Document:

a10a.htm

Exhibit 10(a)

SIXTH AMENDMENT

TO

THE ENTERGY CORPORATION AND SUBSIDIARY COMPANIES

INTERCOMPANY INCOME TAX ALLOCATION AGREEMENT

This Sixth Amendment (the “Sixth Amendment”) to the Entergy Corporation and Subsidiary Companies Intercompany Income Tax Allocation Agreement (the “Tax Agreement”) is effective for all payments after September 30, 2010, related to any taxable year, and is made by Entergy Corporation (“ETR”) and each entity that is a member of the Entergy Corporation and Subsidiary Companies’ consolidated group, as defined in Treas. Reg. § 1.1502-1(h) (collectively, the “Entergy System”).

WITNESSETH:

WHEREAS, ETR and the other members of the Entergy System desire to amend the Tax Agreement, which was effective for taxable years 1987 and thereafter.

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants and undertakings contained in this Tax Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each member of the Entergy System does hereby covenant and agree as follows:

	
1.  

	
DEFINITIONS.  As used in this Sixth Amendment, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

“Automatic Inclusion Clause” shall mean the provision contained in the Fourth Amendment to the Tax Agreement that automatically makes new members of the Entergy System parties to the Tax Agreement.

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Final Determination” shall mean the resolution of an issue for the taxable year in question by (A) the expiration of the applicable statute of limitations on assessments for the year, as extended by agreement, (B) a decision, judgment, decree or other order by a court of competent jurisdiction, which has become final and unappealable, or (C) a closing agreement or an accepted offer in compromise under § 7121 or 7122 of the Code.

“Non-Regulated Companies” shall mean the companies listed on Schedule 2, attached hereto, and all companies that become members in the future of the Entergy System that are parties to the Tax Agreement.

“Recalculated Federal Tax Allocation” shall mean the net positive or net negative federal tax allocation referenced in paragraph I of the Tax Agreement recalculated by treating all Uncertain Tax Positions of all Non-Regulated Companies for the applicable year as if such Uncertain Tax Positions were ETR’s items of income, deduction, exclusion, gain, loss, or credit rather than items of income, deduction, exclusion, gain, loss, or credit of the Non-Regulated Companies.

“Regulated Companies” shall mean the companies listed on Schedule 3, attached hereto.

“Tax Attributes” shall mean the unutilized net operating loss carryforward or carryback, unutilized minimum tax credit, foreign tax credit, other tax credit, and unutilized capital loss carryforward or carryback of a member of the Entergy System.

“Uncertain Tax Position” shall mean any member’s items of income, deduction, exclusion, gain, loss, or credit, for any taxable year, related to any of the following: (a) the adoption of certain accounting methods set forth in Schedule 1, (b) the application of such methods, (c) the application of Treas. Reg. § 1.1502-13(g) to intercompany power purchase agreements, (d) the inclusion of decommissioning liabilities in the consideration allocable under Code § 1060 with respect to acquisitions of nuclear power plants, and (e) the inclusion of decommissioning trust assets in the asset classes to which consideration is allocable under Code § 1060 with respect to acquisitions of nuclear power plants.  An item of income, deduction, exclusion, gain, loss, or credit ceases to be an Uncertain Tax Position upon a Final Determination with respect to such item.

	
2.  

	
NON-REGULATED COMPANY PAYMENTS.  For purposes of calculating payments between ETR and each Non-Regulated Company under Paragraph I of the Tax Agreement, the Recalculated Federal Tax Allocation shall be used in lieu of the federal tax allocation that would have been used if this amendment had not been executed.  For the avoidance of doubt:  (a) in computing the Recalculated Federal Tax Allocation for the Non-Regulated Companies, all Uncertain Tax Positions of all Non-Regulated Companies for the applicable year are treated as if such Uncertain Tax Positions are ETR’s items of income, deduction, exclusion, gain, loss, or credit rather than items of income, deduction, exclusion, gain, loss, or credit of the Non-Regulated Companies, (b)  any Tax Attribute carried forward from a prior year will be recalculated by treating all Uncertain Tax Positions of all Non-Regulated Companies for the year in which such Tax Attribute arose as if such Uncertain Tax Positions were ETR’s Uncertain Tax Positions, and (c) nothing in this Sixth Amendment is intended to change the payments under Paragraph I of the Tax Agreement for a member of the Entergy System that is a Regulated Company.  Any Non-Regulated Company having a net positive Recalculated Federal Tax Allocation shall pay such amount to ETR, with either cash or a note with reasonable commercial terms, in accordance with Paragraph I of the Tax Agreement.  When a subsequent event, as described in paragraph 17 of the Tax Agreement, occurs, then any Non-Regulated Company having a net positive Recalculated Federal Tax Allocation shall pay, with either cash or a note with reasonable commercial terms, such amount, less any previous payments for such tax year, within 14 business days after ETR tenders demand for payment; provided, however, that the amount due under this clause can never be less than zero.

