Document:

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                                                                   EXHIBIT 10.42

                            NRG EXECUTIVE OFFICER AND
                                  KEY PERSONNEL

                                 SEVERANCE PLAN

                                                                        [[NAME]]

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CONTENTS

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<S>        <C>                                                                                                  <C>
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Article 1. Establishment, Term, and Purpose.......................................................................1

Article 2. Definitions............................................................................................1

Article 3. Participation..........................................................................................4

Article 4. Severance Benefits Other Than Upon Change in Control...................................................4

Article 5. Severance Benefits Upon Change in Control..............................................................6

Article 6. Excise Tax.............................................................................................7

Article 7. Outplacement Assistance................................................................................9

Article 8. The Company's Payment Obligation.......................................................................9

Article 9. Withholding............................................................................................9

Article 10. Non-Competition Other Than Upon Change in Control.....................................................9

Article 11. Non-Disparagement....................................................................................11

Article 12. Successors and Assignment............................................................................11

Article 13. Miscellaneous........................................................................................11
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NRG ENERGY, INC.
EXECUTIVE OFFICER AND KEY PERSONNEL SEVERANCE PLAN

ARTICLE 1. ESTABLISHMENT, TERM, AND PURPOSE
     1.1 ESTABLISHMENT OF THE PLAN. NRG Energy, Inc., (hereinafter referred to
as the "Company"), hereby establishes a severance plan to be known as the NRG
Executive Officer and Key Personnel Severance Plan (the "Plan"). The Plan
provides severance benefits to certain executive officers and key personnel (the
"Participants") of the Company upon a termination of employment from the
Company, including termination of employment as a result of a Change in Control
of the Company. The Plan is intended to supersede any and all plans, programs,
or agreements providing for severance-related payments. This specifically
includes, but is not limited to, the NRG and NSP Employment Agreements for
Executive Officers which the Company has previously terminated.

     1.2 TERM OF THE PLAN. This plan shall be effective on the Effective Date
and shall remain in effect until the third anniversary of the Effective Date.
This plan shall thereafter automatically be renewed for successive one-year
terms each commencing on an Effective Date anniversary and ending on the day
immediately preceding the succeeding Effective Date anniversary. Notwithstanding
the foregoing, the Company may at any time and in its sole discretion terminate
this Plan at the end of the initial term or any renewal term by giving the
Participant six (6) months written notice prior to the end of a term.

     1.3 PURPOSE OF THE PLAN. The purpose of the Plan is to provide certain
executive officers and key personnel of the Company financial security in the
event of a termination of employment from the Company, including termination of
employment as a result of a Change in Control of the Company.

ARTICLE 2. DEFINITIONS
     Whenever used in this Plan, the following terms shall have the meanings set
forth below:

     2.1 "BASE SALARY" means an amount equal to the Participant's base annual
salary as of the date of a termination. For this purpose, "Base Salary" shall
not include bonuses, long-term incentive compensation, or any remuneration other
than base annual salary.

     2.2 "BENEFICIAL OWNER" shall have the meaning ascribed to such term in Rule
13d-3 of the General Rules and Regulations under the Exchange Act.

     2.3 "BENEFICIARY" means the persons or entities designated or deemed
designated by the Participant pursuant to Section 13.1 hereof.

     2.4 "BOARD" means the Board of Directors of the Company.

     2.5 "CAUSE" shall mean the occurrence of any one or more of the following
events:

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          (a)  The willful (as defined in 2.5[c]) and continued failure by the
               Participant to substantially perform his normal duties (other
               than any such failure resulting from the Participant's
               Disability), after a written demand for substantial performance,
               signed by the CEO or the Participant's immediate supervisor, is
               delivered to the Participant, that identifies the manner in which
               the Participant has not substantially performed his duties, and
               the Participant has failed to remedy the situation within thirty
               (30) business days of receiving such notice; or

          (b)  The Participant's conviction for committing an act of fraud,
               embezzlement, theft, or other act constituting a felony; or the
               Participant's violation of the Company Code of Conduct; or

          (c)  The engaging by the Participant in willful, reckless or grossly
               negligent conduct materially and demonstrably injurious to the
               Company. However, no act, or failure to act on the Participant's
               part, shall be considered "willful, reckless or grossly
               negligent" unless done, or omitted to be done, by the Participant
               not in good faith and without reasonable belief that his action
               or omission was in the best interest of the Company.

