Document:

EX-10.2

 

EXHIBIT 10.2

NRG ENERGY, INC.

Common Shares, Par Value $0.01 Per Share

UNDERWRITING AGREEMENT

November 9, 2006

 

 

November 9, 2006

Morgan Stanley & Co. Incorporated

1585 Broadway

New York, NY 10036

Ladies and Gentlemen:

          The entities listed on Schedule I (collectively, the “Selling Stockholders”) propose to sell
to you (the “Underwriter”) an aggregate of 4,216,871 shares of common stock of NRG Energy, Inc., a
Delaware corporation (the “Company”), par value $0.01 per share (the “Shares”). The outstanding
shares of common stock of the Company are hereinafter referred to as the “Common Shares.”

          The Company has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement, including a prospectus, on Form S-3 (File No. 333-130549), relating to the
registration of certain securities described therein, including the Shares. The registration
statement as amended to the date of this Agreement is hereinafter referred to as the “Registration
Statement” (for purposes of this definition, information contained in a form of prospectus or
prospectus supplement that is deemed retroactively to be a part of the Registration Statement
pursuant to Rule 430B under the Securities Act of 1933, as amended (the “Securities Act”), shall be
considered to be included in the Registration Statement as of the time specified in Rule 430B), and
the related prospectus dated December 21, 2005 in the form in which it has most recently been filed
with the Commission is hereinafter referred to as the “Base Prospectus.” The Base Prospectus, as
supplemented by the prospectus supplement specifically relating to the Shares to be dated November
9, 2006 in the form first used to confirm sales of the Shares (or in the form first made available
to the Underwriter by the Company to meet requests of purchasers pursuant to Rule 173 under the
Securities Act) is hereinafter referred to as the “Prospectus,” and the term “preliminary
prospectus” means the Base Prospectus, as supplemented by the Free Writing Prospectus dated
November 9, 2006. For purposes of this definition, information contained in a form of prospectus
(including a prospectus supplement) that is deemed retroactively to be a part of the Registration
Statement pursuant to Rule 430B shall be considered to be included in the Prospectus as of the
actual time that form of prospectus (including a prospectus supplement) is filed with the
Commission pursuant to Rule 424(b) under the Securities Act.

          For purposes of this Agreement, “free writing prospectus” has the meaning set forth in Rule
405 under the Securities Act, and “Time of Sale Prospectus” means, collectively, the Base
Prospectus and the Free Writing Prospectus dated November 9, 2006, together with other free writing
prospectuses, if any, identified in Schedule II hereto, as of the Applicable Time of Sale (as
defined herein), and the information set forth in Schedule III hereto. As used herein, the terms
“Registration Statement,” “Base Prospectus,” “preliminary prospectus,” “Time of Sale Prospectus”
and “Prospectus” shall include the documents, if any, incorporated by reference therein. The terms
“supplement” and “amendment” and
“amend” as used in this Agreement with respect to the Registration Statement, the Base Prospectus, the preliminary prospectus, the
Time of Sale Prospectus, Prospectus or any free writing prospectus shall include any supplement or
amendment made by a subsequent filing by the Company with the Commission pursuant to the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), that is incorporated by reference therein.

 

 

     1. Representations and Warranties of the Company. The Company represents and warrants to, and
agrees with, the Underwriter and each Selling Stockholder that:

     (a) The Registration Statement has become effective; no stop order suspending the
effectiveness of the Registration Statement is in effect, and no proceedings for such purpose are
pending before, or to the knowledge of the Company, threatened by the Commission. The Company is a
well-known seasoned issuer (as defined in Rule 405 under the Securities Act) eligible to use the
Registration Statement as an automatic shelf registration statement and the Company has not
received notice that the Commission objects to the use of the Registration Statement as an
automatic shelf registration statement pursuant to Rule 401(g)(2) of the Securities Act.

     (b) (i) Each document, if any, filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Time of Sale Prospectus or the Prospectus complied or will comply
when so filed in all material respects with the Exchange Act and the applicable rules and
regulations of the Commission thereunder, (ii) each part of the Registration Statement, when such
part became effective, did not contain, and each such part, as amended or supplemented, if
applicable, will not contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading,
(iii) the Registration Statement as of the date hereof does not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading, (iv) the Registration Statement and the Prospectus comply,
and as amended or supplemented, if applicable, will comply in all material respects with the
Securities Act and the applicable rules and regulations of the Commission thereunder, (v) the Time
of Sale Prospectus does not, and at the time of each sale of the Shares in connection with the
offering and at the Closing Date (as defined in Section 4), the Time of Sale Prospectus, as then
amended or supplemented by the Company, if applicable, will not, contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading and (vi) the Prospectus does
not contain and, as amended or supplemented, if applicable, will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, except that the
representations and warranties set forth in this paragraph do not apply to statements or omissions
in the Registration Statement, the Time of Sale Prospectus or the Prospectus, each as amended or
supplemented, based upon information relating to the Underwriter furnished to the Company in
writing by the Underwriter expressly for use therein.

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     (c) The Company is not an “ineligible issuer” in connection with the offering pursuant to
Rules 164, 405 and 433 under the Securities Act. Any free writing prospectus that the Company is
required to file pursuant to Rule 433(d) under the Securities Act has been, or will be, filed with
the Commission in accordance with the requirements of the Securities Act and the
applicable rules and regulations of the Commission thereunder. Each free writing prospectus
that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities
Act or that was prepared by or on behalf of or used or referred to by the Company complies or will
comply in all material respects with the requirements of the Securities Act and the applicable
rules and regulations of the Commission thereunder. Except for the free writing prospectuses, if
any, identified in Schedule II hereto, and electronic road shows each furnished to you before first
use, the Company has not prepared, used or referred to, and will not, without your prior consent,
prepare, use or refer to, any free writing prospectus.

     (d) The Company has been duly incorporated, is validly existing as a corporation in good
standing under the laws of the state of Delaware, has the corporate power and authority to own its
property and to conduct its business as described in the Time of Sale Prospectus, Prospectus and
Registration Statement and is duly qualified to transact business and is in good standing in each
jurisdiction in which the conduct of its business or its ownership or leasing of property requires
such qualification, except (i) to the extent that the failure to be so qualified or be in good
standing would not have a material adverse effect on the business or result of operations of the
Company and its subsidiaries, taken as a whole (a “Material Adverse Effect”) and (ii) for
jurisdictions not recognizing the legal concepts of good standing or qualification.