If a Non-Regulated Company is allocated a net negative Recalculated Federal Tax Allocation, such Non-Regulated Company shall not be entitled to any payment.  Additionally, if as a result of a subsequent event, a Non-Regulated Company is allocated a net positive Recalculated Federal Tax Allocation which is less than the previous net positive Recalculated Federal Tax Allocation for such tax year, then such Non-Regulated Company shall not be entitled to any payment.

 

	
3.  

	
ALL NEW MEMBERS OF THE ENTERGY SYSTEM TREATED AS NON-REGULATED COMPANIES.  All new members to the Entergy System that become a party to the Tax Agreement as a result of the application of the Automatic Inclusion Clause will be treated as Non-Regulated Companies.

 

	
4.  

	
CERTAIN COMPANIES NOT ELIGIBLE FOR INCLUSION UNDER THE AUTOMATIC INCLUSION CLAUSE.  The Automatic Inclusion Clause is hereby amended and restated to read as follows:  If at any time any member of the Entergy System acquires or creates one or more subsidiary corporations that are includible corporations of the Entergy Corporation and Subsidiary Companies’ consolidated group, the Entergy System agrees that such subsidiary or subsidiaries shall be subject to this Tax Agreement and all references to the creating or acquiring member herein shall thereafter be interpreted to refer to such member and its subsidiary or subsidiaries; provided, however, this provision shall not apply to any corporation or entity treated as a corporation under the Code that is in bankruptcy under Title 11 of the United States Code when it otherwise qualifies to become a member of the Entergy System.

	
5.  

	
EFFECTIVE DATE.  This Sixth Amendment shall be effective for all payments after September 30, 2010, related to any taxable year, until further amended or otherwise terminated.

	
6.  

	
COUNTERPARTS.  It is agreed that this Sixth Amendment may be executed in multiple counterparts.

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Sixth Amendment to be duly executed by one of its duly authorized officers as of the 11th day of October, 2010.

ENTERGY CORPORATION

By:           /s/ Leo P. Denault

Leo P. Denault

Executive Vice President and Chief Financial Officer

ARKANSAS POWER & LIGHT COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

EGS HOLDINGS, INC.

By:           /s/ Eddie Peebles

Eddie Peebles

President

ENTERGY ARKANSAS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY GULF STATES LOUISIANA LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY LOUISIANA HOLDINGS, INC.

By:           /s/ Andrew Marsh

Andrew Marsh

Vice President

 

 

 

 

ENTERGY LOUISIANA LLC

 

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY LOUISIANA PROPERTIES LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY MISSISSIPPI, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NEW NUCLEAR UTILITY DEVELOPMENT LLC

By:           /s/ Andrew Marsh

Andrew Marsh

Vice President

ENTERGY NEW ORLEANS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY OPERATIONS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENTERGY SERVICES, INC.

 

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY TEXAS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

GSG&T, INC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

GULF STATES UTILITIES COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

JACKSON GAS LIGHT COMPANY

By:           /s/ Robert D. Sloan

Robert D. Sloan

President

MISSISSIPPI POWER & LIGHT COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

NEW ORLEANS PUBLIC SERVICE, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

SYSTEM ENERGY RESOURCES, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

SYSTEM FUELS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

THE LIGHT, HEAT AND WATER COMPANY OF JACKSON, MISSISSIPPI

By:           /s/ Robert D. Sloan

Robert D. Sloan

President

EAM NELSON HOLDING LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

EN SERVICES II CORPORATION

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENEXUS ENERGY CORP

By:           /s/ Wanda C. Curry

Wanda C. Curry

Treasurer

ENTERGY ASSET MANAGEMENT, INC.

By:           /s/ Tom D. Reagan

Tom D. Reagan

President

ENTERGY ENTERPRISES, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY GLOBAL LLC

By:           /s/ Douglas Castleberry

Douglas Castleberry

President

ENTERGY GLOBAL POWER OPERATIONS CORPORATION

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY GLOBAL TRADING HOLDINGS, LTD

By:           /s/ Barrett Green

Barrett Green

President

 

ENTERGY HOLDINGS COMPANY LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY INTERNATIONAL HOLDINGS, LTD

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY INVESTMENT HOLDING COMPANY, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY MISSISSIPPI TURBINE COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR FINANCE HOLDING, INC.

