Document:

exv10w20

Exhibit 10.20

EXECUTION VERSION

Amendment No. 1 to Credit Agreement

          This Amendment No. 1, dated as of October 1, 2009 (this “Amendment”), among
Enexus Energy Corporation, a Delaware corporation (the “Borrower”), the Lenders
(as defined below) party hereto, Citigroup Global Markets Inc. and Goldman Sachs
Lending Partners LLC, as joint book runners and joint lead arrangers (in such capacities,
collectively, the “Arrangers”), BNP Paribas, as administrative agent (in such
capacity, the “Administrative Agent”), amends certain provisions of the Credit Agreement,
dated as of December 23, 2008 (as may be amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, the Lenders and Issuers (in each
case as defined therein) from time to time party thereto, the Arrangers, the Administrative Agent,
and The Bank of Nova Scotia Trust Company of New York, as collateral agent (in such
capacity and together with its successors, the “Collateral Agent”) and Mizuho Corporate
Bank, Ltd., as syndication agent (in such capacity, the “Syndication Agent”).
Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to
such terms in the Credit Agreement.

W i t n e s s e t h:

          Whereas, the Borrower has requested that the Arrangers, the Administrative Agent and
the Lenders agree to certain amendments to the Credit Agreement as set forth herein; and

          Whereas, the Arrangers, the Administrative Agent and the Lenders party hereto
(constituting all Lenders under the Credit Agreement following the Original Outside Date (as
defined below)), agree, subject to the limitations and conditions set forth herein, to amend the
Credit Agreement as set forth herein;

          Now, Therefore, in consideration of the premises and the covenants and obligations
contained herein the parties hereto agree as follows:

     SECTION 1. AMENDMENTS TO THE CREDIT AGREEMENT

          The Credit Agreement is, effective as of the Amendment No. 1 Effective Date (as defined below)
and subject to satisfaction (or due waiver) of the conditions set forth in Section 3 (Conditions
Precedent to the Effectiveness of this Amendment) hereof, hereby amended as follows:

          (a) Amendment to the preamble. Paragraph B of the preamble of the Credit Agreement is hereby
amended by (i) replacing “prior to” with “after” and (ii) replacing “100%” with the phrase “at
least 80.1%”.

          (b) Amendments to Article I (Definitions)

               (1) The definition of “Applicable Margin” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Applicable Margin” shall mean (a) during the period commencing on the
Funds Availability Date and ending one Business Day after the receipt by the
Administrative Agent of the financial statements for the first full fiscal quarter
ending after the Funds Availability Date required to be delivered pursuant to
Section 5.05(a) or (b), as applicable, with respect to (i) Loans maintained as ABR
Loans, a rate equal to 2.50% per annum and (ii) Loans maintained as Eurodollar
Loans, a rate equal to 3.50% per annum and (b) thereafter, as of any date of
determination, a per annum rate equal to

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the rate set forth below opposite the applicable type of Loan and the then
applicable Consolidated Total Leverage Ratio (determined on the last day of the most
recent fiscal quarter for which financial statements have been delivered pursuant to
Section 5.05(a) or 5.05(b)) set forth below:

	 	 	 	 	 
	Consolidated Total Leverage Ratio	 	ABR Loans	 	Eurodollar Loans
	Greater than or equal to 4.0 to 1
	 	2.75%
	 	3.75%
	Less than 4.0 to 1 and equal to or 

greater than 3.0 to 1
	 	2.50%
	 	3.50%
	Less than 3.0 to 1
	 	2.25%
	 	3.25%

Changes in the Applicable Margin resulting from a change in the Consolidated Total
Leverage Ratio on the last day of any subsequent fiscal quarter shall become
effective as to all Loans upon delivery by the Borrower to the Administrative Agent
of new financial statements pursuant to Section 5.05 (a) or (b), as applicable.
Notwithstanding anything to the contrary set forth in this Agreement (including the
then effective Consolidated Total Leverage Ratio), (i) if the Borrower shall fail to
deliver such financial statements at the time specified in Section 5.05(a) or (b),
as the case may be (such date, the “Financial Statement Delivery Failure
Date”), the Applicable Margin from and including the first day following the
Financial Statement Delivery Failure Date to, but not including, the date the
Borrower delivers to the Administrative Agent such financial statements shall equal
the highest possible Applicable Margin provided for by this definition and (ii) in
the event that the financial statements or compliance certificate delivered pursuant
to Section 5.05 are shown to be inaccurate (regardless of whether this Agreement or
the Commitments are in effect when such inaccuracy is discovered), and such
inaccuracy, if corrected, would have led to a higher Applicable Margin for any
period (an “Applicable Period”) than the Applicable Margin that was applied
for such Applicable Period, then (i) the Borrower shall promptly deliver to the
Administrative Agent a correct Compliance Certificate for such Applicable Period,
(ii) the Applicable Percentage shall be determined by reference to the corrected
Compliance Certificate (but in no event shall the Lenders owe any amounts to the
Borrower) and (iii) the Borrower shall promptly pay to the Administrative Agent the
additional interest owing as a result of such increased Applicable Margin for such
Applicable Period, which payment shall be promptly applied by the Administrative
Agent in accordance with the terms hereof. This paragraph shall not limit the
rights of the Administrative Agent and the Lenders hereunder.

               (2) The definition of “Change of Control” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Change of Control” shall mean, (a) from and after the Separation, (i)
the acquisition of beneficial ownership, directly or indirectly, including by merger
or consolidation by any Person or group (within the meaning of the Exchange Act and
the rules of the SEC thereunder as in effect on the date hereof) of shares
representing more than 40% of the aggregate ordinary voting power represented by the
issued and outstanding Capital Stock of the Borrower, (ii) the occupation of a
majority of seats on the Board of Directors of the Borrower by Persons who were
neither (A) members of the Board of Directors of the Borrower on the Funds
Availability Date (the “Funding Date Board”), (B) nominated by the Funding
Date Board, (C) appointed or nominated by directors so nominated or (D) approved by
a majority of the Funding Date Board or by a majority of the members of the Board of
Directors of the Borrower referred to

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in clauses (B) and (C) above (either by a specific vote or by approval of the
proxy statement of the Borrower in which such individual is named as a nominee for
election as a director; provided that such individuals cannot include
persons not recommended for election by the then incumbent Board of Directors unless
such Board of Directors determines reasonably and in good faith that failure to
approve any such persons as members of the Board of Directors could reasonably be
expected to violate a fiduciary duty under Applicable Laws) or (iii) the occurrence
of a “change of control” (or any other defined term having a similar
purpose) as defined in any contract, indenture or other agreement with respect to
Material Indebtedness of the Borrower or any of its Restricted Subsidiaries and (b)
prior to the Separation, Entergy shall cease to own and control all of the economic
and voting rights associated with all of the outstanding Capital Stock of the
Borrower.

               (3) The definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Consolidated EBITDA” shall mean (a) Consolidated Net Income of the
Borrower and its consolidated Subsidiaries for such period plus (b) the sum of, in
each case to the extent reducing Consolidated Net Income for such period but without
duplication, (i) Consolidated Interest Expense, (ii) any provision for income taxes,
(iii) depreciation, depletion and amortization expenses, (iv) losses from
extraordinary items (including from Commodity Hedging Transactions), (v) costs,
expenses or charges (including any professional or underwriting fees) related to the
Transactions, and (vi) all other non-cash charges and non-cash losses (including (A)
the amount of any compensation deduction as the result of any grant of Capital Stock
or Capital Stock Equivalents to employees, officers, directors or consultants, (B)
losses from early extinguishment of Indebtedness and (C) decommissioning costs)
minus (c) the sum of, in each case to the extent increasing Consolidated Net Income
for such period but without duplication, (i) any credit for income taxes, (ii) gains
from extraordinary items (including from Commodity Hedging Transactions), (iii) any
other non-cash gains or other items which have been added in determining
Consolidated Net Income, (including (A) any reversal of a charge referred to in
clause (b)(vi) above by reason of a decrease in the value of any such Capital Stock
or Capital Stock Equivalent and (B) gains from early extinguishment of
Indebtedness); provided, however, that (i) Consolidated EBITDA of
the Borrower and its consolidated Subsidiaries will exclude the Consolidated EBITDA
attributable to Unrestricted Subsidiaries unless (and solely to the extent) actually
distributed in cash to the Borrower or any Restricted Subsidiary, and (ii) for
purposes of calculating Consolidated EBITDA of the Borrower and its consolidated
Subsidiaries for any period for purposes of the Financial Covenants, (A) the
Consolidated EBITDA of any Person or line of business acquired by the Borrower or
any Restricted Subsidiary pursuant to a Permitted Acquisition made in accordance
with the terms of this Agreement during such period shall be included on a pro forma
basis for such period (assuming the consummation of such acquisition and the
incurrence or assumption of any Indebtedness in connection therewith occurred as of
the first day of such period) and (B) the Consolidated EBITDA of any Person or line
of business sold or otherwise disposed of by the Borrower or any Restricted
Subsidiary during such period shall be excluded for such period (assuming the
consummation of such sale or other disposition and the repayment of any Indebtedness
in connection therewith occurred as of the first day of such period).
Notwithstanding the foregoing, for purposes of calculating Consolidated EBITDA, (i)
in the event the Reorganization occurs after the beginning of any fiscal quarter,
Consolidated EBITDA for such fiscal quarter shall be determined: (A) for the

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period prior to and including the date of Reorganization during such fiscal
quarter, measuring Consolidated EBTIDA on a pro forma basis as if the Subsidiaries
of the Borrower were Subsidiaries of the Borrower from the beginning of such period
plus (B) for the period after the date of Reorganization and ending on the
last day of such fiscal quarter, an amount equal to Consolidated EBITDA for such
period; and (ii) to the extent any Test Period includes one or more fiscal quarters
occurring prior to the fiscal quarter in which the Reorganization occurred,
Consolidated EBITDA for each such prior fiscal quarter shall be measured on a pro
forma basis as if the Subsidiaries of the Borrower were Subsidiaries of the Borrower
from the beginning of such prior fiscal quarter.

               (4) The definition of “Consolidated Interest Expense” in Section 1.01 of the Credit Agreement
is hereby amended and restated in its entirety to read as follows:

          “Consolidated Interest Expense” shall mean, for the Borrower and its
consolidated Subsidiaries for any period, consolidated total cash interest expense
of the Borrower and its consolidated Subsidiaries for such period; provided,
however, that Consolidated Interest Expense of the Borrower and its
consolidated Subsidiaries will (a) exclude cash interest expense of Unrestricted
Subsidiaries and (b) be net of cash interest income. Notwithstanding the foregoing,
for purposes of calculating Consolidated Interest Expense, in the event the
Reorganization occurs after the beginning of any Test Period, Consolidated Interest
Expense for such Test Period shall be deemed to be an amount equal to Consolidated
Interest Expense for the period beginning on the date of the Reorganization and
ending on the last day of such Test Period, divided by the number of days in such
period and multiplied by 365.

               (5) The definition of “Consolidated Total Net Debt” in Section 1.01 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Consolidated Total Net Debt” shall mean, without duplication, all
liabilities, obligations and indebtedness (whether contingent or otherwise) (i) of
the type specified in clauses (a), (b), (d) and (e) of the definition of
“Indebtedness” (in the case of indebtedness specified in such clause (d), as
reported over time in accordance with GAAP), (ii) in respect of Capital Lease
Obligations permitted under Section 6.01(f), (iii) for reimbursement obligations in
respect of drawn letters of credit (including, with respect to any Loan Party,
Letters of Credit issued hereunder), (iv) under any Guarantee of obligations of the
type described in clauses (i) through (iii) of this definition; and (v) in respect
of unfunded vested benefits under plans covered by Title IV of ERISA, in each case
actually owing by the Borrower and the Restricted Subsidiaries on such date and to
the extent appearing on the balance sheet of the Borrower determined on a
consolidated basis in accordance with GAAP (provided that the amount of any Capital
Lease Obligations or any such Indebtedness issued at a discount to its face value
shall be determined in accordance with GAAP); provided, however, that
notwithstanding the foregoing, “Consolidated Total Net Debt” shall not include the
unfunded portion of any Credit Support Facilities or any Guarantees of the
obligations thereof and shall be net of (x) Unrestricted Cash and (y) cash or Cash
Equivalents posted as collateral in respect of Credit Support Facilities not secured
by the Collateral (but only to the extent of any Indebtedness of the type specified
in clauses (a) and (b) of the definition of Indebtedness and clause (iii) above in
respect of the Credit Support Facility for which such cash or Cash Equivalents have
been posted).

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               (6) The definition of “Environmental Laws” in Section 1.01 of the Credit Agreement is hereby
amended by inserting the word “permits,” after the words “legally binding” in the second line
thereof.

               (7) Clause (viii) of the definition of “Excluded Assets” in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

                    (viii) cash and Cash Equivalents subject to Liens pursuant to clauses (b), (n), (w) and (z) of
Section 6.02; and

               (8) The definition of “Interest Rate Hedging Transactions” is hereby amended by deleting the
period at the end of such definition and replacing it with “and, in any case, not entered into for
speculative purposes. For the avoidance of doubt, the determination as to whether or not an
Interest Rate Hedging Transaction is speculative shall be made as of the date such Interest Rate
Hedging Transaction is entered into by the Borrower or any Restricted Subsidiary.”

               (9) The definition of “Loan Documents” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Loan Documents” shall mean this Agreement, Amendment No. 1, the
Entergy Side Letter, any Notes delivered hereunder, the Security Documents, the Fee
Letter, the Letter of Credit Fee Letter, any Intercompany Debt Subordination
Agreement and each certificate, agreement or document executed by a Loan Party and
delivered to the Arrangers, the Administrative Agent, the Collateral Agent or any
Lender in connection with or pursuant to any of the foregoing.

               (10) The definition of “Outside Date” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

                    “Outside Date” shall mean July 1, 2010.

               (11) The definition of “Registration Statement” in Section 1.01 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Registration Statement” shall mean the Borrower’s Exchange Act
Registration Statement on Form 10 filed with the SEC, including the exhibits filed
therewith and the information statement contained therein, in the form that such
filed Registration Statement would be in were it to be amended through the draft
Amendment No. 4 posted to Intralinks for Lender review on September 15, 2009, and
including any further amendment or modification of the terms thereof (except to the
extent that such amendment or modification is materially adverse to the Lenders, in
which case the Arrangers and the Required Lenders shall have given their prior
written consent to such amendment or modification).

               (12) The definition of “Separation Documents” in Section 1.01 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Separation Documents” shall mean (i) the Separation and Distribution
Agreement by and between Entergy and the Borrower and (ii) the Limited Liability
Company Agreement of EquaGen by and among Entergy EquaGen Holdings, LLC,

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Enexus EquaGen Holdings, LLC and EquaGen, each as in effect on the Funds
Availability Date, in each case together with the schedules and exhibits thereto.

               (13) The definition of “Signing Date” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

                    “Signing Date” shall mean December 23, 2008.

               (14) The definition of “Total Commitments” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Total Commitments” shall mean, at any time, the aggregate amount of
the Commitments, as in effect at such time. The Total Commitments on the Amendment
No. 1 Effective Date is $1,200,000,000.

               (15) The definition of “Transactions” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Transactions” shall mean, collectively, (i) the Reorganization, (ii)
the Separation, (iii) the execution, delivery and performance by the Loan Parties of
the Transaction Documents to which they are a party, including the Borrowings
hereunder, the issuance of the Senior Notes, the issuance of Letters of Credit and
the use of proceeds of each of the foregoing, and (iv) the granting of Liens
pursuant to the Security Documents.