     (e) Each domestic subsidiary of the Company has been duly organized, is validly existing in
good standing under the laws of the jurisdiction of its organization, has the power and authority
to own its property and to conduct its business as described in the Time of Sale Prospectus,
Prospectus and Registration Statement and is duly qualified to transact business and is in good
standing in each jurisdiction in which the conduct of its business or its ownership or leasing of
property requires such qualification, except (i) to the extent that the failure to be so qualified
or be in good standing would not have a Material Adverse Effect on the Company and its
subsidiaries, taken as a whole and (ii) for jurisdictions not recognizing the legal concepts of
good standing or qualification. Except as set forth in the Registration Statement, Time of Sale
Prospectus and Prospectus, all of the issued shares of capital stock, or equity interests, as
applicable of each subsidiary of the Company have been duly and validly authorized and issued, are
fully paid and non-assessable and (except (i) for directors’ qualifying share or foreign national
qualifying capital stock, and (ii) as pledged to secure indebtedness of the Company and/or its
subsidiaries pursuant to credit facilities, indentures and other instruments evidencing
indebtedness as set forth in the Exchange Act Reports of the Company, Registration Statement, Time
of Sale Prospectus and Prospectus and existing on the date hereof) are owned directly by the
Company, free and clear of all liens, encumbrances, equities or claims.

     (f) This Agreement has been duly authorized, executed and delivered by the Company.

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     (g) The authorized capital stock of the Company conforms as to legal matters to the
description thereof contained in each of the Time of Sale Prospectus, the Prospectus, and the
Registration Statement.

     (h) The Common Shares have been duly authorized and are validly issued, fully paid and
non-assessable.

     (i) The execution and delivery by the Company of, and the performance by the Company of its
obligations under, this Agreement will not contravene (i) any provision of the amended and restated
certificate of incorporation or the amended and restated by-laws of the Company, (ii) or any
agreement or other instrument binding upon the Company or any of its subsidiaries that is material
to the Company and its subsidiaries, taken as a whole, (iii) or any applicable law or judgment,
order or decree of any governmental body, agency or court having jurisdiction over the Company or
any subsidiary except that, in the case of clauses (ii) and (iii), for any contravention that would
not have a Material Adverse Effect on the Company. No consent, approval, authorization or order
of, or qualification with, any governmental body or agency is required for the performance by the
Company of its obligations under this Agreement except (x) for such consent, approvals,
authorizations, orders or qualifications that have been obtained or where failure to do so would
not have a Material Adverse Effect on the Company and (y) for the registration of the Shares under
the Securities Act and such as may be required by the securities or Blue Sky laws of the various
states in connection with the offer and sale of the Shares.

     (j) There has not occurred any material adverse change, or any development involving a
prospective material adverse change, in the condition, financial or otherwise, or in the earnings,
business or operations of the Company and its subsidiaries, taken as a whole, from that set forth
in the Time of Sale Prospectus, the Prospectus, and the Registration Statement.

     (k) There are no legal or governmental proceedings pending or, to the knowledge of the
Company, threatened to which the Company or any of its subsidiaries is a party or to which any of
the properties of the Company or any of its subsidiaries is subject other than proceedings that are
disclosed or described in all material respects in the Registration Statement, Time of Sale
Prospectus, or the Prospectus and proceedings that are not expected to have a Material Adverse
Effect, and there are no statutes, regulations, contracts or other documents that are required to
be described in the Registration Statement, Time of Sale Prospectus, or the Prospectus or to be
filed as exhibits to the Registration Statement that are not described in all material respects or
filed, or incorporated by reference as required.

     (l) Each preliminary prospectus supplement filed pursuant to Rule 424 under the Securities
Act, complied when so filed in all material respects with the Securities Act and the applicable
rules and regulations of the Commission thereunder.

     (m) The Company is not, and after giving effect to the offering and sale of the Shares and the
application of the proceeds thereof as described in the Prospectus will not be, required to
register as an “investment company” as such term is defined in the Investment Company Act of 1940,
as amended.

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     (n) Except as set forth in the Registration Statement, Time of Sale Prospectus, or Prospectus,
each subsidiary of the Company that is subject to regulation as a “public utility” as such term is
defined in the Federal Power Act (“FPA”) and that makes sales of energy or capacity that are not
pursuant to a state regulatory authority’s implementation of PURPA (as defined below) has an order
from the Federal Energy Regulatory Commission, such order not subject to any pending challenge,
investigation, complaint, or other proceeding (other than generic proceedings generally applicable
in the industry) (i) authorizing such subsidiary to
engage in wholesale sales of electricity and, to the extent permitted under its market-based
rate tariff, other transactions at market-based rates and (ii) granting such waivers and blanket
authorizations as are customarily granted to entities with market-based rate authority, including
blanket authorizations to issue securities and to assume liabilities pursuant to Section 204 of the
FPA.

     (o) With respect to any subsidiary that purports to own a “Qualifying Facility” (“QF”) as
defined under the Public Utility Regulatory Policies Act and the current rules and regulations
promulgated thereunder (“PURPA”), such facility is a QF under PURPA.

     (p) Except as disclosed in the Registration Statement, the Time of Sale Prospectus, or
Prospectus, and except for such matters as would not, individually or in the aggregate, result in a
Material Adverse Effect, the Company and its subsidiaries (1) are conducting and have conducted
their businesses, operations and facilities in compliance with Environmental Laws (as defined
below); (2) have duly obtained, possess, maintain in full force and effect, and have fulfilled and
performed all of their obligations under any and all permits, licenses or registrations required
under Environmental Law (“Environmental Permits”); (3) have not received any notice from a
governmental authority or any other third party alleging any violation of Environmental Law or
liability thereunder; (4) are not subject to any pending or, to the best knowledge of the Company
or any of its subsidiaries, threatened claim in writing or other legal proceeding under any
Environmental Laws against the Company or any of its subsidiaries; and (5) do not have knowledge of
any applicable Environmental Laws, or any unsatisfied conditions in an Environmental Permit, that,
individually or in the aggregate, can reasonably be expected to require any material capital
expenditures for either the installation of new pollution control equipment, or a switch in a
project’s fuel or any other material modification of current operations in order to maintain the
Company’s or the subsidiaries’ compliance with Environmental Law. As used in this paragraph,
“Environmental Laws” means any and all applicable foreign, federal, state and local laws and
regulations, or any enforceable administrative or judicial interpretation thereof, relating to
pollution or the protection of human health or the environment, including, without limitation,
those relating to (i) emissions, discharges or releases of Hazardous Substances into ambient air,
surface water, groundwater or land, (ii) the generation, manufacture, processing, distribution,
use, treatment, storage, disposal, release, transport or handling of, or exposure to, Hazardous
Substances, (iii) the protection of wildlife or endangered or threatened species, or (iv) the
investigation, remediation or cleanup of any Hazardous Substances. As used in this paragraph,
“Hazardous Substances” means pollutants, contaminants, hazardous substances, materials or wastes,
petroleum, petroleum products and their breakdown constituents, or any other chemical substance
regulated under Environmental Laws.

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     (q) Except as described in the Time of Sale Prospectus, the Prospectus, and the Registration
Statement, the Company has not sold, issued or distributed any shares of Common Stock during the
six-month period preceding the date hereof, including any sales pursuant to Rule 144A under, or
Regulation D or S of, the Securities Act, other than shares issued pursuant to employee benefit
plans, qualified stock option plans or other employee compensation plans or pursuant to outstanding
options, rights or warrants.

