Document:

EX-10.2

 

EXHIBIT 10.2

 

Contribution Agreement

(Toshiba)

By and Between

Toshiba Corporation

And

NRG Nuclear Development Company LLC

**

 

	 	 	 
	**	 	This Portion has been redacted pursuant to a
confidential treatment request.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	ARTICLE I
	 	 	 	 
	 	 	DEFINITIONS
	 	 	 	 
	 	 	 
	 	 	 	 
	1.1
	 	Definitions

	 	 	1	 
	1.2
	 	Construction

	 	 	1	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE II
	 	 	 	 
	 	 	CONTRIBUTION
	 	 	 	 
	 	 	 
	 	 	 	 
	2.1
	 	Contribution by Toshiba

	 	 	2	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE III
	 	 	 	 
	 	 	CLOSING
	 	 	 	 
	 	 	 
	 	 	 	 
	3.1
	 	Closing

	 	 	2	 
	3.2
	 	Closing Conditions

	 	 	2	 
	3.3
	 	Closing Deliveries

	 	 	4	 
	3.4
	 	Completion of Due Diligence

	 	 	6	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE IV
	 	 	 	 
	 	 	REPRESENTATIONS AND WARRANTIES OF TOSHIBA
	 	 	 	 
	 	 	 
	 	 	 	 
	4.1
	 	Organization; Power of Authority

	 	 	6	 
	4.2
	 	Execution and Delivery

	 	 	6	 
	4.3
	 	Non-Contravention

	 	 	6	 
	4.4
	 	Brokers, Finders and Investment Bankers

	 	 	7	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE V
	 	 	 	 
	 	 	REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	 	 
	 	 	 
	 	 	 	 
	5.1
	 	Organization; Power of Authority

	 	 	7	 
	5.2
	 	Execution and Delivery

	 	 	7	 
	5.3
	 	Non-Contravention

	 	 	7	 
	5.4
	 	Brokers, Finders and Investment Bankers

	 	 	8	 
	5.5
	 	Legal Proceedings

	 	 	8	 
	5.6
	 	NRG Contribution Agreement

	 	 	8	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE VI
	 	 	 	 
	 	 	ADDITIONAL AGREEMENTS AND COVENANTS
	 	 	 	 
	 	 	 
	 	 	 	 
	6.1
	 	Capital Calls

	 	 	8	 
	6.2
	 	Transaction Costs

	 	 	8	 
	6.3
	 	Indemnifications by Toshiba

	 	 	8	 
	6.4
	 	Indemnifications by the Company

	 	 	9	 
	6.5
	 	Indemnification Procedure

	 	 	9	 
	6.6
	 	Liability Limits

	 	 	11	 
	6.7
	 	Exclusive Remedy

	 	 	11	 
	6.8
	 	Consequential Damages

	 	 	11	 
	6.9
	 	Termination

	 	 	12	 

 Contribution Agreement

(Toshiba)

Table of Contents

i 

 

	 	 	 	 	 	 	 
	 	 	 
	 	 	 	 
	 	 	ARTICLE VII
	 	 	 	 
	 	 	GENERAL
	 	 	 	 
	 	 	 
	 	 	 	 
	7.1
	 	Successors and Assigns

	 	 	12	 
	7.2
	 	Amendments

	 	 	12	 
	7.3
	 	No Merger

	 	 	13	 
	7.4
	 	Further Assurances

	 	 	13	 
	7.5
	 	Notices

	 	 	13	 
	7.6
	 	Entire Agreement

	 	 	14	 
	7.7
	 	Governing Law

	 	 	14	 
	7.8
	 	Dispute Resolution

	 	 	14	 
	7.9
	 	Severability

	 	 	14	 
	7.10
	 	Counterparts

	 	 	14	 
	7.11
	 	Remedies

	 	 	15	 

EXHIBITS

	 	 	 	 	 
	A

	 	-
	 	Defined Terms
	B

	 	-
	 	Company LLC Agreement
	C

	 	-
	 	Arbitration Procedures

Contribution Agreement

(Toshiba)

Table of Contents

ii 

 

SCHEDULES

	 	 	 
	Schedule 4.3

	 	Toshiba Non-Contravention
	Schedule 5.3

	 	Company Non-Contravention
	Schedule 5.5

	 	Legal Proceedings

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(Toshiba)

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GLOSSARY OF DEFINED TERMS

The page or Exhibit location of the definition of each capitalized term used in this Agreement is
set forth in this Glossary:

	 	 	 
	Affiliate	 	Exhibit A

	Agreement	 	1

	Arbitration Notice	 	Exhibit C

	Arbitrator	 	Exhibit C

	Basket Amount	 	11

	Business Day	 	Exhibit A

	CFIUS	 	4

	Charter Documents	 	Exhibit A

	Claim	 	9

	Closing	 	2

	Closing Date	 	2

	Company	 	1

	Company LLC Agreement	 	5

	Company Parties	 	8

	Contributing Parties	 	9

	CPR	 	Exhibit C

	Dispute	 	Exhibit C

	Disputing Party	 	Exhibit C

	Effective Date	 	1

	Exon-Florio	 	4

	Genco	 	1

	Governmental Authority	 	Exhibit A

	Indemnified Party	 	9

	Indemnifying Party	 	9

	Knowledge of the Company	 	Exhibit A

	Law	 	Exhibit A

	Litigation Counsel	 	9

	Losses	 	Exhibit A

	NRC	 	Exhibit A

	NRG	 	2

	NRG Contribution Agreement	 	1

	Participation Agreement	 	Exhibit A

	Parties	 	1

	Party	 	1

	Person	 	Exhibit A

	Project Land	 	Exhibit A

	Rules	 	Exhibit C

	SEO	 	Exhibit C

	South Texas	 	1

	South Texas Plant Site	 	Exhibit A

	South Texas Project	 	Exhibit A

	ST3&4 Project	 	Exhibit A

	Toshiba	 	1

	Toshiba Member	 	Exhibit A

	Transaction Documents	 	Exhibit A

	Tribunal	 	Exhibit C

Contribution Agreement

(Toshiba)

Table of Contents

 

 

CONTRIBUTION AGREEMENT

(Toshiba)

     This CONTRIBUTION AGREEMENT (Toshiba) (this “Agreement”) is made as of ** (the
"Effective Date”), by and between Toshiba Corporation, a Japanese corporation (“Toshiba”) and NRG
Nuclear Development Company LLC, a Delaware limited liability company (the “Company”). Toshiba and
the Company are individually referred to herein as a “Party” and collectively as the “Parties.”

RECITALS

     WHEREAS, Texas Genco Holdings, Inc. (“Genco”), a Texas corporation, and NRG South Texas LP, a
Texas limited partnership (“South Texas”) pursuant to a Contribution Agreement (NRG) **
(the “NRG Contribution Agreement”) have agreed to contribute to the Company certain development
rights related to the development of additional nuclear generation facilities on the Project Land,
as well as certain intangibles related to the nuclear energy generation industry and other rights
and assets, as more fully described in the NRG Contribution Agreement (the “Contributed Assets”);
and

     WHEREAS, the Parties desire to enter into this Agreement to evidence the agreement of Toshiba
to contribute (directly or indirectly through the Toshiba Member) cash to the Company on the terms
hereof.

     NOW, THEREFORE, in consideration of the premises, the agreements and mutual covenants
contained herein, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties agree as follows:

AGREEMENTS

ARTICLE I

DEFINITIONS

     1.1 Definitions. In addition to the terms defined in the body of this Agreement, capitalized
terms used herein shall have the meanings given to them in Exhibit A. The Glossary of
Defined Terms, which follows the Table of Contents, sets forth the location in this Agreement of
the definition for each capitalized term used herein.

     1.2 Construction.
Unless the context requires otherwise: (a) the gender (or lack of gender) of all words used
in this Agreement includes the masculine, feminine, and neuter; (b) each reference to an Article or
Section refers to such Article or Section of this Agreement; (c) each reference to a Schedule or an
Exhibit refers to such Schedule or Exhibit attached to this Agreement, which is made a part hereof
for all purposes; (d) each reference to a Law refers to

 

			
	**	 	This Portion has been redacted pursuant to a
confidential treatment request.

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(Toshiba)

1

 

such Law as it may be amended from time to
time, and each reference to a particular provision of a Law includes any corresponding provision of
any succeeding Law; (e) the word “including” means “including, but not limited to”; and (f) each
reference to money refers to the legal currency of the United States of America.

ARTICLE II

CONTRIBUTION

     2.1 Contribution by Toshiba. Subject to and in accordance with the terms and conditions of
this Agreement, at the Closing, Toshiba shall (a) contribute to the Company the Toshiba Initial
Contribution (as defined in the Company LLC Agreement) of $50,000,000 and (b) be committed to
contribute the subsequent cash investments of an additional $250,000,000 (for an aggregate
investment of $300,000,000) described in Section 6.1 in exchange for 12% of the “Class A
Membership Units” and 12% of the “Class B Membership Units” of the Company to be obtained by
Toshiba or the Toshiba Member (as applicable) on execution of, and pursuant to the terms of, the
Company LLC Agreement.

ARTICLE III

CLOSING

     3.1 Closing. The consummation of the actions described in Article II (the “Closing”) shall be
held at a location selected by the Parties, or if not otherwise selected at the offices of South
Texas at 1301 McKinney, Suite 2300, Houston, Texas 77010 on a date that is five (5) Business Days
after satisfaction of the conditions set forth in Section 3.2, other than those that can
only be satisfied as of the Closing Date (or such other date as the Parties may agree in writing)
(the “Closing Date”) and shall be deemed to have occurred at 11:59 p.m., central daylight time.