               (16) The definition of “Unrestricted Cash” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

          “Unrestricted Cash” shall mean all cash or Cash Equivalents (in each
case, free and clear of all Liens except as described in clause (ii) of the proviso
below and except for (a) nonconsensual Liens permitted by Section 6.02 and (b) Liens
of the Collateral Agent pursuant to the Security Documents ) included in the cash
and cash equivalents accounts listed on the consolidated balance sheet of the
Borrower and its consolidated Subsidiaries as of such date; provided that
Unrestricted Cash shall (i) exclude cash or Cash Equivalents of any Unrestricted
Subsidiary or any Foreign Subsidiary and (ii) except to the extent captured in
clause (i) of this proviso, include the proceeds of Indebtedness of the types set
forth in clauses (a) or (b) of the definition of Indebtedness to the extent posted
as collateral in respect of undrawn letters of credit.

               (17) The definition of “Unused Commitment Fee Rate” in Section 1.01 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Unused Commitment Fee Rate” shall mean a rate per annum equal to
0.75%.

               (18) The following definitions are hereby inserted in Section 1.01 of the Credit Agreement in
the appropriate place to preserve the alphabetical order of the definition thereunder:

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          “Amendment No. 1” shall mean that certain Amendment No. 1 to the Credit
Agreement, dated as of October 1, 2009 among the Borrower, the Lenders party thereto
and the Administrative Agent.

          “Amendment No. 1 Effective Date” shall mean the “Amendment No. 1
Effective Date” as defined in Amendment No. 1.

          “Available Liquidity” shall mean, at any time, the (a) then effective
Commitments minus (b) the Revolving Credit Outstandings plus (c)
Unrestricted Cash.

          “Entergy Credit Agreement” shall mean that certain Credit Agreement,
dated as of August 2, 2007, by and among Entergy, the banks named therein as banks,
Citibank, N.A., as administrative agent and LC issuing bank, ABN Amro Bank N.V. and
Bank of Nova Scotia, as LC issuing banks, the other LC issuing banks from time to
time party thereto, Citigroup Global Markets Inc., as sole lead arranger & book
manager, ABN Amro Bank N.V., BNP Paribas, JPMorgan Chase Bank, N.A. and The Royal
Bank of Scotland, as co-syndication agents, as such agreement is in effect on the
Amendment No. 1 Effective Date.

          “Entergy Side Letter” shall mean, to the extent delivered pursuant to
Section 4.03(o) of this Agreement, that certain side letter dated as of the Funds
Availability Date by Entergy addressed to the Administrative Agent, the Arrangers
and the Lenders.

          “Non-Extending Lenders” shall mean the Lenders with Commitments
hereunder on the Signing Date that do not consent to Amendment No. 1.

          “Original Outside Date” shall mean October 1, 2009.

          “Pledge and Control Agreement” means a pledge and control agreement in
form and substance reasonably satisfactory to the Arrangers to be entered into by
and among the Borrower, the trustee under the Senior Notes and a securities
intermediary.

          (c) Amendments to Article II (The Credits).

               (1) Section 2.03 of the Credit Agreement is hereby amended by replacing the words “and for the
account of the Borrower” in the second and third lines thereof to with the words “for the account
of the Borrower or the other Persons described in Section 3.13 in accordance with this Agreement”.

               (2) Section 2.12 of the Credit Agreement is hereby amended by replacing all references to
“Section 2.7 of the Intercreditor Agreement” contained therein with “Section 2.8 of the
Intercreditor Agreement”.

               (3) Section 2.21 of the Credit Agreement is hereby amended by replacing the number
“$500,000,000” in the fifth line thereof with “$475,000,000”.

          (d) Amendments to Article III (Representations and Warranties).

               (1) Section 3.06 of the Credit Agreement is hereby amended by replacing the date “December 31,
2007” with “December 31, 2008”.

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               (2) Section 3.07(a) of the Credit Agreement is hereby amended by replacing the words “other
than Liens expressly permitted by clauses (a), (f) and (g) of Section 6.02” in the last two lines
thereof with “other than Liens permitted by clauses (a), (c), (f), (g) and (m) of Section 6.02 and
pari passu Liens permitted by clause (bb) of Section 6.02”.

               (3) Section 3.09(a) of the Credit Agreement is hereby amended by inserting the parenthetical
“(but not including, in each case, any claims based on the Environmental Laws which are the subject
of Section 3.17)” before the period at the end thereof.

               (4) Section 3.13 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 3.13. Use of Proceeds. Subject to Section 6.07(a), after the
Funds Availability Date, the Borrower will use the proceeds of the Loans for the
ongoing working capital requirements, the payment of fees and expenses related to
the Transactions and general corporate purposes of the Borrower and the
Subsidiaries. The Borrower will request the issuance of Letters of Credit solely
for the working capital requirements and general corporate purposes of the Borrower,
its Subsidiaries and EquaGen and its subsidiaries (solely, in the case of EquaGen,
its subsidiaries and subsidiaries of the Borrower that are not Subsidiary
Guarantors, to the extent permitted by Section 6.05(j)). The Borrower and its
Restricted Subsidiaries have not used the proceeds of any Loan to make Dividends
pursuant to or in connection with the Reorganization.

               (5) Section 3.14 of the Credit Agreement is hereby amended by replacing the words “Except as
permitted in clause (e) of the definition of “Permitted Liens”,” in the penultimate
sentence thereof with the words “Except as permitted in clause (e) of Section 6.02,”.

               (6) Section 3.15 of the Credit Agreement is hereby amended by replacing the words “and the
Separation” in the second line thereof with the words “and the Transactions”.

               (7) Clause (iv) of Section 3.17 of the Credit Agreement is hereby amended by inserting the
phrase “except as allowed under Environmental Laws” before the semicolon at the end thereof.

               (8) Section 3.19 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 3.19. Security Documents. (a) The Guarantee and Collateral
Agreement is effective to create in favor of the Collateral Agent, for the ratable
benefit of the Senior Secured Parties, a legal, valid, binding and enforceable
security interest in the Collateral described therein and proceeds thereof, subject
to applicable insolvency, bankruptcy, reorganization, moratorium, fraudulent
transfer and other laws now or hereafter in effect generally affecting rights of
creditors and (including with respect to specific performance) principles of equity,
whether considered in a proceeding in equity or in law and to the discretion of the
court before which any proceeding therefor may be brought, and (i) in the case of
the Pledged Securities, upon the earlier of (A) when such Pledged Securities are
delivered to the Collateral Agent and (B) when financing statements in appropriate
form are filed in the offices specified on Schedule 3.19(a); (ii) in the case of
Deposit Accounts not constituting Excluded Perfection Assets, by the execution and
delivery of Control Agreements providing for “control” as described in

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Section 9-104 of the UCC; (iii) in the case of Securities Accounts not
constituting Excluded Perfection Assets, upon the earlier of (A) the filing of
financing statements in the offices specified on Schedule 3.19(a) and (B) the
execution and delivery of Control Agreements providing for “control” as described in
Section 9-106 of the UCC; and (iv) in the case of all other Collateral described
therein (other than Mortgaged Properties, Excluded Perfection Assets, Intellectual
Property Collateral, money not credited to a Deposit Account or letter of credit
rights not constituting supporting obligations), when financing statements in
appropriate form are filed in the offices specified on Schedule 3.19(a), the Lien
created by the Guarantee and Collateral Agreement shall constitute a fully perfected
Lien on, all right, title and interest of the Senior Secured Parties in such
Collateral and proceeds thereof, as security for the Secured Obligations arising
hereunder, in each case prior and superior to the rights of any other Person
(except, in the case of all Collateral other than Pledged Securities, with respect
to Permitted Liens afforded priority ahead of the Lien of the Collateral Agent by
operation of law, and in respect of Pledged Securities, the Permitted Liens set
forth in clause (e) of Section 6.02).

          (b) Each Intellectual Property Security Agreement is effective to create in
favor of the Collateral Agent, for the ratable benefit of the Senior Secured
Parties, a legal, valid, binding and enforceable security interest in the
Intellectual Property Collateral described therein and proceeds thereof, subject to
applicable insolvency, bankruptcy, reorganization, moratorium, fraudulent transfer
and other laws now or hereafter in effect generally affecting rights of creditors
and (including with respect to specific performance) principles of equity, whether
considered in a proceeding in equity or in law and to the discretion of the court
before which any proceeding therefor may be brought. When each Intellectual
Property Security Agreement is filed in the United States Patent and Trademark
Office and the United States Copyright Office, respectively, together with financing
statements in appropriate form filed in the offices specified in Schedule 3.19(a),
in each case within the time period prescribed by Applicable Law, the Lien created
by such Intellectual Property Security Agreement shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the grantors
thereunder in the Intellectual Property Collateral, as security for the Secured
Obligations arising hereunder, in each case prior and superior in right to any other
Person (except with respect to Permitted Liens afforded priority ahead of the Lien
of the Collateral Agent by operation of law) (it being understood that subsequent
recordings in the United States Patent and Trademark Office and the United States
Copyright Office may be necessary to perfect a Lien on registered trademarks,
trademark applications, patents, patent applications and registered copyrights
acquired by the grantors after the Funds Availability Date and additional filings
and/or other actions may be necessary to perfect the Collateral Agent’s security
interest in Intellectual Property Collateral that is created under the laws of a
jurisdiction outside the United States. Any such additional filings and/or other
actions that may be necessary to perfect the Collateral Agent’s security interest in
registrations and applications for registration of Intellectual Property (as defined
in the Guarantee and Collateral Agreement) included in the Intellectual Property
Collateral that is created under the laws of a jurisdiction outside the United
States shall be described in writing to the Collateral Agent and its legal counsel
by the Borrower or its legal counsel).

          (c) Each of the Mortgages is effective to create in favor of the Collateral
Agent, for the ratable benefit of the Senior Secured Parties, a legal, valid,
binding, subsisting and enforceable Lien on, and security interest in, all of the
Loan

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Parties’ right, title and interest in and to the Mortgaged Property thereunder
and proceeds thereof, subject to applicable insolvency, bankruptcy, reorganization,
moratorium, fraudulent transfer and other laws now or hereafter in effect generally
affecting rights of creditors and (including with respect to specific performance)
principles of equity, whether considered in a proceeding in equity or in law, and to
the discretion of the court before which any proceeding therefor may be brought, and
when the Mortgages are recorded in the offices specified on Schedule 3.19(c), the
Lien created by each such Mortgage shall constitute a fully perfected Lien on, and
security interest in, all right, title and interest of the grantors thereof in such
Mortgaged Property and proceeds thereof, as security for the Secured Obligations, in
each case prior and superior in right to any other Person (other than Liens
permitted by clauses (c), (f), (g) and (m) of Section 6.02 and pari passu Liens
permitted by clause (bb) of Section 6.02).

               (9) The words prior to clause (a) of Section 3.24 of the Credit Agreement are hereby amended
and restated in their entirety to read “On the Funds Availability Date, and immediately after the
consummation of each of the Reorganization and the Separation, and to the extent a Credit Event is
being made, immediately following such Credit Event and the application of the proceeds
therefrom,”.

               (10) Section 3.26 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 3.26. Separation Transactions.

          (a) On the Funds Availability Date and upon the consummation of the Separation
Transactions, each of the Separation Documents shall have been duly executed and
delivered by each Loan Party party thereto and constitutes a legal, valid and
binding obligation of such Loan Party, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or other
laws affecting creditors’ rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

          (b) On the Funds Availability Date and upon the consummation of the Separation
Transactions, none of the Separation Documents shall have been amended, waived or
otherwise modified from the form of the drafts attached hereto as Exhibit
R and Exhibit S, respectively, in a way that is materially
adverse to the Lenders without the prior consent of the Arrangers and the Required
Lenders and no condition precedent therein to the obligations of the Borrower
waived, altered, amended or otherwise changed or supplemented, in each case in a
manner materially adverse to the interests of the Lenders, without the prior written
consent of the Arrangers and the Required Lenders.

          (c) At the time of Separation and after giving effect thereto, the Separation
Transactions shall have been consummated in all material respects in accordance with
each of the Separation Documents and substantially in the manner described in the
Registration Statement.

               (11) Section 3.27 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 3.27. Segregation of Cash Management and Business Operations.
The Borrower and its Restricted Subsidiaries have at all times following the

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Funds Availability Date (i) maintained books, financial records and bank
accounts that are separate and distinct from the books, financial records and bank
accounts of Entergy and its subsidiaries, (ii) held themselves out as an entity
separate and distinct from Entergy and any of its subsidiaries (including their
Affiliates), (iii) conducted their own business in their own name, (iv) held all of
their assets in their own name and (v) not identified itself as a division or
department of Entergy or any of its subsidiaries.

          (e) Amendments to Article IV (Conditions Precedent)

               (1) Sections 4.01(c) and 4.03(l) of the Credit Agreement are hereby amended by replacing the
date “December 31, 2007” with “December 31, 2008”.

               (2) Section 4.03(a)(v)(D) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (D) searches of ownership of intellectual property in the appropriate
governmental offices and such patent, trademark and/or copyright filings as may be
requested by the Collateral Agent to the extent necessary or reasonably advisable to
perfect the Collateral Agent’s security interest in intellectual property
Collateral;

               (3) Section 4.03(a)(vii)(B) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

               (B) fully paid American Land Title Association Lender’s Extended Coverage title
insurance policies (the “Mortgage Policies”) in form and substance, with
endorsements and in amounts, reasonably acceptable to the Collateral Agent, issued
by title insurers acceptable to the Collateral Agent, insuring the Mortgages to be
valid first and subsisting Liens on the property described therein, free and clear
of all defects (including, but not limited to, mechanics’ and materialmen’s Liens)
and encumbrances, excepting only Liens of the type permitted by clause (g) of
Section 6.02, and providing for such other affirmative insurance (including
endorsements for future advances under the Loan Documents, for mechanics’ and
materialmen’s Liens) as the Collateral Agent may deem reasonably necessary or
desirable;

               (4) Section 4.03(a)(vii) of the Credit Agreement is hereby amended by adding the following
proviso after sub-clause (I) thereof:

               provided that notwithstanding clause (A) above, the Mortgage with
respect to the Pilgrim power facility located in the Commonwealth of Massachusetts
and owned by Enexus Nuclear Generation Company may be delivered after the Funds
Availability Date in accordance with Section 5.16 hereof;

               (5) Section 4.03(a)(viii) of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (viii) a copy of the Constituent Documents, including all amendments thereto as
of the Funds Availability Date, of each Restricted Subsidiary, and, with respect to
certificates of incorporation, formation or limited partnership, certified as of a
recent date by the Secretary of State or other applicable Governmental Authority of
its respective jurisdiction of organization (provided that with respect to Enexus
Nuclear Generation Company, a Massachusetts corporation, to the extent a certified
copy of

- 11 -

 

its certificate of incorporation reflecting the mergers pursuant to the
Reorganization is not yet available from the applicable Secretary of State or other
applicable Governmental Authority, such certificate shall not be a condition to the
Funds Availability Date but shall instead be delivered in accordance with Section
5.16), together with:

               (A) a certificate as to the good standing of the Borrower and each Restricted
Subsidiary, as of a recent date, from the Secretary of State or other applicable
authority of its respective jurisdiction of organization and from each other
jurisdiction where its ownership, lease or operation of properties or the conduct of
its business requires such qualification, together in each case with a certificate
or other evidence of good standing as to payment of any applicable franchise or
similar Taxes from the appropriate taxing authority of each such jurisdiction;