     (r) Neither NRG nor any of its subsidiaries has taken nor will take through the Closing Date,
directly or indirectly, any action which is designed to or which has constituted or
which might reasonably be expected to cause or result in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Shares, except for the
share repurchases completed pursuant to NRG’s publicly announced capital allocation program.

     2. Representations and Warranties of the Selling Stockholders.

     (a) Each Selling Stockholder severally represents and warrants to, and agrees with the
Underwriter, as of the date hereof and as of the Closing Date, that:

          (i) All consents, approvals, authorizations and orders necessary for the execution and
delivery by such Selling Stockholder of this Agreement, and for the sale and delivery of the
Shares to be sold by such Selling Stockholder hereunder, have been obtained; and such
Selling Stockholder has full right, power and authority to enter into this Agreement and to
sell, assign, transfer and deliver the Shares to be sold by such Selling Stockholder
hereunder;

          (ii) The sale of the Shares to be sold by such Selling Stockholder hereunder, the
compliance by such Selling Stockholder with all of the provisions of this Agreement and the
performance by such Selling Stockholder of its obligations under this Agreement (a) will not
conflict with or result in a breach or violation of any of the terms or provisions of, or
constitute a default under, any statute, indenture, mortgage, deed of trust, loan agreement
or other agreement or instrument to which such Selling Stockholder is a party or by which
such Selling Stockholder is bound or to which any of the property or assets of such Selling
Stockholder is subject, nor (b) will such action result in any violation of the provisions
of the Certificate of Incorporation or By laws of such Selling Stockholder if such Selling
Stockholder is a corporation, the Limited Liability Company Agreement of such Selling
Stockholder if such Selling Stockholder is a limited liability company or the Partnership
Agreement of such Selling Stockholder if such Selling Stockholder is a partnership or any
statute or any order, rule or regulation of any court or governmental agency or body having
jurisdiction over such Selling Stockholder or the property of such Selling Stockholder;

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          (iii) Such Selling Stockholder has, and immediately prior to the Closing Date such
Selling Stockholder will have, good and valid title to the Shares to be sold by such Selling
Stockholder hereunder, free and clear of all liens, encumbrances, equities or claims, and
upon purchase of such Shares and payment therefor pursuant hereto, the Underwriter will
acquire a good and valid security entitlement with respect to such Shares free and clear of
any liens, encumbrances, equities or claims;

          (iv) Such Selling Stockholder has not taken and will not take through the Closing Date,
directly or indirectly, any action which is designed to or which has constituted or which
might reasonably be expected to cause or result in stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Shares;

          (v) To the extent that any statements or omissions made in the Registration Statement,
the Prospectus, any Free Writing Prospectus or any amendment
or supplement thereto are made in reliance upon and in conformity with written
information relating to the Selling Stockholder furnished to the Company by such Selling
Stockholder expressly for use therein, such information did and will, conform in all
material respects to the requirements of the Act and the rules and regulations of the
Commission thereunder and will not contain any untrue statement of a material fact or omit
to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, it being understood and agreed that such information consists only
of such Selling Stockholder’s name, address and number of Shares beneficially owned and
offered as set forth under “Selling Stockholders” in the Registration Statement and the
Prospectus;

          (vi) In order to document the Underwriter’s compliance with the reporting and
withholding provisions of the Tax Equity and Fiscal Responsibility Act of 1982 with respect
to the transactions herein contemplated, such Selling Stockholder will deliver to you prior
to or at the Time of Delivery a properly completed and executed United States Treasury
Department Form W-9 (if such Selling Stockholder is a United States person, as defined under
Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended) or Form W-8 (if such
Selling Stockholder is not a United States person, as defined under Section 7701(a)(30)
under the Internal Revenue Code of 1986, as amended) (or other applicable form or statement
specified by Treasury Department regulations in lieu thereof);

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     3. Agreements to Sell and Purchase. Each Selling Stockholder, severally and not jointly,
hereby agrees to sell to the Underwriter the number of shares set forth opposite the name of such
Selling Stockholder on Schedule I, and the Underwriter, upon the basis of the representations and
warranties herein contained, but subject to the conditions hereinafter stated, hereby agrees to
purchase such Shares from such Selling Stockholder at $54.57 per share (the “Purchase Price”).

     The Company hereby agrees that, without the prior written consent of the Underwriter, it will
not, during the period ending 60 days after the date of this Agreement, (i) offer, pledge, sell,
contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly
or indirectly any Common Shares or any securities convertible into or exercisable or exchangeable
for Common Shares, or (ii) enter into any swap or other arrangement that transfers to another, in
whole or in part, any of the economic consequences of ownership of the Common Shares, whether any
such transaction described in clause (i) or (ii) above is to be settled by delivery of Common
Shares or such other securities, in cash or otherwise. Each of the parties hereto hereby
acknowledges that the foregoing sentence does not apply to repurchases of shares by a Finance
Subsidiary or any other share repurchase program by the Company for its Common Stock or to sales of
stock in connection with its previously announced capital allocation program. The parties hereto
agree that this paragraph satisfies the requirements of Section 4.7 of the Investor Rights
Agreement, dated as of February 2, 2006 (the “Investor Rights Agreement”), by and among the Company
and certain stockholders of the Company with respect to the Shares.

     The restrictions contained in the preceding paragraph shall not apply to (A) the issuance by
the Company of Common Stock upon the exercise of an option or warrant or the conversion
of a security outstanding on the date hereof, (B) grants by the Company of employee stock
options or other equity-based compensation pursuant to the terms of a plan in effect on the date of
this Agreement, (C) transactions by persons other than the Company relating to Common Stock, (D)
the filing by the Company of a shelf registration statement with respect to Common Stock or
securities convertible into or exercisable or exchangeable for Common Stock or (E) actions
undertaken by the Company to comply with the terms of the Investor Rights Agreement.

     4. Payment and Delivery. Payment for the Shares to the Selling Stockholders shall be made in
Federal or other funds immediately available in New York City against delivery of such shares for
the account of the Underwriter at 10:00 a.m., New York City time, on November 15, 2006 or at such
other time on the same or such other date, not later than November 20, 2006, as shall be designated
in writing by the Underwriter. The date and time of the payment, in each case, will be referred to
as the “Closing Date.”

     The Shares shall be registered in such names and in such denominations as the Underwriter
shall request in writing not later than one full business day prior to the Closing Date. The
Shares shall be delivered to the Underwriter on the Closing Date for their account, with any
transfer taxes payable in connection with the transfer of the Shares to the Underwriter duly paid,
against payment of the Purchase Price therefor. The Underwriter acknowledges that the Shares being
delivered by the Selling Stockholders will be delivered via book-entry transfer to the
Underwriter’s account at DTC by a participant in DTC whose name appears on a security position
listing as the owner of such Shares. The documents to be delivered on the Closing Date by or on
behalf of the parties hereto will be delivered at the offices of Latham & Watkins LLP, 885 Third
Avenue, New York, New York 10022 (the “Closing Location”), and the Shares will be delivered at the
office of DTC or its designated custodian (the “Designated Office”) on the Closing Date.