     3.2 Closing Conditions. The obligation of each of the Parties to proceed with the Closing is
subject to the following:

	 	(a)	 	Toshiba shall have completed its review and due diligence of
the ST3&4 Project and the Contributed Assets and confirm the valuations implied
by the transactions contemplated by this Agreement and shall not have timely
provided to the Company in writing the notice contemplated by Section
3.4 that the foregoing conditions have not been satisfied;
	 
	 	(b)	 	the Contributed Assets shall have been contributed to the
Company in accordance with the terms of the NRG Contribution Agreement and
there shall:

	 	(i)	 	be no then existing defaults by any party to
the NRG Contribution Agreement, or
	 
	 	(ii)	 	have been no breaches of any of the
representations and warranties of any party to the NRG Contribution
Agreement;

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(Toshiba)

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	 	(c)	 	there shall exist no agreements between (i) the Company and
(ii) NRG Energy, Inc. (“NRG”) or any Affiliates of NRG, other than this
Agreement, the NRG Contribution Agreement and any other agreement expressly
consented to by Toshiba in writing;
	 
	 	(d)	 	Toshiba and the Toshiba Member (if applicable) shall have
received a certificate, dated as of the Closing Date and duly executed by an
officer of each of NRG and the Company as to the foregoing Section
3.2(c);
	 
	 	(e)	 	Toshiba and the Toshiba Member (if applicable) shall have
received a certificate, dated as of the Closing Date and duly executed by an
officer of each of NRG and the Company that there:

	 	(i)	 	have been no amendments or modifications to the
NRG Contribution Agreement by the parties thereto that would represent
a breach of the representation and warranty set forth in Section
5.6 of this Agreement; and
	 
	 	(ii)	 	have been no express or implied waivers of the
NRG Contribution Agreement by any party thereto,

	 	 	 	except in each case of (i) and (ii) those consented to by Toshiba;
	 
	 	(f)	 	the accuracy in all material respects of the representations
and warranties hereunder of the other Party hereto and the compliance by such
other Party with its material obligations hereunder;
	 
	 	(g)	 	the obtaining of all approvals and consents set forth on
Schedule 4.3 or 5.3, or with respect to such matters that under
the applicable Law do not require consent but require that the Parties wait an
amount of time prior to the Closing, the passage of the applicable amount of
time;
	 
	 	(h)	 	there shall be no effective injunction, writ or preliminary
restraining order or any order of any nature issued by a Governmental Authority
of competent jurisdiction to the effect that the transactions contemplated
hereby may not be consummated, no proceeding or lawsuit shall have
been commenced by any Governmental Authority for the purpose of obtaining
any such injunction, writ or preliminary restraining order and no written
notice shall have been received from any Governmental Authority indicating
an intent to restrain, prevent, materially delay or restructure the
transactions contemplated hereby, in each case where the Closing would (or
would be reasonably likely to) result in a material fine or penalty payable
by a Party or a material restriction on a Party’s operations as a result of
such matter;

 Contribution Agreement

(Toshiba)

3

 

	 	(i)	 	The Company and Toshiba shall have agreed on the provisions of,
and the Company shall have adopted, a management and employee profit
participation incentive plan;
	 
	 	(j)	 	The Company ** shall have agreed with Toshiba in writing on an
interest **rate for the **;
	 
	 	(k)	 	The Parties shall have submitted to the Committee on Foreign
Investment in the United States of America (“CFIUS”) a joint notification under
the Exon-Florio Amendment to the Defense Production Act of 1950 (“Exon-Florio”)
and any other submissions under Exon-Florio that are required to be made in
connection with this Agreement and the transactions contemplated hereby as soon
as practicable following the execution of this Agreement, and CFIUS shall have
notified the Parties in writing that a determination has been made that there
are no issues of national security sufficient to warrant investigation under
Exon-Florio, or, if applicable, the President of the United States of America
shall have made a decision not to block the transaction;
	 
	 	(l)	 	no fewer than 31 calendar days shall have elapsed from the
Effective Date; and
	 
	 	(m)	 	NRG and Toshiba shall have agreed on:

	 	(i)	 	with respect to the budget for the Company for
the twenty-four (24) months following the Closing, to be attached as
Exhibit D to the Company LLC Agreement, (A) prior to March 31, 2008,
the general and administrative portion of such budget and (B) the
remaining portion of such budget; and
	 
	 	(ii)	 	the percentage margin over project costs (other
than profit, contingency and general and administrative costs) that
will cover collectively profit and contingency in the EPC contract for
the ST3&4 Project no later than May 2, 2008; provided, however, the
parties will work in good faith to reach agreement as early as
March 31, 2008. For the avoidance of doubt, the percentage margin
will not cover general and administrative costs.

	 	3.3	 	Closing Deliveries. (a) At the Closing, Toshiba or the Toshiba
Member (as applicable) shall execute and deliver, as applicable, to the Company
the following documents, where the execution or delivery of documents is

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

 Contribution Agreement

(Toshiba)

4

 

	 	 	 	contemplated, and shall take or cause to be taken the following actions, where
the taking of action is contemplated:

	 	(i)	 	The Toshiba Initial Contribution paid to the
Company by wire transfer of immediately available funds to an account
of the Company specified in writing by the Company at least 5 Business
Days prior to the Closing Date;
	 
	 	(ii)	 	The Amended and Restated Operating Agreement of
the Company in the form of Exhibit B (the “Company LLC
Agreement”), duly executed by Toshiba or the Toshiba Member (as
applicable);
	 
	 	(iii)	 	A certificate, duly executed by authorized
officer of Toshiba, certifying to the Company the truth as of the
Closing of the representations and warranties of such entity as set
forth in Article IV hereof; and
	 
	 	(iv)	 	Such other instruments and documents as are
reasonably necessary to effect the transactions contemplated hereby to
occur at Closing.

	 	(b)	 	At the Closing, the Company shall execute and deliver, as
applicable, to Toshiba the following documents, where the execution or delivery
of documents is contemplated, and shall take or cause to be taken the following
actions, where the taking of action is contemplated:

	 	(i)	 	The Company LLC Agreement, duly executed by
each member of the Company that is an Affiliate of Genco;
	 
	 	(ii)	 	A certificate, duly executed by authorized
officer of the Company, certifying to Toshiba the truth as of the
Closing of the representations and warranties of such entity as set
forth in Article V hereof; and
	 
	 	(iii)	 	Such other instruments and documents as are
reasonably deemed necessary to effect the transactions contemplated
hereby to occur at Closing.

 Contribution Agreement

(Toshiba)

5

 

     3.4 Completion of Due Diligence. Toshiba shall undertake and complete its review of the
matters described in Section 3.2(a) such that it shall provide to the Company on or before
March 31, 2008 either (a) a notice in writing that the condition in Section 3.2(a) has been
satisfied, or (b) a notice that it is not satisfied, in Toshiba’s sole discretion, with the results
of its review of the materials. If a notice is not timely sent under (a) or (b) above, then
Toshiba will be deemed to have given the notice under (b) above.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF TOSHIBA

     Toshiba hereby represents and warrants to the Company as of the date hereto and as of the
Closing as follows (provided that such representations and warranties regarding the Toshiba Member
shall only be made and deemed given if Toshiba invests in the Company through the Toshiba Member):

     4.1 Organization; Power of Authority. Each of Toshiba and the Toshiba Member is (or, in the
case of the Toshiba Member, shall be prior to Closing) duly formed (as applicable), validly
existing, and (if applicable) in good standing under the Law of the jurisdiction of its formation.
If required by applicable Law, each of Toshiba and the Toshiba Member is (or, in the case of the
Toshiba Member, shall be prior to Closing) duly qualified and (if applicable) in good standing in
the jurisdiction of its principal place of business, if different from its jurisdiction of
formation, and Toshiba and the Toshiba Member has (or, in the case of the Toshiba Member, shall
have prior to Closing) full power and authority to execute and deliver this Agreement and the other
Transaction Documents, in each case to which it is contemplated to be a party, and to perform its
obligations hereunder and thereunder, and all necessary actions by the board of directors,
shareholders, managers, members, partners, trustees, or beneficiaries, necessary for the due
authorization, execution, delivery, and performance of this Agreement and the other Transaction
Documents (in each case to which it is contemplated to be a party) have been duly taken.

     4.2 Execution and Delivery. Toshiba has duly executed and delivered this Agreement, and it
constitutes the legal, valid and binding obligation of Toshiba enforceable against it in accordance
with its terms (except as may be limited by bankruptcy, insolvency or similar Laws of general
application and by the effect of general principles of equity, regardless of whether considered at
law or in equity).

     4.3 Non-Contravention.
Each of Toshiba’s and the Toshiba Member’s authorization, execution, delivery, and performance
of this Agreement and the other Transaction Documents to which it is contemplated to be a party
does not and will not (a) conflict with, or result in a breach, default or violation of, (i) the
Charter Documents of Toshiba or the Toshiba Member, (ii) any contract or agreement to which Toshiba
or the Toshiba Member is a party or is otherwise subject or (iii) any Law to which Toshiba or the
Toshiba Member is subject or (b) require any consent, approval or authorization from, filing or
registration with, or notice to, any Governmental Authority or other Person, unless in each case
such requirement has already been satisfied or such matter is set forth in Schedule 4.3,
except (other than with respect to clause

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(Toshiba)

6

 

(a)(i)) any conflict, breach, default or violation that
could not reasonably be expected to have a material adverse effect on the ability of Toshiba or the
Toshiba Member to perform its obligations under this Agreement or any Transaction Document to which
it is contemplated to be a party.