By:           /s/ Douglas Castleberry

Douglas Castleberry

Vice President

ENTERGY NUCLEAR FINANCE LLC

By:           /s/ Samuel Agyeman-Yeboah

Samuel Agyeman-Yeboah

President

 

ENTERGY NUCLEAR FUELS COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR GENERATION COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR HOLDING COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR HOLDING COMPANY #1

By:           s/ Samuel Agyeman-Yeboah

Samuel Agyeman-Yeboah

Vice President

ENTERGY NUCLEAR HOLDING COMPANY #2

By:           /s/ Eddie Peebles

Eddie Peebles

Vice President

ENTERGY NUCLEAR HOLDING COMPANY #3

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENTERGY NUCLEAR INDIAN POINT 1&2 INVESTMENT LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR MIDWEST INVESTMENT COMPANY LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR NEW YORK INVESTMENT COMPANY I

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR OPERATIONS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR PFS COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY NUCLEAR POTOMAC COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENTERGY NUCLEAR POWER MARKETING LLC

By:           /s/ Barrett Green

Barrett Green

President

ENTERGY NUCLEAR TEXAS HOLDING, INC.

By:           /s/ James Striedel

James Striedel

Vice President

ENTERGY NUCLEAR VERMONT INVESTMENT COMPANY LLC

By:           /s/ Joseph A. Aluise

Joseph A. Aluise

Vice President and Secretary

ENTERGY NUCLEAR, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY POWER & LIGHT COMPANY

By:           /s/ Robert D. Sloan

Robert D. Sloan

President

ENTERGY POWER E&C HOLDINGS LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENTERGY POWER GAS HOLDINGS CORPORATION

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY POWER HOLDINGS, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY POWER OPERATIONS U.S., INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY RESOURCES, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY RETAIL HOLDING COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY SOLUTIONS DISTRICT ENERGY LTD, LLC

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

 

ENTERGY TECHNOLOGY COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

ENTERGY TECHNOLOGY HOLDING COMPANY

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

EP EDEGEL, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

EWO MARKETING, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

NUCLEAR SERVICES COMPANY LLC

By:           /s/ John T. Herron

John T. Herron

President

TLG SERVICES, INC.

By:           /s/ Steven C. McNeal

Steven C. McNeal

Vice President and Treasurer

  

  

  

Schedule 1

Decommissioning in cost of goods sold under Code § 263A

Mark-to-Market under Code § 475

Industry Director Directive Number 5 under Code § 263A

Units of Property under Code § 263

Repairs under Code §§ 162 and 263

Activity Based Costing under Code § 263A

  

  

  

Schedule 2

Non-Regulated Companies:

EAM Nelson Holding LLC

EN Services II Corporation

Enexus Energy Corp

Entergy Asset Management, Inc.

Entergy Enterprises, Inc.

Entergy Global LLC

Entergy Global Power Operations Corporation

Entergy Global Trading Holdings, LTD

Entergy Holdings Company LLC

Entergy International Holdings LTD

Entergy Investment Holding Company, Inc.

Entergy Mississippi Turbine Company

Entergy Nuclear Finance Holding, Inc.

Entergy Nuclear Finance LLC

Entergy Nuclear Fuels Company

Entergy Nuclear Generation Company

Entergy Nuclear Holding Company

Entergy Nuclear Holding Company #1

Entergy Nuclear Holding Company #2

Entergy Nuclear Holding Company #3

Entergy Nuclear Indian Point 1&2 Investments LLC

Entergy Nuclear Midwest Investment Company, LLC

Entergy Nuclear New York Investment Company I

Entergy Nuclear Operations, Inc.

Entergy Nuclear PFS Company

Entergy Nuclear Potomac Company

Entergy Nuclear Power Marketing LLC

Entergy Nuclear Texas Holding, Inc.

Entergy Nuclear Vermont Investment Company LLC

Entergy Nuclear, Inc.

Entergy Power & Light Company

Entergy Power E&C Holdings LLC

Entergy Power Gas Holdings Corporation

Entergy Power Holdings, Inc.

Entergy Power Operations U.S., Inc.

Entergy Resources Inc.

Entergy Retail Holding Company

Entergy Solutions District Energy Ltd, LLC

Entergy Technology Company

Entergy Technology Holding Company

EP Edegel, Inc.

EWO Marketing Inc.

Nuclear Services Company LLC

TLG Services, Inc.

  

  

  

Schedule 3

Regulated Companies:

Arkansas Power & Light Company

EGS Holdings Inc.