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     5. Conditions to Underwriter’s Obligations. The obligations of the Underwriter are subject to
the following conditions:

     (a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date
there shall not have occurred (i) any downgrading, nor shall the Company have received any notice
from any “nationally recognized statistical rating organization,” as such term is defined for
purposes of Rule 436(g)(2) under the Securities Act of any intended or potential downgrading or of
any review for a possible change that does not indicate the direction of the possible change, in
the rating accorded the Company or any of the securities of the Company or any of its subsidiaries
or in the rating outlook for the Company; or (ii) any change, or any development involving a
prospective change, in the condition, financial or otherwise, or in the earnings, business or
results of operations of the Company and its combined subsidiaries, taken as a whole, from that set
forth in the Time of Sale Prospectus that, in the judgment of the Underwriter, is material and
adverse and that makes it, in the judgment of the Underwriter, impracticable to market the Shares
on the terms and in the manner contemplated in the Time of Sale Prospectus.

     (b) The Underwriter shall have received on the Closing Date a certificate, dated the Closing
Date and signed by the Chief Executive Officer or Chief Financial Officer of the Company, to the
effect set forth in Section 5(a) and to the effect that the representations and
warranties of the Company contained in this Agreement that are not qualified by materiality
are true and correct in all material respects, and that the representations and warranties of the
Company contained in this Agreement that are qualified by materiality are true and correct, in each
case, as of the Closing Date and that the Company has complied with all of the agreements and
satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the
Closing Date.

     (c) The Underwriter shall have received on the Closing Date an opinion and a negative
assurance letter from Kirkland & Ellis LLP, outside counsel for the Company, dated the Closing
Date, reasonably acceptable to the Underwriter, covering the matters referred to in Exhibit A-1.
Additionally, Tim O’Brien, General Counsel of the Company shall provide an opinion to the
Underwriter, dated the Closing Date, reasonably acceptable to the Underwriter, covering the matters
referred to in Exhibit A-2. The opinion and a negative assurance letter of Kirkland & Ellis LLP
shall be rendered to the Underwriter at the request of the Company and shall so state therein.

     (d) The Underwriter shall have received on the Closing Date an opinion and a negative
assurance letter of Latham & Watkins LLP, counsel for the Underwriter, in form and substance
reasonably acceptable to the Underwriter.

     (e) The Underwriter shall have received on the Closing Date an opinion of Simpson Thacher &
Bartlett LLP, counsel for the Selling Stockholders, covering the matters referred to in Exhibit A-3
and reasonably acceptable to the Underwriter.

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     (f) The Underwriter shall have received, on each of the date of this Agreement and on the
Closing Date, letters dated the respective dates of delivery thereof, in form and substance
satisfactory to the Underwriter, from KPMG LLP and PricewaterhouseCoopers LLP, independent public
accountants, containing statements and information of the type ordinarily included in accountants’
“comfort letters” to underwriters with respect to the financial statements and certain financial
information contained in the Time of Sale Prospectus and the Prospectus; provided that the letters
delivered on the Closing Date shall use a “cut-off date” not earlier than the date hereof.

     (g) At the Closing Date, the Underwriter shall have received a certificate of an
authorized representative of the Selling Stockholders, dated the Closing Date, to the effect
that the representations and warranties of the Selling Stockholders set forth in Section
2(a) hereof that are not qualified by materiality are true and correct in all material
respects, and that the representations and warranties of the Selling Stockholders contained
in this Agreement that are qualified by materiality are true and correct, in each case, as
of the Closing Date, and that each of the Selling Stockholders has complied with all
agreements and satisfied all conditions on its part to be performed or satisfied hereunder
at or prior to the Closing Date.

     (h) On or prior to the Closing Date, the Underwriter shall have received a properly
completed and executed United States Treasury Department Form W-9 (or other applicable form
or statement specified by Treasury Department regulations in lieu thereof) from each Selling
Stockholder pursuant to Section 2(a)(vi).

     (i) The delivery to the Underwriter on the Closing Date of such documents as the
Underwriter may reasonably request with respect to the good standing of the Company and
other matters related to the delivery of the Shares.

     6. Covenants of the Company and the Selling Stockholders.

     (a) In consideration of the agreements of the Underwriter herein contained, the Company
covenants with the Underwriter as follows:

          (i) To furnish to the Underwriter, without charge, five conformed copies of the
Registration Statement (including exhibits thereto and documents incorporated by reference)
and to furnish to the Underwriter, without charge, prior to 10:00 a.m. New York City time on
the business day next succeeding the date of this Agreement and during the period mentioned
in Section 6(d) below, as many copies of the Time of Sale Prospectus, the Prospectus, any
documents incorporated therein by reference and any supplements and amendments thereto or to
the Registration Statement as the Underwriter may reasonably request.

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          (ii) Before amending or supplementing the Registration Statement, the Time of Sale
Prospectus or the Prospectus (including by causing an additional document to be incorporated
by reference into the Registration Statement, the Time of Sale Prospectus or the
Prospectus), to furnish to the Underwriter a copy of each such proposed amendment or
supplement and not to file any such proposed amendment or supplement to which the
Underwriter reasonably objects, unless in each case at such time all of the Shares have been
sold as contemplated in this Agreement, and to file with the Commission within the
applicable period specified in Rule 424(b) under the Securities Act any prospectus required
to be filed pursuant to such Rule.

          (iii) Unless in each case at such time all of the Shares have been sold as contemplated
in this Agreement, to furnish to the Underwriter a copy of each proposed free writing
prospectus prepared by or on behalf of, used by, or referred to by the Company and not to
use or refer to any proposed free writing prospectus which the Underwriter has not consented
to in advance, which consent shall not be unreasonably withheld, and to file with the
Commission within the applicable period specified in Rule 433(d) under the Securities Act
any free writing prospectus required to be filed pursuant to such rule.

          (iv) If:

               (A) at a time when a prospectus relating to the Shares is required to
be delivered under the Securities Act, any representation or warranty made
pursuant to Section 1 ceases to be true and correct or any event occurs as
a result of which the Prospectus as then amended or supplemented would
include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein in the light of the
circumstances under which they were made not misleading, or

               (B) it shall be necessary to amend the Registration Statement or
supplement the Prospectus to comply with the Securities Act or the Exchange
Act or the respective rules thereunder,

then, the Company promptly will notify the Underwriter and each Selling
Stockholder of such event, and either (A) (1) prepare and file with the
Commission an amendment or supplement which will correct any such
statement or omission or effect any such compliance and (2) at its own
expense, supply any supplemented Prospectus to the Underwriter in such
quantities as the Underwriter may reasonably request.