     4.4 Brokers, Finders and Investment Bankers. Neither Toshiba nor any of its Affiliates, nor
any of their respective partners, members, shareholders, directors, officers or employees has
employed or retained any broker, finder or investment banker or incurred any liability for any
investment banking fees, financial advisory fees, brokerage fees or finders’ fees in connection
with the transactions contemplated hereby, in each case for which the Company has liability.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company hereby represents and warrants to Toshiba as of the date hereof and as of the
Closing as follows:

     5.1 Organization; Power of Authority. The Company is duly formed, validly existing, and in
good standing under the Law of the jurisdiction of its formation. If required by applicable Law,
the Company is duly qualified and in good standing in the jurisdiction of its principal place of
business, if different from its jurisdiction of formation, and the Company has full power and
authority to execute and deliver this Agreement and the other Transaction Documents and to perform
its obligations hereunder and thereunder, and all necessary actions by the board of directors,
shareholders, managers, members, partners, trustees, or beneficiaries, necessary for the due
authorization, execution, delivery, and performance of this Agreement and the other Transaction
Documents by the Company have been duly taken.

     5.2 Execution and Delivery. The Company has duly executed and delivered this Agreement, and
it constitutes the legal, valid and binding obligation of the Company enforceable against it in
accordance with its terms (except as may be limited by bankruptcy, insolvency or similar Laws of
general application and by the effect of general principles of equity, regardless of whether
considered at law or in equity).

     5.3 Non-Contravention. The Company’s authorization, execution, delivery, and performance of
this Agreement and the other Transaction Documents does not and will not (a) conflict with, or
result in a breach, default or violation of, (i) the Charter Documents of the Company, (ii) any
contract or agreement to which the Company is a party or is otherwise subject or (iii) any Law to
which the Company is subject or (b) require any consent, approval or authorization from, filing or
registration with, or notice to, any Governmental Authority or other Person, unless in each case
such requirement has already been satisfied or such matter is set forth in Schedule 5.3,
except, with respect to clause (a)(ii), any conflict, breach, default or violation that could not
reasonably be expected to have a material adverse effect on the ability of the Company to perform
its obligations under this Agreement or any Transaction Document to which it is contemplated to be
a party.

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(Toshiba)

7

 

     5.4 Brokers, Finders and Investment Bankers. Neither the Company nor any of its Affiliates,
nor any of their respective partners, members, shareholders, directors, officers or employees has
employed or retained any broker, finder or investment banker or incurred any liability for any
investment banking fees, financial advisory fees, brokerage fees or finders’ fees in connection
with the transactions contemplated hereby for which either of the Parties hereto has liability.

     5.5 Legal Proceedings. Except as set forth on Schedule 5.5, there are no proceedings
pending or, to the Knowledge of the Company, threatened seeking to restrain, prohibit, or obtain
damages or other relief in connection with this Agreement or the transactions contemplated hereby.

     5.6 NRG Contribution Agreement. A true and current copy of the fully executed NRG
Contribution Agreement and all exhibits and schedules thereto has been provided to Toshiba. Except
for the supplementing or amendment of the schedules thereto pursuant to Section 7.11 of the
NRG Contribution Agreement that does not result in a Material Adverse Effect (as defined in the NRG
Contribution Agreement), and except for waivers or amendments that have been provided to, and
consented to by, Toshiba prior to the date of the satisfaction of the conditions set forth in
Section 3.2, since such date there has been no amendment to, or waiver by the Company of,
the obligations of Genco and South Texas under the NRG Contribution Agreement.

ARTICLE VI

ADDITIONAL AGREEMENTS AND COVENANTS

     6.1 Capital Calls. Toshiba shall cause the Toshiba Member to contribute to the Company the
Toshiba Committed Contributions in accordance with the Company LLC Agreement; provided, however,
that the Toshiba Member shall not be obligated to make aggregate Capital Contributions
pursuant to Section 6.2(b) of the Company LLC Agreement in excess of $150,000,000.00
until the following conditions are satisfied:

	 	(a)	 	Toshiba’s receipt of task orders for layout work on additional
ABWR units on fair market terms; and
	 
	 	(b)	 	the Company having submitted to the NRC a written statement of
intent to develop additional units using Toshiba ABWR technology and Toshiba as
the EPC contractor.

     6.2 Transaction Costs. Each Party shall bear and pay all of its own costs, fees and expenses,
including any legal fees, brokerage commissions or finders’ fees, if any, incurred by or on its
behalf in connection with the transactions contemplated by this Agreement and the other Transaction
Documents.

     6.3 Indemnifications by Toshiba. Subject to the other terms of this Article VI, Toshiba shall
indemnify, defend and hold harmless the Company and its directors, officers, employees, successors,
assigns and representatives (collectively, “Company Parties”) from and

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(Toshiba)

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against any and all Losses
arising out of or resulting from (a) the failure of any of Toshiba’s representations or warranties
contained in this Agreement or the certificates to be delivered at Closing to be true and correct
and (b) the failure of Toshiba to perform any of its covenants or obligations under this Agreement.

     6.4 Indemnifications by the Company. Subject to the other terms of this Article VI, the
Company shall indemnify, defend and hold harmless Toshiba and its directors, officers, employees,
successors, assigns, and representatives (collectively, the “Contributing Parties”) from and
against any and all Losses arising out of or resulting from (a) the failure of any of the Company’s
representations or warranties contained in this Agreement or the certificates to be delivered at
Closing to be true and correct or (b) the failure of the Company to perform any of its covenants or
obligations under this Agreement.

     6.5 Indemnification Procedure.

	 	(a)	 	Promptly following receipt by either the Company Parties or the
Contributing Parties (each an “Indemnified Party”) of notice by a third party
(including any Governmental Authority) of any complaint or the commencement of
any audit, investigation, action or proceeding (in each case, a “Claim”) with
respect to which such Indemnified Party may be entitled to receive payment from
the other Party for any Loss, such Indemnified Party shall notify Toshiba or
the Company, as the case may be (the
“Indemnifying Party”); provided, however, that the failure to so notify the
Indemnifying Party shall relieve the Indemnifying Party from liability
hereunder with respect to such Claim only if, and only to the extent that,
such failure to so notify the Indemnifying Party results in the loss by the
Indemnifying Party of (or other limitations to) rights and defenses
otherwise available to the Indemnifying Party or the Indemnified Party with
respect to such Claim. The Indemnifying Party shall have the right, upon
written notice delivered to the Indemnified Party within twenty (20) days
thereafter, to assume the defense of such Claim (which may be with a
reservation of rights to deny liability under an indemnity), including the
employment of counsel hired in consultation with the Indemnified Party
(“Litigation Counsel”) and the payment of the fees and disbursements of such
Litigation Counsel and other costs of such defense. In the event, however,
that the Indemnifying Party declines or fails to assume the defense of such
Claim as provided above or to employ Litigation Counsel, in either case
within such twenty (20) day period, then such Indemnified Party may employ
counsel to represent or defend the Indemnified Party in any such Claim, and
the Indemnifying Party shall promptly reimburse the Indemnified Party for
all reasonable fees and disbursements of such counsel and other reasonable
costs of such defense (which reimbursement obligation shall accrue from the
first dollar of such costs as incurred by the Indemnified Party). In any
event, the Indemnifying Party shall not be required to pay the fees and
disbursements

 Contribution Agreement

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9

 

	 		 	of more than one counsel for all Indemnified Parties in any
jurisdiction in connection with such Claim, unless Litigation Counsel
determines that continued representation of the Indemnified Party is
inappropriate due to a conflict of interest under applicable ethical rules
resulting from its representation of both the Indemnifying Party and such
Indemnified Party, in which case, the Indemnifying Party shall have the
option of (i) appointing substitute counsel that does not believe it is
subject to such a conflict of interest or (ii) employing and paying the fees
and disbursements of different counsel to represent such Indemnified Party.
Notwithstanding the Indemnifying Party’s election to assume the defense of
any third party Claim, the Indemnified Party shall have the right at its
cost to employ separate counsel (including local counsel) to monitor (but
not control) such defense. The Indemnifying Party or the Indemnified Party
(as the case may be) shall at all times use commercially reasonable efforts
to keep the Indemnifying Party or Indemnified Party (as the case may be)
reasonably apprised of the status of the defense of any matter the defense
of which it is maintaining and to cooperate in good faith with each other
with respect to the defense of any such matter.
	 
	 	(b)	 	No Indemnified Party may settle or compromise any Claim or
consent to the entry of any judgment with respect to which indemnification is
being
sought hereunder without the prior written consent of the Indemnifying
Party, unless (i) the Indemnifying Party fails to assume and maintain the
defense of such Claim pursuant to Section 6.5(a), (ii) such
settlement, compromise or consent does not contain any admission or
statement suggesting any wrongdoing or liability on behalf of the
Indemnifying Party and (iii) such settlement, compromise or consent includes
an unconditional release of the Indemnifying Party and its directors,
officers, employees, successors, assigns and representatives from all
liability arising out of such Claim. An Indemnifying Party may not, without
the prior written consent of the Indemnified Party, settle or compromise any
claim or consent to the entry of any judgment with respect to which
indemnification is being sought hereunder unless such settlement, compromise
or consent (x) includes an unconditional release of the Indemnified Party
and its directors, officers, employees, successors, assigns and
representatives from all liability arising out of such Claim, (y) does not
contain any admission or statement suggesting any wrongdoing or liability on
behalf of the Indemnified Party and (z) does not contain any equitable
order, judgment or term that in any material manner affects, restrains or
interferes with the business of the Indemnified Party or any of the
Indemnified Party’s Affiliates.
	 
