaching its obligations under Paragraphs 1
and 2 of

 

G-1

 

this Agreement.  Such injunctive relief in any court shall be
available to Executive, in lieu of, or prior to or pending determination in,
any arbitration proceeding.

 

The Company understands
that by entering into this Agreement it will be limiting the availability of
certain remedies that it may have against Executive and limiting also its
ability to pursue certain claims against Executive.

 

4.             Severability Clause.  In the event any provision or part of this
Agreement is found to be invalid or unenforceable, only that particular
provision or part so found, and not the entire Agreement, will be inoperative.

 

5.             Non-admission. 
Nothing contained in this Agreement will be deemed or construed as an
admission of wrongdoing or liability on the part of Executive.

 

6.             Governing Law. 
All matters affecting this Agreement, including the validity thereof,
are to be governed by, and interpreted and construed in accordance with, the
laws of the State of Georgia applicable to contracts executed in and to be
performed in that State.

 

7.             Arbitration. 
Any dispute or controversy arising under or in connection with this
Agreement or otherwise in connection with Executive’s employment by the Company
that cannot be mutually resolved by the parties to this Agreement and their
respective advisors and representatives shall be settled exclusively by
arbitration in Atlanta, Georgia in accordance with the rules of the
American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive or,
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association.

 

8.             Notices. 
All notices or communications hereunder shall be in writing, addressed
as follows:

 

To the Company:

 

Mirant Corporation

 

 

To Executive:

 

G-2

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

THE COMPANY ACKNOWLEDGES THAT IT
HAS READ THIS AGREEMENT AND THAT IT FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT IT HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF ITS OWN FREE
WILL.

 

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

 

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Driscoll

  

 

G-3Exhibit 10.10

 

EMPLOYMENT AGREEMENT

 

Between

Mirant Corporation

and

Robert E. Driscoll

 

THIS AGREEMENT is made as
of                 
     , 2006 between Mirant Corporation (the “Company”),
Mirant Services, LLC (“Services”) and Robert E. Driscoll (“Executive”).

 

In consideration of the
mutual covenants contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

1. Employment.
The Company and Services shall employ Executive, and Executive hereby accepts
employment with the Company and Services, upon the terms and conditions set
forth in this Agreement, for the
period beginning on January 3, 2006 (the “Commencement Date”) and
ending as provided in Section 4 hereof (the “Employment Period”).

 

2. Position
and Duties.

 

(a)                                  During
the Employment Period, Executive shall serve as Mirant’s Senior Vice President
and Head of Asset Management – US Region. During the Employment Period,
Executive shall render such administrative, financial and other executive and
managerial services to the Company and its affiliates (the “Company Group”)
as are consistent with Executive’s position and the by-laws of the Company and as the Chief Executive Officer (“CEO”)
and Executive Vice President and US Region Head may from time to time reasonably direct. Executive shall
also serve for no additional compensation or remuneration as an officer or
director of such subsidiaries of the Company as may from time to time be
designated by the Board.

 

(b)                                 During
the Employment Period, Executive shall report to the Executive Vice President
and US Region Head and shall devote his best efforts and his full business time
and attention (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the business and affairs of the Company. Executive
shall perform his duties, responsibilities and functions to the Company
hereunder to the best of his abilities in a diligent, trustworthy, professional
and efficient manner and shall comply with the Company’s policies and
procedures in all material respects. In performing his duties and exercising
his authority under this Agreement, Executive shall support and implement the
business and strategic plans approved from time to time by the Board and shall
support and cooperate with the Company’s efforts to operate profitably and in
conformity with the business and strategic plans approved by the Board. During
the Employment Period, Executive shall not serve as an officer or director of, or
otherwise perform services for compensation for, any other entity without
the prior written

 

 

consent of the Board which
shall not be unreasonably withheld; provided, however,
that the Board hereby consents to Executive’s service on and after the Commencement
Date as a director of each of the corporations listed on Exhibit A. Executive
may serve as an officer or director of or otherwise participate in purely
educational, welfare, social, religious and civic organizations so long as such
activities do not materially
interfere with Executive’s regular performance of duties and responsibilities
hereunder. Nothing contained herein shall preclude Executive from (i) engaging
in charitable and community activities, (ii) participating in industry and
trade organization activities, (iii) managing his and his family’s
personal investments and affairs, and (iv) delivering lectures, fulfilling
speaking engagements or teaching at educational institutions, provided that
such activities do not materially interfere with the regular
performance of his duties and responsibilities under this Agreement.

 

3. Compensation
and Benefits.

 

(a)                                  The Company shall pay Executive
an annual salary (the “Base Salary”) at the rate of $280,000.00 in
regular installments in accordance with the Company’s ordinary payroll
practices (in effect from time to time), but in any event no less frequently
than monthly.

 

(a)                                  Bonuses and Incentive
Compensation.

 

(i)                                     Annual
Bonus. For each fiscal year during the Employment Period, Executive will be
eligible to earn an annual bonus based on achievement of performance criteria
that are applicable to members of the Company’s Executive Committee established
by the Board as soon as administratively practicable following the beginning of
each such fiscal year (the “Annual Bonus”). The target amount (the “Target Bonus”) of Executive’s Annual Bonus shall
equal 50% of Executive’s Base Salary (at the annual rate in effect at the start
of the fiscal year), with a maximum Annual Bonus in an amount equal to 100% of
Executive’s Base Salary (at the annual rate in effect at the start of the
fiscal year). The Company shall pay the Annual Bonus for each fiscal year in a
single cash lump sum after the end of the Company’s fiscal year in accordance
with procedures established by the Board, but in no event later than two and a
half months following the end of such fiscal year.

 

(ii)                                  Emergence
Equity Grant. The Company shall grant Executive a combination of restricted
stock units (“Restricted Stock Units”)
that are to be settled in common
stock of the Company (“Common Stock”) and options to purchase Common
Stock (“Stock Options”) with an aggregate economic value of $800,000 (such
grant of Restricted Stock Units and Stock Options are together
referred to as the “Executive LTIP”). The $800,000 aggregate economic
value of the Restricted Stock Units and Stock Options to be awarded
under the Executive LTIP shall be determined in the good faith judgment of the
Compensation Committee of the Board taking into account the requirements set forth
in (A) and (B) below.

 

(A)                              Ten
days following the Company’s emergence from bankruptcy protection (the “Emergence
Date”) under Chapter 11 of Title 11 of the United States Code, Executive
shall be awarded Restricted Stock Units and Stock Options with an aggregate
value of

 

2

 

$400,000,
with one-third of such value to consist of Restricted Stock Units.
The exact number of Restricted Stock Units to be awarded ten days following
the Emergence Date shall be determined solely based on the average of the daily
closing price of a share of Common Stock on The New York Stock Exchange or, if
the Common Stock is not traded on The New York Stock Exchange, the average of
the midpoint of the daily bid and ask price of a share of Common Stock on the
OTC Bulletin Board, from the Emergence Date to the date of grant of such
Restricted Stock Units, without any discount based on
vesting requirements or lack of transferability. The Stock Options granted ten
days following the Emergence Date shall have an exercise price per share equal
to the closing price of a share of Common Stock on The New York Stock Exchange
or, if the Common Stock is not traded on The New York Stock Exchange, the
midpoint of the bid and ask price of a share of Common Stock on the OTC
Bulletin Board, on the date of grant of such Stock Options. Such Stock Options
shall have a ten-year term. The exact number of Stock Options granted ten days
following the Emergence Date shall be determined based upon a Black-Scholes or
other valuation model, using reasonable assumptions as determined in good faith
by the Compensation Committee of the Board.

 

(B)                                Forty
five days after the Emergence Date, Executive shall be awarded Restricted Stock
Units and Stock Options with an aggregate value of $400,000, with
one-third of such value to consist of Restricted Stock Units.
The exact number of Restricted Stock Units to be awarded 45 days after the
Emergence Date shall be determined solely based on the average of the daily
closing price of a share of Common Stock on The New York Stock Exchange or, if
the Common Stock is not traded on The New York Stock Exchange, the average of
the midpoint of the daily bid and ask price of a share of Common Stock on the
OTC Bulletin Board, from the Emergence Date to the date of grant of such
Restricted Stock Units, without any discount based on
vesting requirements or lack of transferability. The Stock Options granted 45
days after the Emergence Date shall have an exercise price equal to the closing
price of a share of Common Stock on The New York Stock Exchange or, if the
Common Stock is not traded on The New York Stock Exchange, the midpoint of the
bid and ask price of a share of Common Stock on the OTC Bulletin Board, on the
date of grant of such Stock Options. Such Stock Options shall have a ten-year
term. The exact number of Stock Options granted 45 days after the Emergence
Date shall be determined based upon a Black-Scholes or other valuation model,
using reasonable assumptions as determined in good faith by the Compensation
Committee of the Board.

 

3

 

The
terms and conditions of the Executive LTIP shall be governed by and subject to
the award agreements to be entered into between Executive and the Company,
substantially in the forms of Exhibits B and C respectively (the “LTIP
Award Agreements”). The
Restricted Stock Units and Options granted pursuant to the Executive LTIP
shall, subject to the treatment of the Executive LTIP upon termination of Executive’s
employment as provided in the LTIP Award Agreement, vest over a period of three
years, with 25% to vest six months after the Emergence Date, 25% to vest one
year after the Emergence Date, 25% to vest two years after the Emergence Date
and 25% to vest three years after the Emergence Date.

 

(iii)                               Annual Equity Grant. Beginning with fiscal year
2007 and for each fiscal year thereafter during the Employment Period,
Executive shall be eligible to receive additional equity-based compensation
under the long term incentive plan of the Company in effect at the time of such
award, the amount, terms and conditions of such award to be set by the Board at
the time of grant. Such awards shall otherwise be governed by the terms and
conditions set forth in the long term incentive plan of the Company as may be
in effect at the time of such award and the corresponding award agreement and
shall be made at such time as grants are made to other senior executives of the
Company.

 

(b)                                 During
the Employment Period, the Company shall reimburse Executive for all reasonable
business expenses incurred by him in the course of performing his duties and
responsibilities under this Agreement in accordance with the Company’s policies
in effect from time to time with respect to travel, entertainment and other
business expenses for senior executives.