          (v) To endeavor to qualify the Shares for offer and sale under the securities or Blue
Sky laws of such jurisdictions as the Underwriter shall reasonably request; provided, that
in no event shall the Company be obligated to qualify to do business in any jurisdiction
where it is not now so qualified or to take any action that would subject it to material
taxation or service of process in suits, other than those arising out of the offering or
sale of the Shares, in any jurisdiction where it is not now so subject.

11

 

          (vi) To make generally available to the Company’s security holders and to the
Underwriter as soon as practicable an earnings statement covering a period of at least
twelve months beginning with the first fiscal quarter of the Company occurring after the
date of this Agreement a which shall satisfy the provisions of Section 11(a) of the
Securities Act and the rules and regulations of the Commission thereunder.

          (vii) Whether or not the transactions contemplated in this Agreement are consummated or
this Agreement is terminated, to pay or cause to be paid all expenses incident to the
performance of its obligations under this Agreement, including: (i) the fees, disbursements
and expenses of the Company’s counsel and the Company’s accountants in connection with the
registration and delivery of the Shares under the Securities Act and all other fees or
expenses in connection with the preparation and filing of the Registration Statement, the
preliminary prospectus, if any, the Time of Sale Prospectus, the Prospectus, any free
writing prospectus prepared by or on behalf of, used by, or referred to by the Company and
amendments and supplements to any of the foregoing, including all printing costs associated
therewith, and the mailing and delivering of copies thereof to the Underwriter, Selling
Stockholders and dealers, if any, in the quantities hereinabove specified, (ii) all costs
and expenses related to the transfer and delivery of the Shares to the Underwriter,
including any transfer or other taxes payable thereon, (iii) the cost of printing or
producing any Blue Sky memorandum in connection with the offer and sale of the Shares under
state securities laws and all expenses in connection with the qualification of the Shares
for offer and sale under state securities laws as provided in Section 6(e) hereof, including
filing fees and the reasonable fees and disbursements of counsel for the Underwriter in
connection with such qualification and in connection with the Blue Sky memorandum, which
shall not exceed $10,000, (iv) all filing fees and the reasonable fees and disbursements of
counsel to the Underwriter incurred in connection with the review and qualification of the
offering of the Shares by the National Association of Securities Dealers, Inc., (v) the cost
of printing
certificates representing the Shares, (vi) the costs and charges of any transfer agent,
registrar or depositary, and (vii) all other costs and expenses incident to the performance
of the obligations of the Company hereunder for which provision is not otherwise made in
this Section. It is understood, however, that except as provided in this Section, Section 8
entitled “Indemnity and Contribution,” and the last paragraph of Section 9 below, the
Underwriter will pay all of its costs and expenses, including fees and disbursements of its
counsel and any advertising expenses connected with any offers it may make.

12

 

          (viii) To afford the Underwriter and any affiliates of the Underwriter on reasonable
notice, a reasonable opportunity to conduct a due diligence investigation with respect to
the Company customary in scope for transactions pursuant to which the Underwriter or any
affiliates of the Underwriter acts as an underwriter of equity securities (including,
without limitation, the availability of the chief financial officer and general counsel to
respond to questions regarding the business and financial condition of the Company and the
right to have made available to them for inspection such records and other information as
they may reasonably request).

          (ix) Not to consider the Underwriter to be an “interested person” within the meaning of
Section 203 of the General Corporation Law of the State of Delaware as a result of the
transactions contemplated by this Agreement.

     (b) In consideration of the agreements of the Underwriter herein contained, each Selling
Stockholder covenants with the Underwriter as follows:

          (i) To deliver to the Underwriter prior to the Closing Date, a properly completed and
executed United States Treasury Department Form W-8 (if the Selling Stockholder is a
non-United States Person) or Form W-9 (if the Selling Stockholder is a United States
Person), which in each case may be replaced by any other applicable form or statement
specified by Treasury Department regulations in lieu thereof;

          (ii) To notify promptly the Company and the Underwriter if, at any time prior to the
date on which the distribution of the Shares as contemplated herein and in the Prospectus
has been completed, as determined by the Underwriter, of any changes in any of the
information referred to in Section 2(a)(v) included in the Registration Statement or the
Prospectus relating to such Selling Stockholder;

          (iii) To do and perform all things to be done and performed under this Agreement prior
to the Closing Date, and to satisfy all conditions precedent to the delivery of the Shares
pursuant to this Agreement;

          (iv) To pay or to cause to be paid all transfer taxes, stamp duties and other similar
taxes with respect to the Shares, if any, to be sold by such Selling Stockholder; and

          (v) Such Selling Stockholder has not, prior to the execution of this Agreement,
distributed any “prospectus” (within the meaning of the Securities Act) or offering material
in connection with the offering or sale of the Shares other than the
Registration Statement and the then most recent Preliminary Prospectus, and will not,
at any time on or after the execution of this Agreement, distribute any “prospectus” (within
the meaning of the Securities Act) of offering material in connection with the offering or
sale of the Shares other than the Registration Statement and the then most recent
Prospectus.

13

 

     7. Covenants of the Underwriter. The Underwriter hereby represents and agrees that:

     (a) It has not made, and will not make any offer relating to the Shares that would constitute
a free writing prospectus, without the prior consent of the Company, which consent shall not be
unreasonably withheld.

     (b) Any free writing prospectus used or referred to by it will not be subject to broad
unrestricted dissemination and will not be required to be filed with the Commission, in accordance
with Rule 433 under the Securities Act, as a result of any action taken or caused to be taken by
it, without the prior written consent of the Company, which consent shall not be unreasonably
withheld.

     (c) Any free writing prospectus used or referred to by it, except any “issuer free
writing prospectus” as defined in Rule 433 under the Securities Act, as to which it makes no
representation or warranty, complied in all material respects with the Securities Act.

     (d) The Underwriter has not and will not sell Shares equal to more than 3% of the
outstanding Common Shares to any one buyer or any group of buyer acting together unless the
Underwriter has taken reasonable steps to determine that such buyer will not own more than
5% of the outstanding Common Shares immediately after such sale.