	 	(c)	 	If an Indemnified Party claims a right to payment pursuant
hereto, such Indemnified Party shall send written notice of such Claim to the
appropriate Indemnifying Party. Such notice shall specify the basis for

 Contribution Agreement

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10

 

	 	 	 	such
Claim. The failure by any Indemnified Party so to notify the Indemnifying
Party shall not relieve the Indemnifying Party from any liability that it may
have to such Indemnified Party with respect to any Claim made pursuant to this
Section 6.5(c). If the Indemnifying Party agrees it is liable for such
Claim, it shall pay the amount of such liability to the Indemnified Party **,
or, in the case of any notice in which the amount of the Claim (or any portion
of the Claim) is estimated, ** after such later date when the amount of such
Claim (or such portion of such Claim) becomes finally determined. In the event
the Indemnifying Party does not respond to such Claim or disputes its liability
with respect to such Claim, such Indemnified Party and the appropriate
Indemnifying Party shall, as promptly as possible, establish the merits and
amount of such Claim by making good faith efforts to come to an agreement or,
failing** mutual agreement, by the exercise of such legal remedies
as may be available, subject to Sections 6.6, 6.7 and
6.8.

     6.6 Liability Limits. Except as expressly provided in the third sentence of Section
6.5(a), notwithstanding anything to the contrary set forth herein, in no event shall there be
any liability under Section 6.3(a) or 6.4(a) until the aggregate amount of all
Losses suffered arising from matters covered by the indemnity contained such Section exceeds **
(the “Basket Amount”). In no event shall any Company Party or Contributing Party be entitled to
assert a claim under Section 6.3(a) or 6.4(a) (as applicable) unless such Claim is
submitted in compliance with the other procedures of Section 6.5. The liability of the
Indemnifying Party under Section 6.3(a) or 6.4(a) shall not exceed ** No claim for
indemnification may be made under Section 6.3(a) or 6.4(a) if the Indemnified Party
making the claim had actual knowledge of such breach prior to Closing and elected to consummate the
Closing. In determining the amount of any Losses entitled to indemnification under Article VI, the
gross amount thereof will be reduced by any insurance proceeds actually received by the claimant
with respect to such Losses (net of any related deductibles and self insurance amounts).

     6.7 Exclusive Remedy. Notwithstanding any other provision of this Agreement to the contrary
or any remedies that might otherwise be available under Law (other than claims based on fraud), the
remedies set forth in this Article VI and the specific performance remedy referenced in Section
7.11 shall constitute the sole and exclusive remedies of the Parties hereto (or any assignee of
a Party to which conveyance is made as contemplated in connection herewith) for any claims arising
under this Agreement, the certificates or any other documents executed pursuant to this Agreement
to be delivered at Closing.

     6.8 Consequential Damages. NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL
ANY PARTY EVER BE LIABLE TO ANY OTHER PARTY OR THIRD PARTY WITH RESPECT TO ANY CLAIM ARISING OUT OF
OR RELATING TO THIS AGREEMENT FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER SPECIAL, PUNITIVE,
EXEMPLARY, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT LOSSES OR DAMAGES FROM ITS PERFORMANCE UNDER THIS
AGREEMENT

 

			
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confidential treatment request.

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OR FOR ANY FAILURE OR PERFORMANCE HEREUNDER OR RELATED HERETO, WHETHER ARISING OUT OF
BREACH OF CONTRACT, NEGLIGENCE, TORT, STRICT LIABILITY, OR OTHERWISE AND WHETHER OR NOT ARISING
FROM ANY OTHER PARTY’S SOLE, JOINT OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT.

     6.9 Termination. This Agreement may be terminated:

	 	(a)	 	by mutual consent in writing of the Parties;
	 
	 	(b)	 	automatically if a notice is given pursuant to Section
3.4(b) or such notice is deemed to have been given;
	 
	 	(c)	 	by Toshiba at any time on or prior to the date that is 31
calendar days after the Effective Date for any reason or no reason, and in its
sole and absolute discretion;
	 
	 	(d)	 	by written notice by any Party to the other Party, as the case
may be, in the event the matters described in Section 3.2(m) have not
been agreed in writing on or prior to May 2, 2008; and
	 
	 	(e)	 	by written notice by any Party to the other Party, as the case
may be, in the event the Closing has not occurred on or prior to ** (but such
termination shall not relieve a Party of any default under this Agreement
arising prior thereto).

ARTICLE VII

GENERAL

     7.1 Successors and Assigns. All of the terms, covenants, representations, warranties and
conditions of this Agreement shall be binding upon, and inure to the benefit of, and be enforceable
by, the Parties hereto and their respective successors and permitted assigns (and in the case of
indemnities to the benefit of all Persons indemnified). This Agreement and the rights and
obligations hereunder shall not be assigned by either Party hereto without the prior written
consent of the other Party, except that either Party may assign an interest in all of its rights
and obligations hereunder to any Affiliate; provided that no assignment shall relieve a Party of
its obligations hereunder. Nothing herein expressed or implied is intended or shall be construed
to confer upon or to give any Person not a Party any rights or remedies under or by reason of this
Agreement, except for (i) the Company, where so identified in this Agreement, and (ii) the
indemnified parties expressly identified in this Agreement.

     7.2 Amendments. This Agreement may be amended, modified or superseded, and any of the terms,
covenants, representations, warranties or conditions hereof may be waived, only by a written
instrument executed by each of the Parties. No waiver by either Party of any breach of any term,
covenant, representation or warranty contained in this Agreement, in any one or more instances,
shall be deemed to be or construed as a further or continuing waiver of any

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such breach or a waiver
of any other breach of any other term, covenant, representation or warranty.

     7.3 No Merger. Notwithstanding the fact that the Transaction Documents are not intended to,
and do not, contain representations and warranties beyond those made in this Agreement, the Parties
agree
that the representations and warranties of the Parties in this Agreement shall not be
extinguished or limited in any respect by, or be merged into, the Transaction Documents.

     7.4 Further Assurances. Each Party agrees to execute such further instruments or documents as
the other Party may from time to time reasonably request in order to confirm or carry out the
transactions contemplated in this Agreement; provided that no such instrument or document shall
expand a Party’s liability beyond that contemplated in this Agreement.**

     7.5 Notices. Unless otherwise provided herein, all notices, requests, consents, approvals,
demands and other communications to be given hereunder shall be in writing and shall be deemed
given upon (a) confirmation of receipt of a facsimile transmission, (b) confirmed delivery by a
standard overnight carrier or when delivered by hand, (c) actual receipt or (d) the expiration of
four Business Days after the day when mailed by registered or certified mail (postage prepaid,
return receipt requested), addressed to the respective Parties at the following addresses (or such
other address for a party hereto as shall be specified by like notice):

          If to Toshiba, to:

          **

               and to:

               **

          If to the Company, to:

          **

               with a copy to:

               **

Either Party may change its Notice address by giving written notice to the other in the manner
specified above.

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

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     7.6 Entire Agreement. This Agreement, the other Transaction Documents, the attached schedules
and exhibits and the agreements and documents to be executed pursuant to this Agreement constitute
the entire agreement between the Parties as of the date of this Agreement and supersede any prior
understandings, agreements, or representations by or between the Parties, written or oral, to the
extent they have related in any way to the subject matter hereof.

     7.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF NEW YORK. The foregoing shall not apply to the conveyance instruments
delivered pursuant to this Agreement to the extent the law of any state in which any particular
asset or property is located mandates that the law of that state apply to the conveyance of the
asset or property located there.

     7.8 Dispute Resolution.

	 	(a)	 	Each Party hereby agrees that any dispute, controversy or claim
between the Parties arises under this Agreement or is connected with or related
in any way to this Agreement or any right, duty or obligation arising hereunder
or the relationship of the Parties hereunder may be so submitted to binding
arbitration hereunder and pursuant to the procedures set forth in Exhibit
C, and if so submitted, shall be resolved exclusively and finally through
such binding arbitration. This Section 7.8 and Exhibit C
constitute a written agreement by the Parties to submit to arbitration any
Dispute arising under or in connection with this Agreement within the meaning
of the Federal Arbitration Act, 9 U.S.C. §§ 1, et. seq.
	 
	 	(b)	 	Prior to the appointment of the arbitration tribunal, either
Party may seek provisional relief, including provisional injunctive relief,
from any court of competent jurisdiction, and the application for such relief
shall not be deemed inconsistent with, or a waiver of, the right to arbitrate
the Dispute. With respect to any such application for provisional relief, the
Parties irrevocably submit to the personal jurisdiction of the state and
federal courts located in Washington, D.C., and waive objection to venue. Once
the arbitration tribunal is appointed, all subsequent applications for
provisional relief shall be made to the arbitration tribunal.

     7.9 Severability. In the event any of the provisions hereof are held to be invalid or
unenforceable under any Law, the remaining provisions hereof shall not be affected thereby. In
such event, the Parties hereto agree and consent that such provisions and this Agreement shall be
modified and reformed so as to effect the original intent of the Parties as closely as possible
with respect to those provisions which were held to be invalid or unenforceable.

     7.10 Counterparts. This Agreement may be executed simultaneously in two or more counterparts,
each of which shall be deemed an original, but all of which shall constitute but one agreement.