 

(c)                                  Executive shall also be entitled
to the following benefits during the Employment Period, unless otherwise
modified by the Board:

 

(i)                                     participation
in the Company’s retirement plans, health and welfare plans, disability
insurance plans and other benefit plans of the Company as in effect from time
to time, under the terms of such plans and to the same extent and under the
same conditions such participation and coverages are provided generally to
other senior executives of the
Company;

 

(ii)                                  reimbursement
for the reasonable cost of temporary living accommodations for Executive and
his spouse in Atlanta, Georgia for up
to six months and
relocation expenses reimbursed in accordance with the Company’s then existing
Relocation Policy for senior executives;

 

(iii)                               coverage for services rendered to the Company, its
subsidiaries and affiliates while Executive is a director or officer of
the Company, or of any of its subsidiaries or affiliates,
under any director and officer liability insurance policy(ies) maintained by the Company from
time to time; and

 

(iv)                              four weeks of vacation per year.

 

4. Termination.
The Employment Period shall end on the third anniversary of the Commencement
Date; provided, however, that the Employment Period shall be automatically

 

4

 

renewed for successive one-year terms thereafter on the same terms and
conditions set forth herein unless either party provides the other party with
notice that it has elected not to renew the Employment Period at least 90 days
prior to the end of the initial Employment Period or any subsequent extension
thereof. Notwithstanding the foregoing, (i) the Employment Period shall
terminate immediately upon Executive’s resignation (with or without Good
Reason, as defined herein), death or Disability (as defined herein) and (ii) the
Employment Period may be terminated by the Company at any time prior to
such date for Cause (as defined herein) or without Cause. Except as otherwise
provided herein, any termination of the Employment Period by the Company shall
be effective as specified in a written notice from the Company to Executive,
but in no event more than 90 days
from the date of such notice. The termination of the Employment Period shall
not affect the respective rights and obligations of the parties which, pursuant
to the terms of this Agreement, apply following the date of Executive’s
termination of employment with the Company.

 

5. Severance.

 

(a)                                  Termination
Without Cause, Non-Renewal or for Good Reason. In the event of Executive’s
termination of employment with the Company (1) by the Company without
Cause (as defined herein), (2) by reason of the failure of the
Company to offer to renew the Agreement on terms that are based on competitive
practices for companies of comparable size and standing in the same industry,
or (3) by Executive for Good Reason (as defined herein), subject to
execution of a Release substantially in the form attached as Exhibit D,
Executive shall be entitled to the benefits set forth below in this Section 5(a).

 

(i)                                     The
Company shall pay Executive an amount equal to 1.0 times Executive’s Base
Salary plus 1.0 times Executive’s Target Bonus (as in effect on the date of
Executive’s termination). The severance amount described in the previous
sentence shall be paid over a period of two years from the date of termination
in accordance with the payroll practices of the Company (in effect from time to
time); provided, however, that, in the event that Executive is
considered a “Specified Employee” as defined in Section 409A of the
Internal Revenue Code of 1986, as amended (the “JOBS Act”), and payments under this Section 5(a) are considered “deferred compensation” under
the JOBS Act, the first payment shall be delayed for six months, in
which event Executive shall receive a lump sum payment equal to one times his Base Salary six months after the
date his employment terminates (plus interest on such payment of one times Base
Salary at a floating rate equal to LIBOR, from the date of termination of
Executive’s employment to the date that is six months after termination of
Executive’s employment), and the remainder of such severance amount shall be
paid in equal installments over a period of 18 months thereafter in
accordance with the ordinary payroll practices of the Company (in effect from
time to time).

 

(ii)                                  The Executive LTIP shall be
governed by the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay
Executive the amounts described in Section 5(d) within 14 days of the date of termination.

 

5

 

(iv)                              During the period of 12 months following
Executive’s termination of employment in accordance with Section 5(a), the
Company shall provide to Executive continued coverage under the retirement,
life insurance, long-term disability, medical, dental and other group health
benefits and plans in effect for senior executives of the Company, as in effect
on the date of Executive’s termination of employment (or substantially
comparable coverage) for Executive and, where applicable, Executive’s spouse,
dependents and beneficiaries, at the same contribution or premium rate as may be
charged from time to time to senior executives of the Company generally, as if
Executive had continued in employment during such period. As an alternative,
the Company may elect to pay Executive cash in lieu of such contributions
or coverage in an amount equal to Executive’s after-tax cost of receiving such
contributions or continuing such coverage, where such contributions or coverage
may not be continued (or where such continuation would adversely affect
the tax status of the plan pursuant to which the contribution or coverage is
provided). The COBRA health care continuation coverage period under Section 4980B
of the Internal Revenue Code of 1986, as amended, (the “Code”), or any
replacement or successor provision of United States tax law, shall commence
immediately after the 12 month period.

 

(v)                                 The Company shall provide a release
substantially in the form attached hereto as Exhibit G. If the
Company does not provide the release required pursuant to this subsection (v),
the Release by the Executive shall be null, void and without effect, and
Executive shall still receive all of the payments and benefits described in
subsections (i) through (iv) above.

 

(b)                                 Termination for Cause or
Voluntary Resignation.
In the event that Executive’s employment with the Company is terminated (i) by
the Board for Cause or (ii) by Executive’s resignation from the Company
for any reason other than Good Reason or Disability (as defined herein),
subject to applicable law, the Company agrees to the following:

 

(i)                                     The Executive LTIP shall be
governed by the terms of the applicable LTIP Award Agreements.

 

(ii)                                  The
Company shall pay Executive the amounts described in Section 5(d) within 14 days of the date of termination.

 

For purposes of this
Agreement, Executive’s retirement shall be considered Executive’s resignation
from the Company without Good Reason.

 

(c)                                  Death or Disability. In the event that Executive’s
employment with the Company is terminated as a result of Executive’s death or
Disability, the Company agrees to the following:

 

(i)                                     The
Company shall pay Executive (or his estate or legal representative, if
applicable) in a lump sum payment an amount equal to his target Annual Bonus
for the year of termination prorated for the number of days during such year
that Executive was employed by the Company; provided, however,
that, in the event that Executive is considered a “Specified Employee” as
defined in the JOBS Act and

 

6

 

payments
under this Section 5(c) are
considered “deferred compensation” under the JOBS Act, such payment shall be delayed for six months,
and Executive shall receive interest on such payment at a floating rate equal
to LIBOR, from the date of termination of Executive’s employment to the date
that is six months after termination of Executive’s employment.

 

(ii)                                  The Executive LTIP shall be
governed by the terms of the applicable LTIP Award Agreements.

 

(iii)                               The Company shall pay
Executive the amounts described in Section 5(d) within 14 days of the date of termination.

 

(d)                                 In
the case of any termination of Executive’s employment with the Company,
Executive or his estate or legal representative shall be entitled to receive,
to the extent permitted by applicable law, from the Company (i) Executive’s
Base Salary through the date of termination to the extent not previously paid, (ii) to
the extent not previously paid, the amount of any bonus, incentive
compensation, and other compensation earned or accrued by Executive as of the
date of termination under any compensation and benefit plans, programs or
arrangements maintained in force by the Company (for this purpose, Executive’s
Annual Bonus, if any, for any fiscal year of the Company ended prior to the year of termination that is then
unpaid, and in the case of a termination under Section 5(a) or (c) a
pro-rata portion of the Target
Bonus for the fiscal year in which the date of termination occurs based on the
number of days in that fiscal year during which Executive was employed, shall
be deemed to be earned), (iii) any vacation pay, expense
reimbursements and other cash entitlements accrued by Executive, in accordance
with Company policy for senior executives, as of the date
of termination to the extent not previously paid, (iv) any Restricted
Stock Units, Stock Options and other equity awards outstanding under any
Company long term incentive plans or arrangements (other than the Executive
LTIP), in accordance with the terms of the plans or arrangements under which
such awards were created or maintained, and (v) all benefits accrued by
Executive under all benefit plans and qualified and nonqualified retirement,
pension, 401(k) and similar plans and arrangements of the Company, in such
manner and at such times as are provided under the terms of such plans and
arrangements.

 

(e)                                  Termination
Without Cause, Non-Renewal or for Good Reason
Following a Change of Control. In the event of Executive’s termination of
employment with the Company (1) by the Company without Cause, (2) as
a result of the failure of the Company to offer to renew the Agreement on terms
that are consistent with competitive practices for companies of comparable size
and standing in the same industry, or (3) by Executive for Good
Reason, in any case, during the period
beginning six months before and ending two
years following a Change of Control (as defined herein) of the Company, subject
to execution of a Release substantially in the form attached as Exhibit D,
Executive shall be entitled to the benefits set forth below in this Section 5(e).

 

(i)                                     The
Company shall pay Executive the payments set forth in Section 5(a)(i), except the applicable multiplier shall be 3; provided,
however, that in determining the amount of payment due under Section 5(a)(i),
Executive’s actual Annual Bonus for the year preceding the Change of Control
shall be used, if higher than his Target Bonus; and provided, further,
that payment shall be made in a lump sum on the

 

7

 

later of the date of the Change of Control or
10 business days after Executive’s termination of employment; provided,
however, that, in the event Executive is considered a “Specified
Employee” as defined in the JOBS Act, and payments under this Section 5(e) are
considered “deferred compensation” under the JOBS Act, the payment shall be
delayed for six months from the date of Executive’s termination of employment
and Executive shall receive interest at a floating rate equal to LIBOR from the
date of termination of Executive’s employment to the date that is six months
after termination of Executive’s employment.

 

(ii)                                  The Company shall provide the
benefits set forth in Section 5(a)(iv) except the applicable period
shall be 24 months.

 

(iii)                               The Executive LTIP shall fully
vest, to the extent not already vested, and otherwise be governed by the terms
of the applicable LTIP Award Agreements.

 

(iv)                              The Company shall pay Executive
the amounts described in Section 5(d).

 

(v)                                 The Company shall provide a release
substantially in the form attached hereto as Exhibit G. If the
Company does not provide the release required pursuant to this subsection (v),
the Release by the Executive shall be null, void and without effect, and
Executive shall still receive all of the payments and benefits described in
subsections (i) through (iv) above.

