Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.8

RESTRICTED STOCK AWARD AGREEMENT

THIS RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made as of the 6th day of March, 2008, between DYNEGY
INC., a Delaware corporation (“Dynegy”), and all of its Affiliates (collectively, the “Company”), and Jason Hochberg
(the “Employee”). A copy of the Dynegy Inc. 2000 Long Term Incentive Plan (the “Plan”) is annexed to this Agreement
and shall be deemed a part hereof as if fully set forth herein. Unless the context otherwise requires, all terms that
are not defined in this Agreement but which are defined in the Plan shall have the same meaning given to them in the
Plan when used herein.

1. Award. Pursuant to the Plan, as of the date of this Agreement (the “Grant Date”), 23,396 restricted
shares (the “Restricted Shares”) of Dynegy’s Class A common stock, $0.01 par value per share (“Common Stock”), shall be
issued as hereinafter provided in the Employee’s name subject to certain restrictions thereon. The Restricted Shares
shall be issued upon acceptance hereof by the Employee and upon satisfaction of the conditions of this Agreement. The
Employee acknowledges receipt of a copy of the Plan, and agrees that this award of Restricted Shares shall be subject
to all of the terms and provisions of the Plan, including future amendments thereto, if any, pursuant to the terms
thereof, and to all of the terms and conditions of this Agreement. If it is subsequently determined by the Committee,
in its sole discretion, that the terms and conditions of this Agreement and/or the Plan are not compliant with Code
Section 409A, or any Treasury regulations or Internal Revenue Service guidance promulgated thereunder, this Agreement
and/or the Plan may be amended accordingly.

2. Restricted Shares. The Employee hereby accepts the Restricted Shares when issued and agrees with
respect thereto as follows:

(a) Forfeiture Restrictions. The Restricted Shares may not be sold, assigned, pledged,
exchanged, hypothecated or otherwise transferred, encumbered or otherwise disposed of (any such sale,
assignment, pledge, exchange, hypothecation or other transfer, encumbrance or disposition being referred to
herein as a “Transfer”) to the extent then subject to the Forfeiture Restrictions (as hereinafter defined),
and in the event of termination of the Employee’s employment with the Company for any reason whatsoever, the
Employee shall, for no consideration, forfeit to the Company all Restricted Shares then subject to the
Forfeiture Restrictions, except to the extent that such Forfeiture Restrictions lapse upon such termination in
accordance with Section 2(b) hereof. The prohibition against Transfer and the obligation to forfeit and
surrender Restricted Shares to the Company upon termination of employment are herein referred to as the
“Forfeiture Restrictions.” The Forfeiture Restrictions shall be binding upon and enforceable against any
transferee of Restricted Shares. For purposes of this Agreement, the following terms shall have the meanings
indicated below:

(i) “Base Salary” shall mean the regular base salary of Employee but excluding all
bonuses, expense reimbursements, benefits paid under any plan maintained by the Company and
all equity awards of any type.

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(ii) “Cause” shall mean, and hence arise where, as determined by the Committee in its
sole discretion, the Employee (A) has been convicted of a misdemeanor involving moral
turpitude or a felony; (B) has failed to substantially perform the duties of such Employee
to the Company (other than such failure resulting from the Employee’s incapacity due to
physical or mental condition) which results in a materially adverse effect upon the
Company, financial or otherwise; (C) has refused without proper legal reason to perform the
Employee’s duties and responsibilities to the Company; or (D) has breached any material
corporate policy maintained and established by the Company that is applicable to the
Employee, provided such breach results in a materially adverse effect upon the Company,
financial or otherwise.