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     7.11 Remedies. Each Party acknowledges that the remedies at law of the Parties for a breach
or threatened breach of this Agreement would be inadequate and, in recognition of this fact, either
Party, without posting any bond, and in addition to all other remedies that may be available, shall
be entitled to obtain equitable relief in the form of specific performance, a temporary restraining
order, a temporary or permanent injunction or any other equitable remedy that may then be
available. Notwithstanding Section 7.8, either Party may seek a temporary restraining
order or preliminary injunction from a court of competent jurisdiction pending mediation or
arbitration.

[Remainder of this page intentionally left blank.]

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

	 	 	 	 	 
	 	TOSHIBA CORPORATION

 	 
	 	By:  	/s/ Hideo Kitamura
	 
	 	 	Name:  	Hideo Kitamura 	 
	 	 	Title:  	Executive Officer
Corporate Vice President
President and CEO
Power Systems Company 	 
	 
	 	NRG NUCLEAR DEVELOPMENT COMPANY LLC

 	 
	 	By:  	/s/ Steve Winn
	 
	 	 	Name:  	Steve Winn 	 
	 	 	Title:  	President 	 

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Signature Page

 

	 	 	 	 	 

EXHIBIT A

Definitions

     “Affiliate” means with respect to an entity, any other entity controlling, controlled by or
under common control with such entity. As used in this definition, the term “control,” including
the correlative terms “controlling,” “controlled by” and “under common control with,” shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of an entity, whether through ownership of voting securities, by contract or
otherwise.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in New
York, New York or Tokyo, Japan are authorized or required by law to be closed.

     “Charter Documents” means, with respect to any Person, the articles of incorporation or
association and by-laws, the limited liability company agreement, or limited partnership agreement
or other agreement or agreements that establish the legal personality of such Person.

     “Governmental Authority” means any federal, state or local governmental entity, authority or
agency, court, tribunal, regulatory commission or other body, whether legislative, judicial or
executive (or a combination or permutation thereof).

     “Knowledge of the Company” means the actual knowledge of the following individuals:
**

     “Law” means any statute, law, treaty, rule, code, ordinance, regulation, permit, or
certificate of any Governmental Authority, any interpretation of any of the foregoing by any
Governmental Authority, or any binding judgment, decision, decree, injunction, writ, order or like
action of any court, arbitrator or other Governmental Authority.

     “Losses” means damages, claims, liabilities, losses, costs and expenses (including reasonable
fees and expenses of counsel and court costs).

     “NRC” means the US Nuclear Regulatory Commission.

     “Participation Agreement” means that Amended and Restated South Texas Project Participation
Agreement, effective as of November 17, 1997, between City of San Antonio, City of Austin and South
Texas (as
successor in interest to Central Power and Light Company and Houston Lighting & Power
Company).

     “Person” means any natural person, corporation, company, partnership (general or limited),
limited liability company, trust or other entity.

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

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A-1

 

     “Project Land” means the portion of the South Texas Plant Site, which shall be allocated for
the exclusive use of the ST3&4 Project.

     “South Texas Plant Site” has the meaning given such term in the Participation Agreement.

     “South Texas Project” has the meaning given such term in the Participation Agreement.

     “ST3&4 Project” means the units 3 and 4 of the South Texas Project contemplated to be
developed by the Company.

     “Toshiba Member” means a wholly-owned direct or indirect subsidiary of Toshiba through which
Toshiba will hold its membership interest in the Company.

     “Transaction Documents” means, collectively, this Agreement, the Company LLC Agreement, and
the Contribution and Assumption Agreement (as defined in the NRG Contribution Agreement), in each
case, as amended, and all certificates and other documents required to be delivered by the Parties
at the Closing.

 Contribution Agreement

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A-2

 

EXHIBIT B

Form of Company LLC Agreement

 

			
	**	 	This portion has been redacted pursuant to a
confidential treatment request.

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B-1

 

EXHIBIT C

Arbitration Procedures

     1.1 Disputes. Any and all claims, counterclaims, demands, causes of action, disputes,
controversies, and other matters in question arising out of or relating to this Agreement, or to
the alleged breach hereof, or in any way relating to the subject matter of this Agreement or the
relationship between the Parties created by this Agreement (whether extra-contractual in nature,
sounding in contract, tort or otherwise, or provided for by federal or state statute, common law or
otherwise) (hereafter a “Dispute”) shall be finally resolved by binding arbitration under the
Non-Administered Arbitration Rules of the International Institute for Conflict Prevention and
Resolution (the “Rules”) then in force to the extent such Rules are not inconsistent with the
provisions of this Agreement.

     1.2 Negotiation to Resolve Disputes. If a Dispute arises out of or relates to this Agreement,
a Party may give notice to all other Parties that it intends to initiate the dispute resolution
procedures set forth herein. Promptly upon receipt of such notice, each Party that is a party to
the Dispute (each, a “Disputing Party”) shall refer such Dispute to a senior executive officer
(“SEO”) of each Disputing Party (or of Toshiba’s Power Systems Company, in the case of Toshiba).
The SEOs will meet in person or by teleconference as soon as mutually practicable in order to try
and resolve the Dispute. If the SEOs are unable to resolve the Dispute on or before the
30th Day after such notice, any Disputing Party may commence an arbitration under this
Appendix B by notifying each Party (an “Arbitration Notice”).

     1.3 Selection of Arbitrators.

     (a) Three Arbitrators. Any arbitration conducted under this Appendix B shall be heard by
three arbitrators (each an “Arbitrator” and collectively the “Tribunal”) selected in accordance
with this Section 1.3. Each Disputing Party and any proposed Arbitrator shall, as soon as
practicable, disclose to the other Disputing Parties any business, personal or other relationship
or affiliation that may exist between any Party and the proposed Arbitrators. The Disputing
Parties may then object to any of the proposed Arbitrators on the basis of such relationship or
affiliation. The validity of any such objection shall be determined according to the Rules.

          (b) Selection of Arbitrators. Except as provided for in this Section 1.3, the
Tribunal shall be appointed according to the Rules. In the Arbitration Notice, the Disputing Party
requesting arbitration shall nominate one Arbitrator. The Disputing Party named as respondent by
the claimant shall nominate one Arbitrator. Within 30 Days of the appointment of the second
Arbitrator, the two party-appointed Arbitrators shall appoint a third Arbitrator who shall chair
the arbitration. Where the Dispute at issue involves more than two Disputing Parties, the
International Institute for Conflict Prevention and Resolution (“CPR”) shall provide a list of
potential Arbitrators. Within seven (7) days of receiving this list, each Disputing Party shall
provide to CPR a ranking of the potential Arbitrators on such list showing such Disputing Party’s
order of preference among such proposed Arbitrators, with any
one or more Disputing Parties who are Affiliates of one another submitting one common ranked
list. The CPR shall then

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appoint all three Arbitrators as it shall determine in its discretion but
taking into account to the extent practical the Disputing Parties’ preferences.

     1.4 Conduct of Arbitration. The Tribunal shall expeditiously (and, if practicable, consistent
with the Tribunal’s primary responsibility to justly adjudicate the dispute before it, within 180
Days after the appointment of the third Arbitrator) hear and decide all matters concerning the
Dispute. Any arbitration hearing shall be held in Washington, D.C. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. §§1 et. seq. Except as expressly provided to the
contrary in this Agreement, the Tribunal shall have the power to gather such materials,
information, testimony and evidence as it deems relevant to the dispute before it (and each Party
will provide such materials, information, testimony and evidence requested by the Tribunal, subject
to such protective orders as the Tribunal determines necessary for the protection of any
information so requested that is proprietary, subject to a third-party confidentiality restriction
or to an attorney-client or other privilege) and to grant injunctive relief and enforce specific
performance. The Tribunal shall not have the power to award punitive or any other form of indirect
or non-compensatory damages, even if such are available under the governing law and even if a court
would otherwise be empowered to avoid this limitation on damages to make such an award. If it
deems necessary, the Tribunal may propose to the Disputing Parties that one or more other experts
be retained to assist it in resolving the Dispute. The retention of such other experts shall
require the unanimous consent of the Disputing Parties, which shall not be unreasonably withheld.
The decision of the Tribunal (which shall be rendered in writing) shall be final, nonappealable and
binding upon the Parties and may be enforced in any court of competent jurisdiction. Each Party
hereby consents to the non-exclusive personal jurisdiction and venue of the Washington D.C. courts
for any proceedings in aid of arbitration under this Section, including any request for interim or
injunctive relief. Notwithstanding the foregoing consent, the Parties may nevertheless seek
interim or injunctive relief from any court of competent jurisdiction.

     1.5 Arbitration Costs and Expenses. The responsibility for paying the costs and expenses of
the arbitration, including compensation to the Tribunal and any experts retained by the Tribunal,
shall be borne by the Disputing Party or Disputing Parties who is or are the least successful in
such process, which shall be determined by the Tribunal by comparing the position asserted by each
Disputing Party on all disputed matters taken together to the final decision of the Tribunal on
all disputed matters taken together, provided however, that each Disputing Party shall be
responsible for the fees and expenses of its respective counsel, consultants and witnesses, unless
the Tribunal determines that compelling reasons exist for allocating all or a portion of such costs
and expenses to the other Disputing Parties.

 Contribution Agreement

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C-2EX-10.3

 

Exhibit 10.3

 

MULTI-UNIT AGREEMENT

by and among

TOSHIBA CORPORATION,

NRG NUCLEAR DEVELOPMENT COMPANY LLC

and

NRG ENERGY, INC.