               (B) a certificate of the Secretary or Assistant Secretary of the Borrower and
each Restricted Subsidiary dated the Funds Availability Date and certifying (1) that
the Constituent Documents (x) of the Borrower have not been amended since the
Signing Date except as disclosed in the Registration Statement and (y) of such
Restricted Subsidiary have not been amended since the date of the last amendment
thereto shown on the certificate of good standing from its jurisdiction of
organization furnished pursuant to clause (A) above except as disclosed in the
Registration Statement; (2) that attached thereto is a true and complete copy of the
agreement of limited partnership, operating agreement or by-laws of the Borrower and
each Restricted Subsidiary, as in effect on the Funds Availability Date and at all
times since a date prior to the date of the resolutions described in clause (3)
below, (3) that attached thereto is a true and complete copy of resolutions duly
adopted by the board of directors or other governing body of the Borrower and each
Restricted Subsidiary authorizing the Transactions and the execution, delivery and
performance of the Transaction Documents to which it is to be a party and, in the
case of the Borrower, the borrowings hereunder, and that such resolutions have not
been modified, rescinded or amended and are in full force and effect; and (4) as to
the incumbency and specimen signature of each officer executing any Loan Document or
any other document delivered in connection herewith on behalf of the Borrower and
each Restricted Subsidiary; and

               (C) a certificate of another officer as to the incumbency and specimen
signature of the Secretary or Assistant Secretary executing the certificate pursuant
to clause (B) above;

               (6) Section 4.03(a)(x) of the Credit Agreement is hereby amended and restated in its entirety
to read as follows:

          (x) favorable written legal opinions from special Michigan, Vermont, New York
and Massachusetts counsel to the Borrower and the other Loan Parties (which counsel
shall be reasonably satisfactory to the Collateral Agent) addressed to the
Arrangers, the Administrative Agent, the Collateral Agent and each Lender, dated the
Funds Availability Date, substantially in the form of Exhibit J,
Exhibit K, Exhibit L and Exhibit M
hereto respectively and covering such additional matters incident to the
transactions contemplated hereby as the Arrangers or the Required Lenders may
reasonably request;

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               (7) Section 4.03(a)(xiii) of the Credit Agreement is hereby amended by deleting the words “and
(ii) related endorsements to such insurance policies contemplated by Section 5.03; and” and
replacing them with the words “and (ii) related endorsements to such insurance policies naming the
Collateral Agent as loss payee or additional insured, as the case may be; and”

               (8) Section 4.03(f) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

               (f) Consummation of the Separation Transactions. On or prior to the
Funds Availability Date, there shall have been delivered to the Arrangers true and
correct copies of the Separation Documents, certified as such by a Responsible
Officer of the Borrower. The Separation, including all of the terms and conditions
thereof, shall have been duly approved by the board of directors and (if required by
Applicable Laws) the shareholders of each of Entergy and the Borrower, and all
Separation Documents shall have been duly executed and delivered by the parties
thereto and shall be in full force and effect. The Separation Documents shall not
have been amended, waived or otherwise modified from the form of the drafts attached
hereto as Exhibit R and Exhibit S respectively, in a way that is
materially adverse to the Lenders without the prior consent of the Arrangers and the
Required Lenders and no condition precedent therein to the obligations of the
Borrower waived, altered, amended or otherwise changed or supplemented, in each case
in a manner materially adverse to the interests of the Lenders, without the prior
written consent of the Arrangers and the Required Lenders. On or prior to the Funds
Availability Date, the Reorganization shall have been consummated in accordance with
the Separation Documents and the Registration Statement and in accordance with all
Applicable Laws.

               (9) Section 4.03(g) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

               (g) Corporate Ratings. The Borrower shall have obtained corporate
credit and corporate family ratings from each of Moody’s and S&P. The ratings
obtained shall be no less than Ba3 from Moody’s and BB- from S&P.

               (10) Section 4.03(i) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

               (i) Senior Note Issuance. The Borrower shall have issued Senior Notes
pursuant to Rule 144A or another exemption from the registration requirements of the
Securities Act and, if applicable, any Funds Availability Indebtedness, in a
combined aggregate principal amount of not less than $3,000,000,000. The Borrower
shall cause a Responsible Officer to deliver a certificate to the Arrangers
attaching true and correct copies of the Senior Note Documents and, if applicable,
the Funds Availability Indebtedness Documents, as in effect on the Funds
Availability Date.

               (11) Section 4.03 of the Credit Agreement is hereby amended to add a new clause (o) as
follows:

               (o) Entergy Side Letter. If the Separation is to occur after the Funds
Availability Date, the Borrower shall deliver to the Administrative Agent on or
prior to the Funds Availability Date an executed side letter dated as of the Funds
Availability Date from Entergy, in form and substance reasonably acceptable to the
Administrative

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Agent and the Arrangers, addressed to the Administrative Agent, the Arrangers
and the Lenders and containing (i) representations by Entergy that the Transactions
and the Transaction Documents (A) have been duly authorized by all requisite
corporate action and (B) will not (1) violate, conflict with, result in a breach of
or otherwise constitute a default under (w) any applicable provisions of any
material law, statute, rule or regulation, (x) any organizational documents of
Entergy, its Significant Subsidiaries (as such term is defined in the Entergy Credit
Agreement) or the Borrower, (y) any order of any Governmental Authority or
arbitrator or (z) any provision of any indenture or any material agreement or other
material instrument to which Entergy, its Significant Subsidiaries or the Borrower
are bound or (2) result in the creation or imposition of any Lien (other than Liens
created under the Security Documents) upon or with respect to any property or assets
now owned by Entergy, its Significant Subsidiaries or the Borrower and stating that
such representations are true and correct in all material respects (except to the
extent that such representations are qualified as to materiality, in which case
stating that such representations are true and correct in all respects) and (ii) a
covenant by Entergy similar to those contained in clauses (c) and (d) of Section
6.07 of the Credit Agreement with respect to the Borrower and its Restricted
Subsidiaries for the period from the Funds Availability Date through and including
the date of the Separation.

               (12) Section 4.03 of the Credit Agreement is hereby amended to add a new clause (p) as
follows:

               (p) No Conflicts Opinion for Separation. If the Separation is to occur
after the Funds Availability Date, the Borrower shall deliver to the Administrative
Agent a favorable written legal opinion dated the Funds Availability Date from
Skadden, Arps, Slate, Meagher & Flom LLP, special New York counsel to Entergy, the
Borrower and the other Loan Parties, addressed to the Arrangers, the Administrative
Agent, the Collateral Agent and each Lender, in form and substance reasonably
satisfactory to the Administrative Agent and the Arrangers and stating that there
are no conflicts with certain material agreements of Entergy as a result of the
consummation of the Transactions.

               (13) Section 4.03 of the Credit Agreement is hereby amended to add a new clause (q) as
follows:

               (q) Minimum Available Liquidity. Following the consummation of the
Reorganization (including, for the avoidance of doubt, any Dividends to be made
pursuant to or in connection with the Reorganization) on the Funds Availability
Date, the Borrower and its Restricted Subsidiaries shall have Available Liquidity of
at least $1,250,000,000.

               (14) The final paragraph of Section 4.03 of the Credit Agreement is hereby amended by adding
the words (i) “the Administrative Agent and” prior to the words “each Lender” in the second line of
such paragraph; (ii) “the Administrative Agent or” prior to the words “a Lender” in the fourth line
of such paragraph; and (iii) “the Administrative Agent or” prior to the words “such Lender” in the
fifth line of such paragraph.

          (f) Amendments to Article V (Affirmative Covenants).

               (1) Clause (ii) of the introductory paragraph to Article V is hereby amended and restated in
its entirety to read as follows:

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          (ii) from and after the time the conditions in Section 4.03 have been
satisfied or duly waived on the Funds Availability Date, so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all fees and all other expenses or amounts
payable under any Loan Document (other than indemnification and other contingent
obligations in each case not then due and payable) shall have been paid in full and
all Letters of Credit have been canceled or have expired and all amounts drawn
thereunder have been reimbursed in full or reimbursement thereof shall have been
cash-collateralized in an amount equal to 100% of the Letter of Credit Obligations
as of such time, the Borrower will, and will cause each of the Restricted
Subsidiaries to:

               (2) Section 5.05(a) of the Credit Agreement is hereby amended by deleting the parenthetical
“(or, in the case of the fiscal year ending December 31, 2008, the comparable twelve month period
ending December 31, 2007)”.

               (3) Section 5.05(d) of the Credit Agreement is hereby amended by replacing the phrase
“Administrative Agent” with “Collateral Agent” in the last line thereof.

               (4) Section 5.05(g) of the Credit Agreement is hereby amended by inserting “, Separation
Financing Document” after the words “Material Indebtedness” in the third line thereof.

               (5) Section 5.08(b) of the Credit Agreement is hereby amended by replacing the word
“Facilities” in the fourth line thereof with the words “Nuclear Stations”.

               (6) Section 5.08(c) of the Credit Agreement is hereby amended by (i) replacing the words “the
Administrative Agent” in the first two instances that it occurs with the words “either Agent” and
(ii) replacing the words “the Administrative Agent” in the third instance it occurs with the words
“the applicable Agent”.

               (7) Section 5.09 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 5.09. Use of Proceeds. Use the proceeds of the Loans and
request the issuance of Letters of Credit only for the purposes set forth in Section
3.13. The Borrower and its Restricted Subsidiaries shall not use the proceeds of
any Loan to make Dividends pursuant to or in connection with the Reorganization.

               (8) Section 5.10 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 5.10. Additional Collateral, etc. (a) With respect to any
property acquired on or after the Funds Availability Date by any Loan Party (other
than Excluded Assets, Excluded Perfection Assets and any property described in
paragraph (b), (c) or (d) below) as to which the Collateral Agent, for the benefit
of the Senior Secured Parties, does not have a perfected Lien, promptly (and, in any
event within 20 Business Days following the date of such acquisition) (i) execute
and deliver to the Administrative Agent and the Collateral Agent such amendments to
the Guarantee and Collateral Agreement or such other documents as the Collateral
Agent deems necessary or reasonably advisable to grant to the Collateral Agent, for
the benefit of the Senior Secured Parties, a security interest in such property and
(ii) take all actions necessary or reasonably advisable to grant to the Collateral
Agent, for the benefit of the Senior

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Secured Parties, a perfected first priority security interest in such property
(subject, in the case of property not constituting Pledged Securities, to Permitted
Liens afforded priority ahead of the Lien of the Collateral Agent by operation of
law, and in the case of Pledged Securities, to Liens permitted by clause (e) of
Section 6.02), including the filing of Uniform Commercial Code financing statements
in such jurisdictions as may be required by the Guarantee and Collateral Agreement
or by law or as may be reasonably requested by the Collateral Agent.

               (b) With respect to any fee interest in any real property or any lease
consisting of real property acquired or leased on or after the Funds Availability
Date by any Loan Party (other than any Excluded Assets and Excluded Perfection
Assets) within ninety (90) days after the acquisition or leasing thereof (i) execute
and deliver a first priority Mortgage (subject only to Liens permitted by clauses
(c), (f), (g) and (m) of Section 6.02 and pari passu Liens permitted by clause (bb)
of Section 6.02) or where appropriate under the circumstances, an amendment to an
existing Mortgage, in each case in favor of the Collateral Agent, for the benefit of
the Senior Secured Parties, covering such real property, (ii) if requested by the
Administrative Agent, provide the Senior Secured Parties with (x) either (1) (A)
title insurance covering such real property in an amount at least equal to the
purchase price of such real property (or such other amount as shall be reasonably
specified by the Administrative Agent) in form and substance reasonably satisfactory
to the Administrative Agent; and (B) a current ALTA survey thereof, complying with
the requirements set forth in Schedule 5.10(b) together with a surveyor’s
certificate (only with respect to (i) any power plant, (ii) any improved real
property, and (iii) any other real property for which an ALTA survey was obtained
when such property was acquired. Notwithstanding the foregoing, such Loan Party
shall obtain or cause to be obtained an ALTA survey complying with the requirements
set forth in Schedule 5.10(b) together with a surveyor’s certificate for any
real property that becomes Collateral pursuant to this section to the extent that
the title company will not remove the survey exception (or endorse over such
exception) without an ALTA survey) or (2) where an amendment to an existing Mortgage
has been delivered pursuant to clause (i) instead of a Mortgage, an endorsement to
the existing title policy adding such property as an insured parcel, or a new title
policy if the requirements in the state in which the real property is located do not
allow for such an endorsement, and (y) any consents or estoppels reasonably deemed
necessary or advisable by the Administrative Agent or the Collateral Agent in
connection with such Mortgage or Mortgage amendment (to the extent obtainable using
commercially reasonable efforts), each of the foregoing in form and substance
reasonably satisfactory to the Collateral Agent, (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent and the Collateral Agent
legal opinions relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the Administrative
Agent and the Collateral Agent, (iv) if requested by the Administrative Agent or the
Collateral Agent, deliver to the Administrative Agent and the Collateral Agent a
current appraisal of such real property or other valuation of such Loan Party’s
interest therein in a form and by an appraiser reasonably acceptable to the
Administrative Agent, (v) deliver to the Administrative Agent and the Collateral
Agent a SFHDF with respect to such real property and, to the extent that the SFHDF
indicates that such real property is in a Special Flood Hazard Area as designated by
the Federal Emergency Management Agency, proof that adequate flood insurance, as
required under the National Flood Insurance Program, has been obtained with respect
to such real property and (vi) deliver evidence of zoning compliance satisfactory to
the Collateral Agent or Administrative Agent.

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               (c) With respect to (i) any new Subsidiary (other than an Excluded Subsidiary)
created or acquired by the Borrower or any of the Restricted Subsidiaries or (ii)
any domestic Immaterial Subsidiary or domestic Unrestricted Subsidiary that is
designated as a Restricted Subsidiary in accordance with Section 6.11, in each case,
on or after the Funds Availability Date, within twenty (20) days of such creation,
acquisition or designation the Borrower or the applicable Restricted Subsidiary
shall (i) execute and deliver to the Administrative Agent and the Collateral Agent
such amendments to the Guarantee and Collateral Agreement as the Administrative
Agent and the Collateral Agent deem necessary or reasonably advisable to grant to
the Collateral Agent, for the benefit of the Senior Secured Parties, a perfected
first priority security interest in the Capital Stock of such new Subsidiary that is
owned by any Loan Party (subject only to the Liens permitted by clause (e) of
Section 6.02), (ii) deliver to the Collateral Agent any certificates representing
such Capital Stock, together with undated stock powers, in blank, executed and
delivered by a duly authorized officer of the Borrower or such Restricted
Subsidiary, (iii) cause such Subsidiary that is a wholly-owned Subsidiary (A) to
become a party to the Guarantee and Collateral Agreement, and (B) to take such
actions necessary or advisable to grant to the Collateral Agent for the benefit of
the Senior Secured Parties a perfected first priority security interest (subject, in
the case of property not constituting Pledged Securities, to Permitted Liens
afforded priority ahead of the Lien of the Collateral Agent by operation of law, and
in the case of Pledged Securities, to Liens permitted by clause (e) of Section 6.02)
in the Collateral described in the Guarantee and Collateral Agreement with respect
to such new Subsidiary, including the filing of Uniform Commercial Code financing
statements in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by Applicable Law or as may be reasonably requested by the
Administrative Agent and (iv) if requested by the Administrative Agent, deliver to
the Administrative Agent and the Collateral Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent and the Collateral
Agent.