     8. Indemnity and Contribution.

     (a) The Company agrees to indemnify and hold harmless the Underwriter, each Selling
Stockholder, and each person, if any, who controls the Underwriter or any Selling Stockholder
within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act,
and each affiliate of the Underwriter or any Selling Stockholder within the meaning of Rule 405
under the Securities Act (provided that the Company’s indemnification obligation shall not extend
to any free writing prospectus required to be filed by the Company due to the Underwriter’s breach
of the covenants set forth in Section 8), from and against any and all losses, claims, damages and
liabilities (including, without limitation, any legal or other expenses reasonably incurred in
connection with defending or investigating any such action or claim) caused by any untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement or any
amendment thereof, the preliminary prospectus, if any, the Time of Sale Prospectus, any free
writing prospectus or any “issuer information” that the Company has filed, or is required to file,
pursuant to Rule 433(d) of the Securities Act, or the Prospectus or any amendment or supplement
thereto (if the Company furnished any amendments or supplements thereto), or caused by any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the

14

 

statements therein, (i) with respect to the Registration Statement or any amendment
thereof, not misleading, and (ii) with respect to
any preliminary prospectus, the Time of Sale Prospectus, any free writing prospectus that the
Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act, or the
Prospectus or any amendment or supplement thereto (if the Company furnished any amendments or
supplements thereto), not misleading in the light of the circumstances under which they were made,
except in each case insofar as such losses, claims, damages or liabilities are caused by any such
untrue statement or omission or alleged untrue statement or omission based upon information
relating to the Underwriter or any Selling Stockholder furnished to the Company in writing by such
Underwriter or such Selling Stockholder expressly for use therein, which in the case of each
Selling Stockholder shall be only the information referred to in Section 2(a)(v).

     (b) The Underwriter agrees to indemnify and hold harmless the Company, each Selling
Stockholder, the directors of the Company and each Selling Stockholder, the officers of the Company
who sign the Registration Statement and each person, if any, who controls the Company or any
Selling Stockholder within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act to the same extent as the foregoing indemnity from the Company to the Underwriter
and the Selling Stockholders, but only with reference to information relating to the Underwriter
furnished to the Company in writing by the Underwriter expressly for use in the Registration
Statement, any preliminary prospectus, the Time of Sale Prospectus, any other free writing
prospectus that the Company has filed or is required to file pursuant to Rule 433(d) of the
Securities Act, or the Prospectus or any amendment or supplement thereto.

     (c) Each Selling Stockholder, severally and not jointly, agrees to indemnify and hold harmless
the Company, the Underwriter, each other Selling Stockholder, the directors of the Company, the
Underwriter and each other Selling Stockholder, the officers of the Company who sign the
Registration Statement and each person, if any, who controls the Company, the Underwriter or any
other Selling Stockholder within the meaning of either Section 15 of the Securities Act or Section
20 of the Exchange Act to the same extent as the indemnity in subsection (a) above from the Company
to the Underwriter and the Selling Stockholders, but only with reference to information relating to
such Selling Stockholder furnished to the Company in writing by such Selling Stockholder expressly
for use in the Registration Statement, any preliminary prospectus, the Time of Sale Prospectus, any
other free writing prospectus that the Company has filed or is required to file pursuant to Rule
433(d) of the Securities Act, or the Prospectus or any amendment or supplement thereto, which, in
the case of each Selling Stockholder shall be only the information referred to in Section 2(a)(v).

     (d) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a), 8(b) or
8(c), such person (the “indemnified party”) shall promptly notify the person against whom such
indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon
request of the indemnified party, shall retain counsel chosen by the indemnifying party and
reasonably satisfactory to the indemnified party to represent the indemnified party and any others
entitled to indemnification

15

 

pursuant to this Section 8 the indemnifying party may designate in such
proceeding and shall pay the reasonably incurred fees and expenses of such counsel related to such
proceeding as incurred. In any such proceeding, any indemnified party shall have the right to
retain its own counsel, but the reasonably incurred fees and expenses of such counsel shall be at
the expense of such indemnified party unless 1) the
indemnifying party and the indemnified party shall have mutually agreed to the retention of
such counsel or 2) the named parties to any such proceeding (including any impleaded parties)
include both the indemnifying party and the indemnified party and representation of both parties by
the same counsel would be inappropriate due to actual or potential differing interests between
them. It is understood and agreed that the indemnifying party shall not, in connection with any
proceeding or related proceedings in the same jurisdiction, be liable for the reasonably incurred
fees and expenses of more than one separate firm (in addition to any local counsel) for all such
indemnified parties and that all such reasonably incurred fees and expenses shall be reimbursed as
they are incurred. Such firm shall be designated in writing by the Underwriter, in the case of
parties indemnified pursuant to Section 8(a), by the Company, in the case of parties indemnified
pursuant to Section 8(b), and by the applicable Selling Stockholder, in the case of parties
indemnified pursuant to Section 8(c). The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party from and against any loss or liability by reason of such settlement or judgment.
No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such indemnified party,
unless such settlement (i) includes an unconditional release of such indemnified party from all
liability on claims that are the subject matter of such proceeding and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any
indemnified party.

     (e) To the extent the indemnification provided for in Section 8(a), 8(b) or 8(c) is
unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or liabilities (i) in such
proportion as is appropriate to reflect the relative benefits received by the indemnifying party or
parties on the one hand and the indemnified party or parties on the other hand from the offering of
the Shares or (ii) if the allocation provided by clause 8(e)(i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause 8(e)(i) above but also the relative fault of the indemnifying party or
parties on the one hand and of the indemnified party or parties on the other hand in connection
with the statements or omissions that resulted in such losses, claims, damages or liabilities, as
well as any other relevant equitable considerations. The relative benefits received by the Company
and the Selling Stockholders on the one hand and the Underwriter, on the other hand, in connection
with the offering of the Shares sold by the Selling Stockholders to the Underwriter hereunder shall
be deemed to be in the same respective proportions as the

16

 

net proceeds from the offering of such
Shares (before deducting expenses) received by the Selling Stockholders from the Underwriter, on
the one hand, and the product of (i) the difference between the closing price of the Common Shares
on the New York Stock Exchange on the date hereof and the price per share paid by the Underwriter
and (ii) the number of Shares sold by the Selling Stockholders to the Underwriter hereunder, bear
to the aggregate public offering price of the Shares. The relative fault of the Company on the one
hand and the Underwriter and the Selling Stockholders, as applicable, on the other hand shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company or by the Underwriter or the Selling
Shareholders, as applicable, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission.

     (f) The Company, the Underwriter and each of the Selling Stockholders, agree that it would not
be just or equitable if contribution pursuant to this Section 8 were determined by pro rata
allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in Section 8(e). The amount paid or payable by an indemnified party as
a result of the losses, claims, damages and liabilities referred to in Section 8(e) shall be deemed
to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or
claim. Notwithstanding the provisions of this Section 8, neither the Underwriter nor any of the
Selling Stockholders shall be required to contribute any amount in excess of the amount by which
the total price at which the Shares underwritten and distributed to the public were offered to the
public exceeds the amount of any damages that the Underwriter or Selling Stockholders have
otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty
of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not
exclusive and shall not limit any rights or remedies which may otherwise be available to any
indemnified party at law or in equity.

     (g) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Company contained in this Agreement shall
remain operative and in full force and effect regardless of (i) any termination of this Agreement,
(ii) any investigation made by or on behalf of the Underwriter or any person controlling the
Underwriter or any affiliate of the Underwriter or by or on behalf of the Company, the officers or
directors of the Company or any person controlling the Company, (iii) any investigation made by or
on behalf of a Selling Stockholder or any person controlling a Selling Stockholder or any affiliate
of a Selling Stockholder or by or on behalf of the Company, the officers or directors of the
Company or any person controlling the Company and (iv) acceptance of and payment for any of the
Shares.