 

 

 

 

MULTI-UNIT AGREEMENT

by and among

TOSHIBA CORPORATION,

NRG NUCLEAR DEVELOPMENT COMPANY LLC

and

NRG ENERGY, INC.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page	 
	ARTICLE I  DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Definitions and Usage
	 	 	1	 
	 
	 	 	 	 
	Section 1.2 Rules as to Usage
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II  TERM
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III  COMMITMENTS OF THE PARTIES
	 	 	4	 
	 
	 	 	 	 
	Section 3.1 STP 3&4 EPC Terms and Conditions
	 	 	4	 
	 
	 	 	 	 
	Section 3.2 Additional Units
	 	 	4	 
	 
	 	 	 	 
	Section 3.3 Development of New Sites
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV  REPRESENTATIONS AND WARRANTIES
	 	 	4	 
	 
	 	 	 	 
	Section 4.1 Representations
	 	 	4	 
	 
	 	 	 	 
	ARTICLE V  DISPUTE RESOLUTION
	 	 	5	 
	 
	 	 	 	 
	Section 5.1 Arbitration
	 	 	5	 
	 
	 	 	 	 
	Section 5.2 Emergency Relief
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI  GENERAL PROVISIONS
	 	 	6	 
	 
	 	 	 	 
	Section 6.1 Notices
	 	 	6	 
	 
	 	 	 	 
	Section 6.2 Governing Law
	 	 	6	 
	 
	 	 	 	 
	Section 6.3 Confidentiality
	 	 	6	 
	 
	 	 	 	 
	Section 6.4 Public Announcements
	 	 	7	 
	 
	 	 	 	 
	Section 6.5 Relationship of Parties
	 	 	7	 
	 
	 	 	 	 
	Section 6.6 Third Party Beneficiaries
	 	 	7	 
	 
	 	 	 	 
	Section 6.7 Further Assurances
	 	 	7	 
	 
	 	 	 	 
	Section 6.8 Binding Effect
	 	 	7	 
	 
	 	 	 	 
	Section 6.9 Amendment
	 	 	7	 
	 
	 	 	 	 
	Section 6.10 Headings; Table of Contents
	 	 	7	 
	 
	 	 	 	 
	Section 6.11 Interpretation and Reliance
	 	 	7	 
	 
	 	 	 	 
	Section 6.12 Severability
	 	 	7	 
	 
	 	 	 	 
	Section 6.13 Complete Agreement
	 	 	8	 
	 
	 	 	 	 
	Section 6.14 Counterparts
	 	 	8	 
	 
	 	 	 	 
	Section 6.15 Assignment
	 	 	8	 

-i- 

 

APPENDICES

	 	 	 
	APPENDIX A

	 	Addresses for Notices
	APPENDIX B

	 	Arbitration Procedures
	APPENDIX C

	 	Agreed EPC Terms

-ii- 

 

MULTI-UNIT AGREEMENT

     THIS MULTI-UNIT AGREEMENT is made and entered into effective as of the ** (the
“Effective Date”), by and among TOSHIBA CORPORATION, a corporation formed under the laws of
Japan (“Toshiba”), NRG ENERGY, INC., a corporation formed under the laws of the State of
Delaware (“NRG”), and NRG NUCLEAR DEVELOPMENT COMPANY LLC, a limited liability company
formed under the laws of the State of Delaware (“Nuclear DevCo”). Toshiba, NRG and Nuclear
DevCo are also each referred to herein as a “Party” and collectively as the
“Parties.”

RECITALS

     WHEREAS, affiliates of NRG have formed Nuclear DevCo for the purpose of developing and owning
(i) interests in two units at the South Texas Nuclear Project in Matagorda County, Texas, referred
to by the Parties as “STP 3&4” (“STP 3 & 4”) and (ii) certain additional nuclear power
generation projects, and in connection therewith have entered into the limited liability company
agreement of Nuclear DevCo (the “Original Nuclear DevCo LLC Operating Agreement”);

     WHEREAS, pursuant to that certain Contribution Agreement (NRG) dated as of the **,
among Texas Genco Holdings, Inc., NRG South Texas LP, and Nuclear DevCo, affiliates of NRG will
contribute to Nuclear DevCo rights with respect to the development of STP 3 & 4 and such additional
projects and certain other assets;

     WHEREAS, it is anticipated that (i) Toshiba or an affiliate of Toshiba will be admitted to
Nuclear DevCo as a member thereof (the date of such admission, the “Toshiba Closing Date”),
and (ii) Toshiba (or such affiliate of Toshiba) and affiliates of NRG will execute an amendment and
restatement of the Original Nuclear DevCo LLC Operating Agreement (the “Nuclear DevCo LLC
Operating Agreement”), which will govern the joint ownership of Nuclear DevCo; and

     WHEREAS, the Parties have determined to set forth in this Agreement certain terms of their
agreements regarding the foregoing;

     NOW, THEREFORE, in consideration of the respective covenants and agreements of the Parties
herein set forth, and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by the Parties, the Parties do hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions and Usage. Unless the context shall otherwise require, capitalized
terms used in this Agreement shall have the meanings assigned to them below:

 

			
	**	 	This Portion has been redacted pursuant to a
confidential treatment request.

1

 

     “Additional Units” shall have the meaning given to it in Section 3.1(a) of this
Agreement.

     “Affiliate” means with respect to an entity, any other entity controlling, controlled by or
under common control with such entity. As used in this definition, the term “control,” including
the correlative terms “controlling,” “controlled by” and “under common control with,” shall mean
the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of an entity, whether through ownership of voting securities, by contract or
otherwise.

     “Agreed EPC Contract Form” shall have the meaning given to it in Section 3.1(b) of
this Agreement.

     “Agreed EPC Terms” shall have the meaning given to it in Section 3.1(a) of this
Agreement.

     “Agreement” means this Multi-Unit Agreement and includes all Appendices hereto.

     “Dispute” shall have the meaning given to it in Section 1.1 of Appendix B to this
Agreement.

     “Effective Date” shall have the meaning given to it in the first paragraph of this Agreement.

     “EPC Contract” shall have the meaning given to it in Section 3.1(a) of this Agreement.

     “Government Approval” means any consent, approval or authorization from, filing or
registration with, or notice to, any Governmental Authority.

     “Governmental Authority” means any federal, state or local governmental entity, authority or
agency, court, tribunal, regulatory commission or other body, whether legislative, judicial or
executive (or a combination or permutation thereof), including the Nuclear Regulatory Commission.

     “Law” means any statute, law, treaty, rule, code, ordinance, requirement, regulation, permit
or certificate of any Governmental Authority, any interpretation of any of the foregoing by any
Governmental Authority, or any binding judgment, decision, decree, injunction, writ, order or like
action of any court, arbitrator or other Governmental Authority.

     “New Site” shall have the meaning given to it in Section 3.2 of this Agreement.

     “NRG” shall have the meaning given to it in the first paragraph of this Agreement.

     “Nuclear DevCo” shall have the meaning given to it in the first paragraph of this Agreement.

     “Nuclear DevCo LLC Operating Agreement” shall have the meaning given to it in the Recitals of
this Agreement.

2

 

     “Offer Period” means the period from Effective Date through the earlier of **

     “Party” and “Parties” shall have the meanings given to them in the first paragraph of this
Agreement.

     “Permitted Changes” shall have the meaning given to it in Section 3.1(c) of this Agreement.

     “Permitted Designee” means any Person in which Nuclear DevCo holds, directly or indirectly, **

     “Person” means any individual, corporation, partnership, joint venture, association, joint
stock company, trust, limited liability company, unincorporated organization, Governmental
Authority or any other form of entity.

     “Proceeding” means any lawsuit, arbitration or other alternative resolution process,
Governmental Authority investigation, hearing, audit, appeal, administrative proceeding or judicial
proceeding.

     “Remaining Units” shall have the meaning given to it in Section 3.1(b) of this Agreement.

     “STP 3 & 4” shall have the meaning given to it in the Recitals of this Agreement.

     “Toshiba” shall have the meaning given to it in the first paragraph of this Agreement.

     “Toshiba Closing Date” shall have the meaning given to it in the Recitals of this Agreement.

     Section 1.2 Rules as to Usage.

          (a) The terms defined above have the meanings set forth above for all purposes, and such
meanings are equally applicable to both the singular and plural forms of the terms defined.

          (b) “Include,” “includes” and “including” shall be deemed to be followed by “without
limitation” whether or not they are in fact followed by such words or words of like import.

          (c) Any agreement, instrument or Law defined or referred to above means such agreement or
instrument or Law as from time to time amended, modified or supplemented, including (in the case of
agreements or instruments) by waiver or consent and (in the case of Laws) by succession of
comparable successor Laws and includes (in the case of agreements or instruments) references to all
attachments thereto and instruments incorporated therein.

          (d) References to a Person include its successors and permitted assigns.**

 

			
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3

 

          (e) Any term defined above by reference to any agreement, instrument or Law has such meaning
whether or not such agreement, instrument or Law is in effect.**

          (f) “Hereof,” “herein,” “hereunder” and comparable terms refer, unless otherwise expressly
indicated, to the entire agreement or instrument in which such terms are used and not to any
particular article, Section or other subdivision thereof or attachment thereto.

          (g) References to any gender include, unless the context otherwise requires, references to all
genders.

          (h) “Shall” and “will” have equal force and effect.

          (i) References to “$” or to “dollars” shall mean the lawful currency of the United States of
America.

ARTICLE II

TERM

     This Agreement shall become effective on the Effective Date (provided that Article III
of this Agreement shall be subject to the occurrence of, and become binding and effective as of,
the Toshiba Closing Date) and shall continue in effect through the earlier of **

ARTICLE III

COMMITMENTS OF THE PARTIES

     Section 3.1 EPC Terms and Conditions.