               (d) With respect to (i) any Foreign Subsidiary created or acquired on or after
the Funds Availability Date and directly owned by any Loan Party or (ii) any foreign
Immaterial Subsidiary or foreign Unrestricted Subsidiary that is designated as a
Restricted Subsidiary in accordance with Section 6.11 and directly owned by any Loan
Party, in each case, on or after the Funds Availability Date , promptly (and, in any
event, within 30 days of the creation or acquisition thereof) (A) execute and
deliver to the Administrative Agent and the Collateral Agent (x) such amendments to
the Guarantee and Collateral Agreement as the Collateral Agent deems necessary or
reasonably advisable and/or (y) a Foreign Pledge Agreement, in each case to grant to
the Collateral Agent, for the benefit of the Senior Secured Parties, a perfected
first priority security interest in the Capital Stock of such Foreign Subsidiary
that is owned by any such Loan Party (subject only to the Liens permitted by clause
(e) of Section 6.02 and provided that in no event shall more than 65% of the total
outstanding voting Capital Stock of any such Foreign Subsidiary be required to be so
pledged), (B) if commercially reasonable, deliver to the Collateral Agent the
certificates representing such Capital Stock, together with undated stock power, in
blank, executed and delivered by a duly authorized officer of the relevant Loan
Party, and take such other action as may be necessary or, in the opinion of the
Administrative Agent, desirable to perfect the Collateral Agent’s security interest
therein, and (C) if requested by the Administrative Agent, deliver to the
Administrative Agent and the Collateral Agent legal opinions relating to the matters
described above,

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which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent and the Collateral Agent.

               (9) Section 5.11(b) of the Credit Agreement is hereby amended to replace the words “after the
Funds Availability Date” with the words “on or after the Funds Availability Date”.

               (10) Clause (i) of Section 5.13 of the Credit Agreement is hereby amended by replacing the
words “each other Loan Party and its Subsidiaries” with “(A) each other Loan Party and its
Subsidiaries and (B) Entergy and its subsidiaries”.

               (11) Clause (vi) of Section 5.13 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (vi) except with respect to an intercompany merger permitted by Section 6.04,
not identify itself as a division or department of (A) any other Loan Party or its
Subsidiaries or (B) Entergy and its subsidiaries; except in each case, as needed for
tax purposes; and

               (12) Section 5.14 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 5.14. Maintenance of Ratings. Maintain corporate credit and
corporate family ratings for the Borrower from each of Moody’s and S&P.

               (13) Section 5.15(a)(ii) of the Credit Agreement is hereby amended by adding the words “on or”
before the words “after the Funds Availability Date” in the third line thereof.

               (14) Section 5.15(b) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          (b) Shall (i) not permit restrictions in any Key Contracts and (ii) use
commercially reasonable efforts to prevent restrictions in joint venture agreements
entered into on or after the Funds Availability Date that would prevent the
Collateral Agent or its designee from enforcing such Key Contract or foreclosing on
such Loan Party’s ownership or Equity Interests in respect of such joint venture
following an exercise of remedies as contemplated in Section 7.03 of this Agreement
or as provided in any Security Document.

               (15) The Credit Agreement is hereby amended to add a new Section 5.16 to read as follows:

          SECTION 5.16. Post Funds Availability Date Deliveries. To the extent
not delivered on or prior to the Funds Availability Date, the Borrower shall or
shall cause Enexus Nuclear Generation Company (or any successor thereto) to deliver
within 5 Business Days after the Funds Availability Date: (a) the certificate of
incorporation or formation, as applicable, that was not delivered pursuant to
Section 4.03(a)(viii) on or prior to the Funds Availability Date and (b) a Mortgage
pursuant to the provisions of Section 4.03(a)(vii) for the Pilgrim power facility
located in the Commonwealth of Massachusetts and owned by Enexus Nuclear Generation
Company.

          (g) Amendments to Article VI (Negative Covenants)

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               (1) Clause (ii) of the introductory paragraph to Article VI is hereby amended and restated in
its entirety to read as follows:

          (ii) from and after the time the conditions in Section 4.03 have been
satisfied or duly waived on the Funds Availability Date, so long as this Agreement
shall remain in effect and until the Commitments have been terminated and the
principal of and interest on each Loan, all fees and all other expenses or amounts
payable under any Loan Document (other than indemnification and other contingent
obligations in each case not then due and payable) shall have been paid in full and
all Letters of Credit have been cancelled or have expired and all amounts drawn
thereunder have been reimbursed in full or reimbursement thereof shall have been
cash-collateralized in an amount equal to 100% of the Letter of Credit Obligations
as of such time, the Borrower will not, nor will it cause or permit any of its
Restricted Subsidiaries to:

               (2) Clause (c) of Section 6.02 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (c) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by Section 6.01(f) and (p) hereof covering only the assets acquired with
or financed by such Indebtedness;

               (3) Clause (h) of Section 6.02 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (h) Liens to secure any Permitted Refinancing Indebtedness permitted under
clause (g) of Section 6.01; provided that such Lien shall be limited to all or part
of the same property and assets that secured or, under the written agreements
pursuant to which the original Lien arose, could secure the original Lien (plus
improvements and accessions to such property or proceeds or distributions thereof);

               (4) Clause (n) of Section 6.02 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (n) Liens on cash and Cash Equivalents (i) deposited by the Borrower or any of
the Restricted Subsidiaries in margin accounts with or on behalf of futures contract
brokers or paid over to other counterparties, or (ii) pledged or deposited as
collateral to a contract counterparty or issuer of surety bonds or issuer of letters
of credit by the Borrower or any of the Restricted Subsidiaries, in each case
incurred in the ordinary course of the Permitted Business to secure obligations of
such counterparty or such issuer that are not secured by the Lien of the Collateral
Agent (and, for the avoidance of doubt, the cash and Cash Equivalents described in
clauses (i) and (ii) above shall not include any cash or Cash Equivalents that are
subject to Liens as a result of being pledged or deposited for the benefit of (x)
any Hedge Counterparty Lienholder (as defined in the Intercreditor Agreement) with
respect to any Specified Commodity Hedge Transaction or (y) any Senior Secured Party
with respect to any Specified Credit Support Facilities); provided, that
after incurring Liens of the type set forth in the foregoing clauses (i) and (ii),
the Borrower would be in pro forma compliance with its Financial Covenants as
calculated with the most recent financial information delivered pursuant to Section
5.05(a) or (b) (as applicable);

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               (5) Section 6.04 of the Credit Agreement is hereby amended by adding a new paragraph following
clause (b) thereof to read as follows:

          Notwithstanding the foregoing, the Loan Parties shall be permitted to carry out
the Separation Transactions on or after the Funds Availability Date in accordance
with the Registration Statement and the Separation Documents.

               (6) Clause (d) of Section 6.05 of the Credit Agreement is hereby amended by adding the word
“aggregate” before the word “amount” in the last line thereof.

               (7) Clause (g) of Section 6.05 of the Credit Agreement is hereby amended by deleting the comma
after the words “Loan Party” in the second line thereof and adding the word “and” following such
words.

               (8) Clause (j) of Section 6.06 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          (j) any Restricted Subsidiary may make payments pursuant to tax sharing
agreements among the Borrower and/or its Subsidiaries on customary terms, but only
to the extent attributable to the ownership or operation of such Restricted
Subsidiary;

               (9) Section 6.06 of the Credit Agreement is hereby amended by adding the word “and” following
the semicolon at the end of clause (k) thereof and adding the following new clause (l) after such
clause (k) to read as follows:

          (l) prior to the Separation, the Borrower and any Restricted Subsidiary may
make payments pursuant to tax sharing agreements among Entergy and its Subsidiaries,
but only to the extent attributable to the ownership or operation of the Borrower or
such Restricted Subsidiary, as applicable;

               (10) The proviso at the end of Section 6.06 of the Credit Agreement is hereby amended and
restated in its entirety as follows:

          provided, however that (i) (A) following the delivery of a
blockage notice to the Subsidiary Guarantors under the Senior Note Guarantees and
any Funds Availability Indebtedness Guarantees as provided in the Intercreditor
Agreement and until such notice terminates as set forth in the Intercreditor
Agreement or has otherwise been rescinded or (B) after the occurrence and during the
continuation of any payment default under any Designated Senior Indebtedness (as
such term is defined in the Senior Note Documents as in effect on the Funds
Availability Date), no dividend or distribution of any kind may be made pursuant to
this Section 6.06 or otherwise, the proceeds of which would be used by the Borrower
or any Restricted Subsidiary to pay any obligations owing under the Senior Notes,
any Funds Availability Indebtedness or any Senior Note Guarantees or Funds
Availability Indebtedness Guarantees and (ii) the Dividends contemplated by clauses
(a), (b), (c), (e), (f), (g) and (j) above may only be made from and after the date
of the consummation of the Separation.

               (11) Clause (b)(vi) of Section 6.08 of the Credit Agreement is hereby amended by replacing the
word “Borrowers” with the word “Borrower” in the fourth line thereof.

- 20 -

 

               (12) Clause (b) of Section 6.08 is hereby amended by deleting the “and” at the end of clause
(viii), deleting the period at the end of clause (ix) and replacing it with “and” and adding the
following new clause (x) to read as follows:

          (x) the Separation Transactions; provided that such Separation
Transactions are consummated as set forth in the Registration Statement and the
Separation Documents.

          (h) Amendments to Article VII (Events of Default)

               (1) Clause (c) of Section 7.02 of the Credit Agreement is hereby amended by replacing the word
“Fee” therein with the word “fee”.

               (2) Section 7.02 of the Credit Agreement is hereby amended by deleting the “or” at the end of
clause (k), deleting the period at the end of clause (l) and replacing it with “; or” and adding a
new clause (m) to read as follows:

          (m) on or prior to the date of the Separation, Entergy or any of its
Significant Subsidiaries (as defined in the Entergy Credit Agreement) shall, in
respect of any Indebtedness for money borrowed of Entergy or any Significant
Subsidiary in an aggregate principal amount of $100,000,000 (“Material Entergy
Indebtedness”): (i) fail to pay any principal or interest (regardless of amount
due) when and as the same shall become due and payable (after giving effect to any
applicable grace period) or (ii) (A) in the case of Entergy, suffer the occurrence
of any other event or condition that results in such Material Entergy Indebtedness
becoming due prior to its scheduled maturity or that enables or permits (with or
without the giving of notice, the lapse of time or both) the holder or holders of
such Material Entergy Indebtedness or any trustee or agent on its or their behalf to
cause such Material Entergy Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled
maturity or (B) in the case of any Significant Subsidiary, suffer the occurrence of
any other event or condition that results in such Material Entergy Indebtedness
becoming due and payable or required to be prepaid (rather than by a regularly
scheduled required repayment), repurchased, redeemed or defeased prior to its
scheduled maturity; provided, however, that the entry into the debt
assumption agreement between Entergy Texas, Inc. (or its successors or assigns
permitted under the Entergy Credit Agreement) and Entergy Gulf States Louisiana,
Inc. (or its successors or assigns permitted under the Entergy Credit Agreement)
shall not constitute or result in an Event of Default hereunder.

          (i) Amendments to Article IX (Miscellaneous)

               (1) Section 9.02 of the Credit Agreement is hereby amended by replacing the word “Fee” therein
with the word “fee”.

               (2) Section 9.08(b) of the Credit Agreement is hereby amended by deleting the words “prior to
the Funds Availability Date” in the last sentence thereof.

               (3) Section 9.20 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

          SECTION 9.20. Termination. Notwithstanding anything to the contrary
herein, (i) if the Funds Availability Date shall not have occurred on or prior to
the

- 21 -

 

Original Outside Date, the Commitments of the Non-Extending Lenders hereunder
shall terminate automatically on the Original Outside Date and such Non-Extending
Lenders shall cease to be Lenders for all purposes of this Agreement from and after
the Original Outside Date and (ii) if the Funds Availability Date shall not have
occurred on or prior to the Outside Date, the Commitments of the Lenders hereunder
shall terminate automatically on such Outside Date and this Agreement shall be of no
further force and effect except for those provisions herein that by their terms
expressly survive termination of this Agreement.

          (j) Amendments to Annex III (Signing Date Representations and Warranties)

               (1) Except with respect to Sections 1.05 and 1.13 of Annex III to the Credit Agreement, each
occurrence of the words “Signing Date” in Annex III to the Credit Agreement is hereby replaced with
“Signing Date, the date of Amendment No. 1 and the Amendment No. 1 Effective Date”.

               (2) Section 1.06 of Annex III to the Credit Agreement is hereby amended to replace “December
31, 2007” with “December 31, 2008.”

               (3) Section 1.13 of Annex III to the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

          SECTION 1.13. No Restricted Subsidiaries. As of each of the Signing
Date and the date of Amendment No. 1, there are no Restricted Subsidiaries.

          (k) Amendments to Annex V (Signing Date Affirmative Covenants)

               (1) The introduction to the Signing Date Affirmative Covenants in Annex V to the Credit
Agreement is hereby amended by adding the following new paragraph after the introductory paragraph
thereto:

          Notwithstanding anything to the contrary contained in this Annex V, the
Borrower and its Restricted Subsidiaries shall be permitted to undertake any action
necessary to consummate the Reorganization pursuant to and in accordance with the
Registration Statement, the Separation Documents and Applicable Laws;
provided that the Borrower and the Restricted Subsidiaries shall not
consummate the Reorganization in a manner that materially deviates from the
descriptions thereof set forth in the Registration Statement and the Separation
Documents without the prior written consent of the Arrangers and each Lender.

               (2) Section 1.04 of Annex V to the Credit Agreement is hereby amended by deleting the extra
period at the end thereof.

          (l) Amendments to Annex VI (Signing Date Negative Covenants)

               (1) The second introductory paragraph to the Signing Date Negative Covenants in Annex VI to
the Credit Agreement is hereby amended and restated in its entirety to read as follows:

          Notwithstanding anything to the contrary contained in this Annex VI, the
Borrower and its Restricted Subsidiaries shall be permitted to undertake any action
necessary to consummate the Reorganization pursuant to and in accordance with the

- 22 -

 

Registration Statement, the Separation Documents and Applicable Laws;
provided that the Borrower and the Restricted Subsidiaries shall not
consummate the Reorganization in a manner that materially deviates from the
descriptions thereof set forth in the Registration Statement and the Separation
Documents without the prior written consent of the Arrangers and each Lender.