 

(f)                                    Excess Parachute Payments.

 

(i)                                     In the event any payment granted
to Executive pursuant to the terms of this Agreement or otherwise (a “Payment”)
is determined to be subject to any excise tax (“Excise Tax”) imposed by Section 4999
of the Code (or any successor to such Section), the Company shall pay to
Executive, prior to the time any Excise Tax is payable with respect to such
Payment (through withholding or otherwise), an additional amount (a “Gross-Up
Payment”) which, after the imposition of all income, employment, excise and
other taxes, penalties and interest thereon, is equal to the sum of (A) the
Excise Tax on such Payment plus (B) any penalty and interest assessments
associated with such Excise Tax; provided, however, that the amount of the
Gross Up Payment shall not exceed $2 million.

 

(ii)                                  The determinations to be made
with respect to this Section 5(f) shall be made by a certified public
accounting firm designated by the Company and reasonably acceptable to
Executive and Executive may rely on such determination in making payments
to the Internal Revenue Service.

 

(g)                                 No Other Payments. Except as provided in
Sections 5(a), (b), (c), (d), (e) and (f) above, all of
Executive’s rights to salary, bonuses, employee benefits and other compensation
hereunder which would have accrued or become payable after the termination or
expiration of the Employment Period shall cease upon such termination or
expiration, other than those expressly required under applicable law (such as
COBRA).

 

8

 

(h)                                 No Mitigation, No Offset. In the event of Executive’s
termination of employment for whatever reason, Executive shall be under no
obligation to seek other employment, and there shall be no offset against
amounts due him under this Agreement or otherwise on account of any
remuneration attributable to any subsequent employment or claims asserted by
the Company or any affiliate, provided that this provision shall not apply with
respect to any amounts that Executive owes to the Company or any member of the
Company Group on account of any loan, advance or other payment, in respect of
any of which Executive is obligated to make repayment to the Company or any
member of the Company Group.

 

(i)                                     Definitions. For purposes of this
Agreement, the following terms shall have the following meanings:

 

“Cause”
shall mean one or more of the following:

 

(A)                              the
conviction of, or an agreement to a plea of nolo contendere
to, a crime involving moral turpitude or any felony;

 

(B)                                Executive’s
willful refusal substantially to perform duties as reasonably directed by
the CEO under this or any other agreement;

 

(C)                                in
carrying out his duties, Executive engages in conduct that constitutes fraud,
willful neglect or willful misconduct which, in either case, would result in
demonstrable harm to the business, operations, prospects or reputation of the
Company;

 

(D)                               a
material violation of the requirements of the Sarbanes-Oxley
Act of 2002 (“SOX”) or other federal or state securities law, rule or
regulation; or

 

(E)                                 any
other material breach of this Agreement.

 

For
purpose of this Agreement, the Company is not entitled to assert that Executive’s
termination is for Cause unless the Company gives Executive written notice
describing the facts which are the basis for such termination and such grounds
for termination (if susceptible to correction) are not corrected by Executive
within 30 days of Executive’s
receipt of such notice to the reasonable, good faith satisfaction of the CEO.

 

“Change
of Control” shall mean the first to occur of any of the following events:

 

(A)                              any
“person” (as that term is used in Sections 13 and 14(d)(2) of the
Securities Exchange Act of 1934 (“Exchange Act”)) becomes the beneficial
owner (as that term is used in Section 13(d) of the Exchange Act),
directly or indirectly, of fifty
percent (50%) or more of the Company’s capital stock entitled to vote in the
election of directors;

 

9

 

(B)                                persons
who on the day following the Emergence Date constitute the Board (the “Emergence
Directors”) cease for any reason, including, without limitation, as a
result of a tender offer, proxy contest, merger or similar transaction, to
constitute at least a majority thereof, provided, however, that any person who
becomes a director of the Company subsequent to the Emergence Date shall be
considered an Emergence Director if such person’s election or nomination for
election was approved by a vote of at least two-thirds (2/3) of the Emergence
Directors; but provided  further that any such person whose
initial assumption of office is in connection with an actual or threatened
election contest relating to the election of members of the Board or other
actual or threatened solicitation of proxies or consents by or on behalf of a
person other than the Board, including by reason of agreement intended to avoid
or settle any such actual or threatened contest or solicitation, shall not be
considered an Emergence Director;

 

(C)                                consummation
of a reorganization, merger, consolidation, sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”),
in each case, unless, following such Business Combination, all or substantially
all of the individuals and entities who were the beneficial owners of
outstanding voting securities of the Company immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the
company resulting from such Business Combination (including, without
limitation, a company which, as a result of such transaction, owns the Company
or all or substantially all of the Company’s assets either directly or through
one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the outstanding
voting securities of the Company; and

 

(D)                               the
shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company.

 

Notwithstanding the
foregoing, in no event shall the confirmation of the plan of reorganization
confirmed under 11 U.S.C. § 1129 (the “Plan of Reorganization”),
the implementation of the transactions contemplated by the Plan of
Reorganization on or after the Emergence Date or the effectuation of the
corporate governance provisions set forth therein, including the implementation
of the Board of Directors as specified therein, be considered a Change of
Control.

 

“Disability”
shall mean Executive’s (i) being unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental

 

10

 

impairment which can be
expected to result in death or can be expected to last for a continuous period
of not less than 12 months or (ii) by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can
be expected to last for a continuous period of not less than 12 months,
receiving income replacement benefits for a period of not less than three
months under an accident and health plan covering employees of the Company.

 

“Good
Reason” shall mean Executive’s resignation from employment with the Company
prior to the end of the Employment Period as a result of one or more of the
following reasons:

 

(A)                              the
Company reduces the amount of Executive’s then current Base Salary or the
target for his Annual Bonus (it being understood that Executive shall not have
a basis to resign for Good Reason if no bonus is paid, or the amount of the
bonus is reduced as a result of the failure of Executive or the Company to
achieve applicable performance targets for such bonus);

 

(B)                                a
material diminution in Executive’s title, authority, duties or responsibilities
or the assignment of duties to Executive which are materially inconsistent with
his position; provided, however, that, following a Change of
Control, any diminution of Executive’s title, duties or responsibilities shall
constitute Good Reason;

 

(C)                                the
failure of the Company to obtain in writing the obligation to perform this
Agreement by any successor to the Company or a purchaser of all or
substantially all of the assets of the Company within 15 days after a merger,
consolidation, sale or similar transaction;

 

(D)                               the
failure of the Company to grant Executive the Executive LTIP within 60 days
after the Effective Date; or

 

(E)                                 following a Change in Control, the
requirement that Executive move his principal place of business by more than 50
miles from that previously the case without his consent.

 

Notwithstanding
the foregoing, Executive agrees that he shall not be entitled to terminate his
employment for Good Reason in the event he is subject to any unintended or
adverse tax consequences under the JOBS Act, the Company amends this Agreement
or the terms of any employee benefit plan, program arrangement or agreement to
avoid such adverse tax consequences or he is required to forfeit incentive or
other compensation pursuant to Section 304 of SOX. For purposes of this
Agreement, Executive is not entitled to assert that his termination is for Good
Reason unless Executive gives the CEO written notice describing the event or
events which are the basis for such termination within ninety (90) days after
the event or events occur and such grounds for termination (if susceptible to
correction) are not corrected by

 

11

 

the Company within 30 days of the Company’s receipt of
such notice to the reasonable, good faith satisfaction of Executive.

 

6. Indemnification.

 

(a)                                  The
Company agrees that (i) if Executive is made a party, or is threatened to
be made a party, to any threatened or actual action, suit or proceeding,
whether civil, criminal, administrative, investigative, appellate or other
(each, a “Proceeding”) by reason of the fact that he is or was a
director, officer, employee, agent, manager, or representative of the Company
or is or was serving at the request of the Company as a director, officer,
member, employee, agent, manager, or representative of any member of the
Company Group or (ii) if any claim, demand, request, investigation,
dispute, controversy, threat, discovery request or request for testimony or
information (each, a “Claim”) is made, or threatened to be made, that
arises out of or relates to Executive’s service in any of the foregoing
capacities, then Executive shall be indemnified and held harmless by the
Company to the fullest extent legally permitted or authorized by the Company’s
certificate of incorporation, by-laws, Board resolutions or, if greater, by
applicable law, against any and
all costs, expenses, liabilities and losses (including, without limitation,
attorney’s fees, judgments, interest, expenses of investigation, penalties,
fines, ERISA excise taxes or penalties and amounts paid or to be paid in
settlement) incurred or suffered by Executive in connection therewith, and such
indemnification shall continue as to Executive even if he has ceased to be a
director, member, employee, agent, manager, or representative of the Company or
any member of the Company Group and shall inure to the benefit of Executive’s
heirs, executors and administrators. To the extent permitted by applicable law,
the Company shall advance to Executive all costs and expenses incurred by him
in connection with any such Proceeding or Claim within 15 days after
receiving written notice requesting such an advance. Such notice shall include,
to the extent required by applicable law, an undertaking by Executive to repay
the amount advanced if he is ultimately determined not to be entitled to
indemnification against such costs and expenses.

 

(b)                                 Neither the failure of the
Company (including the Board, independent legal counsel or stockholders) to
have made a determination in connection with any request for indemnification or
advancement under Section 6(a) that Executive has satisfied any
applicable standard of conduct nor a determination by the Company (including
the Board, independent legal counsel or stockholders) that Executive has not
met any applicable standard of conduct shall create a presumption that
Executive has or has not met an applicable standard of conduct.

 

(c)                                  The Company agrees to use
reasonable commercial efforts to maintain director’s and officer’s liability
insurance covering the Executive for services rendered to the Company, its
subsidiaries and affiliates while Executive is a director or officer of the
Company or any of its subsidiaries or affiliates.

 

7. Confidential
Information. Executive agrees to enter into the Confidentiality Agreement
attached as Exhibit E simultaneously with the execution of this Agreement.

 

8. Intellectual
Property, Inventions and Patents. Executive agrees to enter into the
Intellectual Property Agreement attached as Exhibit F simultaneously
with the execution of this Agreement.