     2.6 "CODE" means the United States Internal Revenue Code of 1986, as
amended.

     2.7 "CHANGE IN CONTROL" means a Change in Control as defined in the NRG
Energy, Inc. 2000 Long-Term Incentive Compensation Plan, which may be amended
from time to time as directed by the Board of Directors.

     2.8 "COMMITTEE" means the Compensation Committee of the Board, or any other
committee appointed by the Board to perform the functions of the Compensation
Committee.

     2.9 "COMPANY" means NRG Energy, Inc., a Delaware corporation (including any
and all subsidiaries), or any successor thereto as provided in Article 12
herein.

     2.10 "DISABILITY" means the definition provided in the NRG Energy, Inc.
2000 Long-Term Incentive Compensation Plan.

     2.11 "EFFECTIVE DATE" means [[Effective_Date]].

     2.12 "EFFECTIVE DATE OF TERMINATION" means the date on which a termination
occurs which triggers the payment of Severance Benefits or Change in Control
Severance Benefits hereunder.

     2.13 "EXCHANGE ACT" means the United States Securities Exchange Act of
1934, as amended.

     2.14 "GOOD REASON" means, without the Participant's express written
consent, the occurrence of any one or more of the following:

          (a)  Any material reduction in the Participant's Base Salary or
               Targeted Bonus Opportunity below the amount in effect as of the
               Change in Control Effective Date (including all increases
               following the Change in Control Effective Date).

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          (b)  Any significant reduction in the Participant's benefits package,
               except in the case of a reduction, which similarly applies to all
               executives on a nondiscriminatory basis.

          (c)  Any material reduction in the Participant's long-term incentive
               opportunity with the Company.

          (d)  Any assignment of new duties that requires the Participant to
               relocate his domicile more than fifty (50) miles from the
               Participant's current work location.

          (e)  Any dissolution or liquidation of the Company.

          (f)  Any significant reduction or diminution in the duties,
               responsibilities, or position of the Participant from that in
               effect, as of the Effective Date (including subsequent increases
               in duties, responsibilities, or position), provided that the sale
               of a Company division will not automatically be deemed to result
               in the significant reduction or diminution in the duties,
               responsibilities, or position of the Participant without a
               specific showing of such reduction or diminution.

          (g)  Any significant increase in responsibility without corresponding
               compensation.

          The Participant's right to terminate employment for Good Reason shall
          not be affected by the Participant's incapacity due to Disability. The
          Participant's continued employment shall not constitute consent to, or
          a waiver of rights with respect to, any circumstance constituting Good
          Reason herein.

     2.15 "NOTICE OF TERMINATION" shall mean a written notice which shall
indicate the specific termination provision in this Plan relied upon, and shall
set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Participant's employment under the provision so
indicated.

     2.16 "PARTICIPANT" means the executive officers (other than the CEO) and
key personnel as designated by the CEO.

     2.17 "PERSON" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d).

     2.18 "PLAN" means NRG Executive Officer and Key Personnel Severance Plan.

     2.19 "RETENTION PERIOD" means the period of time beginning on the Effective
Date of this Plan, and ending on the earlier to occur of: (a) the termination of
the Plan; or (b) six (6) months prior to the effective date of a Change in
Control. The retention period is only applicable in the event of general
severance.

     2.20 "RETIREMENT" means retirement as defined in the applicable NRG Energy,
Inc. and/or NSP/Xcel programs in which the Participant is eligible, which may be
amended from time to time as directed by the Board of Directors.

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     2.21 "SEVERANCE BENEFITS" means the payment of severance compensation as
provided in Article 4 or 5 herein.

     ARTICLE 3. PARTICIPATION
     All executive officers and key personnel as defined by CEO shall be
eligible to participate in the Plan.

ARTICLE 4. SEVERANCE BENEFITS OTHER THAN UPON CHANGE IN CONTROL
     4.1 RIGHT TO SEVERANCE BENEFITS. Subject to the provisions herein, the
Participant shall be entitled to receive from the Company Severance Benefits as
described in Section 4.2 herein, if, during the Retention Period, the
Participant's employment with the Company shall be terminated by the Company
without Cause or if the Participant terminates employment:

          (a)  within 3 months of a material change or reduction in the
               Participant's job responsibilities with the Company, unless such
               action is remedied by the Company promptly upon receipt of
               written notice thereof from Participant, or

          (b)  as a result of a material breach by the Company of the
               compensation or benefit terms of this Agreement, provided that
               the Participant has given the Company written notice of, and a
               reasonable opportunity to cure, such breach.