(iii) “Change in Control” shall mean the occurrence of any of the following events:
(A) a merger of Dynegy with another entity, a consolidation involving Dynegy, or the sale
of all or substantially all of the assets or equity interests of Dynegy to another entity
if, in any such case, (I) the holders of equity securities of Dynegy immediately prior to
such event do not beneficially own immediately after such event equity securities of the
resulting entity entitled to fifty-one percent (51%) or more of the votes then eligible to
be cast in the election of directors (or comparable governing body) of the resulting entity
in substantially the same proportions that they owned the equity securities of Dynegy
immediately prior to such event or (II) the persons who were members of the Board
immediately prior to such event do not constitute at least a majority of the board of
directors of the resulting entity immediately after such event; (B) the dissolution or
liquidation of Dynegy, but excluding a reorganization pursuant to chapter 11 of Title 11,
U.S. Code, as amended; (C) a circumstance where any person or entity, including a “group”
as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or
control (including, without limitation, power to vote) of fifty percent (50%) or more of
the combined voting power of the outstanding securities of, (I) if Dynegy has not engaged
in a merger or consolidation, Dynegy, or (II) if Dynegy has engaged in a merger or
consolidation, the resulting entity; (D) circumstances where, as a result of or in
connection with, a contested election of directors, the persons who were members of the
Board immediately before such election shall cease to constitute a majority of the Board;
or (E) the Board (or the Committee) adopts a resolution declaring that a Change in Control
has occurred. For purposes of the “Change in Control” definition, (1) “resulting entity”
in the context of an event that is a merger, consolidation or sale of all or substantially
all of the subject assets or equity interests shall mean the surviving entity (or acquiring
entity in the case of an asset or equity interest sale), unless the surviving entity (or
acquiring entity in the case of an asset sale) is a subsidiary of another entity and the
holders of common stock of Dynegy receive capital stock of such other entity in such
transaction or event, in which event the resulting entity shall be such other entity, and
(2) subsequent to the consummation of a merger or consolidation that does not constitute a
Change in Control, the term “Dynegy” shall refer to the resulting entity and the term
“Board” shall refer to the board of directors (or comparable governing body) of the
resulting entity.

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(iv) “Change in Control Termination” shall mean Employee’s employment is terminated by
the Company (or a successor thereto) without Cause, or by Employee following: (A) a
significant diminution in Employee’s responsibilities, authority or duties; (B) a material
reduction in Employee’s Base Salary; or (C) relocation of Employee’s position outside the
Houston, Texas metropolitan area, all as determined by the Committee in its sole
discretion.

(v) “Committee” shall mean the committee that administers the Plan.

(vi) “Involuntary Termination” shall have the same meaning as specified in the Dynegy
Inc. Executive Severance Pay Plan (as amended and restated effective January 1, 2008).

(b) Lapse of Forfeiture Restrictions. The Forfeiture Restrictions shall lapse as to 100% of the
Restricted Shares on the third anniversary of the Grant Date, provided that the Employee has been continuously
employed by the Company from the date of this Agreement through such lapse date. Notwithstanding the
foregoing:

(i) if the Employee is determined to be disabled (as defined in the Company’s long
term disability program or plan in which the Employee is a participant or, if the Employee
does not participate in any such plan, as defined in the Dynegy Inc. Long Term Disability
Plan, as amended, or the successor plan thereto) or in the event of the death of the
Employee, then the Forfeiture Restrictions shall lapse with respect to 100% of the
Restricted Shares awarded to the Employee hereunder as of the date of such determination or
death, as applicable; and

(ii) if the Employee’s employment with the Company terminates by reason of resignation
by the Employee (except as otherwise provided in Sections 2(b)(iv), (v) or (vii) below) or
dismissal by the Company for Cause, then the Employee shall immediately, for no
consideration, forfeit to the Company all Restricted Shares to the extent then subject to
the Forfeiture Restrictions; and

(iii) if the Employee’s employment with the Company terminates by reason of retirement
by the Employee following (A) the date on which such Employee has reached sixty (60) years
of age and (B) at least ten (10) years of service as an employee of the Company, then the
Forfeiture Restrictions shall lapse as to 100% of the Restricted Shares awarded to the
Employee hereunder as of the date of such termination; and

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(iv) if the Employee’s employment with the Company terminates by reason of Involuntary
Termination, then the Forfeiture Restrictions shall lapse with respect to 100% of the
Restricted Shares awarded to the Employee hereunder as of the date of such termination; and