17

 

     9. Termination. The Underwriter may terminate this Agreement at any time by notice to the
Company and each Selling Stockholder if after the execution and delivery of this Agreement and
prior to any Sale Date (i) trading generally shall have been suspended or materially limited on, or
by, as the case may be, any of the New York Stock Exchange, the American Stock Exchange or the
Nasdaq National Market, (ii) trading of any securities of the Company shall have been suspended on
any exchange or in any over-the-counter market, (iii) a material disruption in the securities
settlement, payment or clearance services in the United States shall have occurred, (iv) any
moratorium on commercial banking activities shall have been declared by Federal or New York State
authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any
change in financial markets or any calamity or crisis that, in the Underwriter’s judgment, is
material and adverse and which, singly or together with any other event specified in this clause
(v), makes it, in the Underwriter’s judgment, impracticable or inadvisable to proceed with the
offer, sale or delivery of the Shares on the terms and in the manner contemplated in the Time of
Sale Prospectus and the Prospectus. The Underwriter shall
not be obligated to close the purchase and sale of any shares pursuant to this Agreement on
any date on which this Agreement is terminated pursuant to this Section 9.

     The Underwriter may terminate this Agreement for any failure or refusal on the part of the
Company or any Selling Shareholder to comply with the terms or to fulfill any of the conditions of
this Agreement. If this Agreement shall be terminated by the Underwriter because of any failure or
refusal on the part of the Company or any Selling Shareholder to comply with the terms or to
fulfill any of the conditions of this Agreement, or if for any reason the Company shall be unable
to perform its obligations under this Agreement, the Company will reimburse the Underwriter for all
out-of-pocket expenses (including the fees and disbursements of their counsel, but without
duplication of any reimbursement obligation pursuant to any other agreement) reasonably incurred by
the Underwriter in connection with this Agreement or the offering contemplated hereunder.

     10. Selling Stockholder Default.

     (a) If any Selling Shareholder shall default in its or their obligation to sell and deliver
any Shares hereunder, then the Underwriter may, by notice to the Company, terminate this Agreement
without any liability on the part of any non-defaulting party except that the provisions of
Sections 1, 2, 7, 8, 11 and 16 hereof shall remain in full force and effect. No action taken
pursuant to this Section 10 shall relieve any Selling Shareholder so defaulting from liability, if
any, in respect of such default.

     (b) In the event that such default occurs and the Company and Underwriter agree to proceed
with the Offering, then the Underwriter may, or the Company shall have the right, in each case by
notice to the other, to postpone the Closing Date be, for a period not exceeding five business
days, in order to effect whatever changes may thereby be made necessary in the Registration
Statement or the Prospectus or in any other documents and arrangements, and the Company agrees to
file promptly any amendment or supplement to the Registration Statement or the Prospectus which, in
the opinion of Underwriter’s Counsel, may thereby be made necessary or advisable; and in no event
shall the Company be obligated to increase the number of Shares it is required to sell hereunder.

18

 

     11. Effectiveness. This Agreement shall become effective upon the execution and delivery
hereof by the parties hereto.

     12. Successors and Assigns. This Agreement shall be binding upon and inure solely to the
benefit of the parties hereto and their respective successors and assigns, and no other person
shall acquire or have any right under or by virtue of this Agreement. No purchaser of any of the
Shares from the Underwriter shall be deemed a successor or assign solely by reason of such
purchase.

     13. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

     14. Applicable Law; Submission to Jurisdiction; Appointment of Agent for Service. This
Agreement shall be governed by and construed in accordance with the laws of the State of
New York. This Agreement, together with any contemporaneous written agreements and any prior
written agreements (to the extent not superseded by this Agreement) that relate to the offering of
the Shares, represents the entire agreement between the Company and the Underwriter with respect to
the preparation of any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, the
conduct of the offering, and the purchase and sale of the Shares.

     15. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.

     16. No Fiduciary Duty. The Company acknowledges and agrees that in connection with this
offering, sale of the Shares or any other services the Underwriter may be deemed to be providing
hereunder, notwithstanding any preexisting relationship, advisory or otherwise, between the parties
or any oral representations or assurances previously or subsequently made by the Underwriter: (i)
no fiduciary or agency relationship between the Company and any other person, on the one hand, and
the Underwriter, on the other, exists; (ii) the Underwriter is not acting as advisor, expert or
otherwise, to the Company, and such relationship between the Company on the one hand, and the
Underwriter, on the other, is entirely and solely commercial, based on arms-length negotiations;
(iii) any duties and obligations that the Underwriter may have to the Company shall be limited to
those duties and obligations specifically stated herein; and (iv) the Underwriter and its
affiliates may have interests that differ from those of the Company. The Company hereby waives any
claims that the Company may have against the Underwriter with respect to any breach of fiduciary
duty in connection with the sale of the Shares.

     17. Notices. All communications hereunder shall be in writing and effective only upon receipt
and shall be delivered, mailed or sent, if to the Underwriter at 1585 Broadway, New York, New York
10036, Attention: Todd Singer, if to the Selling Stockholders at the applicable address set forth
on Schedule I hereto, and if the Company to NRG Energy, Inc., 211 Carnegie Center, Princeton, New
Jersey 08540-6213, Attention: General Counsel.

19

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	NRG Energy, Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert C. Flexon 	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Robert C. Flexon
	 

	 	 	 	Title:   Executive Vice
President and
Chief Financial Officer

[Underwriting Agreement Signature Page]

 

 

Accepted as of the date hereof:

MORGAN STANLEY & CO. INCORPORATED

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	/s/ Todd J. Singer 	 	 
	 

	 	 

Name: Todd J. Singer
	 	 
	 

	 	Title:   Executive
Director

[Underwriting Agreement Signature Page]

 

 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	HELLMAN & FRIEDMAN CAPITAL PARTNERS IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: H&F Investors IV, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Georgia Lee	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Georgia Lee	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	H&F INTERNATIONAL PARTNERS IV-A, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: H&F Investors IV, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Georgia Lee	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Georgia Lee	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	H&F INTERNATIONAL PARTNERS IV-C, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: H&F Investors IV, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Georgia Lee	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Georgia Lee	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	H&F EXECUTIVE FUND IV, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: H&F Investors IV, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Georgia Lee	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Georgia Lee	 	 
	 

	 	 	 	Title:   Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	H&F TGN AIV, L.P.	 	 
	 