     The Participant shall not be entitled to receive Severance Benefits under
Section 4.2 hereof if he is terminated for Cause, or if his employment with the
Company ends due to death, Disability, Retirement, or due to a voluntary
termination of employment by the Participant.

     4.2 DESCRIPTION OF SEVERANCE BENEFITS. In the event that the Participant
becomes entitled to receive Severance Benefits, as provided in Section 4.1
herein, the Participant shall receive the following Severance Benefits:

          (a)  [[Severance_Times]] time(s) the sum of: (i) the Participant's
               Base Salary; and (ii) the greater of: (a) the Participant's
               average annual bonus earned over the two (2) full fiscal years
               prior to the Effective Date of Termination; or (b) the
               Participant's target annual bonus established for the bonus plan
               year in which the Participant's Effective Date of Termination
               occurs.

          (b)  An amount equal to the Participant's unpaid targeted annual
               incentive, established for the plan year in which the
               Participant's Effective Date of Termination occurs, multiplied by
               a fraction, the numerator of which is the number of days
               completed in the then existing fiscal year through the Effective
               Date of Termination, and the denominator of which is three
               hundred sixty-five (365).

          (c)  A net cash payment equivalent to the COBRA rates of the welfare
               benefits of medical insurance, dental insurance, and group term
               life insurance for a period of [[Benefit__Months]] months. This
               cash payment shall be made in one lump sum (net of applicable
               withholding) as prospective reimbursement for the participant's
               COBRA coverage costs for the number of months stated.

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               COBRA election and continuation enforced shall be the
               responsibility of the participant and /or qualified
               beneficiaries.

               In the event the premium cost shall change for all employees of
               the Company, the cost, likewise, shall change for the Participant
               in a corresponding manner.

          (d)  A cash payment of vacation earned prior to the Effective Date of
               Termination, but not taken by the Participant.

          (e)  Notwithstanding the provisions of the Long-term Incentive and
               Compensation Plan (including any options granted thereunder)
               regarding excercisability of options following termination of
               employment, in the event that the Participant receives general
               severance benefits under Article 4, options granted under the NRG
               Energy, Inc. Long-term Incentive and Compensation Plan prior to
               the termination date will continue to vest in accordance with the
               existing vesting schedule for a period of two (2) years following
               the termination date.

     4.3 TERMINATION DUE TO DISABILITY. If the Participant's employment is
terminated due to Disability during the term of this Plan, the Participant shall
receive his Base Salary and accrued vacation through the Effective Date of
Termination and continuation of the welfare benefits of medical insurance,
dental insurance, and group term life insurance shall be subject to the
treatment provided under the applicable disability plan of the Company.

     4.4 TERMINATION DUE TO RETIREMENT OR DEATH. If the Participant's employment
is terminated by reason of Retirement or death, the Participant or, where
applicable, the Participant's Beneficiaries, shall receive the Participant's
Base Salary and accrued vacation through the Effective Date of Termination, and
continuation of the welfare benefits of medical insurance, dental insurance, and
group term life insurance shall be subject to the treatment provided under the
applicable retirement plan of the Company.

     4.5 TERMINATION FOR CAUSE OR BY THE PARTICIPANT OTHER THAN FOR GOOD REASON.
If the Participant's employment is terminated either: (a) by the Company for
Cause; or (b) by the Participant other than for Good Reason, the Company shall
pay the Participant his unpaid Base Salary and accrued vacation through the
Effective Date of Termination, at the rate then in effect, plus all other
amounts to which the Participant is entitled under any compensation plans of the
Company, at the time such payments are due, and the Company shall have no
further obligations to the Participant under this Plan.

     4.6 NOTICE OF TERMINATION. Notice of Termination shall communicate any
termination by the Company for Cause or by the Participant for Good Reason at
least sixty (60) days prior to the date on which such termination shall be
effective. The Company can terminate the employment of the Participant with no
notice in which case the Company shall provide the Participant with continuation
of pay for sixty (60) days.

     4.7 FORM AND TIMING OF SEVERANCE BENEFITS. At the discretion of the
Company, all cash payments set forth in Section 4.2 shall be made as a
continuance of pay net of appropriate

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withholdings, for the defined severance period, or in one (1) lump sum net of
appropriate withholdings, within forty-five (45) days after the Effective Date
of Termination.