(v) if the Employee’s employment with the Company terminates as a result of a Change
in Control Termination occurring in connection with, but in no event earlier than sixty
(60) days prior to, a Change in Control, then the Forfeiture Restrictions shall lapse with
respect to 100% of the Restricted Shares awarded to the Employee hereunder as of the date
of such Change in Control; and

(vi) if the Employee is employed by the Company (or a successor thereto) on the date
of a Change in Control, then the Forfeiture Restrictions shall lapse with respect to 100%
of the Restricted Shares awarded to the Employee hereunder as of the date of such Change in
Control; and

(vii) if the Employee’s employment with the Company terminates as a result of a
mutually satisfactory resignation, as determined by the Committee in its sole discretion,
then the Forfeiture Restrictions shall lapse as to 100% of the Restricted Shares awarded to
the Employee hereunder as of the date of such termination.

Any shares with respect to which the Forfeiture Restrictions do not lapse in accordance with the preceding
provisions of this Section 2(b) shall be forfeited to the Company for no consideration as of the date of the
termination of the Employee’s employment with the Company.

(c) Shareholder Rights & Certificates. The Employee shall have all of the rights of a
shareholder of the Company with respect to the Restricted Shares, including, without limitation, voting rights
and the right to receive dividends (provided, however, that dividends paid in shares of the Company’s stock
shall be subject to the Forfeiture Restrictions), but the Employee may not Transfer the Restricted Shares
until the Forfeiture Restrictions have expired, and a breach of the terms of this Agreement or the Plan shall
cause a forfeiture of the Restricted Shares. Any certificate issued by the Company evidencing the Restricted
Shares shall bear appropriate legends in accordance with Section 4 below and shall be delivered upon issuance
to the Secretary of the Company or to such other depository as may be designated by the Committee as a
depository for safekeeping until the forfeiture of such Restricted Shares occurs or the Forfeiture
Restrictions lapse pursuant to the terms of the Plan and this award. In the event a certificate evidencing the
Employee’s Restricted Shares is issued by the Company prior to the lapse of the Forfeiture Restrictions, the
Employee shall promptly deliver to the Company a stock power, endorsed in blank, relating to the Restricted
Shares. Upon the lapse of the Forfeiture Restrictions without forfeiture, the Company shall, promptly
following receipt of a written request from the Employee, cause a certificate or certificates evidencing the
 shares of Common Stock awarded to the Employee hereunder (and with respect to which the Forfeiture
Restrictions have lapsed) to be issued without legend (except for any legend required pursuant to applicable
securities laws or any other agreement to which the Employee is a party) in the name of the Employee in
exchange for the certificate, if any, evidencing the Restricted Shares.

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(d) Corporate Acts. The existence of the Restricted Shares shall not affect in any way the right
or power of the Board of Directors of the Company or the shareholders of the Company to make or authorize any
adjustment, recapitalization, reorganization or other change in the Company’s capital structure or its
business, any merger or consolidation of the Company, any issue of debt or equity securities, the dissolution
or liquidation of the Company or any sale, lease, exchange or other disposition of all or any part of its
assets or business or any other corporate act or proceeding. The prohibitions of Section 2(a) hereof shall
not apply to the Transfer of Restricted Shares pursuant to a plan of reorganization of the Company, but the
stock, securities or other property received in exchange therefore shall also become subject to the Forfeiture
Restrictions and provisions governing the lapsing of such Forfeiture Restrictions applicable to the original
Restricted Shares for all purposes of this Agreement and the certificates, if any, representing such stock,
securities or other property shall be legended to show such restrictions.

3. Withholding of Tax. To the extent that the receipt of the Restricted Shares or the lapse of any
Forfeiture Restrictions results in compensation income to the Employee for federal or state income tax purposes, the
Employee shall deliver to the Company at the time of such receipt or lapse, as the case may be, such amount of money as
the Company may require to meet its obligation under applicable tax laws or regulations, and if the Employee fails to
do so, the Company is authorized to withhold from any cash or stock remuneration (including withholding any Restricted
Shares distributable to the Employee under this Agreement) then or thereafter payable to the Employee any tax required
to be withheld by reason of such resulting compensation income.