	 	 	 	 	 	 
	 	 	By: H&F Investors IV, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/  Georgia Lee	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Georgia Lee	 	 
	 

	 	 	 	Title:   Managing Director	 	 

 

 

Schedule I

Selling Stockholders

	 	 	 
	Name	 	Number of Shares to be Sold
	Hellman & Friedman Capital Partners IV, L.P.
	 	3,207,976
	H&F International Partners IV-A, L.P.
	 	262,116
	H&F International Partners IV-C, L.P.
	 	1,179
	H&F Executive Fund IV, L.P.
	 	84,588
	H&F TGN AIV, L.P.
	 	661,012

Applicable Mailing Address

	 	 	 
	Hellman & Friedman

	 	One Marine Plaza, 12th floor
	 

	 	San Francisco, CA 94111
	 

	 	(415) 788-5111

 

 

Schedule II

Free Writing Prospectus

Free Writing Prospectus dated November 9, 2006

 

 

Schedule III

Other Information

The price per share in each trade executed pursuant to the Registration Statement and Underwriting
Agreement.EX-10.2

 

Exhibit
10.2

Amendment

to

Warrants to Purchase Common Shares of

Allied World Assurance Company Holdings, Ltd

      This Amendment to Warrants to Purchase Common Shares of Allied World Assurance Company
Holdings, Ltd (f/k/a Allied World Assurance Holdings, Ltd (the
“Company”)), dated as of August 1,
2006, is entered into by and among the Company and GS Capital Partners 2000, L.P.; GS Capital
Partners 2000 Offshore, L.P.; GS Capital Partners 2000, GmbH & Co. Beteiligungs KG; GS
Capital Partners 2000 Employee Fund, L.P.; Stone Street Fund 2000, L.P.; and Bridge
Street Special Opportunities Fund 2000, L.P. (collectively, the “GS Funds”), and shall be deemed
effective as of the closing date of the IPO (as defined below).

      WHEREAS, on November 21, 2001 the Company issued warrants (the “Warrants”) to purchase common
shares, par value U.S. $0.01 per share, of the Company (“Common Stock”), which included
shares of voting common stock, par value U.S. $0.01 per share, of the Company (“Voting Common
Stock”), non-voting common stock, par value U.S. $0.01 per share, of the Company (“Non-Voting
Common Stock”) or both, upon the terms and conditions contained therein, to the GS
Funds;

      WHEREAS,
pursuant to a Registration Statement on Form S-1, dated March 17, 2006, as amended, on
July 17, 2006, the Company completed an initial public offering of its common shares, and listed
such common shares (the “IPO”), and immediately prior to the completion of the IPO, the
Shareholders Agreement, dated as of November 21, 2001, between the Company and shareholders of the
Company named therein (including the GS Funds), as amended (the “Shareholders Agreement”), was
terminated and became of no further force and effect;

      WHEREAS, on July 7, 2006, the Company effectuated a 1-for-3 reverse stock split that reduced
the number of shares underlying the Warrants from an aggregate of 16,500,000 to 5,500,000
(including, in both instances, the shares underlying Warrants issued to GS Funds and the other
Industry Founders), and changed the par value of the Common Stock, Voting Common Stock and
Non-Voting Common Stock from $0.01 per share to $0.03 per share;

      WHEREAS, immediately prior to the completion of the IPO, the Bye-Laws of the Company were
amended and restated; and

      WHEREAS, the Company and the GS Funds wish to amend the GS Funds’ Warrants as provided herein;

      NOW, THEREFORE, BE IT RESOLVED, that:

	 	1.	 	Amendment to Section l(d)(i). The words “Section 5.1 of the Shareholders
Agreement” in clause (C) of Section 1(d)(i) of each GS Fund’s Warrant is hereby
replaced with the words “Section 64 of the Bye-laws as in effect on
July 17, 2006 immediately after the amendment and restatement thereof on such date
(as amended and restated, the “Amended Bye-Laws”); and

 

 

	 	2.	 	Amendment to Section 1(e). Section 1(e) of each GS Fund’s Warrant is hereby
amended and restated to read as follows:

      “The Common Stock issued upon each exercise of this Warrant that is owned within the meaning
of Sections 958(a) or 958(b) of the Code by a Founder (other than an Industry Founder) or any of
such Founder’s Affiliates as defined in the Amended Bye-Laws shall be Non-Voting Common Stock,
provided that, subject to the Ownership Limits set forth in Section 64 of the Amended Bye-laws,
such shares shall convert to Voting Common Stock after the date such Common Stock is no longer so
owned. For issuances not governed by the preceding sentence, the Common Stock issued upon each
exercise of this Warrant shall be Voting Common Stock to the maximum extent possible without such
exercise causing any Person to exceed the Ownership Limits set forth in Section 64 of the Amended
Bye-laws, and all other Common Stock (if any) issued on such exercise shall be Non-Voting Common
Stock unless the Holder requests Non-Voting Common Stock in the Notice of Exercise, in which case
the Common Stock issued upon such exercise shall be Non-Voting Common Stock at least to the extent
so requested. In determining the maximum amount of Voting Common Stock to be issued
upon any exercise of this Warrant, effect shall be given to any Offsetting Transaction.”

      The GS Funds’ Warrants, as amended by this amendment (and giving effect to the termination of
the Shareholders Agreement), shall remain in fill force and effect. This amendment
shall be governed by and construed in accordance with the laws of the State of New York.

      This amendment may be executed in one or more counterparts, each of which shall be deemed an
original, and all of which shall be deemed to constitute a single document.

[Remainder of this Page Intentionally Left Blank]

-2-

 

      IN WITNESS WHEREOF, the undersigned have executed this amendment as of the date first
written above.

	 	 	 	 	 
	 	 	ALLIED WORLD ASSURANCE
COMPANY HOLDINGS, LTD
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Wesley D. Dupont
	 

	 	 	 	 
	 

	 	 	 	Name: Wesley D. Dupont
	 

	 	 	 	Title: SVP & General Counsel
	 
	 	 	GS CAPITAL PARTNERS 2000, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	GS Advisors 2000, L.L.C., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Vice President
	 
	 	 	GS CAPITAL PARTNERS 2000 OFFSHORE, L.P.
	 
	 	 	 	 
	 	 	By: GS Advisors 2000, L.L.C., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Vice President
	 
	 	 	GS CAPITAL PARTNERS
2000 GMBH & CO.

BETEILIGUNGS KG
	 
	 	 	 	 
	 

	 	By:
	 	Goldman Sachs Management GP GmbH, its

general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Attorney-in-Fact

 

 

	 	 	 	 	 
	 	 	BRIDGE STREET SPECIAL OPPORTUNITIES
FUND 2000, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Bridge Street Special Opportunities 2000,

L.L.C., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Vice President

	 	 	 	 	 
	 	 	GS CAPITAL PARTNERS 2000 EMPLOYEE
FUND, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	GS Employee Funds 2000, L.L.C., its
general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Vice President

	 	 	 	 	 
	 	 	STONE STREET FUND 2000, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Stone Street 2000, L.L.C., its general partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Christine Serfin
	 

	 	 	 	 
	 

	 	 	 	Name: Christine Serfin
	 

	 	 	 	Title: Vice President

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