ARTICLE 5. SEVERANCE BENEFITS UPON CHANGE IN CONTROL
     5.1 RIGHT TO CHANGE IN CONTROL SEVERANCE BENEFITS. The Participant shall be
entitled to receive from the Company Change in Control Severance Benefits, as
described in Section 5.2 herein, if there has been a Change in Control of the
Company and if, within the six (6) full calendar month period prior to the
effective date of a Change in Control, or within twelve (12) calendar months
following the effective date of a Change in Control, the Participant's
employment with the Company shall end as a result of either an involuntary
termination of the Participant's employment by the Company for reasons other
than Cause, or by voluntary termination by the Participant for Good Reason.

     The Participant shall not be entitled to receive Change in Control
Severance Benefits if he is terminated for Cause, or if his employment with the
Company ends due to death, Disability, or Retirement, or due to a voluntary
termination of employment by the Participant without Good Reason.

     5.2 DESCRIPTION OF CHANGE IN CONTROL SEVERANCE BENEFITS. In the event that
the Participant becomes entitled to receive Change in Control Severance
Benefits, as provided in Section 5.1 herein, the Company shall pay to the
Participant and provide him with the following:

          (a)  An amount equal to [[CIC_Times]] time(s) the sum of (i) the
               Participant's Base Salary; and (ii) the greater of: (a) the
               Participant's average annual bonus earned over the two (2) full
               fiscal years prior to the Effective Date of Termination; or (b)
               the Participant's target annual bonus established for the bonus
               plan year in which the Participant's Effective Date of
               Termination occurs.

          (b)  An amount equal to the Participant's unpaid targeted annual
               incentive, established for the plan year in which the
               Participant's Effective Date of Termination occurs, multiplied by
               a fraction, the numerator of which is the number of days
               completed in the then existing fiscal year through the Effective
               Date of Termination, and the denominator of which is three
               hundred sixty-five (365).

          (c)  A cash payment of vacation earned prior to the Effective Date of
               Termination, but not taken by the Participant.

          (d)  A net cash payment equivalent to the COBRA rates of the welfare
               benefits of medical insurance, dental insurance, and group term
               life insurance for a period of [[Benefit__Months]] months. This
               cash payment shall be made in one lump sum (net of applicable
               withholding) as prospective reimbursement for the participant's
               COBRA coverage costs for the number of months stated.

               COBRA election and continuation enforced shall be the
               responsibility of the participant and/or qualified beneficiaries.

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          (e)  All outstanding long-term incentive awards shall be subject to
               the treatment provided under the applicable long-term incentive
               plan of the Company.

     5.3 TERMINATION FOR DISABILITY. Following a Change in Control of the
Company, if the Participant's employment is terminated due to Disability during
the term of this Plan, the Participant shall receive his Base Salary and accrued
vacation through the Effective Date of Termination and continuation of the
welfare benefits of medical insurance, dental insurance, and group term life
insurance shall be subject to the treatment provided under the applicable
disability plan of the Company.

     5.4 TERMINATION FOR RETIREMENT OR DEATH. Following a Change in Control of
the Company, if the Participant's employment is terminated by reason of his
Retirement or death, the Participant or, where applicable, the Participant's
Beneficiaries, shall receive the Participant's Base Salary and accrued vacation
through the Effective Date of Termination, and continuation of the welfare
benefits of medical insurance, dental insurance, and group term life insurance
shall be subject to the treatment provided under the applicable retirement plan
of the Company.

     5.5 TERMINATION FOR CAUSE OR BY THE PARTICIPANT OTHER THAN FOR GOOD REASON
OR RETIREMENT. Following a Change in Control of the Company, if the
Participant's employment is terminated either: (i) by the Company for Cause; or
(ii) by the Participant (other than for Retirement) and other than for Good
Reason, the Company shall pay the Participant his full Base Salary and accrued
vacation through the Effective Date of Termination, at the rate then in effect,
plus all other amounts to which the Participant is entitled under any
compensation plans of the Company, at the time such payments are due, and the
Company shall have no further obligations to the Participant under this Plan.