               (2) Clause (c) of Section 1.02 of Annex VI to the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

          (c) Liens to secure Indebtedness (including Capital Lease Obligations)
permitted by clauses (f) and (p) of Section 1.01 hereof covering only the assets
acquired with or financed by such Indebtedness;

               (3) Clause (h) of Section 1.02 of Annex VI to the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

          (h) Liens to secure any Permitted Refinancing Indebtedness permitted under
clause (g) of Section 1.01; provided that such Lien shall be limited to all or part
of the same property and assets that secured or, under the written agreements
pursuant to which the original Lien arose, could secure the original Lien (plus
improvements and accessions to such property or proceeds or distributions thereof);

               (4) Clause (n) of Section 1.02 of Annex VI to the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

          (n) Liens on cash and Cash Equivalents (i) deposited by the Borrower or any of
the Restricted Subsidiaries in margin accounts with or on behalf of futures contract
brokers or paid over to other counterparties, or (ii) pledged or deposited as
collateral to a contract counterparty or issuer of surety bonds or issuer of letters
of credit by the Borrower or any of the Restricted Subsidiaries, in each case
incurred in the ordinary course of the Permitted Business to secure obligations of
such counterparty or such issuer that are not secured by the Lien of the Collateral
Agent (and, for the avoidance of doubt, the cash and Cash Equivalents described in
clauses (i) and (ii) above shall not include any cash or Cash Equivalents that are
subject to Liens as a result of being pledged or deposited for the benefit of (x)
any Hedge Counterparty Lienholder (as defined in the Intercreditor Agreement) with
respect to any Specified Commodity Hedge Transaction or (y) any Senior Secured Party
with respect to any Specified Credit Support Facilities); provided, that
after incurring Liens of the type set forth in the foregoing clauses (i) and (ii),
the Borrower would be in pro forma compliance with its Financial Covenants as
calculated with the most recent financial information delivered pursuant to Section
5.05(a) or (b) (as applicable);

               (5) clauses (aa), (bb) and (cc) of Section 1.02 of Annex VI to the Credit Agreement are hereby
amended and restated in their entirety to read as follows:

          (aa) Liens, restrictions, regulations, Easements, exceptions or reservations of
any Governmental Authority;

          (bb) Liens to secure Environmental CapEx Debt or Necessary CapEx Debt permitted
by Section 1.01(x) that encumber only the assets purchased, installed or otherwise
acquired with the proceeds of such Environmental CapEx Debt or Necessary

- 23 -

 

CapEx Debt; provided, that the Liens securing such Indebtedness must be pari
passu with, or junior to, the Liens on such assets securing the Secured Obligations;

          (cc) Liens on Indebtedness permitted by Sections 1.01(k) or 1.01(z), to the
extent that Liens are permitted on the underlying Indebtedness with respect thereto;
and

               (6) Section 1.02 of Annex VI to the Credit Agreement is hereby amended by adding a new clause
(dd) at the end of such section:

          (dd) Liens on all funds and other investments property pledged pursuant to the
Pledge and Control Agreement.

               (7) Section 1.03 of Annex VI to the Credit Agreement is hereby amended by deleting the words
“and Sales of Assets” from the caption thereto.

          (m) Amendments to Exhibits

               (1) Exhibit B (Form of Intercompany Debt Subordination Agreement);
Exhibit I-2-A (Funds Availability Date Opinion of Skadden, Arps (Including FERC
Opinion)); Exhibit I-2-B (Funds Availability Date Opinion of Internal Counsel);
Exhibit J (Vermont Local Counsel Opinion (Regulatory and Real Estate));
Exhibit K (Massachusetts Local Counsel Opinion (Corporate, Regulatory and Real
Estate)); Exhibit L (New York Local Counsel Opinion (Regulatory)); Exhibit
M (Michigan Local Counsel Opinion (Regulatory and Real Estate)); Exhibit O
(Form of Guarantee and Collateral Agreement); Exhibit P (Form of Mortgage);
Exhibit P-1 (Michigan Form of Mortgage); Exhibit P-2 (Massachusetts
Form of Mortgage); Exhibit P-3 (Vermont Form of Mortgage); Exhibit R (Form
of Separation and Distribution Agreement); Exhibit S (Form of Limited Liability Company
Agreement of EquaGen); and Exhibit T (Description of Senior Notes) to the Credit
Agreement are hereby replaced by the Exhibits B, I-2-A, I-2-B,
J, K, L, M, O, P, P-1, P-2,
P-3, R, S, and T respectively, in the forms attached hereto as
Annex I.

               (2) Exhibit H to the Credit Agreement is hereby amended by replacing the date
“[___], 2008” with “[___], 20___”.

               (3) Exhibits C, D, E, F, G and H to
the Credit Agreement are hereby amended by inserting the phrase “as amended on October 1, 2009,”
immediately after the phrase “the Credit Agreement dated as of December 23, 2008,”.

               (4) Exhibit N is hereby deleted in its entirety and the reference thereto in the Table
of Contents is hereby and amended and restated in its entirety to read:

               Exhibit N [Intentionally Omitted].

          (n) Amendments to Schedules

               (1) Schedules 1.01(a), 1.01(b), 1.01(d), 2.01, 3.07, 3.08, 3.09(a) (Signing), 3.09(a)
(Funding), 3.17, 3.18, 3.19(a), 3.19(c), 3.20, 3.23(f), 6.01(c) (Funding), 6.02(d) (Funding),
6.07(c) and 6.08(b) to the Credit Agreement are hereby amended and restated in their entirety as
set forth on Annex II hereto.

- 24 -

 

               (2) Schedules 1.1(a), 1.1(b), 4.2(a), 4.3, 4.4, 4.6(a), 4.6(b), 4.8(a), 4.9(a), and 8.2 to
Exhibit B, the Form of Guarantee and Collateral Agreement, are hereby amended and restated
in their entirety as set forth on Annex III hereto.

          (o) Amendments to Table of Contents

               (1) The table of contents shall be updated to reflect the form of the Credit Agreement after
giving effect to the amendments set forth in this Amendment.

     SECTION 2. CONSENT TO AMEND INTERCREDITOR AGREEMENT

          Each Lender consenting to this Amendment hereby consents, authorizes and directs the
Administrative Agent, on behalf of all Lenders, to execute and deliver and to direct the Collateral
Trustee pursuant to an “Act of Instructing Senior Secured Parties” (as defined in the Intercreditor
Agreement) to execute and deliver, amendments to or an amendment and restatment of the
Intercreditor Agreement in the form attached hereto as Annex IV.

     SECTION 3. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AMENDMENT

          This Amendment shall become effective when, and only when each of the following conditions
precedent shall have been satisfied or duly waived by the Administrative Agent and the Arrangers
(the “Amendment No. 1 Effective Date”):

          (a) Certain Documents. The Administrative Agent shall have received each of the following,
each dated the Amendment No. 1 Effective Date, in form and substance satisfactory to the
Administrative Agent:

               (1) this Amendment, executed by the Borrower, the Arrangers, all Lenders party to the Credit
Agreement following the Original Outside Date (as defined herein) and the Administrative Agent;

               (2) a certificate of a Responsible Officer to the effect that each of the conditions set forth
in clauses (c), (d) and (e) below has been satisfied; and

               (3) such additional documentation as the Arrangers or the Administrative Agent may reasonably
require.

          (b) Corporate and Other Proceedings. All corporate and other proceedings, and all documents,
instruments and other legal matters in connection with the transactions contemplated by this
Amendment shall be satisfactory in all respects to the Arrangers and the Administrative Agent;

          (c) Representations and Warranties. Each of the representations and warranties contained in
Annex III (Signing Date Representations and Warranties) to the Credit Agreement and in each other
Loan Document executed and delivered on the Signing Date (in each case, as and to the extent
amended by this Amendment) are true and correct in all material respects (except to the extent that
such representations and warranties are qualified as to materiality, in which case they shall be
true and correct in all respects) on and as of the date hereof and the Amendment No. 1 Effective
Date, in each case as if made on and as of such date and except to the extent that such
representations and warranties specifically relate to a specific date, in which case such
representations and warranties shall be true and correct in all material respects (except to the
extent that such representations and warranties are qualified as to

- 25 -

 

materiality, in which case they shall be true and correct in all respects) as of such specific
date; provided, however, that references therein to the “Credit Agreement”, the “Agreement” or
other similar term shall be deemed to refer to the Credit Agreement or other applicable Loan
Document as amended by this Amendment and after giving effect to the amendments set forth herein;

          (d) No Default or Event of Default. After giving effect to this Amendment, no Default or
Event of Default shall have occurred and be continuing, either on the date hereof or on the
Amendment No. 1 Effective Date;

          (e) No Litigation. No litigation shall have been commenced against any Loan Party or any of
its Subsidiaries, either on the date hereof or the Amendment No. 1 Effective Date, seeking to
restrain or enjoin (whether temporarily, preliminarily or permanently) the performance of any
action by any Loan Party required or contemplated by this Amendment or the Credit Agreement or any
Loan Document, in either case as amended hereby; and

          (f) Fees and Expenses Paid. The Borrower shall have paid all fees and expenses set forth in
Section 6 (Fees and Expenses) hereof; and

          (g) Minimum Commitment Amount. Lenders holding Commitments (after giving effect to any
amendments to Schedule 2.01 (Commitments) pursuant to Section 1(n)(1) of this Amendment) of at
least $1,000,000,000 must consent to this Amendment.

          (h) Date. The date shall be October 1, 2009.

     SECTION 4. REPRESENTATIONS AND WARRANTIES

          The Borrower hereby certifies that the following statements are true on the date hereof after
giving effect to this Amendment:

          (a) Representations and Warranties. Each of the representations and warranties contained in
Annex III (Signing Date Representations and Warranties) of the Credit Agreement and each other Loan
Document (executed and delivered on the Signing Date (in each case, as and to the extend amended by
this Amendment)), are true and correct in all material respects (except to the extent that such
representations and warranties are qualified as to materiality, in which case they shall be true
and correct in all respects) on and as of the date hereof and the Amendment No. 1 Effective Date,
in each case as if made on and as of such date and except to the extent that such representations
and warranties specifically relate to a specific date, in which case such representations and
warranties shall be true and correct in all material respects (except to the extent that such
representations and warranties are qualified as to materiality, in which case they shall be true
and correct in all respects) as of such specific date; provided, however, that references therein
to the “Credit Agreement”, the “Agreement” or other similar term shall be deemed to refer to the
Credit Agreement or the applicable Loan Document as amended by this Amendment and after giving
effect to the amendments set forth herein;

          (b) Due execution. The execution, delivery and performance by the Borrower of this Amendment
has been duly authorized by all requisite corporate action and will not violate the Borrower’s
Constituent Documents. This Amendment has been duly executed and delivered by the Borrower and
each of this Amendment and the Credit Agreement as modified hereby constitutes the legal, valid and
binding obligation of the Borrower, enforceable against the Borrower in accordance with their
respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other laws now or hereafter in effect relating to creditors’ rights
generally and (including with respect to specific performance) subject to general principles of
equity, regardless of whether considered in a

- 26 -

 

proceeding in equity or at law, and to the discretion of the court before which any proceeding
therefor may be brought; and

          (c) No Default or Event of Default. No Default or Event of Default shall have occurred and be
continuing, either on the date hereof or on the Amendment No. 1 Effective Date.

     SECTION 5. CONTINUING EFFECT; NO OTHER AMENDMENTS OR WAIVERS

          (a) As of the Amendment No. 1 Effective Date, each reference in the Credit Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the
other Loan Documents to the Credit Agreement (including, without limitation, by means of words like
“thereunder”, “thereof” and words of like import), shall mean and be a reference to the Credit
Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and
construed as a single instrument. Each of the table of contents and lists of Exhibits and
Schedules of the Credit Agreement shall be amended to reflect the changes made in this Amendment as
of the Amendment No. 1 Effective Date.

          (b) Except as expressly amended hereby or specifically waived above, all of the terms and
provisions of the Credit Agreement and all other Loan Documents are and shall remain in full force
and effect and are hereby ratified and confirmed.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of the Lenders, Issuers, the
Arrangers, the Administrative Agent, the Collateral Agent or the Syndication Agent under any of the
Loan Documents, nor constitute a waiver or amendment of any other provision of any of the Loan
Documents or for any purpose except as expressly set forth herein.

          (d) This Amendment is a Loan Document.

     SECTION 6. FEES AND EXPENSES

          (a) As consideration for the execution of this Amendment, the Borrower agrees to pay on the
Amendment No. 1 Effective Date to the Administrative Agent for the account of each Lender, an
amendment fee equal to 0.50% of the sum of such Lender’s Commitments then in effect.

          (b) The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and
expenses of the Arrangers and the Administrative Agent in connection with the preparation,
reproduction, execution and delivery of this Amendment and all other Loan Documents entered into in
connection herewith, including, without limitation, the reasonable fees, charges and disbursements
of Weil, Gotshal & Manges LLP (counsel to the Arrangers), counsel to the Administrative Agent, and
other reasonable local and special counsel to the Administrative Agent and the Arrangers and
charges of Intralinks with respect thereto and all other Loan Documents, in each case to the extent
provided in the Credit Agreement.

     SECTION 7. EXECUTION IN COUNTERPARTS

          This Amendment may be executed in any number of counterparts and by different parties in
separate counterparts, each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Signature pages may be detached
from multiple separate counterparts and attached to a single counterpart so that all signature
pages are attached to the same document. Delivery of an executed signature page of this Amendment
by facsimile

- 27 -

 

transmission, electronic mail or by posting on the Approved Electronic Platform shall be as
effective as delivery of a manually executed counterpart hereof. A set of the copies of this
Amendment signed by all parties shall be lodged with the Borrower and the Administrative Agent.

     SECTION 8. GOVERNING LAW

          This Amendment shall be construed in accordance with and governed by the laws of the State of
New York without regard to conflicts of law provisions (other than Sections 5-1401 and 5-1402 of
the New York General Obligations Law which the parties hereto agree apply hereto).

     SECTION 9. ENTIRE AGREEMENT

          This Amendment and the other Loan Documents constitute the entire contract between the parties
relative to the subject matter hereof. Any other previous agreement among the parties with respect
to the subject matter hereof is superseded by this Amendment and the other Loan Documents.

     SECTION 10. NOTICES

          All communications and notices hereunder shall be given as provided in the Credit Agreement.

     SECTION 11. SEVERABILITY

          In the event any one or more of the provisions contained in this Amendment or in any other
Loan Document should be held invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions contained herein and therein shall not in
any way be affected or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     SECTION 12. SUCCESSORS

          Whenever in this Amendment any of the parties hereto is referred to, such reference shall be
deemed to include the permitted successors and assigns of such party; and all covenants, promises
and agreements by or on behalf of the parties hereto that are contained in this Amendment shall
bind and inure to the benefit of their respective successors and assigns.

     SECTION 13. WAIVER OF JURY TRIAL

          EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AMENDMENT OR ANY OF THE OTHER LOAN DOCUMENTS.
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN

- 28 -

 

 DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 13.

[Signature Pages Follow]

- 29 -

 

          In Witness Whereof, the parties hereto have caused this Amendment to be executed by
their respective officers as of the date first written above.