 

12

 

9. Non-Compete, Non-Solicitation.

 

(a)                                  In further consideration of the
compensation to be paid to Executive hereunder, Executive acknowledges that
during the course of his employment with the Company, he shall become familiar
with the Company Group’s trade secrets and with other confidential information
concerning the Company Group and that his services shall be of special, unique
and extraordinary value to the Company Group, and, therefore, Executive agrees
that, during the Employment Period and for one (1) year thereafter (the “Noncompete
Period”), he shall not directly or indirectly own any interest in, manage,
control, be employed in an executive, managerial or administrative capacity by,
or otherwise render executive, managerial or administrative services to, any
company engaged in the business of owning and operating power generation
facilities or energy trading and marketing operations which competes with the
businesses of the Company on the date of the termination or expiration of the
Employment Period, within any geographical area in which the Company engages in
such businesses. Nothing herein shall prohibit Executive from being a passive
owner of not more than 2% of the outstanding stock of any class of a
corporation which is publicly traded, so long as Executive has no active
participation in the business of such corporation.

 

(b)                                 During
the Noncompete Period, Executive shall not directly or indirectly through
another person or entity (i) induce or attempt to induce any employee of
the Company to leave the employ of the Company, or in any way interfere with
the relationship between the Company and any employee thereof; (ii) hire
any person who was a managerial or
higher level employee of
the Company during the last six months of the Employment Period; or (iii) induce
or attempt to induce any customer, supplier, licensee, licensor, franchisee or
other business relation of the Company to cease doing business with the
Company, or in any way interfere with the relationship between any such
customer, supplier, licensee or business relation of the Company (including,
without limitation, making any negative or disparaging statements or
communications regarding the Company. The
Company covenants that it will not, and it will advise members of senior
management of the Company and the Board not to, make any negative or
disparaging statements or communications regarding Executive.

 

(c)                                  If, at the time of enforcement
of this Section 9, a court shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing,
the parties agree that the maximum duration, scope or area reasonable under
such circumstances shall be substituted for the stated duration, scope or area
and that the court shall be allowed to revise the restrictions contained herein
to cover the maximum period, scope and area permitted by law. Executive
acknowledges that the restrictions contained in this Section 9 are
reasonable and that he has reviewed the provisions of this Agreement with his
legal counsel.

 

(d)                                 Executive acknowledges that in
the event of the breach or a threatened breach by Executive of any of the
provisions of this Section 9, the Company would suffer irreparable harm,
and, in addition and supplementary to other rights and remedies existing in its
favor, the Company shall be entitled to specific performance and/or injunctive
or other equitable relief from a court of competent jurisdiction in order to
enforce or prevent any violations of the provisions hereof (without posting a
bond or other security). In addition, in the event of a breach or violation by
Executive of Section 9(a), the Noncompete Period shall be automatically

 

13

 

extended by the amount of time between the
initial occurrence of the breach or violation and when such breach or violation
has been duly cured.

 

10. Executive’s
Representations. Executive hereby represents and warrants to the Company
that (i) the execution, delivery and performance of this Agreement by
Executive do not and shall not conflict with, breach, violate or cause a
default under, any contract, agreement, instrument, order, judgment or decree
to which Executive is a party or by which he is bound which has not been
waived; (ii) Executive is not a party to or bound by any employment
agreement, noncompete agreement or confidentiality agreement with any other
person or entity which has not been waived; (iii) Executive has consulted
with the Executive Vice President and General Counsel and does not have any
financial involvement with or financial interest in any of the Company’s
suppliers, vendors, customers, partners, subcontractors or competitors that
would be considered a conflict of interest under the Company’s Global
Compliance Policy relating to Conflicts of Interest and (iv) on the
Commencement Date, this Agreement shall be the valid and binding obligation of
Executive, enforceable in accordance with its terms. Executive hereby
acknowledges and represents that he has consulted with independent legal
counsel regarding his rights and obligations under this Agreement and that he
fully understands the terms and conditions contained herein.

 

11. Notices.
All notices or communications hereunder shall be in writing, addressed as
follows:

 

To the Company:

 

Mirant Corporation

Chief Executive Officer

1155 Perimeter Center West

Atlanta, GA
30338-5416

 

with a copy to:                                                                 Legal
Department

Mirant Services, LLC

1155 Perimeter Center West

Atlanta, GA 30338-5416

Fax: 678-579-5589

 

To Executive:

 

To the address on
file with Company

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

12. Severability.
In the event any provision or part of this Agreement is found to be
invalid or unenforceable, only that particular provision or part so found,
and not the entire Agreement, will be inoperative.

 

14

 

13. Complete
Agreement. This Agreement, the LTIP Award Agreements and those documents
expressly referred to herein embody the complete agreement and understanding among
the parties and supersede and preempt any prior understandings, agreements or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

14. No
Strict Construction. The language used in this Agreement shall be deemed to
be the language chosen by the parties hereto to express their mutual intent,
and no rule of strict construction shall be applied against any party.

 

15. Counterparts.
This Agreement may be executed in separate counterparts, each of which is
deemed to be an original and all of which taken together constitute one and the
same agreement.

 

16. Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit
of the beneficiaries, heirs and representatives of Executive and the successors
and assigns of the Company. The Company shall require any successor (whether
direct or indirect, by purchase, merger, reorganization, consolidation,
acquisition of property or stock, liquidation, or otherwise) to all or a majority
of its assets, by agreement in form and substance satisfactory to
Executive, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform this
Agreement if no such succession had taken place. Executive may not assign
his rights (except by will or the laws of descent and distribution) or delegate
his duties or obligations hereunder. Except as provided by this Section 16,
this Agreement is not assignable by any party and no payment to be made
hereunder shall be subject to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance or other charge.

 

17. Choice
of Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the exhibits and schedules
hereto shall be governed by, and construed in accordance with, the laws of the
State of Georgia.

 

18. Amendment
and Waiver. The provisions of this Agreement may be amended, modified
or waived only with the prior written consent of the Company and Executive, and
no course of conduct or course of dealing or failure or delay by any party
hereto in enforcing or exercising any of the provisions of this Agreement
(including, without limitation, the Company’s right to terminate the Employment
Period for Cause) shall affect the validity, binding effect or enforceability
of this Agreement or be deemed to be an implied waiver of any provision of this
Agreement.

 

19. JOBS
Act Compliance. If any provision of this Agreement would result in
unintended or adverse tax consequences to Executive or the Company or would, in
the judgment of the Board, contravene the final regulations anticipated to be
promulgated under the JOBS Act or other Department of Treasury guidance, the Company
may reform this Agreement or any provisions hereof to maintain to the
maximum extent practicable the original purpose of the provision without
violating the provisions of the JOBS Act.

 

15

 

20. Insurance.
The Company may, at its discretion, apply for and procure in its own name and
for its own benefit life and/or disability insurance on Executive in any amount
or amounts considered advisable. Executive agrees to cooperate in any medical
or other examination, supply any information and execute and deliver any
applications or other instruments in writing as may be reasonably
necessary to obtain and constitute such insurance. Executive hereby represents
that he has no reason to believe that his life is not insurable at rates now
prevailing for healthy men of his age.

 

21. Withholding.
Any payments made or benefits provided to Executive under this Agreement shall
be reduced by any applicable withholding taxes or other amounts required to be
withheld by law or contract.

 

22. Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
or otherwise in connection with the Executive’s employment by the Company that
cannot be mutually resolved by the parties to this Agreement and their respective
advisors and representatives shall be settled exclusively by arbitration in
Atlanta, Georgia in accordance with the rules of the American Arbitration
Association before one arbitrator of exemplary qualifications and stature, who
shall be selected jointly by an individual to be designated by the Company and
an individual to be selected by Executive, or if such two individuals cannot
agree on the selection of the arbitrator, who shall be selected by the American
Arbitration Association. The Company shall
reimburse Executive’s reasonable legal fees if he prevails on a material issue
in an arbitration.

 

23. Corporate
Opportunity. During the Employment Period, Executive shall submit to the
Board all business, commercial and investment opportunities or offers presented
to Executive that relate to the business of power companies (“Corporate
Opportunities”), if Executive wishes to accept or pursue, directly or
indirectly, such Corporate Opportunities on Executive’s own behalf. This Section 23
shall not apply to purchases of publicly traded stock by Executive.

 

24.
Executive’s Cooperation. During the Employment Period and
thereafter, Executive shall cooperate with the Company and its affiliates, upon
the Company’s reasonable request, with respect to any internal investigation or
administrative, regulatory or judicial proceeding involving matters within the
scope of Executive’s duties and responsibilities to the Company Group during
the Employment Period (including, without limitation, Executive being available
to the Company upon reasonable notice for interviews and factual
investigations, appearing at the Company’s reasonable request to give testimony
without requiring service of a subpoena or other legal process, and turning
over to the Company all relevant Company documents which are or may come
into Executive’s possession during the Employment Period); provided, however,
that any such request by the Company shall not be unduly burdensome or
interfere with Executive’s personal schedule or ability to engage in
gainful employment. In the event the Company requires Executive’s cooperation
in accordance with this Section 24, the Company shall reimburse Executive
for reasonable out-of-pocket expenses (including travel, lodging and meals)
incurred by Executive in connection with such cooperation, subject to
reasonable documentation.

 

16

 

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

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Driscoll

  

 

17

 

Exhibit A

 

LIST OF APPROVED
DIRECTORSHIPS

 

A-1

 

Exhibit B

 

MIRANT CORPORATION

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This Restricted Stock Unit Award (this “Award”) is made as of
[INSERT DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT
CORPORATION, a                     corporation
(the “Company”) to Robert E. Driscoll (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of [                              ,
2006] (the “Agreement”) providing for the grant to Executive of
restricted stock units (“Restricted Stock Units”) upon the Company’s
emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Restricted Stock Units to promote Executive’s
long-term interests in the success of the Company;

 

NOW THEREFORE, the Company awards Restricted Stock Units to Executive
pursuant to the following terms and conditions:

 

1.                                       Restricted Stock Unit Award. The
Company hereby grants to Executive an award of [            ]
Restricted Stock Units that are to be settled in common stock of the Company (“Common
Stock”). The Restricted Stock Units shall be transferable only in
accordance with the provisions of Section 8 of this Award and subject to
the restrictions and other conditions set forth herein. The shares to be
delivered to Executive in settlement of the Restricted Stock Units shall be
issued under the Company’s then existing omnibus incentive plan and, if the
Common Stock is then traded on a national securities exchange or inter-dealer
quotation system, including without limitation, NASDAQ, or if the Company is
subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act. Capitalized terms used, but not otherwise defined, shall have
the meaning set forth in the Agreement.