     (a) Subject to and in accordance with the terms and conditions of this Section 3.1, Toshiba
shall make available to Nuclear DevCo or its Permitted Designee the engineering, procurement, and
construction contract (“EPC Contract”) terms set forth on Appendix C (the “Agreed EPC
Terms”) for two single or double unit nuclear power generating projects on brownfield sites
(i.e., sites at or adjacent to existing nuclear power projects) in the United States using
Toshiba’s ABWR design (which two projects will be in addition to STP 3 & 4) (the “Additional
Units”). In furtherance of the foregoing, Toshiba agrees (i) at the request of Nuclear DevCo
in connection with any specified Additional Unit, to negotiate with Nuclear DevCo (or its Permitted
Designee) in good faith to agree on an EPC Contract containing the Agreed EPC Terms for such
Additional Unit, and (ii) if such agreement is reached, to enter into such an EPC Contract.

     (b) After the execution of the STP 3 & 4 EPC Contract, Toshiba and Nuclear DevCo shall
negotiate in good faith to adapt the form of the STP 3 & 4 EPC Contract to conform it to the Agreed
EPC Terms (as so adapted, the “Agreed EPC Contract Form”), and the Agreed EPC Contract Form
shall replace the Agreed EPC Terms as the basis from which any EPC Contract

 

			
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confidential treatment request.

4

 

will be negotiated for Additional Units with respect to which an EPC Contract has not then
been agreed (the “Remaining Units”). Accordingly, at any time after the execution of the
STP 3 & 4 EPC Contract, at the request of Nuclear DevCo in connection with a specified Remaining
Unit, Toshiba agrees (i) to negotiate with Nuclear DevCo (or its Permitted Designee) in good faith
to agree on the terms of the EPC Contract for such Remaining Unit based on the Agreed EPC Contract
Form (subject only to changes contemplated by Section 3.1(c) below) and (ii) if the parties reach
agreement, to enter into such EPC Contract. **

     (c) The Parties acknowledge and agree that, in negotiating the EPC Contract for Remaining
Units, no changes will be made to the Agreed EPC Contract Form other than the following
(collectively, “Permitted Changes”): (i) changes to cost, schedule and unit performance;
and (ii) changes to reflect the following: (1) any material site-specific differences between the
relevant Additional Unit and STP 3 & 4; (2) changes in any applicable Law after the execution of
the STP 3 & 4 EPC Contract; (3) changes in the Toshiba scope of work for the relevant Additional
Unit as compared to the STP 3 & 4 EPC Contract; and (4) changes after the execution of the STP 3 &
4 EPC Contract in the risks covered by insurance. For the avoidance of doubt, the final contract
price for any Additional Unit will include a margin over project costs (other than profit,
contingency and general and administrative costs) of a percentage to be agreed, which margin will
cover collectively profit, contingency, and general and administrative costs. However, the
Parties agree that Toshiba may request changes to the Agreed EPC Terms or the Agreed EPC Contract
Form other than those specified in this Section 3.1(c) when negotiating any EPC Contract, and that
the other Parties will discuss with Toshiba and consider such requested changes in good faith.

     (d) Notwithstanding anything in this Agreement to the contrary, in no event shall Toshiba or
any affiliate thereof be required to perform any engineering, procurement or construction services
unless such services are set forth in a written agreement executed by such Person. However,
Toshiba acknowledges and agrees that it will be in breach of its obligation under this Agreement if
it refuses to execute an EPC Contract for any Additional Units due to the fact that Nuclear DevCo
or its Permitted Designee has not agreed to changes in the Agreed EPC Terms or, after the execution
of the STP 3 & 4 EPC Contract, changes from the Agreed EPC Contract Form unless (i) such changes
constitute Permitted Changes or (ii) either of the other Parties or Nuclear DevCo’s Permitted
Designee has not considered and discussed with Toshiba in good faith such changes after such
changes were proposed by Toshiba.

     Section 3.2 Development of New Sites. Nuclear DevCo agrees to use reasonable efforts to
advance the development of at least one additional site for deployment of ABWR generating
facilities in the United States (each a “New Site”) such that Nuclear DevCo (or its
affiliates) formally notifies the Nuclear Regulatory Commission on or before December 31, 2008, of
its intention to file a combined construction and operating license application with regard to at
least one such New Site. Nuclear DevCo and Toshiba agree to negotiate in good faith for the terms
of and, on or before December 31, 2008, enter into a contract for the performance of site layout
work at a New Site.

 

			
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confidential treatment request.

5

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations. Each Party represents and warrants to the other Party that:

          (a) Due Organization. It is a duly organized, validly existing entity of the type
described in the introduction to this Agreement and is in good standing under the laws of the
jurisdiction of its formation.

          (b) Power and Authority. It has full legal right, power and authority to enter into
this Agreement and perform its obligations under this Agreement.

          (c) Due Authorization. It has taken all appropriate and necessary action to authorize
its execution, delivery and performance of this Agreement and the transactions contemplated
hereunder.

          (d) Consents. It has obtained all consents, approvals, authorizations and
Governmental Approvals necessary for the valid execution, delivery and performance of this
Agreement.

          (e) Binding Obligation. This Agreement constitutes a legal, valid and binding
obligation of such Party, enforceable against such Party in accordance with its terms, except to
the extent enforceability may be limited by applicable bankruptcy, insolvency or similar laws
affecting the rights of creditors generally or by general principles of equity.

          (f) No Violation. The execution, delivery and performance by such Party of this
Agreement, the compliance with the terms and provisions hereof, and the carrying out of the
transactions contemplated hereby, (i) do not conflict with and will not result in a breach or
violation of any of the terms or provisions of the organizational documents of such Party and (ii)
do not conflict with and will not result in a breach or violation of any of the terms or provisions
of any existing applicable law, rule or regulation, or any order, writ, injunction, judgment or
decree by any court or Governmental Authority against such Party or by which it or any of its
properties is bound, or any agreement or instrument to which such Party is a party or by which it
or any of its properties is bound, or constitute or will constitute a default thereunder or will
result in the imposition of any lien upon any of its properties, in each case that would have a
material adverse effect on such Party’s ability to perform its obligations hereunder.

          (g) No Litigation. There is no litigation pending, or, to the best of its knowledge,
threatened to which such Party or any of its affiliates is a party that, if adversely determined,
would have a material adverse effect on such Party’s ability to perform its obligations hereunder.

          (h) Authorized Signatory. The representative executing this Agreement on behalf of
such Party is duly authorized by action of the governing body of such Party to execute this
Agreement on such Party’s behalf and to bind such Party hereunder.

6

 

ARTICLE V

DISPUTE RESOLUTION

     Section 5.1 Arbitration. Each Party hereby agrees that all Disputes shall be resolved as set
forth in Appendix B. This Article V and Appendix B constitute a written
agreement by the Parties to submit to arbitration any Dispute arising under or in connection with
this Agreement within the meaning of the Federal Arbitration Act, 9.U.S.C. §§ 1, et. seq.

     Section 5.2 Emergency Relief. Prior to the appointment of the arbitration tribunal, any Party
may seek provisional relief, including provisional injunctive relief, from any court of competent
jurisdiction, and the application for such relief shall not be deemed inconsistent with, or a
waiver of, the right to arbitrate the Dispute. With respect to any such application for
provisional relief, the Parties irrevocably submit to the personal jurisdiction of the state and
federal courts located in Washington, D.C., and waive objection to venue. Once the arbitration
tribunal is appointed, all subsequent applications for provisional relief shall be made to the
arbitration tribunal.

ARTICLE VI

GENERAL PROVISIONS

     Section 6.1 Notices. All notices, consents, approvals, requests, invoices or statements
provided for or permitted to be given under this Agreement must be in writing. Notices to a Party
must be delivered to such Party at the address for such Party set forth in Appendix A to
this Agreement or at such other address as such Party shall designate by written notice to the
other Party delivered in accordance with this Section 6.1. Notices may be (i) sent by
registered or certified mail with return receipt requested, (ii) delivered personally (including
delivery by private courier services) or (iii) sent by facsimile (with confirmation of such notice)
to the Party entitled thereto. Each Party hereto shall have the right at any time and from time to
time to specify additional Persons to whom notice thereunder must be given, by delivering to the
other Party five (5) days notice thereof.

     Section 6.2 Governing Law. This Agreement and the rights and duties of the Parties arising
out of this Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York, without reference to the conflict of laws rules thereof.

     Section 6.3 Confidentiality. No Party shall disclose or otherwise make available to any other
Person (other than such Party’s affiliates, employees, officers, directors, legal advisors,
financial advisors and accountants, and, in the case of each of the Parties, prospective lenders,
provided each such Person agrees to maintain the confidentiality of such information) the terms,
conditions or existence of this Agreement, including the contents of the Agreed EPC Terms without
the prior written consent of each of the other Parties. In the event that disclosure is required
by court order or a Governmental Authority, the Party subject to such requirement shall promptly
notify the other Party and will use reasonable efforts to obtain protective orders or similar
restraints with respect to such disclosure.

     Section 6.4 Public Announcements. No Party shall, except as required by Law or the rules of
any recognized national stock exchange, cause any public announcement to be made

7

 

regarding this Agreement without the consent of each other Party. In the event that a Party
shall be required to cause such a public announcement to be made pursuant to any Law or the rules
of any recognized national stock exchange, such Party shall endeavor to provide the other Parties
at least forty-eight (48) hours prior written notice of such announcement and shall consider in
good faith any comments to such announcement received from the other Parties.