     5.6 NOTICE OF TERMINATION. Notice of Termination shall communicate any
termination by the Company for Cause or by the Participant for Good Reason at
least sixty (60) days prior to the date on which such termination shall be
effective. The Company can terminate the employment of the Participant with no
notice in which case the Company shall provide the Participant with continuation
of pay for sixty (60) days.

     5.7 FORMS AND TIMING OF CHANGE IN CONTROL SEVERANCE BENEFITS. At the
discretion of the Company, all cash payments set forth in Section 5.2 shall be
made as a continuance of pay net of appropriate withholdings, for the defined
severance period, or in one (1) lump sum net of appropriate withholdings, within
forty-five (45) days after the Effective Date of Termination.

ARTICLE 6. EXCISE TAX
     6.1 EXCISE TAX EQUALIZATION PAYMENT. In the event that the Participant
becomes entitled to severance benefits or any other payment or benefit under
this Plan, or under any other agreement or plan of the Company (in the
aggregate, the "Total Payments"), if any of the Total Payments will be subject
to the tax (the "Excise Tax") imposed by Section 4999 of the Code (or any
similar tax that may hereafter be imposed), the Company shall pay to the
Participant in cash an additional amount (the "Gross-Up Payment") such that the
net amount retained by the Participant after deduction of any Excise Tax upon
the Total Payments and any federal, state and local income tax and Excise Tax
upon the Gross-Up Payment provided for by this Section 6.1 (including FICA and
FUTA), shall be equal to the Total Payments. Such payment shall be made by the
Company to the Participant as soon

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as practical following the effective date of termination, but in no event beyond
forty-five (45) days from such date.

     6.2 TAX COMPUTATION. For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amounts of such Excise Tax:

          (a)  Any other payments or benefits received or to be received by the
               Participant in connection with a Change in Control of the Company
               or the Participant's termination of employment (whether pursuant
               to the terms of this Plan or any other plan, arrangement, or
               agreement with the Company, or with any person (which shall have
               the meaning set forth in Section 3(a)(9) of the Securities
               Exchange Act of 1934, including a "group" as defined in Section
               13(d) therein) whose actions result in a Change in Control of the
               Company or any person affiliated with the Company or such
               persons) shall be treated as "parachute payments" within the
               meaning of Section 280G(b)(2) of the Code, and all "excess
               parachute payments" within the meaning of Section 280G(b)(1)
               shall be treated as subject to the Excise Tax, unless in the
               opinion of tax counsel as supported by the Company's independent
               auditors and acceptable to the Participant, such other payments
               or benefits (in whole or in part) do not constitute parachute
               payments, or unless such excess parachute payments (in whole or
               in part) represent reasonable compensation for services actually
               rendered within the meaning of Section 280G(b)(4) of the Code in
               excess of the base amount within the meaning of Section
               280G(b)(3) of the Code, or are otherwise not subject to the
               Excise Tax;

          (b)  The amount of the Total Payments which shall be treated as
               subject to the Excise Tax shall be equal to the lesser of: (i)
               the total amount of the Total Payments; or (ii) the amount of
               excess parachute payments within the meaning of Section
               280G(b)(1) (after applying clause (a) above); and

          (c)  The value of any non-cash benefits or any deferred payment or
               benefit shall be determined by the Company's independent auditors
               in accordance with the principles of Sections 280G(d)(3) and (4)
               of the Code.

     For purposes of determining the amount of the Gross-Up Payment, the
Participant shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation in the calendar year in which the Gross-Up
Payment is to be made, and state and local income taxes at the highest marginal
rate of taxation in the state and locality of the Participant's residence on the
effective date of termination, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

     6.3 SUBSEQUENT RECALCULATION. In the event the Internal Revenue Service
adjusts the computation of the Company under Section 6.2 herein so that the
Participant did not receive the greatest net benefit, the Company shall
reimburse the Participant for the full amount necessary to make the Participant
whole, plus a market rate of interest, as determined by the Committee.

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ARTICLE 7. OUTPLACEMENT ASSISTANCE
     Following a termination of employment in which Severance Benefits or Change
in Control Severance Benefits are payable hereunder, the Participant shall be
reimbursed by the Company for the costs of all outplacement services obtained by
the Participant within the two (2) year period after the Effective Date of
Termination; provided, however, that the total reimbursement shall be limited to
an amount equal to [[Outplace_]].