 

2.                                       Restrictions. Except as provided in
Section 3 below, the Restricted Stock Units shall vest and become
transferable as follows:

 

a.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is six months
after the Company’s emergence from bankruptcy protection];

 

B-1

 

b.              twenty-five percent
(25%) of the Restricted Stock Units shall vest 
[insert date that is one year after the Company’s emergence from
bankruptcy protection];

 

c.               twenty-five percent
(25%) of the Restricted Stock Units shall vest [insert date that is two years
after the Company’s emergence from bankruptcy protection]; and

 

d.              twenty-five percent
(25%) of the Restricted Stock Units shall vest 
[insert date that is three years after the Company’s emergence from
bankruptcy protection].

 

3.                                      Change
in Employment Status.

 

a.                                       Termination
Without Cause, Non-Renewal, for Good Reason, Death or Disability. In the
event of Executive’s termination of employment with the Company (regardless of
whether such termination is in connection with a Change in Control (as defined
in the Agreement)) (i) by the Company without Cause (as defined in the
Agreement), (ii) by reason of the failure of the Company to offer to renew
the Agreement (as provided in the Agreement), (iii) by Executive for Good
Reason (as defined in the Agreement) or (iv) as a result of Executive’s
death or Disability (as defined in the Agreement), all Restricted Stock Units
that have not already vested, as of the date of such termination, shall vest
immediately and become nonforfeitable.

 

b.                                      Termination
for Cause, Voluntary Resignation Without Good Reason. In the event of
Executive’s termination of employment with the Company (i) by the Company
for Cause or (ii) by reason of Executive’s resignation from the Company
for any reason other than Good Reason, all Restricted Stock Units that have not
already vested as of the date of such termination shall be immediately
forfeited by Executive.

 

4.                                       Book Entry Account. Within a
reasonable time after the date of this Award, the Company shall instruct its
transfer agent to establish a book entry account representing the Restricted
Stock Units in Executive’s name effective as of the grant date, provided that
the Company shall retain control of such account until the Restricted Stock
Units have become vested in accordance with this Award.

 

5.                                       Distribution of Shares. Consistent
with the provisions of Section 3 of this Award, on the day following
Executive’s termination of employment with the Company or immediately prior to
the occurrence of a Change of Control, Executive shall receive one share of the
Company’s common stock, as provided in Section 1 above in satisfaction of
each Restricted Stock Unit credited to his account under Section 4 above
and vested either theretofore or by reason of the event resulting in such
termination.

 

6.                                       Stockholder Rights. Executive shall
not have any of the rights of a stockholder with respect to the Restricted
Stock Units, including the right to vote the Common Stock that will be issued
upon vesting of the Restricted Stock Units, other than the right to receive
dividends or other distributions paid or made available with respect to Common
Stock of the Company when otherwise paid to shareholders; provided, however,
until such Restricted Stock Units are vested, any dividends shall be credited
to Executive’s account under Section 4 and paid in a lump sum when such
Restricted Stock Units to which the dividends are attributable vest.

 

B-2

 

7.                                       Withholding. Executive shall pay
all applicable federal, state and local income and employment taxes (including
taxes of any foreign jurisdiction), which the Company is required to withhold
at any time with respect to the Restricted Stock Units. Such payment shall be
made in full, at Executive’s election, in cash or check, by withholding from
Executive’s next normal payroll check, or by the tender of shares of Common
Stock (including shares then vesting under this Award). Shares tendered as
payment of required withholding shall be valued at the closing price per share
of Common Stock on the date such withholding obligation arises.

 

8.                                      Transferability.
Except as otherwise provided in this Section 8, the Restricted Stock Units
shall not be sold, pledged, assigned, hypothecated, transferred or disposed of
in any manner, whether by the operation of law or otherwise. Executive may transfer
the Restricted Stock Units, in whole or in part, to a spouse or lineal
descendant (a “Family Member”), a trust for the exclusive benefit of
Executive and/or Family Members, a partnership or other entity in which all the
beneficial owners are Executive and/or Family Members, or any other entity
affiliated with Executive that may be approved by the Compensation
Committee (a “Permitted Transferee”). Subsequent transfers of the
Restricted Stock Units shall be prohibited except in accordance with this Section 8.
All terms and conditions of the Restricted Stock Units, including provisions
relating to the termination of Executive’s employment with the Company, shall
continue to apply following a transfer made in accordance with this Section 8.
Any attempted transfer of the Restricted Stock Units prohibited by this Section 8
shall be null and void.

 

9.                                       Adjustments. In the event that the
outstanding shares of Common Stock are subject to a stock split or changed into
or exchanged for a different number or kind of shares or other securities of
the Company or other corporation by reason of a merger, consolidation,
reorganization, recapitalization, reclassification, combination of shares or a
dividend payable in capital stock, or a similar corporate structural change,
then the rights of the Executive shall be appropriately adjusted as to the
number of shares of Common Stock subject to the Restricted Stock Unit Award. The
granting of the Restricted Stock Units pursuant to this Award shall not affect
in any way the right or power of the Company to make adjustments,
reorganizations, reclassifications, or changes of its capital or business
structure or to merge, consolidate, dissolve, liquidate, or sell or transfer
all or any part of its business or assets.

 

10.                               Change
in Control. Subject to the provisions of Section 3 of this Award,
the Compensation Committee, in its sole discretion, may at any time prior
to, coincident with or after the time of a Change in Control:

 

(i)                                     provide
for the acceleration of any vesting of the Restricted Stock Units upon a Change
in Control; or

 

(ii)                                  provide
that such Restricted Stock Units shall vest in accordance with the provisions
of this Agreement as though no Change in Control had occurred, except that, as
appropriate, the shares of Common Stock represented by the Restricted Stock
Units shall be treated in the same manner as other shares of Common Stock in
any transaction constituting a Change in Control; or

 

B-3

 

(iii)                               cause
new rights to be substituted for the Restricted Stock Units by the surviving
corporation in such Change in Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to
what actions shall be taken and the extent thereof, shall be final.

 

11.                               Agreement
Provisions. In addition to the terms and conditions set forth herein,
this Award is subject to and governed by the terms and conditions set forth in
the Agreement, which is incorporated herein by reference. In the event of any
conflict between the provisions of this Award and the Agreement, the Agreement
shall control.

 

12.                               Notice.
Any written notice required or permitted by this Award shall be mailed, certified
mail (return receipt requested) or hand-delivered, addressed to Company’s
Senior Vice President – Administration at Company’s North American headquarters
at 1155 Perimeter Center West, Atlanta, Georgia 30338, with a copy to
Legal Department, Mirant Services LLC 1155 Perimeter Center West, Atlanta,
Georgia 30338. or to Executive at his most recent home address on record with
the Company. Notices are effective upon receipt.

 

13.                               Miscellaneous.

 

(a)                                  Limitation
of Rights. The granting of this Award shall not give Executive any
rights to similar grants in future years or any right to be retained in the
employ or service of the Company or its subsidiary or interfere in any way with
the right of the Company or any such subsidiary to terminate Executive’s services
at any time, or the right of Executive to terminate his services at any time.

 

(b)                                 Severability. If any
term, provision, covenant or restriction contained in this Award is held by a
court or a federal regulatory agency of competent jurisdiction to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions contained in this Award shall remain in full force and effect, and
shall in no way be affected, impaired or invalidated.

 

(c)                                  Controlling
Law. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Award shall be governed by,
and construed in accordance with, the laws of the State of Georgia.

 

(d)                                 Arbitration. Any
dispute or controversy arising under or in connection with the Agreement or
this Award or otherwise in connection with the Executive’s employment by the
Company that cannot be mutually resolved by the parties to the Agreement or
this Award and their respective advisors and representatives shall be settled
exclusively by arbitration in Atlanta, Georgia in accordance with the rules of
the American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive, or
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association. The Company shall
reimburse Executive’s reasonable legal fees if he prevails on a material issue
in an arbitration.

 

B-4

 

(e)                                  Construction. This Award
contains the entire understanding between the parties and supersedes any prior
understanding and agreements between them representing the subject matter
hereof, except that this Award shall be subject to the terms and conditions set
forth in the Agreement. There are no other representations, agreements,
arrangements or understandings, oral or written, between and among the parties
hereto relating to the subject matter hereof which are not fully expressed
herein.

 

(f)                                    Headings. Section and
other headings contained in this Award are for reference purposes only and are
in no way intended to describe, interpret, define or limit the scope, extent or
intent of this Award or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

B-5

 

Exhibit C

 

MIRANT CORPORATION

STOCK OPTION AWARD

 

This Stock Option Award (this “Award”) is made as of [INSERT
DATE THAT IS [10] [45] DAYS AFTER EMERGENCE DATE], by MIRANT CORPORATION,
a                 corporation
(the “Company”) to Robert E. Driscoll (“Executive”).

 

W I  T  N  E  S
S  E  T  H:

 

WHEREAS, the Company entered into an employment agreement with
Executive, dated as of [                ,
2006] (the “Agreement”) providing for the grant to Executive of options
to purchase the common stock (“Common Stock”) of the Company (“Stock
Options”) upon the Company’s emergence from bankruptcy protection; and

 

WHEREAS, pursuant to the terms of the Agreement, the Compensation
Committee of the Board of Directors of the Company (the “Board”) has
granted to Executive an award of Stock Options to promote Executive’s long-term
interests in the success of the Company;

 

NOW THEREFORE, the Company awards Stock Options to Executive pursuant
to the following terms and conditions:

 

1.                                       Stock Option Award. Subject to the
terms and conditions contained herein and in the Agreement, the Company hereby
grants to the Executive an award of [               ]
Stock Options, at an exercise price of $[           ]
(the “Exercise Price”). The Stock Options are not intended to qualify as
incentive stock options under Section 422 of the Internal Revenue Code of
1986, as amended. Each such Stock Option shall entitle Executive to purchase,
upon payment of the Exercise Price, one share of Common Stock. Capitalized
terms used, but not otherwise defined, shall have the meaning set forth in the
Agreement.