     Section 6.5 Relationship of Parties. Neither the execution nor delivery of this Agreement,
nor the consummation of the transactions contemplated hereunder, shall create or constitute a
partnership, joint venture, or any other form of business organization or arrangement between the
Parties, except for the contractual arrangements specifically set forth in this Agreement and the
other documents referred to herein if and when executed. Except as is expressly agreed to in
writing in this Agreement, no Party (or any of its agents, officers or employees) shall be an agent
or employee of any other Party or any of its affiliates, nor shall a Party (or any of its agents,
officers or employees) have any power to assume or create any obligation on behalf of any other
Parties or any of its affiliates.

     Section 6.6 Third Party Beneficiaries. There are no third party beneficiaries to this
Agreement, and the provisions of this Agreement shall not impart any legal or equitable right,
remedy or claim enforceable by any person, firm or organization other than the Parties (and their
permitted successors and permitted assigns).

     Section 6.7 Further Assurances. Each Party agrees to do all acts and things and to execute
and deliver such further written instruments, as may be from time to time reasonably required to
carry out the terms and provisions of this Agreement.

     Section 6.8 Binding Effect. The terms of this Agreement shall be binding upon, and inure to
the benefit of, the Parties and their successors and permitted assigns.

     Section 6.9 Amendment. This Agreement may not be modified or amended except by an instrument
in writing signed by authorized representatives of each of the Parties.

     Section 6.10 Headings; Table of Contents. The headings of the Articles and Sections of this
Agreement are included for convenience only and shall not be deemed to constitute a part of this
Agreement.

     Section 6.11 Interpretation and Reliance. No presumption will apply in favor of any Party in
the interpretation of this Agreement in the resolution of any ambiguity of any provisions thereof.

     Section 6.12 Severability. In the event that any provision of this Agreement is held to be
unenforceable or invalid by any court of competent jurisdiction, the Parties shall negotiate an
equitable adjustment to the provisions of this Agreement with the view to effecting, to the extent
possible, the original purpose and intent of this Agreement, and the validity and enforceability of
the remaining provisions shall not be affected thereby.

     Section 6.13 Complete Agreement. This Agreement, in conjunction with all Appendices attached
hereto, constitutes the entire agreement of the Parties relating to the subject matter of this
Agreement and supersede all prior contracts, agreements or understandings with respect to

8

 

the subject matter hereof and thereof, both oral or written, including the ** . Each
Party agrees that (a) each other Party and its affiliates (and their respective agents and
representatives) have not made any representation, warranty, covenant or agreement to or with such
Party relating to the subject matter hereof and thereof other than as reduced to writing in this
Agreement and (b) such Party has not relied upon any representation, warranty, covenant or
agreement to or with any other Party or its affiliates relating to the subject matter hereof and
thereof, other than those reduced to writing in this Agreement.

     Section 6.14 Counterparts. This Agreement may be executed by the Parties in any number of
separate counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts shall together constitute one and the same agreement. All signatures
need not be on the same counterpart.

     Section 6.15 Assignment. No Party may assign its rights or obligations hereunder to any other
Person without the prior written consent of each of the other Parties.

[Remainder of page intentionally left blank; signature page follows]

 

			
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9

 

     IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	TOSHIBA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Hideo Kitamura	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Hideo Kitamura	 	 
	 

	 	Title:
	 	Executive Officer	 	 
	 

	 	 	 	Corporate Vice President	 	 
	 

	 	 	 	President and CEO	 	 
	 

	 	 	 	Power Systems Company	 	 
	 
	 	 	 	 	 	 
	 	 	NRG NUCLEAR DEVELOPMENT COMPANY LLC	 	 
	 
	 

	 	By:	 	/s/ Steve Winn	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steve Winn	 	 
	 

	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 
	 	 	NRG ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ David Crane	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	David Crane	 	 
	 

	 	Title:
	 	President and CEO	 	 

Signature Page to Multi-Unit Agreement

S-1

 

APPENDIX A

ADDRESSES FOR NOTICES

 

			
	**	 	This Portion has been redacted pursuant to a
confidential treatment request.

Appendix A-1

 

APPENDIX B

ARBITRATION PROCEDURES

     1.1 Disputes. Any and all claims, counterclaims, demands, causes of action, disputes,
controversies, and other matters in question arising out of or relating to this Agreement, or to
the alleged breach hereof, or in any way relating to the subject matter of this Agreement or the
relationship between the Parties created by this Agreement (whether extra-contractual in nature,
sounding in contract, tort or otherwise, or provided for by federal or state statute, common law or
otherwise) (hereafter a “Dispute”) shall be finally resolved by binding arbitration under the
Non-Administered Arbitration Rules of the International Institute for Conflict Prevention and
Resolution (the “Rules”) then in force to the extent such Rules are not inconsistent with the
provisions of this Agreement.

     1.2 Negotiation to Resolve Disputes. If a Dispute arises out of or relates to this Agreement,
a Party may give notice to all other Parties that it intends to initiate the dispute resolution
procedures set forth herein. Promptly upon receipt of such notice, each Party that is a party to
the Dispute (each, a “Disputing Party”) shall refer such Dispute to a senior executive officer
(“SEO”) of each Disputing Party (or of Toshiba’s Power Systems Company, in the case of Toshiba).
The SEOs will meet in person or by teleconference as soon as mutually practicable in order to try
and resolve the Dispute. If the SEOs are unable to resolve the Dispute on or before the
30th Day after such notice, any Disputing Party may commence an arbitration under this
Appendix B by notifying each Party (an “Arbitration Notice”).

     1.3 Selection of Arbitrators.

          (a) Three Arbitrators. Any arbitration conducted under this Appendix B shall be heard by
three arbitrators (each an “Arbitrator” and collectively the “Tribunal”) selected in accordance
with this Section 1.3. Each Disputing Party and any proposed Arbitrator shall, as soon as
practicable, disclose to the other Disputing Parties any business, personal or other relationship
or affiliation that may exist between any Party and the proposed Arbitrators. The Disputing
Parties may then object to any of the proposed Arbitrators on the basis of such relationship or
affiliation. The validity of any such objection shall be determined according to the Rules.

          (b) Selection of Arbitrators. Except as provided for in this Section 1.3, the Tribunal shall
be appointed according to the Rules. In the Arbitration Notice, the Disputing Party requesting
arbitration shall nominate one Arbitrator. The Disputing Party named as respondent by the claimant
shall nominate one Arbitrator. Within 30 Days of the appointment of the second Arbitrator, the two
party-appointed Arbitrators shall appoint a third Arbitrator who shall chair the arbitration.
Where the Dispute at issue involves more than two Disputing Parties, the International Institute
for Conflict Prevention and Resolution (“CPR”) shall provide a list of potential Arbitrators.
Within seven (7) days of receiving this list, each Disputing Party shall provide to CPR a ranking
of the potential Arbitrators on such list showing such Disputing Party’s order of preference among
such proposed Arbitrators, with any one or more Disputing Parties who are Affiliates of one another
submitting one common ranked list. The CPR shall then

Appendix B-1

 

appoint all three Arbitrators as it shall determine in its discretion but taking into account
to the extent practical the Disputing Parties’ preferences.

     1.4 Conduct of Arbitration. The Tribunal shall expeditiously (and, if practicable, consistent
with the Tribunal’s primary responsibility to justly adjudicate the dispute before it, within 180
Days after the appointment of the third Arbitrator) hear and decide all matters concerning the
Dispute. Any arbitration hearing shall be held in Washington, D.C. The arbitration shall be
governed by the Federal Arbitration Act, 9 U.S.C. §§1 et. seq. Except as expressly provided to the
contrary in this Agreement, the Tribunal shall have the power to gather such materials,
information, testimony and evidence as it deems relevant to the dispute before it (and each Party
will provide such materials, information, testimony and evidence requested by the Tribunal, subject
to such protective orders as the Tribunal determines necessary for the protection of any
information so requested that is proprietary, subject to a third-party confidentiality restriction
or to an attorney-client or other privilege) and to grant injunctive relief and enforce specific
performance. The Tribunal shall not have the power to award punitive or any other form of indirect
or non-compensatory damages, even if such are available under the governing law and even if a court
would otherwise be empowered to avoid this limitation on damages to make such an award. If it
deems necessary, the Tribunal may propose to the Disputing Parties that one or more other experts
be retained to assist it in resolving the Dispute. The retention of such other experts shall
require the unanimous consent of the Disputing Parties, which shall not be unreasonably withheld.
The decision of the Tribunal (which shall be rendered in writing) shall be final, nonappealable and
binding upon the Parties and may be enforced in any court of competent jurisdiction. Each Party
hereby consents to the non-exclusive personal jurisdiction and venue of the Washington D.C. courts
for any proceedings in aid of arbitration under this Section 1.4, including any request for interim
or injunctive relief. Notwithstanding the foregoing consent, the Parties may nevertheless seek
interim or injunctive relief from any court of competent jurisdiction.

     1.5 Arbitration Costs and Expenses. The responsibility for paying the costs and expenses of
the arbitration, including compensation to the Tribunal and any experts retained by the Tribunal,
shall be borne by the Disputing Party or Disputing Parties who is or are the least successful in
such process, which shall be determined by the Tribunal by comparing the position asserted by each
Disputing Party on all disputed matters taken together to the final decision of the Tribunal on
all disputed matters taken together, provided however, that each Disputing Party shall be
responsible for the fees and expenses of its respective counsel, consultants and witnesses, unless
the Tribunal determines that compelling reasons exist for allocating all or a portion of such costs
and expenses to the other Disputing Parties.

Appendix B-2

 

APPENDIX C

AGREED EPC TERMS

 

			
	**	 	This Portion has been redacted pursuant to a
confidential treatment request.

Appendix B-3

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