4. Status of Stock. The Employee agrees that the Restricted Shares issued under this Agreement will not
be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state
securities laws. The Employee also agrees that (a) in the event a certificate representing the Restricted Shares is
issued, such certificate may bear such legend or legends as the Committee deems appropriate in order to reflect the
Forfeiture Restrictions and to assure compliance with applicable securities laws, (b) the Company may refuse to
register the Transfer of the Restricted Shares on the stock transfer records of the Company if such proposed Transfer
would constitute a violation of the Forfeiture Restrictions or, in the opinion of counsel satisfactory to the Company,
of any applicable securities law, and (c) the Company may give related instructions to its transfer agent, if any, to
stop registration of the Transfer of the Restricted Shares.

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5. Employment Relationship. For purposes of this Agreement, the Employee shall be considered to be in the
employment of the Company as long as the Employee remains an employee of either the Company or an Affiliate (as such
term is defined in the Plan). Nothing in the adoption of the Plan or the award of the Restricted Shares thereunder
pursuant to this Agreement shall confer upon the Employee the right to continued employment by the Company or affect in
any way the right of the Company to terminate such employment at any time. Unless otherwise provided in a written
employment agreement or by applicable law, the Employee’s employment by the Company shall be on an at-will basis, and
the employment relationship may be terminated at any time by either the Employee or the Company for any reason
whatsoever, with or without cause. Any question as to whether and when there has been a termination of such
employment, and the cause of such termination, shall be determined by the Committee, and its determination shall be
final.

6. Notices. Any notices or other communications provided for in this Agreement shall be sufficient if in
writing. In the case of the Employee, such notices or communications shall be effectively delivered when hand
delivered to the Employee at his or her principal place of employment or when sent by registered or certified mail to
the Employee at the last address the Employee has filed with the Company. In the case of the Company, such notices or
communications shall be effectively delivered when sent by registered or certified mail to the Company at its principal
executive offices.

7. Entire Agreement; Amendment. This Agreement replaces and merges all previous agreements and
discussions relating to the same or similar subject matters between the Employee and the Company and constitutes the
entire agreement between the Employee and the Company with respect to the subject matter of this Agreement. This
Agreement may not be modified in any respect by any verbal statement, representation or agreement made by any employee,
officer, or representative of the Company or by any written agreement unless signed by an officer of the Company who is
expressly authorized by the Company to execute such document.

8. Binding Effect. This Agreement shall be binding upon and inure to the benefit of any successors to the
Company and all persons lawfully claiming under the Employee.

9. Miscellaneous. In the event of any conflict or inconsistency between the terms of this Agreement and
the terms of the Plan, the terms of the Plan shall be controlling. In the event of any conflict or inconsistency
between the terms of this Agreement and the terms of the Dynegy Inc. Executive Severance Pay Plan, including any
amendments or supplements thereto, or the Dynegy Inc. Severance Pay Plan, including any amendments or supplements
thereto, the terms of this Agreement shall be controlling.

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly
authorized, and the Employee has agreed to and accepted the terms of this Agreement*, all as of the date first above
written.

DYNEGY INC.

By:                                                                        

Name: J. Kevin Blodgett

Title: General Counsel & EVP, Administration

Accepted By:

                         
                       
    
            
                

Jason
Hochberg               
                       
    Date

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7Filed by Bowne Pure Compliance

 

Exhibit 10.9

PERFORMANCE AWARD AGREEMENT

THIS PERFORMANCE AWARD AGREEMENT (this “Agreement”) is made as of the 6th day of March, 2008, between
DYNEGY INC., a Delaware corporation (“Dynegy”), and all of its Affiliates (collectively, the “Company”), and Bruce A.
Williamson (“Employee”). A copy of the Dynegy Inc. 2000 Long Term Incentive Plan (the “Plan”) is annexed to this
Agreement and shall be deemed a part of this Agreement as if fully set forth herein. Unless the context otherwise
requires, all terms that are not defined herein but which are defined in the Plan shall have the same meaning given to
them in the Plan when used herein.