	 	 	 	 	 
	 	Enexus Energy Corporation,

      as Borrower

 	 
	 	By:  	                 /s/ Paul A. Stadnikia
 	 
	 	 	Name:  	Paul A. Stadnikia 	 
	 	 	Title:  	Treasurer 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Citigroup Global Markets Inc., 

      as Joint Book Runner and Join Lead Arranger

 	 
	 	By:  	              /s/ Timothy P. Dilworth
 	 
	 	 	Name:  	Timothy P. Dilworth 	 
	 	 	Title:  	Director 	 
	 
	 	Goldman Sachs Lending Partners LLC, 

      as Joint Book Runner and Join Lead Arranger

 	 
	 	By:  	              /s/ Alexis Maged
 	 
	 	 	Name:  	Alexis Maged 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	BNP Paribas, 

      as Administrative Agent

 	 
	 	By:  	                /s/ Pasquale A. Perraglia IV
 	 
	 	 	Name:  	Pasquale A. Perraglia IV 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                    /s/ Mark A. Renaud
 	 
	 	 	Name:  	Mark A. Renaud 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Citibank, N.A.,

      as Lender

 	 
	 	By:  	                     /s/ Timothy P. Dilworth
 	 
	 	 	Name:  	Timothy P. Dilworth
	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	BNP Paribas,

      as Lender

 	 
	 	By:  	                 /s/ Pasquale A. Perraglia IV
 	 
	 	 	Name:  	Pasquale A. Perraglia IV 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                    /s/ Mark A. Renaud
 	 
	 	 	Name:  	Mark A. Renaud 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Goldman Sachs Lending Partners LLC,

      as Lender

 	 
	 	By:  	               /s/ Alexis Maged
 	 
	 	 	Name:  	Alexis Maged 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.,

      as Lender

 	 
	 	By:  	                    /s/ Raymond Ventura
 	 
	 	 	Name:  	Raymond Ventura 	 
	 	 	Title:  	Deputy General Manager 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA

      as Lender

 	 
	 	By:  	                       /s/ Thane Rattew
 	 
	 	 	Name:  	Thane Rattew 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Calyon New York Branch,

      as Lender

 	 
	 	By:  	                     /s/ Darrell Stanley
 	 
	 	 	Name:  	Darrell Stanley 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                      /s/ Sharada Manne
 	 
	 	 	Name:  	Sharada Manne 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Natixis New York Branch,

      as Lender

 	 
	 	By:  	                      /s/ Richard Garcia
 	 
	 	 	Name:  	Richard Garcia 	 
	 	 	Title:  	Senior Managing Director 	 
	 
	 	 	 
	 	By:  	                    /s/ Stephane Leroy
 	 
	 	 	Name:  	Stephane Leroy 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	UNION BANK, N.A.,

      as Lender

 	 
	 	By:  	                         /s/ John Guilds
 	 
	 	 	Name:  	John Guilds 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Bank of America, N.A.,

      as Lender

 	 
	 	By:  	                       /s/ Jacob Dowden
 	 
	 	 	Name:  	Jacob Dowden 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

      as Lender

 	 
	 	By:  	                           /s/ Sam Yoo
 	 
	 	 	Name:  	Sam Yoo 	 
	 	 	Title:  	Assistant Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION

      as Lender

 	 
	 	By:  	                      /s/ Paul J. Pace
 	 
	 	 	Name:  	Paul J. Pace 	 
	 	 	Title:  	Senior Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A.,

      as Lender

 	 
	 	By:  	                      /s/ Melissa James
 	 
	 	 	Name:  	Melissa James 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Regions Bank,

      as Lender

 	 
	 	By:  	                      /s/ William A. Philipp
 	 
	 	 	Name:  	William A. Philipp 	 
	 	 	Title:  	Vice President 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]

 

 

	 	 	 	 	 
	 	Deutsche Bank Trust Company Americas

      as Lender

 	 
	 	By:  	                /s/ Marcus M. Tarkington
 	 
	 	 	Name:  	Marcus M. Tarkington 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                      /s/ Paul O’Leary
 	 
	 	 	Name:  	Paul O’Leary 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Amendment No. 1 to Enexus Credit Agreement]exv10w66

Exhibit
10.66

 

    FINISAR
    CORPORATION

    1999 EMPLOYEE STOCK PURCHASE PLAN

    AS AMENDED AND RESTATED EFFECTIVE MARCH 2, 2005

(As Amended Effective November 18, 2009)

 

    1.  Establishment,
    Purpose and Term of Plan.

 

    1.1  Establishment.  The Finisar
    Corporation 1999 Employee Stock Purchase Plan (the
    “Plan”) became effective on the
    effective date of the initial registration by the Company of its
    Stock under Section 12 of the Securities Exchange Act of
    1934, as amended (the “Effective Date”)
    and is hereby amended and restated in its entirety on
    March 2, 2005.

 

    1.2  Purpose.  The purpose of the
    Plan is to advance the interests of Company and its stockholders
    by providing an incentive to attract, retain and reward Eligible
    Employees of the Participating Company Group and by motivating
    such persons to contribute to the growth and profitability of
    the Participating Company Group. The Plan provides such Eligible
    Employees with an opportunity to acquire a proprietary interest
    in the Company through the purchase of Stock. The Company
    intends that the Plan qualify as an “employee stock
    purchase plan” under Section 423 of the Code
    (including any amendments or replacements of such section), and
    the Plan shall be so construed.

 

    1.3  Term of Plan.  The Plan shall
    continue in effect until the earlier of its termination by the
    Board or the date on which all of the shares of Stock available
    for issuance under the Plan have been issued.

 

    2.  Definitions
    and Construction.

 

    2.1  Definitions.  Any term not
    expressly defined in the Plan but defined for purposes of
    Section 423 of the Code shall have the same definition
    herein. Whenever used herein, the following terms shall have
    their respective meanings set forth below:

 

    (a) “Board” means the Board of
    Directors of the Company. If one or more Committees have been
    appointed by the Board to administer the Plan, “Board”
    also means such Committee(s).

 

    (b) “Code” means the Internal
    Revenue Code of 1986, as amended, and any applicable regulations
    promulgated thereunder.

 

    (c) “Committee” means a committee
    of the Board duly appointed to administer the Plan and having
    such powers as specified by the Board. Unless the powers of the
    Committee have been specifically limited, the Committee shall
    have all of the powers of the Board granted herein, including,
    without limitation, the power to amend or terminate the Plan at
    any time, subject to the terms of the Plan and any applicable
    limitations imposed by law.

 

    (d) “Company” means Finisar
    Corporation, a Delaware corporation, or any successor
    corporation thereto.

 

    (e) “Compensation” means, with
    respect to any Offering Period, base wages or salary, overtime
    pay, bonuses, commissions, shift differentials, payments for
    paid time off, payments in lieu of notice, and any of such
    compensation deferred under any program or plan established by a
    Participating Company, including, without limitation, pursuant
    to Section 401(k) or Section 125 of the Code.
    Compensation shall be limited to amounts actually payable in
    cash directly to the Participant or deferred by the Participant
    during the Offering Period. However, notwithstanding the
    foregoing, Compensation shall not include sign-on bonuses,
    profit sharing, payments pursuant to a severance agreement,
    termination pay, moving allowances, relocation payments, expense
    reimbursements, the cost of employee benefits paid by a
    Participating Company, tuition reimbursements, imputed income
    arising under any benefit program, contributions made by a
    Participating Company under any employee benefit plan, income
    directly or indirectly received pursuant to the Plan or any
    other stock purchase or stock option plan, or any other
    compensation not included above.

    

    1

 

    (f) “Eligible Employee” means an
    Employee who meets the requirements set forth in Section 5
    for eligibility to participate in the Plan.

 

    (g) “Employee” means a person
    treated as an employee of a Participating Company for purposes
    of Section 423 of the Code. A Participant shall be deemed
    to have ceased to be an Employee either upon an actual
    termination of employment or upon the corporation employing the
    Participant ceasing to be a Participating Company. For purposes
    of the Plan, an individual shall not be deemed to have ceased to
    be an Employee while on any military leave, sick leave, or other
    bona fide leave of absence approved by the Company of ninety
    (90) days or less. If an individual’s leave of absence
    exceeds ninety (90) days, the individual shall be deemed to
    have ceased to be an Employee on the ninety-first (91st) day of
    such leave unless the individual’s right to reemployment
    with the Participating Company Group is guaranteed either by
    statute or by contract. The Company shall determine in good
    faith and in the exercise of its discretion whether an
    individual has become or has ceased to be an Employee and the
    effective date of such individual’s employment or
    termination of employment, as the case may be. For purposes of
    an individual’s participation in or other rights, if any,
    under the Plan as of the time of the Company’s
    determination, all such determinations by the Company shall be
    final, binding and conclusive, notwithstanding that the Company
    or any governmental agency subsequently makes a contrary
    determination.

 

    (h) “Fair Market Value” means, as
    of any date:

 

    (i) If the Stock is then listed on a national or regional
    securities exchange or market system or is regularly quoted by a
    recognized securities dealer, the closing sale price of a share
    of Stock (or the mean of the closing bid and asked prices if the
    Stock is so quoted instead) as quoted on the Nasdaq National
    Market, the Nasdaq SmallCap Market or such other national or
    regional securities exchange or market system constituting the
    primary market for the Stock, or by such recognized securities
    dealer, as reported in The Wall Street Journal or such
    other source as the Company deems reliable. If the relevant date
    does not fall on a day on which the Stock has traded on such
    securities exchange or market system or has been quoted by such
    securities dealer, the date on which the Fair Market Value is
    established shall be the last day on which the Stock was so
    traded or quoted prior to the relevant date, or such other
    appropriate day as determined by the Board, in its discretion.

 

    (ii) If, on the relevant date, the Stock is not then listed
    on a national or regional securities exchange or market system
    or regularly quoted by a recognized securities dealer, the Fair
    Market Value of a share of Stock shall be as determined in good
    faith by the Board.

 

    (i) “Offering” means an offering of
    Stock as provided in Section 6.

 

    (j) “Offering Date” means, for any
    Offering, the first day of the Offering Period.

 

    (k) “Offering Period” means a
    period established in accordance with Section 6.1.

 

    (l) “Parent Corporation” means any
    present or future “parent corporation” of the Company,
    as defined in Section 424(e) of the Code.

 

    (m) “Participant” means an Eligible
    Employee who has become a participant in an Offering Period in
    accordance with Section 7 and remains a participant in
    accordance with the Plan.

 

    (n) “Participating Company” means
    the Company or any Parent Corporation or Subsidiary Corporation
    designated by the Board as a corporation the Employees of which
    may, if Eligible Employees, participate in the Plan. The Board
    shall have the sole and absolute discretion to determine from
    time to time which Parent Corporations or Subsidiary
    Corporations shall be Participating Companies.

 

    (o) “Participating Company Group”
    means, at any point in time, the Company and all other
    corporations collectively which are then Participating Companies.

 

    (p) “Purchase Date” means, for any
    Purchase Period, the last day of such period.

 

    (q) “Purchase Period” means a
    period established in accordance with Section 6.2.

    

    2

 

    (r) “Purchase Price” means the
    price at which a share of Stock may be purchased under the Plan,
    as determined in accordance with Section 9.

 

    (s) “Purchase Right” means an
    option granted to a Participant pursuant to the Plan to purchase
    such shares of Stock as provided in Section 8, which the
    Participant may or may not exercise during the Offering Period
    in which such option is outstanding. Such option arises from the
    right of a Participant to withdraw any accumulated payroll
    deductions of the Participant not previously applied to the
    purchase of Stock under the Plan and to terminate participation
    in the Plan at any time during an Offering Period.

 

    (t) “Stock” means the common stock
    of the Company, as adjusted from time to time in accordance with
    Section 4.2.

 

    (u) “Subscription Agreement” means
    a written agreement in such form as specified by the Company,
    stating an Employee’s election to participate in the Plan
    and authorizing payroll deductions under the Plan from the
    Employee’s Compensation.

 

    (v) “Subscription Date” means the
    last business day prior to the Offering Date of an Offering
    Period or such earlier date as the Company shall establish.

 

    (w) “Subsidiary Corporation” means
    any present or future “subsidiary corporation” of the
    Company, as defined in Section 424(f) of the Code.

 

    2.2  Construction.  Captions and
    titles contained herein are for convenience only and shall not
    affect the meaning or interpretation of any provision of the
    Plan. Except when otherwise indicated by the context, the
    singular shall include the plural and the plural shall include
    the singular. Use of the term “or” is not intended to
    be exclusive, unless the context clearly requires otherwise.

 

    3.  Administration.

 

    3.1  Administration by the
    Board.  The Plan shall be administered by the
    Board. All questions of interpretation of the Plan, of any form
    of agreement or other document employed by the Company in the
    administration of the Plan, or of any Purchase Right shall be
    determined by the Board and shall be final and binding upon all
    persons having an interest in the Plan or the Purchase Right.
    Subject to the provisions of the Plan, the Board shall determine
    all of the relevant terms and conditions of Purchase Rights;
    provided, however, that all Participants granted Purchase Rights
    pursuant to an Offering shall have the same rights and
    privileges within the meaning of Section 423(b)(5) of the
    Code. All expenses incurred in connection with the
    administration of the Plan shall be paid by the Company.

 

    3.2  Authority of Officers.  Any
    officer of the Company shall have the authority to act on behalf
    of the Company with respect to any matter, right, obligation,
    determination or election that is the responsibility of or that
    is allocated to the Company herein, provided that the officer
    has apparent authority with respect to such matter, right,
    obligation, determination or election.

 

    3.3  Policies and Procedures Established by the
    Company.  The Company may, from time to time,
    consistent with the Plan and the requirements of
    Section 423 of the Code, establish, change or terminate
    such rules, guidelines, policies, procedures, limitations, or
    adjustments as deemed advisable by the Company, in its
    discretion, for the proper administration of the Plan,
    including, without limitation, (a) a minimum payroll
    deduction amount required for participation in an Offering,
    (b) a limitation on the frequency or number of changes
    permitted in the rate of payroll deduction during an Offering,
    (c) an exchange ratio applicable to amounts withheld in a
    currency other than United States dollars, (d) a payroll
    deduction greater than or less than the amount designated by a
    Participant in order to adjust for the Company’s delay or
    mistake in processing a Subscription Agreement or in otherwise
    effecting a Participant’s election under the Plan or as
    advisable to comply with the requirements of Section 423 of
    the Code, and (e) determination of the date and manner by
    which the Fair Market Value of a share of Stock is determined
    for purposes of administration of the Plan.

 

    3.4  Indemnification.  In addition to
    such other rights of indemnification as they may have as members
    of the Board or officers or employees of the Participating
    Company Group, members of the Board and any officers or
    employees of the Participating Company Group to whom authority
    to act for the Board or the Company is delegated

    

    3

 

    shall be indemnified by the Company against all reasonable
    expenses, including attorneys’ fees, actually and
    necessarily incurred in connection with the defense of any
    action, suit or proceeding, or in connection with any appeal
    therein, to which they or any of them may be a party by reason
    of any action taken or failure to act under or in connection
    with the Plan, or any right granted hereunder, and against all
    amounts paid by them in settlement thereof (provided such
    settlement is approved by independent legal counsel selected by
    the Company) or paid by them in satisfaction of a judgment in
    any such action, suit or proceeding, except in relation to
    matters as to which it shall be adjudged in such action, suit or
    proceeding that such person is liable for gross negligence, bad
    faith or intentional misconduct in duties; provided, however,
    that within sixty (60) days after the institution of such
    action, suit or proceeding, such person shall offer to the
    Company, in writing, the opportunity at its own expense to
    handle and defend the same.

 

    4.  Shares
    Subject to Plan.

 

    4.1  Maximum Number of Shares
    Issuable.  Subject to adjustment as provided in
    Section 4.2, the maximum aggregate number of shares of
    Stock that may be issued under the Plan shall be thirteen
    million seven hundred fifty thousand
    (13,750,000)1,

    cumulatively increased on May 1 of each year commencing on
    May 1, 2005 and ending May 1, 2010 by one million
    (1,000,000)
    shares2

    (the “Annual Increase”), and shall consist of
    authorized but unissued or reacquired shares of Stock, or any
    combination thereof. If an outstanding Purchase Right for any
    reason expires or is terminated or canceled, the shares of Stock
    allocable to the unexercised portion of that Purchase Right
    shall again be available for issuance under the Plan.

 

    4.2  Adjustments for Changes in Capital
    Structure.  In the event of any stock dividend,
    stock split, reverse stock split, recapitalization, combination,
    reclassification or similar change in the capital structure of
    the Company, or in the event of any merger (including a merger
    effected for the purpose of changing the Company’s
    domicile), sale of assets or other reorganization in which the
    Company is a party, appropriate adjustments shall be made in the
    number and class of shares subject to the Plan, the Annual
    Increase and each Purchase Right, and in the Purchase Price. If
    a majority of the shares of the same class as the shares subject
    to outstanding Purchase Rights are exchanged for, converted
    into, or otherwise become (whether or not pursuant to an
    Ownership Change Event) shares of another corporation (the
    “New Shares”), the Board may
    unilaterally amend the outstanding Purchase Rights to provide
    that such Purchase Rights are exercisable for New Shares. In the
    event of any such amendment, the number of shares subject to,
    and the Purchase Price of, the outstanding Purchase Rights shall
    be adjusted in a fair and equitable manner, as determined by the
    Board, in its discretion. Notwithstanding the foregoing, any
    fractional share resulting from an adjustment pursuant to this
    Section 4.2 shall be rounded down to the nearest whole
    number, and in no event may the Purchase Price be decreased to
    an amount less than the par value, if any, of the stock subject
    to the Purchase Right. The adjustments determined by the Board
    pursuant to this Section 4.2 shall be final, binding and
    conclusive.