 

2.                                       Vesting. Except as provided in Section 5
below, the Stock Options shall vest and become transferable as follows:

 

e.               twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is six months after
the Company’s emergence from bankruptcy protection];

 

f.                 twenty-five
percent (25%) of the Stock Options shall vest on [insert date that is one year
after the Company’s emergence from bankruptcy protection];

 

g.              twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is two years after
the Company’s emergence from bankruptcy protection];

 

h.              twenty-five percent
(25%) of the Stock Options shall vest on [insert date that is three years after
the Company’s emergence from bankruptcy protection].

 

C-1

 

3.                                       Term. The Stock Options shall
expire on the earlier of 10 years from the date of grant or the date specified
for termination of such Stock Options, as provided in Section 5(c).

 

4.                                       Exercise, Payment and Other Conditions.
The Stock Options may be exercised in whole or in part to the extent
vested. The Executive may exercise the Stock Options by delivery to the
Company of written notice providing:  (i) the
name of Executive; (ii) the address to which Common Stock certificates are
to be mailed; and (iii) the number of shares of Common Stock subject to
the Stock Options to be exercised. Prior to the delivery to Executive of any
stock certificates, the Executive shall have paid to the Company the Exercise
Price of all shares of Common Stock purchased pursuant to such exercise of the
Stock Options as provided in this Award. The Board may, in its discretion,
require the Executive to pay to the Company an amount equal to the federal,
state and local taxes, if any, required to be withheld or paid by the Company
as a result of such exercise. All payments shall be in United States dollars in
the form of cash, certified check or bank draft, or, with the consent of
the Board by delivering to the Company (or by attesting to the ownership of)
shares of Common Stock which Executive has owned for at least six months having
a fair market value on the date of exercise equal to the Exercise Price, plus
the minimum withholding tax due in accordance with Section 7, for the
shares of Common Stock with respect to which Executive has exercised such Stock
Options. The Stock Options shall be considered exercised on the date the notice
and payment are received by the Chairman of the Compensation Committee of the
Board (“Compensation Committee”). As promptly as practicable after
receipt of such notice and payment, the Company shall deliver to Executive a
certificate or certificates for the number of shares of Common Stock with
respect to which the Stock Options have been so exercised, issued in Executive’s
name. Such delivery shall be deemed effected for all purposes when a stock
transfer agent of the Company shall have deposited such certificate or
certificates in the United States mail, addressed to Executive, at the address
specified in the notice.

 

5.                                       Change in Employment Status.

 

a.                                       Termination
Without Cause, Non-Renewal, for Good Reason, Death or Disability. In the
event of Executive’s termination of employment with the Company (regardless of
whether such termination is in connection with a Change in Control (as defined
in the Agreement)) (i) by the Company without Cause (as defined in the
Agreement)), (ii) by reason of the failure of the Company to offer to
renew the Agreement (as provided in the Agreement), (iii) by Executive for
Good Reason (as defined in the Agreement) or (iv) as a result of Executive’s
death or Disability (as defined in the Agreement), all Stock Options that have
not already vested, as of the date of such termination shall vest immediately
and become nonforfeitable.

 

b.                                      Termination
for Cause, Voluntary Resignation Without Good Reason. In the event that of
Executive’s termination of employment with the Company (i) by the Company
for Cause or (ii) by reason of Executive’s resignation from the Company
for any reason other than Good Reason, all Stock Options that have not already
vested as of the date of such termination shall be immediately forfeited by Executive
and Executive shall have no further right or interest therein.

 

c.                                       Post-Termination Exercise. Upon
termination of Executive’s employment for any reason other than that described
in subsection b above, Executive shall have one year to

 

C-2

 

exercise any Stock
Options that are vested or become vested as of the date of Executive’s
termination of employment, subject to earlier expiration of the Stock Option as
provided in Section 3.

 

6.                                       Stockholder Rights. Executive shall
not have any of the rights of a stockholder with respect to the Stock Options,
including the right to vote the Common Stock that will be issued upon the
exercise of the Stock Options or to receive dividends or other distributions
paid or made available with respect to Common Stock of the Company until such
Stock Options are exercised.

 

7.                                       Withholding. Executive shall pay
all applicable federal, state and local income and employment taxes (including
taxes of any foreign jurisdiction), which the Company is required to withhold
at any time with respect to the Stock Options. Such payment shall be made in
full, at Executive’s election, in cash or check, by withholding from Executive’s
next normal payroll check, or by the tender of shares of Common Stock
(including shares acquired upon exercise of the Stock Options). Shares tendered
as payment of required withholding shall be valued at the closing price per
share of Common Stock on the date such withholding obligation arises.

 

8.                                       Transferability. Except as
otherwise provided in this Section 8, the Stock Options shall not be sold,
pledged, assigned, hypothecated, transferred or disposed of in any manner,
whether by the operation of law or otherwise. Executive may transfer the
Stock Options, in whole or in part, to a spouse or lineal descendant (a “Family
Member”), a trust for the exclusive benefit of Executive and/or Family
Members, a partnership or other entity in which all the beneficial owners are
Executive and/or Family Members, or any other entity affiliated with Executive
that may be approved by the Compensation Committee (a “Permitted
Transferee”). Subsequent transfers of the Stock Options shall be prohibited
except in accordance with this Section 8. All terms and conditions of the
Stock Options, including provisions relating to the termination of Executive’s
employment with the Company, shall continue to apply following a transfer made
in accordance with this Section 8. Any attempted transfer of the Stock
Options prohibited by this Section 8 shall be null and void. The shares to
be delivered to Executive upon the exercise of any Stock Options shall be
issued under the Company’s then existing omnibus incentive plan and, if the
Common Stock is then traded on a national securities exchange or inter-dealer
quotation system, including without limitation, NASDAQ, or if the Company is
subject to the reporting requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934, as amended, or any successor provision
thereto, the Company shall take all action necessary to keep in effect a
registration statement under the Securities Act of 1933, as amended, or any
successor provision thereto (the “1933 Act”) enabling Executive to resell
Common Stock without restriction; provided, however, that the Company need not
take such action if, at the time of distribution of Common Stock to Executive,
such shares do not constitute “restricted securities” as defined in Rule 144
under the 1933 Act and Executive is not an “affiliate” of the Company under Rule 405
of the 1933 Act.

 

9.                                       Adjustments. In the event that the
outstanding shares of Common Stock are subject to a stock split or changed into
or exchanged for a different number or kind of shares or other securities of
the Company or other corporation by reason of a merger, consolidation,
reorganization, recapitalization, reclassification, combination of shares or a
dividend payable in

 

C-3

 

capital stock, or a
similar corporate structural change, then the rights of the Executive shall be
appropriately adjusted as to the number of shares of Common Stock subject to
the Stock Options and/or as to the Exercise Price. The granting of the Stock
Options pursuant to this Award shall not affect in any way the right or power
of the Company to make adjustments, reorganizations, reclassifications, or
changes of its capital or business structure or to merge, consolidate,
dissolve, liquidate, or sell or transfer all or any part of its business
or assets.

 

10.                                 Change in Control. Subject to the
provisions of Section 5 of this Award, the Compensation Committee, in its
sole discretion, may at any time prior to, coincident with or after the
time of a Change in Control:

 

(i)                                     provide
for the acceleration of any vesting conditions relating to the exercise of the
Stock Option or that the Stock Option may be exercised in full on or
before a date fixed by the Committee;

 

(ii)                                  provide
for the purchase of the Stock Option, upon Executive’s request, for an amount
of cash equal to the amount, as determined by the Compensation Committee in its
sole discretion, which could have been realized upon the exercise of the Stock
Options had the option been currently exercisable; or

 

(iii)                               cause
the Stock Options then to be assumed, or new rights substituted therefore, by
the surviving corporation in such Change in Control.

 

Any such actions
shall be authorized by the Compensation Committee, whose determination as to
what actions shall be taken and the extent thereof, shall be final.

 

11.                                 Agreement Provisions. In addition
to the terms and conditions set forth herein, this Award is subject to and
governed by the terms and conditions set forth in the Agreement, which is
incorporated herein by reference. In the event of any conflict between the
provisions of this Award and the Agreement, the Agreement shall control.

 

12.                                 Notice. Any written notice required
or permitted by this Award shall be mailed, certified mail (return receipt
requested) or hand-delivered, addressed to Company’s Senior Vice President –
Administration at Company’s North American headquarters at 1155 Perimeter
Center West, Atlanta, Georgia 30338, with a copy to Legal Department, Mirant
Services, LLC, 1155 Perimeter Center West, Atlanta, GA  30338, or to Executive at his most recent
home address on record with the Company. Notices are effective upon receipt.

 

13.                                 Miscellaneous.

 

(a)                                  Limitation
of Rights. The granting of this Award shall not give Executive any
rights to similar grants in future years or any right to be retained in the
employ or service of the Company or its subsidiary or interfere in any way with
the right of the Company or any such subsidiary to terminate Executive’s
services at any time, or the right of Executive to terminate his services at
any time.

 

C-4

 

(b)                                 Severability. If any
term, provision, covenant or restriction contained in this Award is held by a
court or a federal regulatory agency of competent jurisdiction to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and
restrictions contained in this Award shall remain in full force and effect, and
shall in no way be affected, impaired or invalidated.

 

(c)                                  Controlling
Law. All issues and questions concerning the construction,
validity, enforcement and interpretation of this Award shall be governed by,
and construed in accordance with, the laws of the State of Georgia.

 

(d)                                 Arbitration. Any
dispute or controversy arising under or in connection with the Agreement or
this Award or otherwise in connection with the Executive’s employment by the
Company that cannot be mutually resolved by the parties to the Agreement or
this Award and their respective advisors and representatives shall be settled
exclusively by arbitration in Atlanta, Georgia in accordance with the rules of
the American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive, or
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association. The Company shall
reimburse Executive’s reasonable legal fees if he prevails on a material issue
in an arbitration.