1. The Grant. The Compensation and Human Resources Committee of the Board of Directors (the “Committee”)
granted to Employee on March 6, 2008 (“Effective Date”), a Performance Award of 16,000 performance units, each of which
has a designated value of $100 and represents the right to receive an amount payable in the form of cash or shares of
Dynegy’s Class A Common Stock (a “Share” or “Shares”), as determined in the discretion of the Committee. Employee
acknowledges receipt of a copy of the Plan, and agrees that this Performance Award shall be subject to all of the terms
and provisions of the Plan, including future amendments thereto, if any, pursuant to the terms thereof, and to all of
the terms and conditions of this Agreement. If it is subsequently determined by the Committee, in its sole discretion,
that the terms and conditions of this Agreement and/or the Plan are not compliant with Code Section 409A, or any
Treasury regulations or Internal Revenue Service guidance promulgated thereunder, this Agreement and/or the Plan may be
amended accordingly.

2. Performance Period and Performance Goals. Subject to the provisions of Section 5 of this Agreement,
the performance period for purposes of determining whether the Performance Award will be paid shall be March 6, 2008
through March 6, 2011 (the “Performance Period”). The performance goals for purposes of determining whether, and the
extent to which, the Performance Award will be paid are set forth in Exhibit 1 to this Agreement, which Exhibit
is made a part of this Agreement. Notwithstanding the foregoing, the Committee shall have discretion to adjust the
performance goals to reflect actions undertaken in the best interest of the Company and its shareholders, including,
but not limited to, strategic transactions affecting the performance goals as well as recapitalizations,
reorganizations, mergers, consolidations, split-ups, split-offs, spin-offs, exchanges or other relevant changes in
capitalization or structure of the Company.

3. Payment. Subject to the provisions of Sections 4 and 5 of this Agreement, after the Performance
Period, the Performance Award shall be paid as soon as practicable after the Committee determines whether and to what
extent the performance goals have been achieved for the Performance Period in accordance with the terms set forth in
Exhibit 1 to this Agreement; provided, however, that any such payment shall be made no later than December 31,
2011.

4. Termination. The Performance Award and the Employee’s right to receive any cash or Shares hereunder
will automatically and without notice terminate and become null and void upon Employee’s termination of employment with
the Company prior to the Performance Award payment date, except that:

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	 	(a)	 	if Employee’s termination of employment is by reason of:

	 	(1)	 	death,
	 

	 	(2)	 	retirement by Employee following (A) the date on
which such Employee has reached sixty (60) years of age and (B) at least ten
(10) years of service as an employee of the Company, or
	 

	 	(3)	 	Involuntary Termination (as defined in the Dynegy
Inc. Executive Severance Pay Plan, as amended and restated effective January
1, 2008), or
	 

	 	(4)	 	a Change in Control Termination occurring in
connection with, but in no event earlier than sixty (60) days prior to, a
Change in Control, or
	 

	 	(b)	 	if Employee is determined to be disabled (as defined in the Company’s long
term disability program or the plan in which Employee is a participant or, if Employee does not
participate in any such plan, as defined in the Dynegy Inc. Long Term Disability Plan, as
amended, or the successor plan thereto),

Employee shall be treated as if he had been continuously employed by the Company through the Performance Award payment
date. In such case, Employee or Employee’s legal representative, or the person, if any, who acquired the Performance
Award by bequest or inheritance or by reason of the death of Employee, shall be entitled to receive any payment with
respect to the Performance Award in accordance with this Agreement; provided, however, that if Employee’s termination
of employment is for the reason described in Sections 4(a)(3) or (4), any such payment shall be prorated by multiplying
the payment by a fraction, the numerator of which shall be the number of calendar days that elapsed between the date of
Employee’s termination and the Effective Date and the denominator of which shall be 1,080 but in no case shall such
fraction be greater than one (1).