ARTICLE 8. THE COMPANY'S PAYMENT OBLIGATION
     8.1 PAYMENT OBLIGATIONS ABSOLUTE. The Company's obligation to make the
payments and the arrangements provided for herein shall be absolute and
unconditional, and shall not be affected by any circumstances, including,
without limitation, any offset, counterclaim, recoupment, defense, or other
right which the Company may have against the Participant or anyone else. All
amounts payable by the Company hereunder shall be paid without notice or demand.
Each and every payment made hereunder by the Company shall be final, and the
Company shall not seek to recover all or any part of such payment from the
Participant or from whomsoever may be entitled thereto, for any reasons
whatsoever.

     The Participant shall not be obligated to seek other employment in
mitigation of the amounts payable or arrangements made under any provision of
this Plan, and the obtaining of any such other employment shall in no event
effect any reduction of the Company's obligations to make the payments and
arrangements required to be made under this Plan, except to the extent provided
in Sections 4.2(c) and 5.2(d) herein.

     8.2 CONTRACTUAL RIGHTS TO BENEFITS. This Plan establishes and vests in the
Participant a contractual right to the benefits to which he is entitled
hereunder. However, nothing herein contained shall require or be deemed to
require, or prohibit or be deemed to prohibit, the Company to segregate,
earmark, or otherwise set aside any funds or other assets, in trust or
otherwise, to provide for any payments to be made or required hereunder.

ARTICLE 9. WITHHOLDING
     The Company shall be entitled to withhold from any amounts payable under
this Plan all taxes as legally shall be required (including, without limitation,
any United States federal taxes, and any other state, city, or local taxes).

ARTICLE 10. NON-COMPETITION OTHER THAN UPON CHANGE IN CONTROL
     10.1 PROHIBITION ON COMPETITION. Unless there has been a Change in Control,
the Participant agrees that during the course of the Participant's employment
with the Company, without the prior written consent of the Company, and for one
(1) year from the date of the Participant's voluntary or involuntary termination
of employment with the Company, the Participant shall not:

          (a)  Directly or indirectly own, manage, consult, associate with,
               operate, join, work for, control or participate in the ownership,
               management, operation or control of, or be connected in any
               manner with, any business (whether in corporate, proprietorship,

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               or partnership form or otherwise), as more than a 10% owner in
               such business or member of a group controlling such business,
               which is engaged in any activity which competes with the business
               of the Company as conducted one (1) year prior to (and up
               through) the date of the Participant's involuntary or voluntary
               termination of employment with the Company or which will compete
               with any proposed business activity of the Company in the
               planning stage on such date of involuntary or voluntary
               termination. The participant and the Company agree that this
               provision is reasonably enforced as to any geographic area.

          (b)  Directly or indirectly solicit, service, contract with or
               otherwise engage any past (one year prior), existing or
               prospective customer, client, or account who then has a
               relationship with the Company for current or prospective business
               on behalf of a competitor of the Company, or on the Participant's
               own behalf for a competing business. The Participant and the
               Company agree that this provision is reasonably enforced with
               reference to any geographic area applicable to such relationships
               with the Company.

          (c)  Cause or attempt to cause any existing or prospective customer,
               client, or account, who then has a relationship with the Company
               for current or prospective business, to divert, terminate, limit
               or in any manner modify, or fail to enter into any actual or
               potential business relationship with the Company. The Participant
               and the Company agree that this provision is reasonably enforced
               with reference to any geographic area applicable to such
               relationships with the Company.

          (d)  The Company agrees that the terms "activity which competes with
               the business of the Company," "competitor of the Company,"
               "competing business," and "relationship with the Company" as used
               in this Agreement shall be narrowly applied and that it is not
               the belief of the Company that all companies in the energy
               business are competitors of the Company. The Company further
               agrees that this Agreement shall not be so broadly construed that
               the Participant is prevented during the non-compete period from
               obtaining all other employment in the energy industry.

     10.2 DISCLOSURE OF INFORMATION. The Participant recognizes that he has
access to and knowledge of certain confidential and proprietary information of
the Company, which is essential to the performance of his duties as an employee
of the Company. The Participant will not, during or after the term of his
employment by the Company, in whole or in part, disclose such information to any
person, firm, corporation, association, or other entity for any reason or
purpose whatsoever, nor shall he make use of any such information for his own
purposes.