 

    5.  Eligibility.

 

    5.1  Employees Eligible to
    Participate.  Each Employee of a Participating
    Company is eligible to participate in the Plan and shall be
    deemed an Eligible Employee, except any Employee who is either:
    (a) customarily employed by the Participating Company Group
    for twenty (20) hours or less per week or
    (b) customarily employed by the Participating Company Group
    for not more than five (5) months in any calendar year.

 

    5.2  Exclusion of Certain
    Stockholders.  Notwithstanding any provision of
    the Plan to the contrary, no Employee shall be granted a
    Purchase Right under the Plan if, immediately after such grant,
    the Employee would own or hold options to purchase stock of the
    Company or of any Parent Corporation or Subsidiary Corporation
    possessing five percent (5%) or more of the total combined
    voting power or value of all classes of stock of such

 

 

    1 Comprised

    of (i) the initial reserve of 750,000 shares,
    (ii) the annual increases of 750,000 shares on May 1
    of each year commencing 2001 through 2004 and (iii) the
    10,000,000-share increase approved by the Board in March 2005
    subject to approval by the stockholders at the 2005 Annual
    Meeting.

    2 The

    annual increase of 1 million shares per year is subject to
    stockholder approval at the 2005 Annual Meeting.

    

    4

 

    corporation, as determined in accordance with
    Section 423(b)(3) of the Code. For purposes of this
    Section 5.2, the attribution rules of Section 424(d)
    of the Code shall apply in determining the stock ownership of
    such Employee.

 

    6.  Offerings.

 

    6.1  Offering Periods.  Except as
    otherwise set forth below, the Plan shall be implemented by two
    series of Offerings. One series shall be of sequential Offerings
    of approximately twelve (12) months duration or such other
    duration as the Board shall determine (an “Annual
    Offering Period”). The second series shall be of
    Offerings of approximately six (6) months duration or such
    other duration as the Board shall determine (a
    “Half-Year Offering Period”). Prior to
    December 2004, Annual Offering Periods shall commence on or
    about December 1 of each year and end on or about the first
    November 30 occurring thereafter, and Half-Year Offering Periods
    shall commence on or about June 1 of each year and end on or
    about the first November 30 occurring thereafter. However, an
    initial Offering (the “Initial Offering
    Period”) shall commence on the Effective Date and
    end on or about November 30, 2000. Commencing in December
    2004, Annual Offering Periods shall commence on or about
    December 16 of each year and end on or about the first December
    15 occurring thereafter, and Half-Year Offering Periods shall
    commence on or about June 16 of each year and end on or about
    the first December 15 occurring thereafter. Notwithstanding the
    foregoing, the Board may establish a different duration for one
    or more Offering Periods or different commencing or ending dates
    for such Offering Periods; provided, however, that no Offering
    Period may have a duration exceeding twenty-seven
    (27) months. If the first or last day of an Offering Period
    is not a day on which the national securities exchanges or
    Nasdaq Stock Market are open for trading, the Company shall
    specify the trading day that will be deemed the first or last
    day, as the case may be, of the Offering Period.

 

    6.2  Purchase Periods.  Each Annual
    Offering Period shall consist of two (2) consecutive
    Purchase Periods of approximately six (6) months duration,
    or such other number or duration as the Board determines. Prior
    to December 2004, (a) a Purchase Period commencing on or
    about December 1 shall end on or about the next May 31, and
    a Purchase Period commencing on or about June 1 shall end on or
    about the next November 30; and (b) each Half-Year Offering
    Period shall consist of a single Purchase Period of
    approximately six (6) months duration coterminous with such
    Offering Period. However, the Initial Offering Period shall
    consist of two (2) consecutive Purchase Periods ending on
    or about May 31, 2000 and November 30, 2000,
    respectively. Commencing in December 2004, (a) a Purchase
    Period commencing on or about December 16 shall end on or about
    the next June 15, and a Purchase Period commencing on or
    about June 16 shall end on or about the next December 15; and
    (b) each Half-Year Offering Period shall consist of a
    single Purchase Period of approximately six (6) months
    duration coterminous with such Offering Period. Notwithstanding
    the foregoing, the Board may establish a different duration for
    one or more Purchase Periods or different commencing or ending
    dates for such Purchase Periods. If the first or last day of a
    Purchase Period is not a day on which the national securities
    exchanges or Nasdaq Stock Market are open for trading, the
    Company shall specify the trading day that will be deemed the
    first or last day, as the case may be, of the Purchase Period.

 

    7.  Participation
    in the Plan.

 

    7.1  Initial Participation.  An
    Eligible Employee may become a Participant in an Offering Period
    by delivering a properly completed Subscription Agreement to the
    office designated by the Company not later than the close of
    business for such office on the Subscription Date established by
    the Company for that Offering Period. An Eligible Employee who
    does not deliver a properly completed Subscription Agreement to
    the Company’s designated office on or before the
    Subscription Date for an Offering Period shall not participate
    in the Plan for that Offering Period or for any subsequent
    Offering Period unless the Eligible Employee subsequently
    delivers a properly completed Subscription Agreement to the
    appropriate office of the Company on or before the Subscription
    Date for such subsequent Offering Period. An Employee who
    becomes an Eligible Employee after the Offering Date of an
    Offering Period shall not be eligible to participate in that
    Offering Period but may participate in any subsequent Offering
    Period provided the Employee is still an Eligible Employee as of
    the Offering Date of such subsequent Offering Period.

 

    7.2  Continued Participation.  A
    Participant shall automatically participate in the next Offering
    Period commencing immediately after the final Purchase Date of
    each Offering Period in which the Participant participates
    provided that the Participant remains an Eligible Employee on
    the Offering Date of the new Offering Period and has

    

    5

 

    not either (a) withdrawn from the Plan pursuant to
    Section 12.1 or (b) terminated employment as provided
    in Section 13. A Participant who may automatically
    participate in a subsequent Offering Period, as provided in this
    Section, is not required to deliver any additional Subscription
    Agreement for the subsequent Offering Period in order to
    continue participation in the Plan. However, a Participant may
    deliver a new Subscription Agreement for a subsequent Offering
    Period in accordance with the procedures set forth in
    Section 7.1 if the Participant desires to change any of the
    elections contained in the Participant’s then effective
    Subscription Agreement.

 

    8.  Right
    to Purchase Shares.

 

    8.1  Grant of Purchase Right.  Except
    as set forth below, on the Offering Date of each Offering
    Period, each Participant in that Offering Period shall be
    granted automatically a Purchase Right determined as follows:

 

    (a) Annual Offering Period.  Each
    Purchase Right granted on the Offering Date of an Annual
    Offering Period shall consist of an option to purchase that
    number of whole shares of Stock determined by dividing
    Twenty-Five Thousand Dollars ($25,000) by the Fair Market Value
    of a share of Stock on the Offering Date.

 

    (b) Half-Year Offering
    Period.  Each Purchase Right granted on the
    Offering Date of a Half-Year Offering Period shall consist of an
    option to purchase that number of whole shares of Stock
    determined by dividing Twelve Thousand Five Hundred Dollars
    ($12,500) by the Fair Market Value of a share of Stock on the
    Offering Date.

 

    8.2  Pro Rata Adjustment of Purchase
    Right.  If the Board establishes an Offering
    Period of any duration other than twelve months or six months,
    then the number of shares of Stock subject to each Purchase
    Right granted on the Offering Date of such Offering Period shall
    be determined as provided in Section 8.1, except that the
    applicable dollar amount shall be determined by multiplying
    $2,083.33 by the number of months (rounded to the nearest whole
    month) in the Offering Period and rounding to the nearest whole
    dollar.

 

    8.3  Calendar Year Purchase
    Limitation.  Notwithstanding any provision of the
    Plan to the contrary, no Participant shall be granted a Purchase
    Right which permits his or her right to purchase shares of Stock
    under the Plan to accrue at a rate which, when aggregated with
    such Participant’s rights to purchase shares under all
    other employee stock purchase plans of a Participating Company
    intended to meet the requirements of Section 423 of the
    Code, exceeds Twenty-Five Thousand Dollars ($25,000) in Fair
    Market Value (or such other limit, if any, as may be imposed by
    the Code) for each calendar year in which such Purchase Right is
    outstanding at any time. For purposes of the preceding sentence,
    the Fair Market Value of shares purchased during a given
    Offering Period shall be determined as of the Offering Date for
    such Offering Period. The limitation described in this Section
    shall be applied in conformance with applicable regulations
    under Section 423(b)(8) of the Code.

 

    9.  Purchase
    Price.

 

    The Purchase Price at which each share of Stock may be acquired
    in an Offering Period upon the exercise of all or any portion of
    a Purchase Right shall be established by the Board; provided,
    however, that the Purchase Price on each Purchase Date shall not
    be less than eighty-five percent (85%) of the lesser of
    (a) the Fair Market Value of a share of Stock on the
    Offering Date of the Offering Period or (b) the Fair Market
    Value of a share of Stock on the Purchase Date. Unless otherwise
    provided by the Board prior to the commencement of an Offering
    Period, the Purchase Price on each Purchase Date during that
    Offering Period shall be eighty-five percent (85%) of the lesser
    of (a) the Fair Market Value of a share of Stock on the
    Offering Date of the Offering Period, or (b) the Fair
    Market Value of a share of Stock on the Purchase Date.

 

    10.  Accumulation
    of Purchase Price through Payroll Deduction.

 

    Shares of Stock acquired pursuant to the exercise of all or any
    portion of a Purchase Right may be paid for only by means of
    payroll deductions from the Participant’s Compensation
    accumulated during the Offering Period for which such Purchase
    Right was granted, subject to the following:

 

    10.1  Amount of Payroll
    Deductions.  Except as otherwise provided herein,
    the amount to be deducted under the Plan from a
    Participant’s Compensation on each payday during an
    Offering Period shall be determined by the Participant’s
    Subscription Agreement. The Subscription Agreement shall set
    forth the percentage of the

    

    6

 

    Participant’s Compensation to be deducted on each payday
    during an Offering Period in whole percentages of not less than
    one percent (1%) (except as a result of an election pursuant to
    Section 10.3 to stop payroll deductions) or more than
    twenty percent (20%); provided, however, that in no event may a
    Participant’s payroll deductions on any payday for the
    purchase of shares under the Plan and all other employee stock
    purchase plans of a Participating Company intended to meet the
    requirements of Section 423 of the Code exceed twenty
    percent (20%) of the Participant’s Compensation on such
    payday. The Board may change the foregoing limits on payroll
    deductions effective as of any Offering Date.

 

    10.2  Commencement of Payroll
    Deductions.  Payroll deductions shall commence on
    the first payday following the Offering Date and shall continue
    to the end of the Offering Period unless sooner altered or
    terminated as provided herein.

 

    10.3  Election to Change or Stop Payroll
    Deductions.  During an Offering Period, a
    Participant may elect to increase or decrease the rate of or to
    stop deductions from his or her Compensation by delivering to
    the Company’s designated office an amended Subscription
    Agreement authorizing such change on or before the Change Notice
    Date, as defined below. A Participant who elects, effective
    following the first payday of an Offering Period, to decrease
    the rate of his or her payroll deductions to zero percent (0%)
    shall nevertheless remain a Participant in the current Offering
    Period unless such Participant withdraws from the Plan as
    provided in Section 12.1. The “Change Notice
    Date” shall be the day immediately prior to the
    beginning of the first pay period for which such election is to
    be effective, unless a different date is established by the
    Company and announced to the Participants.

 

    10.4  Administrative Suspension of Payroll
    Deductions.  The Company may, in its sole
    discretion, suspend a Participant’s payroll deductions
    under the Plan as the Company deems advisable to avoid
    accumulating payroll deductions in excess of the amount that
    could reasonably be anticipated to purchase the maximum number
    of shares of Stock permitted (a) under the
    Participant’s Purchase Right or (b) during a calendar
    year under the limit set forth in Section 8.3. Payroll
    deductions shall be resumed at the rate specified in the
    Participant’s then effective Subscription Agreement at the
    beginning, respectively, of (a) the next Offering Period,
    provided that the individual is a Participant in such Offering
    Period or (b) the next Purchase Period the Purchase Date of
    which falls in the following calendar year, unless the
    Participant has either withdrawn from the Plan as provided in
    Section 12.1 or has ceased to be an Eligible Employee.

 

    10.5  Participant
    Accounts.  Individual bookkeeping accounts shall
    be maintained for each Participant. All payroll deductions from
    a Participant’s Compensation shall be credited to such
    Participant’s Plan account and shall be deposited with the
    general funds of the Company. All payroll deductions received or
    held by the Company may be used by the Company for any corporate
    purpose.

 

    10.6  No Interest Paid.  Interest
    shall not be paid on sums deducted from a Participant’s
    Compensation pursuant to the Plan.

 

    10.7  Voluntary Withdrawal from Plan
    Account.  A Participant may withdraw all or any
    portion of the payroll deductions credited to his or her Plan
    account and not previously applied toward the purchase of Stock
    by delivering to the Company’s designated office a written
    notice on a form provided by the Company for such purpose. A
    Participant who withdraws the entire remaining balance credited
    to his or her Plan account shall be deemed to have withdrawn
    from the Plan in accordance with Section 12.1. Amounts
    withdrawn shall be returned to the Participant as soon as
    practicable after the Company’s receipt of the notice of
    withdrawal and may not be applied to the purchase of shares in
    any Offering under the Plan. The Company may from time to time
    establish or change limitations on the frequency of withdrawals
    permitted under this Section, establish a minimum dollar amount
    that must be retained in the Participant’s Plan account, or
    terminate the withdrawal right provided by this Section.

 

    11.  Purchase
    of Shares.

 

    11.1  Exercise of Purchase Right.  On
    each Purchase Date of an Offering Period, each Participant who
    has not withdrawn from the Plan and whose participation in the
    Offering has not otherwise terminated before such Purchase Date
    shall automatically acquire pursuant to the exercise of the
    Participant’s Purchase Right the number of whole shares of
    Stock determined by dividing (a) the total amount of the
    Participant’s payroll deductions

    

    7

 

    accumulated in the Participant’s Plan account during the
    Offering Period and not previously applied toward the purchase
    of Stock by (b) the Purchase Price. However, in no event
    shall the number of shares purchased by the Participant during
    an Offering Period exceed the number of shares subject to the
    Participant’s Purchase Right. No shares of Stock shall be
    purchased on a Purchase Date on behalf of a Participant whose
    participation in the Offering or the Plan has terminated before
    such Purchase Date.

 

    11.2  Pro Rata Allocation of
    Shares.  If the number of shares of Stock which
    might be purchased by all Participants in the Plan on a Purchase
    Date exceeds the number of shares of Stock available in the Plan
    as provided in Section 4.1, the Company shall make a pro
    rata allocation of the remaining shares in as uniform a manner
    as practicable and as the Company determines to be equitable.
    Any fractional share resulting from such pro rata allocation to
    any Participant shall be disregarded.