Entergy Arkansas, Inc.

Entergy Gulf States Louisiana L.L.C.

Entergy Louisiana Holdings, Inc

Entergy Louisiana LLC

Entergy Louisiana Properties LLC

Entergy Mississippi, Inc.

Entergy New Nuclear Utility Development LLC

Entergy New Orleans, Inc.

Entergy Operations, Inc.

Entergy Services, Inc.

Entergy Texas, Inc.

GSG&T, Inc.

Gulf States Utilities Company

Jackson Gas Light Company

Mississippi Power & Light Company

New Orleans Public Service Inc.

System Energy Resources, Inc.

System Fuels, Inc.

The Light, Heat and Water Company of Jackson, Mississippiex10-1.htm

NW NATURAL GAS STORAGE, LLC CONFIDENTIAL INTEROFFICE MEMORANDUM

 

 

	
TO:

	
RICK DANIEL                                                              

 

	
FROM:

	
GREGG KANTOR

 

	
SUBJECT:

	
RETENTION AGREEMENT

 

	
DATE:

	
9/13/2010

 

	
CC:

	
KIM KING, KEITH WHITE

 

I want you to know that NW Natural Gas Storage, LLC (the “Company”) has appreciated your willingness to take on the President role for the Company. You are viewed as a critical employee and your past and future services to the Company are highly valued. To encourage you to continue your employment with NW Natural Gas Storage, LLC, the Company is offering you the following special payments (the “Retention Bonus”):

 

	
·  

	
You will be eligible for the following special payments (three payments totaling $100,000) should you continue your employment with NW Natural Gas Storage, LLC in the role of President based upon the following schedule:

 

	
o  

	
$33,000-if still successfully employed as of 4-30-11

 

	
o  

	
$33,000-if still successfully employed as of 7-31-11

 

	
o  

	
$34,000-if still successfully employed as of 10-31-11

 

	
·  

	
In addition, should you terminate your employment after 4-30-11 and before the payment date for 2011 AIP awards, you will be eligible for an amount equivalent to a prorated Annual Incentive Plan award (Prorated AIP Equivalent) if any is earned.  Pro-ration will be based upon the number of days worked in the calendar year 2011.  You will be paid after the completion of 2011 and no later than March 15, 2012.

 

The payments comprising the Retention Bonus and the Prorated AIP Equivalent are each subject to applicable payroll deductions and tax withholding and may constitute taxable income to you.  You are responsible for all tax obligations and should consult with your own tax advisor regarding the tax treatment of the Retention Bonus and the Prorated AIP Equivalent.

 

In order to be eligible for this Retention Bonus and Prorated AIP Equivalent you must:

 

	
1.  

	
Remain employed with NW Natural Gas Storage, LLC in the role of President through the payment dates specified above.  If you leave the Company voluntarily or involuntarily for cause prior to the payment dates specified, you will automatically forfeit all rights to the Retention Bonus. Further, if you terminate your employment involuntarily for reasons of cause, you will forfeit all rights to the Prorated AIP Equivalent.   For purposes of this agreement, “cause” is defined on page 4 section 4.ii in your CIC agreement.  In the event of a termination in which the circumstances of this termination enable you to be eligible for the benefits outlined in the CIC agreement , you would be ineligible to receive any unpaid Retention Bonus and the Prorated AIP Equivalent.

 

 

 

  

  

  

	
2.  

	
Maintain an acceptable level of performance during this period as determined by the NW Natural Gas Storage, LLC Board.

 

	
3.  

	
Agree that you will keep this opportunity confidential.

 

	
4.  

	
Agree to keep confidential the terms and conditions of this memorandum as well as the content of discussions pertaining to the offer explained above. You may, however, discuss the offer with your attorney, financial advisor or immediate family members on a confidential basis.

 

Upon signing this agreement, the company agrees to increase your vacation accrual from 6 weeks per year to 8 weeks per year.

 

Should you have any questions about this memorandum you may contact me or Kim King (ext. 5728).

 

Again, thank you for your many contributions to date and those we anticipate in the future. I am pleased to provide this Retention Bonus and other special compensation opportunities to you in recognition of your past and future contributions and in exchange for your continued service to the Company. Please acknowledge your acceptance of the opportunity described above and your agreement to maintain confidentiality by signing and returning this memorandum to me or Kim King no later than September 13, 2010.

 

/s/Rick Daniel                                                           /s/Gregg Kantor                   

 

(Sign & date)                                                           (Sign & date)

 

NW Natural Gas Storage, LLC                              NW Natural Gas Storage, LLC

 

Rick Daniel, President                                            Gregg Kantor, Chairperson of the Board

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