 

(e)                                  Construction. This Award
contains the entire understanding between the parties and supersedes any prior
understanding and agreements between them representing the subject matter
hereof, except that this Award shall be subject to the terms and conditions set
forth in the Agreement. There are no other representations, agreements,
arrangements or understandings, oral or written, between and among the parties
hereto relating to the subject matter hereof which are not fully expressed
herein.

 

(f)                                    Headings. Section and
other headings contained in this Award are for reference purposes only and are
in no way intended to describe, interpret, define or limit the scope, extent or
intent of this Award or any provision hereof.

 

IN WITNESS WHEREOF, the undersigned Chairman of the Compensation
Committee of the Board executes this Award on behalf of the Company as of day
and year first set forth above.

 

	
   

  	
  MIRANT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  

 

C-5

 

Exhibit D

 

FORM OF RELEASE

 

This General Release of
all Claims (this “Agreement”) is entered into by Robert        . Driscoll (“Executive”“)
and Mirant Services, LLC and Mirant Corporation (collectively, the “Company”),
effective as of                            .

 

In further consideration
of the promises and mutual obligations set forth in the Employment Agreement
between Executive and the Company, dated                          
(the “Employment Agreement”), Executive and the Company agree as
follows:

 

2.                                       Return
of Property. All Company files, access keys, desk keys, ID badges,
computers, electronic devices, telephones and credit cards, and such other
property of the Company as the Company may reasonably request, in
Executive’s possession must be returned no later than the date of Executive’s
termination from the Company.

 

3.                                       General
Release and Waiver of Claims.

 

(a)                                  Release.
In consideration of the payments and benefits provided to Executive under the
Employment Agreement and after consultation with counsel, Executive, personally
and on behalf of each of Executive’s respective heirs, executors,
administrators, representatives, agents, successors and assigns (collectively,
the “Releasors”) hereby irrevocably and unconditionally releases and
forever discharges the Company and its subsidiaries and affiliates and each of
their respective officers, employees, directors, and agents (“Releasees”)
from any and all claims, actions, causes of action, rights, judgments,
obligations, damages, demands, accountings or liabilities of whatever kind or
character (collectively, “Claims”), including, without limitation, any
Claims under any federal, state, local or foreign law, that the Releasors had,
have, may have, or in the future may possess, arising out of (i) Executive’s
employment relationship with and service as an employee, officer or director of
the Company, and the termination of such relationship or service, and (ii) any
event, condition, circumstance or obligation that occurred, existed or arose on
or prior to the date hereof; provided, however, that Executive
does not release, discharge or waive any rights to payments and benefits
provided under the Employment Agreement that are contingent upon the execution
by Executive of this Agreement nor any rights to indemnification or as a
shareholder of the Company.

 

(b)                                 Specific Release of ADEA Claims. In further consideration of
the payments and benefits provided to Executive under the Employment Agreement,
the Releasors hereby unconditionally release and forever discharge the
Releasees from any and all Claims that the Releasors may have as of the
date Executive signs this Agreement arising under the Federal Age
Discrimination in Employment Act of 1967, as amended, and the applicable rules and
regulations promulgated thereunder (“ADEA”). By signing this Agreement,
Executive hereby acknowledges and confirms the following:  (i) Executive was advised by the Company
in connection with his termination to consult with an attorney of his choice
prior to signing this Agreement and to have such attorney explain to Executive
the terms of this Agreement, including, without limitation, the terms relating
to Executive’s release of claims arising under

 

D-1

 

ADEA, and Executive has in fact consulted
with an attorney; (ii) Executive was given a period of not fewer than 21
days to consider the terms of this Agreement and to consult with an attorney of
his choosing with respect thereto; and (iii) Executive knowingly and
voluntarily accepts the terms of this Agreement. Executive also understands
that he has seven (7) days following the date on which he signs this
Agreement within which to revoke the release contained in this paragraph, by
providing the Company a written notice of his revocation of the release and
waiver contained in this paragraph.

 

(c)                                  No Assignment. Executive represents and
warrants that he has not assigned any of the Claims being released under this
Agreement.

 

4.                                       Proceedings.
Executive has not filed, and agrees not to initiate or cause to be initiated on
his behalf, any complaint, charge, claim or proceeding against the Releasees
before any local, state or federal agency, court or other body relating to his
employment or the termination of his employment, other than with respect to the
obligations of the Company to Executive under the Employment Agreement (each,
individually, a “Proceeding”), and agrees not to participate voluntarily
in any Proceeding. Executive waives any right he may have to benefit in
any manner from any relief (whether monetary or otherwise) arising out of any
Proceeding.

 

5.                                       Remedies.
In the event Executive initiates or voluntarily participates in any Proceeding,
or if he fails to abide by any of the terms of this Agreement or his post-termination
obligations contained in the Employment Agreement, or if he revokes the ADEA
release contained in Paragraph 2(b) of this Agreement within the seven-day
period provided under Paragraph 2(b), the Company may, in addition to any other
remedies it may have, reclaim any amounts paid to him under the severance
provisions of the Employment Agreement or terminate any benefits or payments
that are subsequently due under the Employment Agreement, without waiving the
release granted herein. Executive acknowledges and agrees that the remedy at
law available to the Company for breach of any of his post-termination
obligations under the Employment Agreement or his obligations under Paragraphs
2 and 3 of this Agreement would be inadequate and that damages flowing from
such a breach may not readily be susceptible to being measured in monetary
terms. Accordingly, Executive acknowledges, consents and agrees that, in
addition to any other rights or remedies that the Company may have at law
or in equity, the Company shall be entitled to seek a temporary restraining
order or a preliminary or permanent injunction, or both, without bond or other
security, restraining Executive from breaching his post-termination obligations
under the Employment Agreement or his obligations under Paragraphs 2 and 3 of
this Agreement. Such injunctive relief in any court shall be available to the
Company, in lieu of, or prior to or pending determination in, any arbitration
proceeding.

 

Executive understands
that by entering into this Agreement he will be limiting the availability of
certain remedies that he may have against the Company and limiting also
his ability to pursue certain claims against the Company.

 

D-2

 

6.                                       Severability
Clause. In the event any provision or part of this Agreement is found
to be invalid or unenforceable, only that particular provision or part so
found, and not the entire Agreement, will be inoperative.

 

7.                                       Non-admission.
Nothing contained in this Agreement will be deemed or construed as an admission
of wrongdoing or liability on the part of the Company.

 

8.                                       Governing
Law. All matters affecting this Agreement, including the validity thereof,
are to be governed by, and interpreted and construed in accordance with, the
laws of the State of Georgia applicable to contracts executed in and to be
performed in that State.

 

9.                                       Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
or otherwise in connection with Executive’s employment by the Company that
cannot be mutually resolved by the parties to this Agreement and their
respective advisors and representatives shall be settled exclusively by
arbitration in Atlanta, Georgia in accordance with the rules of the
American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive or,
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association.

 

10.                                 Notices.
All notices or communications hereunder shall be in writing, addressed as
follows:

 

To the Company:

 

Mirant Corporation

 

 

To Executive:

 

With a copy to:

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

EXECUTIVE ACKNOWLEDGES THAT HE
HAS READ THIS AGREEMENT AND THAT HE FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT HE HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF HIS OWN FREE
WILL.

 

D-3

 

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

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert E. Driscoll

  

 

D-4

 

	
   

  Exhibit E

  	
  

  

 

CONFIDENTIALITY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Confidentiality Policy and this Confidentiality
Agreement, specifically:

 

1.                                       I
agree that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Confidential
Information” means and includes items that the Company marks or treats as
confidential. It also includes information (other than Trade Secrets) that has
any value to the Company, is known to persons inside the Company for purposes
of doing their jobs, and is not generally made known to persons outside the
Company.

 

d)                                     “Confidentiality
Policy” means the policies and procedures the Company uses to protect its
valuable information. The Confidentiality Policy may change periodically
and all Mirant employees are expected to comply with the current
Confidentiality Policy at all times.

 

e)                                      “Employment”
means my present or future job with the Company. Except during those times when
my job may have been subject to a valid employment agreement, Employment
with the Company is, has been, and after this Agreement continues to be “employment
at will.”

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other than
the Company and its employees.

 

g)                                     “Trade
Secret(s)” means those things defined as trade secrets by law. Trade
Secrets include information about the Company business that is valuable to the
Company and gives the Company an advantage in the market place. This type of
information is not generally made known or available to people outside the

 

E-1

 

Company,
and the Company protects it from being disclosed. Information that is a Trade Secret
may be found in such things as
software (code and programs), formulas, patterns, plans, charts, client lists
(actual and possible), leads, pricing information, confidential business
arrangements, marketing plans, and proposals. Trade Secrets may be found
in other kinds of material as well.

 

2.                                       I
agree that during my Employment, I have been or may be given access to
Trade Secrets or Confidential Information belonging to the Company, its
Affiliates, or to Third Parties. I agree that I will only use this information
for the benefit of the Company except as required by applicable law or in
any judicial or administrative process. I understand and agree that I
must not copy, reveal, give or make known to anyone outside the Company any
Trade Secret or Confidential Information, without authorization by management
and appropriate safeguards. I further understand and agree that the Company is
entitled to this protection:  (a) for
Trade Secrets as long as it is a Trade Secret under the law, and (b) for
Confidential Information as long as I am employed by the Company and for three (3) years
after my Employment ends.

 

3.                                       I
agree to not disclose any Confidential Information or Trade Secrets belonging
to Third Parties when:  (a) the
Company has agreed to protect such information, and (b) I am told or
determine that the Third Party’s information should be treated as confidential.
I will keep the Third Party’s information confidential in the manner required
by the Company.

 

4.                                       I
agree that I will provide the Company all of its Confidential Information and
Trade Secrets I have or that are under my control (including any belonging to
any Affiliate or Third Party) at any time the Company requests it.

 

5.                                       I
agree to return the originals and all copies of the Confidential Information
whether in electronic, printed or any other form before the last day of my
Employment.