 

    11.3  Delivery of Certificates.  As
    soon as practicable after each Purchase Date, the Company shall
    arrange the delivery to each Participant of a certificate
    representing the shares acquired by the Participant on such
    Purchase Date; provided that the Company may deliver such shares
    to a broker designated by the Company that will hold such shares
    for the benefit of the Participant. Shares to be delivered to a
    Participant under the Plan shall be registered in the name of
    the Participant, or, if requested by the Participant, in the
    name of the Participant and his or her spouse, or, if
    applicable, in the names of the heirs of the Participant.

 

    11.4  Return of Cash Balance.  Any
    cash balance remaining in a Participant’s Plan account
    following any Purchase Date shall be refunded to the Participant
    as soon as practicable after such Purchase Date. However, if the
    cash balance to be returned to a Participant pursuant to the
    preceding sentence is less than the amount that would have been
    necessary to purchase an additional whole share of Stock on such
    Purchase Date, the Company may retain the cash balance in the
    Participant’s Plan account to be applied toward the
    purchase of shares of Stock in the subsequent Purchase Period or
    Offering Period, as the case may be.

 

    11.5  Tax Withholding.  At the time a
    Participant’s Purchase Right is exercised, in whole or in
    part, or at the time a Participant disposes of some or all of
    the shares of Stock he or she acquires under the Plan, the
    Participant shall make adequate provision for the federal,
    state, local and foreign tax withholding obligations, if any, of
    the Participating Company Group which arise upon exercise of the
    Purchase Right or upon such disposition of shares, respectively.
    The Participating Company Group may, but shall not be obligated
    to, withhold from the Participant’s compensation the amount
    necessary to meet such withholding obligations.

 

    11.6  Expiration of Purchase
    Right.  Any portion of a Participant’s
    Purchase Right remaining unexercised after the end of the
    Offering Period to which the Purchase Right relates shall expire
    immediately upon the end of the Offering Period.

 

    11.7  Provision of Reports and Stockholder
    Information to Participants.  Each Participant who
    has exercised all or part of his or her Purchase Right shall
    receive, as soon as practicable after the Purchase Date, a
    report of such Participant’s Plan account setting forth the
    total payroll deductions accumulated prior to such exercise, the
    number of shares of Stock purchased, the Purchase Price for such
    shares, the date of purchase and the cash balance, if any,
    remaining immediately after such purchase that is to be refunded
    or retained in the Participant’s Plan account pursuant to
    Section 11.4. The report required by this Section may be
    delivered in such form and by such means, including by
    electronic transmission, as the Company may determine. In
    addition, each Participant shall be provided information
    concerning the Company equivalent to that information provided
    generally to the Company’s common stockholders.

 

    12.  Withdrawal
    from Offering or Plan.

 

    12.1  Voluntary Withdrawal.  A
    Participant may withdraw from the Plan or any Offering by
    signing and delivering to the Company’s designated office a
    written notice of withdrawal on a form provided by the Company
    for this purpose. Such withdrawal may be elected at any time
    prior to the end of an Offering Period; provided, however, that
    if a Participant withdraws from the Plan or an Offering after a
    Purchase Date, the withdrawal shall not affect shares of Stock
    acquired by the Participant on such Purchase Date. A Participant
    who voluntarily withdraws from the Plan or an Offering is
    prohibited from resuming participation in the Plan in the same
    Offering from which he or she withdrew, but may participate in
    any subsequent Offering by again satisfying the requirements of

    

    8

 

    Sections 5 and 7.1. The Company may impose, from time to
    time, a requirement that the notice of withdrawal be on file
    with the Company’s designated office for a reasonable
    period prior to the effectiveness of the Participant’s
    withdrawal.

 

    12.2  Return of Payroll
    Deductions.  Upon a Participant’s voluntary
    withdrawal from the Plan or an Offering pursuant to
    Section 12.1, the Participant’s accumulated payroll
    deductions which have not been applied toward the purchase of
    shares shall be refunded to the Participant as soon as
    practicable after the withdrawal, without the payment of any
    interest, and the Participant’s interest in the Plan or the
    Offering, as applicable, shall terminate. Such accumulated
    payroll deductions to be refunded in accordance with this
    Section may not be applied to any other Offering under the Plan.

 

    13.  Termination
    of Employment or Eligibility.

 

    Upon a Participant’s ceasing, prior to a Purchase Date, to
    be an Employee of the Participating Company Group for any
    reason, including retirement, disability or death, or upon the
    failure of a Participant to remain an Eligible Employee, the
    Participant’s participation in the Plan shall terminate
    immediately. In such event, the Participant’s accumulated
    payroll deductions which have not been applied toward the
    purchase of shares shall, as soon as practicable, be returned to
    the Participant or, in the case of the Participant’s death,
    to the Participant’s beneficiary designated in accordance
    with Section 20, if any, or legal representative, and all
    of the Participant’s rights under the Plan shall terminate.
    Interest shall not be paid on sums returned pursuant to this
    Section 13. A Participant whose participation has been so
    terminated may again become eligible to participate in the Plan
    by satisfying the requirements of Sections 5 and 7.1.

 

    14.  Change
    in Control.

 

    14.1  Definitions.

 

    (a)  An “Ownership Change
    Event” shall be deemed to have occurred if any of
    the following occurs with respect to the Company: (i) the
    direct or indirect sale or exchange in a single or series of
    related transactions by the stockholders of the Company of more
    than fifty percent (50%) of the voting stock of the Company;
    (ii) a merger or consolidation in which the Company is a
    party; (iii) the sale, exchange, or transfer of all or
    substantially all of the assets of the Company; or (iv) a
    liquidation or dissolution of the Company.

 

    (b)  A “Change in Control”
    shall mean an Ownership Change Event or a series of related
    Ownership Change Events (collectively, the
    “Transaction”) wherein the stockholders
    of the Company immediately before the Transaction do not retain
    immediately after the Transaction, in substantially the same
    proportions as their ownership of shares of the Company’s
    voting stock immediately before the Transaction, direct or
    indirect beneficial ownership of more than fifty percent (50%)
    of the total combined voting power of the outstanding voting
    stock of the Company or the corporation or corporations to which
    the assets of the Company were transferred (the
    “Transferee Corporation(s)”), as the
    case may be. For purposes of the preceding sentence, indirect
    beneficial ownership shall include, without limitation, an
    interest resulting from ownership of the voting stock of one or
    more corporations which, as a result of the Transaction, own the
    Company or the Transferee Corporation(s), as the case may be,
    either directly or through one or more subsidiary corporations.
    The Board shall have the right to determine whether multiple
    sales or exchanges of the voting stock of the Company or
    multiple Ownership Change Events are related, and its
    determination shall be final, binding and conclusive.

 

    14.2  Effect of Change in Control on Purchase
    Rights.  In the event of a Change in Control, the
    surviving, continuing, successor, or purchasing corporation or
    parent corporation thereof, as the case may be (the
    “Acquiring Corporation”), may assume the
    Company’s rights and obligations under the Plan. If the
    Acquiring Corporation elects not to assume the Company’s
    rights and obligations under outstanding Purchase Rights, the
    Purchase Date of the then current Purchase Period shall be
    accelerated to a date before the date of the Change in Control
    specified by the Board, but the number of shares of Stock
    subject to outstanding Purchase Rights shall not be adjusted.
    All Purchase Rights which are neither assumed by the Acquiring
    Corporation in connection with the Change in Control nor
    exercised as of the date of the Change in Control shall
    terminate and cease to be outstanding effective as of the date
    of the Change in Control.

    

    9

 

    15.  Nontransferability
    of Purchase Rights.

 

    Neither payroll deductions credited to a Participant’s Plan
    account nor a Participant’s Purchase Right may be assigned,
    transferred, pledged or otherwise disposed of in any manner
    other than as provided by the Plan or by will or the laws of
    descent and distribution. (A beneficiary designation pursuant to
    Section 20 shall not be treated as a disposition for this
    purpose.) Any such attempted assignment, transfer, pledge or
    other disposition shall be without effect, except that the
    Company may treat such act as an election to withdraw from the
    Plan as provided in Section 12.1. A Purchase Right shall be
    exercisable during the lifetime of the Participant only by the
    Participant.

 

    16.  Compliance
    with Securities Law.

 

    The issuance of shares under the Plan shall be subject to
    compliance with all applicable requirements of federal, state
    and foreign law with respect to such securities. A Purchase
    Right may not be exercised if the issuance of shares upon such
    exercise would constitute a violation of any applicable federal,
    state or foreign securities laws or other law or regulations or
    the requirements of any securities exchange or market system
    upon which the Stock may then be listed. In addition, no
    Purchase Right may be exercised unless (a) a registration
    statement under the Securities Act of 1933, as amended, shall at
    the time of exercise of the Purchase Right be in effect with
    respect to the shares issuable upon exercise of the Purchase
    Right, or (b) in the opinion of legal counsel to the
    Company, the shares issuable upon exercise of the Purchase Right
    may be issued in accordance with the terms of an applicable
    exemption from the registration requirements of said Act. The
    inability of the Company to obtain from any regulatory body
    having jurisdiction the authority, if any, deemed by the
    Company’s legal counsel to be necessary to the lawful
    issuance and sale of any shares under the Plan shall relieve the
    Company of any liability in respect of the failure to issue or
    sell such shares as to which such requisite authority shall not
    have been obtained. As a condition to the exercise of a Purchase
    Right, the Company may require the Participant to satisfy any
    qualifications that may be necessary or appropriate, to evidence
    compliance with any applicable law or regulation, and to make
    any representation or warranty with respect thereto as may be
    requested by the Company.

 

    17.  Rights
    as a Stockholder and Employee.

 

    A Participant shall have no rights as a stockholder by virtue of
    the Participant’s participation in the Plan until the date
    of the issuance of a certificate for the shares purchased
    pursuant to the exercise of the Participant’s Purchase
    Right (as evidenced by the appropriate entry on the books of the
    Company or of a duly authorized transfer agent of the Company).
    No adjustment shall be made for dividends, distributions or
    other rights for which the record date is prior to the date such
    certificate is issued, except as provided in Section 4.2.
    Nothing herein shall confer upon a Participant any right to
    continue in the employ of the Participating Company Group or
    interfere in any way with any right of the Participating Company
    Group to terminate the Participant’s employment at any time.

 

    18.  Legends.

 

    The Company may at any time place legends or other identifying
    symbols referencing any applicable federal, state or foreign
    securities law restrictions or any provision convenient in the
    administration of the Plan on some or all of the certificates
    representing shares of Stock issued under the Plan. The
    Participant shall, at the request of the Company, promptly
    present to the Company any and all certificates representing
    shares acquired pursuant to a Purchase Right in the possession
    of the Participant in order to carry out the provisions of this
    Section. Unless otherwise specified by the Company, legends
    placed on such certificates may include but shall not be limited
    to the following:

 

    “THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY
    THE CORPORATION TO THE REGISTERED HOLDER UPON THE PURCHASE OF
    SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN
    SECTION 423 OF THE INTERNAL REVENUE CODE OF 1986, AS
    AMENDED. THE TRANSFER AGENT FOR THE SHARES EVIDENCED HEREBY
    SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE
    SHARES BY THE REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER
    SHALL HOLD ALL SHARES PURCHASED UNDER THE PLAN IN THE REGISTERED
    HOLDER’S NAME (AND NOT IN THE NAME OF ANY NOMINEE).”

    

    10

 

    19.  Notification
    of Disposition of Shares.

 

    The Company may require the Participant to give the Company
    prompt notice of any disposition of shares acquired by exercise
    of a Purchase Right. The Company may require that until such
    time as a Participant disposes of shares acquired upon exercise
    of a Purchase Right, the Participant shall hold all such shares
    in the Participant’s name (or, if elected by the
    Participant, in the name of the Participant and his or her
    spouse but not in the name of any nominee) until the later of
    two years after the date of grant of such Purchase Right or one
    year after the date of exercise of such Purchase Right. The
    Company may direct that the certificates evidencing shares
    acquired by exercise of a Purchase Right refer to such
    requirement to give prompt notice of disposition.

 

    20.  Designation
    of Beneficiary.

 

    20.1  Designation Procedure.  A
    Participant may file a written designation of a beneficiary who
    is to receive (a) shares and cash, if any, from the
    Participant’s Plan account if the Participant dies
    subsequent to a Purchase Date but prior to delivery to the
    Participant of such shares and cash or (b) cash, if any,
    from the Participant’s Plan account if the Participant dies
    prior to the exercise of the Participant’s Purchase Right.
    If a married Participant designates a beneficiary other than the
    Participant’s spouse, the effectiveness of such designation
    shall be subject to the consent of the Participant’s
    spouse. A Participant may change his or her beneficiary
    designation at any time by written notice to the Company.

 

    20.2  Absence of Beneficiary
    Designation.  If a Participant dies without an
    effective designation pursuant to Section 20.1 of a
    beneficiary who is living at the time of the Participant’s
    death, the Company shall deliver any shares or cash credited to
    the Participant’s Plan account to the Participant’s
    legal representative.

 

    21.  Notices.

 

    All notices or other communications by a Participant to the
    Company under or in connection with the Plan shall be deemed to
    have been duly given when received in the form specified by the
    Company at the location, or by the person, designated by the
    Company for the receipt thereof.

 

    22.  Amendment
    or Termination of the Plan.

 

    The Board may at any time amend or terminate the Plan, except
    that (a) no such amendment or termination shall affect
    Purchase Rights previously granted under the Plan unless
    expressly provided by the Board and (b) no such amendment
    or termination may adversely affect a Purchase Right previously
    granted under the Plan without the consent of the Participant,
    except to the extent permitted by the Plan or as may be
    necessary to qualify the Plan as an employee stock purchase plan
    pursuant to Section 423 of the Code or to comply with any
    applicable law, regulation or rule. Notwithstanding the
    foregoing, any purchase right granted on or after March 2,
    2005 may be amended or terminated immediately upon Board
    action, should the financial accounting rules applicable to the
    Plan as of March 2, 2005 be subsequently revised so as to
    require the Company to recognize compensation cost in connection
    with the shares of Stock offered for purchase under the such
    right. Any amendment to the Plan that would authorize the sale
    of more shares than are then authorized for issuance under the
    Plan or would change the definition of the corporations that may
    be designated by the Board as Participating Companies must be
    approved by the stockholders of the Company within twelve
    (12) months of the adoption of such amendment.

 

    IN WITNESS WHEREOF, the undersigned Secretary of the Company
    certifies that the foregoing sets forth the Finisar Corporation
    1999 Employee Stock Purchase Plan, as amended and restated
    through March 2, 2005, subject to the approval of the
    stockholders at the 2004 Annual Meeting.

 

        

    Secretary

    

    11

 

    AMENDMENT

    TO

    1999 EMPLOYEE STOCK PURCHASE PLAN

 

    The Finisar Corporation 1999 Employee Stock Purchase Plan as
    amended and restated effective March 5, 2005 (the
    “Plan”) is hereby amended, effective
    September 9, 2009, as follows:

 

    1.  There is hereby added after the first sentence of
    Section 4.1 of the Plan the following new sentence:

 

    In addition, subject to stockholder approval at the 2009 Annual
    Meeting, an additional 250,000 shares of Stock shall be
    available for issuance under Purchase Rights to be exercised on
    the December 15, 2009 Purchase Date.

 

    2.  Except as modified by this Plan Amendment, all the
    terms and provisions of the Plan as in effect immediately prior
    to such amendment shall continue in full force and effect.

 

    IN WITNESS WHEREOF, Finisar Corporation has caused this
    Plan Amendment to be executed on its behalf by its
    duly-authorized officer on the date indicated below.

 

    FINISAR CORPORATION

 

			
	 	    By: 
	
        

			
	 	    Title: 
	

 

    Dated:             ,
    2009

    

    12

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