     10.3 COVENANTS REGARDING OTHER EMPLOYEES. During the period ending one (1)
year following the payment of Severance Benefits or Change in Control Severance
Benefits under this Plan, the Participant agrees to not directly or indirectly
solicit, employ or conspire with others to employ any of the Company's
employees. The term "employ" for purposes of this paragraph means to enter into
an arrangement for services as a full-time or part-time employee, independent
contractor, consultant, agent or otherwise. The Participant and the Company
agree that this provision is reasonably enforced as to any geographic area.

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ARTICLE 11. NON-DISPARAGEMENT
     11.1 DISPARAGEMENT. The Participant and the Company, each agrees not to
make any disparaging or negative statements about the Company or the
Participant, including but not limited to its products, services or management
to any person or entity whatsoever, including but not limited to past, present
and prospective employees or employers, customers, clients, analysts, investors,
vendors and suppliers.

     11.2 RELEASE. In order to receive the severance benefits provided under the
Plan, the Participant will be required to provide the Company with a release in
a form to be provided by the Company. Such release shall fully release the
Company and all of its officers, agents, directors, employees, and
representatives, any affiliated companies, businesses or entities, and all other
persons and entities from each and every legal claim or demand of any kind that
the Participant ever had or might have arising out of any action, conduct or
decision taking place during the Participant's employment with the Company, or
arising out of the Participant's separation from that employment, whether or not
any such claim is known at the time of separation. The Company will provide the
Participant with a release in a form provided by the Company. Such release shall
release the Participant from each and every legal claim or demand excluding acts
of fraud, embezzlement, theft or other acts constituting a felony.

ARTICLE 12. SUCCESSORS AND ASSIGNMENT
     12.1 SUCCESSORS TO THE COMPANY. The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, or otherwise)
of all or substantially all of the business and/or assets of the Company or of
any division or subsidiary thereof to expressly assume and agree to perform the
Company's obligations under this Plan in the same manner and to the same extent
that the Company would be required to perform them if no such succession had
taken place. Failure of the Company to obtain such assumption and agreement
prior to the effective date of any such succession shall be a breach of this
Plan and shall entitle the Participant to compensation from the Company in the
same amount and on the same terms as he would be entitled to hereunder if he had
terminated his employment with the Company voluntarily for Good Reason. Except
for the purposes of implementing the foregoing, the date on which any such
succession becomes effective shall be deemed the Effective Date of Termination.

     12.2 ASSIGNMENT BY THE PARTICIPANT. This Plan shall inure to the benefit of
and be enforceable by the Participant's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees, and
legatees. If the Participant dies while any amount would still be payable to him
hereunder had he continued to live, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of this Plan, to the
Participant's Beneficiary. If the Participant has not named a Beneficiary, then
such amounts shall be paid to the Participant's devisee, legatee, or other
designee, or if there is no such designee, to the Participant's estate.

ARTICLE 13. MISCELLANEOUS
     13.1 BENEFICIARIES. The Participant may designate one or more persons or
entities as the primary and/or contingent Beneficiaries of any Severance

                                       11

<PAGE>   14

Benefits or Change in Control Severance Benefits owing to the Participant under
this Plan. Such designation must be in the form of a signed writing acceptable
to the Company. The Participant may make or change such designations at any
time.

     13.2 GENDER AND NUMBER. Except where otherwise indicated by the context,
any masculine term used herein also shall include the feminine, the feminine
shall include the masculine; the plural shall include the singular, and the
singular shall include the plural.

     13.3 SEVERABILITY. In the event any provision of this Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included. Further, the captions
of this Plan are not part of the provisions hereof and shall have no force and
effect.

     13.4 MODIFICATION. No provision of this Plan may be modified, waived, or
discharged unless such modification, waiver, or discharge is agreed to in
writing and signed by the Participant and by an authorized member of the
Committee, or by the respective parties' legal representatives and successors.

     13.5 APPLICABLE LAW. To the extent not preempted by the laws of the United
States, the laws of the State of Minnesota, shall be the controlling law in all
matters relating to this Plan.

                                        [[Name]]
                                        ----------------------------------------
                                        Participant's Name

                                        ----------------------------------------
                                        Participant's Signature

                                        ----------------------------------------
                                        Date

                                        NRG Energy, Inc.