For purposes of this Agreement, the term “Cause” shall mean, and hence arise as a result of, as determined by the
Committee in its sole discretion, Employee’s (i) refusal to implement or adhere to lawful policies or lawful directives
of the Board of Directors; (ii) engaging in conduct which is materially injurious (monetarily or otherwise) to the
Company (including, without limitation, misuse of the Company’s funds or other property); (iii) misconduct or
dishonesty directly related to the performance of Employee’s duties for the Company or gross negligence in the
performance of Employee’s duties for the Company; (iv) conviction (or entering into a plea bargain admitting criminal
guilt) in any criminal proceeding involving a felony or a crime of moral turpitude; (v) drug or alcohol abuse; or (vi)
continued failure to perform Employee’s duties which is not cured within 10 days after written notice is provided to
Employee by the Company. In addition, the term “Change in Control Termination” shall mean Employee’s employment is
terminated by the Company (or a successor thereto) without Cause, or by Employee following: (A) a significant
diminution in Employee’s responsibilities, authority or duties; (B) a material reduction in Employee’s base salary; or
(C) relocation of Employee’s position outside the Houston, Texas metropolitan area, all as determined by the Committee
in its sole discretion.

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5. Change In Control. In the event a “Change in Control” (as defined below) occurs during the Performance
Period, provided the ending Share price, as determined in accordance with this Section 5, would entitle Employee to
receive a Performance Award based upon the performance goals set forth in Exhibit 1 to this Agreement, Employee
shall receive a payment with respect to the Performance Award, which shall be determined by using either, as applicable
(a) the agreed price per Share received by the shareholders of Dynegy as a result of the Change in Control transaction,
or if there is no agreed price per Share, then (b) the average closing Share price for the twenty (20) consecutive
trading days immediately preceding the effective date of the Change in Control, as the ending Share price for the
Performance Period. Such payment, if any, shall be made regardless of whether Employee’s employment with the Company
is terminated (other than For Cause) on or after the effective date of such Change in Control, and shall be made in the
form of cash to Employee as soon as administratively feasible but no later than the later of December 31 of the
calendar year in which the Change in Control occurs or the 15th day of the third month following the
effective date of the Change in Control. The Performance Period shall end as of the effective date of a Change in
Control, and any Performance Award payments hereunder shall only be made in accordance with this Section 5.

For purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the following events: (1)
a merger of Dynegy with another entity, a consolidation involving Dynegy, or the sale of all or substantially all of
the assets or equity interests of Dynegy to another entity if, in any such case, (A) the holders of equity securities
of Dynegy immediately prior to such event do not beneficially own immediately after such event equity securities of the
resulting entity entitled to fifty-one percent (51%) or more of the votes then eligible to be cast in the election of
directors (or comparable governing body) of the resulting entity in substantially the same proportions that they owned
the equity securities of Dynegy immediately prior to such event or (B) the persons who were members of the Board
immediately prior to such event do not constitute at least a majority of the board of directors of the resulting entity
immediately after such event; (2) the dissolution or liquidation of Dynegy, but excluding a reorganization pursuant to
chapter 11 of Title 11, U.S. Code, as amended; (3) a circumstance where any person or entity, including a “group” as
contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without
limitation, power to vote) of fifty percent (50%) or more of the combined voting power of the outstanding securities
of, (A) if Dynegy has not engaged in a merger or consolidation, Dynegy, or (B) if Dynegy has engaged in a merger or
consolidation, the resulting entity; (4) circumstances where, as a result of or in connection with, a contested
election of directors, the persons who were members of the Board immediately before such election shall cease to
constitute a majority of the Board; or (5) the Board (or the Committee) adopts a resolution declaring that a Change in
Control has occurred. For purposes of the “Change in Control” definition, (A) “resulting entity” in the context of an
event that is a merger, consolidation or sale of all or substantially all of the subject assets or equity interests
shall mean the surviving entity (or acquiring entity in the case of an asset or equity interest sale), unless the
surviving entity (or acquiring entity in the case of an asset sale) is a subsidiary of another entity and the holders
of common stock of Dynegy receive capital stock of such other entity in such transaction or event, in which event the
resulting entity shall be such other entity, and (B) subsequent to the consummation of a merger or consolidation that
does not constitute a Change in Control, the term “Dynegy” shall refer to the resulting entity and the term “Board”
shall refer to the board of directors (or comparable governing body) of the resulting entity.