 

6.                                       I
agree that this Confidentiality Agreement (a) is governed by the law of
the State of Georgia; (b) is binding on my heirs and representatives; (c) may be
assigned by Mirant Corporation; (d) continues in effect after the end of
my Employment; and (e) cannot be amended or released except in a document
signed by me and the Company.

 

7.                                       I
agree that this Confidentiality Agreement is intended to replace any previous
agreement, or portions of any agreement that contains confidentiality
requirements, that conflicts with this one. I further agree that this
Confidentiality Agreement is to be read to give the Company the greatest
protection possible without being contrary to law. If any court finds part of
this Confidentiality Agreement to be unenforceable, I 

 

E-2

 

agree
that part will be struck out and the remainder of the Confidentiality
Agreement will continue in effect.

 

In witness hereof, I have executed this
Confidentiality Agreement this                  
day of                              ,
2006.

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
   

  	
  Employee
  Signatur   e

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name & Title

  	
   

  	
  Print
  Name

  	
   

  

 

E-3

 

	
  Exhibit F

  	
  

  

 

INTELLECTUAL PROPERTY AGREEMENT

 

In consideration of my
Employment or continued Employment with Mirant Corporation, and for other
valuable and adequate consideration which I agree has been exchanged, I agree
to comply with the Company’s Intellectual Property Policy and this Intellectual
Property Agreement (“Agreement”), specifically:

 

1.                                       I
agree that the following words and phrases mean:

 

a)                                      “Affiliate(s)”
means any corporation or entity that is a subsidiary or business unit of Mirant
Corporation.

 

b)                                     “Company”
means Mirant Corporation, its divisions, its parents, its present and future
subsidiaries, and successors.

 

c)                                      “Employment”
means my present or future job with the Company. Except during those times when
my job may have been subject to a valid employment agreement, Employment
with the Company is, has been, and after this Agreement continues to be “employment
at will.”

 

d)                                     “Intellectual
Property” means any invention, discovery, creation, improvement or design. Such
Intellectual Property includes machines, processes, concepts, chemical
compounds, computer programs, authored material, trademarks, service marks, and
improvements to any of these items; Intellectual Property may also include
other things not listed here. An individual’s work (and that of those working
together) will be considered the Company’s Intellectual Property if it: (i) is
related to any job the individual holds or has held with the Company or its
Affiliates, (ii) is created, worked on or implemented while the individual
is at work, or (iii) is created, worked on or implemented using Company or
Affiliate personnel, facilities, equipment knowledge, information, resources or
materials.

 

e)                                      “Intellectual
Property Policy” means the policies and procedures the Company uses to
protect its valuable Intellectual Property. The Intellectual Property Policy may change
periodically and all Mirant employees are expected to comply with the current
Intellectual Property Policy at all times.

 

f)                                        “Third
Party” or “Third Parties” means a person, firm or some entity other
than the Company and its employees.

 

F-1

 

2.                                       I
agree that I will fully inform the Company about any material that might
be Intellectual Property at the earliest possible time. I also agree that I
will not disclose innovations or potential Intellectual Property to Third
Parties and will treat it as covered by the Company’s Confidentiality Policy
and my Confidentiality Agreement with the Company.

 

3.                                       As
a part of this Agreement, I transfer to the Company all rights to
Intellectual Property which comes into existence during my Employment. I agree
that all Intellectual Property is a “work for hire” (as defined in the United
States Code) belonging exclusively to the Company. No Intellectual Property I
transfer will be considered “joint work” belonging to anyone other than the
Company.

 

4.                                       I
agree to sign any documents, and provide any assistance the Company may need
to protect the Intellectual Property, obtain registrations (including Patents,
Trademarks, Copyrights, etc.), and establish and maintain its title to the
Intellectual Property. The Company will pay expenses required to obtain these
protections.

 

5.                                       I
understand that the Company may decide, for whatever reason, not to pursue
legal protection for Intellectual Property created by me. The company may also
choose to release its interest in the Intellectual Property to me. If this
happens, I agree to execute any documents necessary to give the Company the
perpetual right and license to use, maintain, modify, make derivative works
from, practice and market the Intellectual Property at no cost to the Company.

 

6.                                       I
agree that I will provide the Company all of its Intellectual Property that I
have or that is under my control (including any belonging to any Affiliate or
Third Party) at any time the Company requests it.

 

7.                                       I
agree to return the originals and all copies of the Intellectual Property
information whether in electronic, printed or any other form before the
last day of my Employment.

 

8.                                       I
agree that this Agreement (a) is governed by the laws of the State of
Georgia; (b) is binding on my heirs and representatives; (c) may be
assigned by the Company; (d) continues in effect after the end of my
Employment; and (e) cannot be amended or released except in a document
signed by me and the Company.

 

9.                                       I
agree that this Agreement is intended to replace any previous agreement, or
portions of any agreement that contains intellectual property requirements,
that conflicts with this one. I further agree that this Agreement is be read to
give the Company the greatest protection possible without being contrary to law.
If any court finds part of this Agreement to be unenforceable, I agree
that part will be struck out and the remainder of the Agreement will
continue in effect.

 

F-2

 

In witness hereof, I have executed this
Confidentiality Agreement this                    
day of                               ,
                           .

 

 

	
   

  	
   

  	
   

  	
   

  
	
  HR
  Representative

  	
   

  	
  Employee
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print
  Name & Title

  	
   

  	
  Print
  Name

  	
   

  

 

F-3

 

EXHIBIT G

 

FORM OF RELEASE BY
THE COMPANY

 

This Release of Claims
(this “Agreement”) is entered into by Robert E. Driscoll (“Executive”)
and Mirant Services, LLC and Mirant Corporation (collectively, the “Company”),
effective as of [DATE].

 

In consideration of the
promises and mutual obligations set forth in the Employment Agreement between
Executive and the Company, dated                          
(the “Employment Agreement”) and other good and valuable consideration,
Executive and the Company agree as follows:

 

1.                                       General
Release and Waiver of Claims.

 

(a)                                  Release. The Company and its
subsidiaries and affiliates (“Company Releasors”) hereby irrevocably and
unconditionally release and forever discharge Executive personally and each of
Executive’s heirs, executors, administrators, representatives, agents,
successors and assigns (collectively, the “Executive Releasees”) from
any and all claims, actions, causes of action, rights, judgments, obligations,
damages, demands, accountings or liabilities of whatever kind or character
(collectively, “Claims”), including, without limitation, any Claims
under any federal, state, local or foreign law, that the Company Releasors had,
have, may have, or in the future may possess, arising out of
Executive’s employment relationship with and service as an employee, officer or
director of the Company, and the termination of such relationship or service; provided,
however, that the Company Releasors do not release, discharge or waive
any Claims arising out of or resulting from Executive’s fraud, gross-negligence
or other violation of law.

 

(b)                                 No Assignment. The Company represents and
warrants that it has not assigned any of the Claims being released under this
Agreement.

 

2.                                       Proceedings.
The Company has not filed, and agrees not to initiate or cause to be initiated
on its behalf, any complaint, charge, claim or proceeding against the Executive
Releasees before any local, state or federal agency, court or other body based
on the Claims released under this Agreement (a “Proceeding”) and agrees
not to participate voluntarily in any Proceeding.

 

3.                                       Remedies.
The Company acknowledges and agrees that the remedy at law available to the
Executive for breach of any of the Company’s obligations under
Paragraphs 1 and 2 of this Agreement would be inadequate and that damages
flowing from such a breach may not readily be susceptible to being
measured in monetary terms. Accordingly, the Company acknowledges, consents and
agrees that, in addition to any other rights or remedies that Executive may have
at law or in equity, Executive shall be entitled to seek a temporary
restraining order or a preliminary or permanent injunction, or both, without
bond or other security, restraining the Company from breaching its obligations
under Paragraphs 1 and 2 of

 

G-1

 

this Agreement. Such
injunctive relief in any court shall be available to Executive, in lieu of, or
prior to or pending determination in, any arbitration proceeding.

 

The Company understands
that by entering into this Agreement it will be limiting the availability of
certain remedies that it may have against Executive and limiting also its
ability to pursue certain claims against Executive.

 

4.                                       Severability
Clause. In the event any provision or part of this Agreement is found
to be invalid or unenforceable, only that particular provision or part so
found, and not the entire Agreement, will be inoperative.

 

5.                                       Non-admission.
Nothing contained in this Agreement will be deemed or construed as an admission
of wrongdoing or liability on the part of Executive.

 

6.                                       Governing
Law. All matters affecting this Agreement, including the validity thereof,
are to be governed by, and interpreted and construed in accordance with, the
laws of the State of Georgia applicable to contracts executed in and to be
performed in that State.

 

7.                                       Arbitration.
Any dispute or controversy arising under or in connection with this Agreement
or otherwise in connection with Executive’s employment by the Company that
cannot be mutually resolved by the parties to this Agreement and their
respective advisors and representatives shall be settled exclusively by
arbitration in Atlanta, Georgia in accordance with the rules of the
American Arbitration Association before one arbitrator of exemplary
qualifications and stature, who shall be selected jointly by an individual to
be designated by the Company and an individual to be selected by Executive or,
if such two individuals cannot agree on the selection of the arbitrator, who
shall be selected by the American Arbitration Association.

 

8.                                       Notices.
All notices or communications hereunder shall be in writing, addressed as
follows:

 

To the Company:

 

Mirant Corporation

 

 

To Executive:

 

G-2

 

All such notices shall be
conclusively deemed to be received and shall be effective (i) if sent by
hand delivery, upon receipt or (ii) if sent by electronic mail or
facsimile, upon confirmation of receipt by the sender of such transmission.

 

THE COMPANY ACKNOWLEDGES THAT IT
HAS READ THIS AGREEMENT AND THAT IT FULLY KNOWS, UNDERSTANDS AND APPRECIATES
ITS CONTENTS, AND THAT IT HEREBY EXECUTES THE SAME AND MAKES THIS AGREEMENT AND
THE RELEASE AND AGREEMENTS PROVIDED FOR HEREIN VOLUNTARILY AND OF ITS OWN FREE
WILL.

 

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

 

 

	
   

  	
  MIRANT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
  MIRANT SERVICES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
   

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Robert
  E. Driscoll

  

 

G-3

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