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6. Status of Stock. Employee agrees that any Shares distributed pursuant to this Agreement will not be
sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state
securities laws. Employee also agrees that (a) the certificates representing the Shares may bear such legend or
legends as the Committee in its sole discretion deems appropriate in order to assure compliance with applicable
securities laws and (b) the Company may refuse to register the transfer of the Shares on the stock transfer records of
the Company, and may give related instructions to its transfer agent, if any, to stop registration of such transfer, if
such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any
applicable securities law.

7. Employment Relationship. For purposes of this Agreement, Employee shall be considered to be in the
employment of the Company as long as Employee remains an employee of the Company or an Affiliate (as such term is
defined in the Plan). Nothing in the adoption of the Plan or the grant of the Performance Award thereunder pursuant to
this Agreement, shall confer upon Employee the right to continued employment by the Company or affect in any way the
right of the Company to terminate such employment at any time. Unless otherwise provided in a written employment
agreement or by applicable law, Employee’s employment by the Company shall be on an at-will basis, and the employment
relationship may be terminated at any time by either Employee or the Company for any reason whatsoever, with or without
cause. Any question as to whether and when there has been a termination of such employment, and the cause of such
termination, shall be determined by the Committee in its sole discretion, and its determination shall be final and
binding on all parties.

8. Withholding of Tax. To the extent that payment of the Performance Award results in compensation income
to Employee for federal or state income tax purposes, the Company is authorized to withhold from any cash or Shares
distributable to the Employee under this Agreement) then or thereafter payable to Employee any tax required to be
withheld by reason of such resulting compensation income.

9. Miscellaneous.

(a) This grant is subject to all the terms, conditions, limitations and restrictions contained in the
Plan. In the event of any conflict or inconsistency between the terms hereof and the terms of the Plan, the
terms of the Plan shall be controlling. In the event of any conflict or inconsistency between the terms
hereof and the terms of the Dynegy Inc. Executive Severance Pay Plan, including any amendments or supplements
thereto, the terms hereof shall be controlling.

(b) Any notices or other communications provided for in this Agreement shall be sufficient if in writing.
In the case of Employee, such notices or communications shall be effectively delivered when hand delivered to
Employee at his or her principal place of employment or when sent by registered or certified mail to Employee
at the last address Employee has filed with the Company. In the case of the Company, such notices or
communications shall be effectively delivered when sent by registered or certified mail to the Company at its
principal executive offices.

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(c) Employee shall be presumed to have agreed to and accepted the terms of this Agreement unless he
submits a written objection to the Committee or the undersigned officer within 30 days after the Effective
Date.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly
authorized as of the date first above written.

DYNEGY INC.

By:                                                                     

Name: J. Kevin Blodgett

Title: General Counsel & EVP, Administration

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Exhibit 1

Performance Goals for Performance Period

(March 6, 2008 — March 6, 2011)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance 
Goals
	 	Dynegy Inc. 
Achieved Share Price*	 	$	10.00	 	 	$	12.00	 	 	$	14.00	 
	
Payment 
Levels**
	 	
% of each $100 
Performance Unit	 	 	0	%	 	 	100	%	 	 	200	%

*Achieved Share Price shall be the ending Share price equal to the average closing Share price for the month of
February 2011 or, if applicable, the ending Share price determined in accordance with Section 5 of the Agreement in the
event of a Change in Control.

**Payment levels will be based upon the actual Achieved Share Price and will be interpolated between Achieved Share
Price goals.

 

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