                                        By:
                                        ----------------------------------------

                                        Title:   Chairman, President and CEO
                                        ----------------------------------------

                                        Date:
                                        ----------------------------------------

                                       12<PAGE>   1
                                                                    EXHIBIT 10.1

                       NONQUALIFIED STOCK OPTION AGREEMENT

GRANTED TO:                         J. David Darnell

DATE OF GRANT:                      May 10, 2001

GRANTED PURSUANT TO:                Nucentrix Broadband Networks, Inc.
                                    First Amended and Restated 1999 Share
                                    Incentive Plan, as amended

NUMBER OF UNDERLYING                20,000 shares
SHARES OF COMMON
STOCK:

EXERCISE PRICE:                     $9.68 per share

VESTING SCHEDULE:                   See Paragraph 4 below

         1. This Nonqualified Stock Option Agreement (the "Agreement") is made
and entered into as of May 10, 2001 (the "Date of Grant"), between Nucentrix
Broadband Networks, Inc., a Delaware corporation (the "Company"), and J. David
Darnell ("Employee"). It is the intent of the Company and Employee that the
Option (as defined in Paragraph 2 below) will not qualify as an "incentive stock
option" under Section 422 of the Internal Revenue Code of 1986, as amended from
time to time (the "Code").

         2. Employee is granted an option (the "Option") by the Compensation
Committee of the Company's Board of Directors (the "Committee") to purchase
20,000 shares of common stock of the Company, par value $.001 ("Common Stock")
pursuant to the Company's First Amended and Restated 1999 Share Incentive Plan,
as amended (the "Plan"). Capitalized terms not defined herein shall have the
meanings ascribed thereto in the Plan. The Option granted hereunder is a matter
of separate inducement and is not in lieu of salary or other compensation for
Employee's services.

         3. The Option's exercise price is $9.68 per share, such exercise price
being in the judgment of the Committee not less than one hundred percent (100%)
of the Fair Market Value of a share of Common Stock on the Date of Grant.

         4. Subject to Paragraphs 5, 6 and 7 below, 20% of the Option will
automatically vest and become exercisable on each of the first five
anniversaries of the Date of Grant.

         Notwithstanding anything herein to the contrary, if the Employee is
employed by the Company on the date which is 30 days immediately prior to the
Expiration Date (such date referred to herein as the "Final Vesting Date"), the
unvested portion, if any, of the Option will immediately vest and become
exercisable on such date.

<PAGE>   2

         5. Subject to Paragraphs 6 and 7 below, the unexercised portion of the
Option, unless sooner terminated, shall expire seven years after the Date of
Grant (the "Expiration Date") and, notwithstanding anything contained herein to
the contrary, no portion of the Option may be exercised after the Expiration
Date.

         6. If prior to the Expiration Date, Employee's employment with the
Company or any subsidiary corporation terminates, the Option will terminate on
the applicable date as described below, provided, however, that none of the
events described below shall extend the period of exercisability beyond the
Expiration Date:

            (a) If the employment of Employee is terminated by reason of
Employee's death while in the employ of the Company or any subsidiary
corporation, the Option shall immediately become fully exercisable and remain
exercisable for twelve (12) months after Employee's death and shall be
exercisable by the executor or administrator of the estate of the deceased
Employee or the person or persons to whom the deceased Employee's rights under
the Option shall pass by will or the laws of descent or distribution;

            (b) If the employment of Employee is terminated by the Company or
any subsidiary corporation for reason of Employee's "Permanent Disability" (as
defined below), the Option shall immediately become fully exercisable on the
date of such termination and shall remain exercisable for six (6) months after
such date; provided, however, that if Employee dies during the six month period
following such date and Employee has not exercised the Option, the Option shall
remain exercisable for an additional twelve (12) months after Employee's death
and shall be exercisable by the executor or administrator of the estate of the
deceased Employee or the person or persons to whom the deceased Employee's
rights under the Option shall pass by will or the laws of descent or
distribution;

            (c) If the employment of Employee is terminated by the Company or
any subsidiary corporation for "Cause" (as defined below), the Option shall, to
the extent not previously exercised, immediately become null and void on the
date of such termination;

            (d) If the employment of Employee is terminated by the Company or
any subsidiary corporation other than (X) for "Cause", (Y) for reason of
Employee's death or "Permanent Disability," the Option, to the extent vested and
not previously exercised, shall immediately become fully exercisable on the date
of such termination and shall remain exercisable for thirty (30) days after such
date and the unvested portion of the Option shall be canceled;

            (e) If the employment of Employee is terminated by the Employee
prior to the Final Vesting Date, the unvested portion of the Option shall
immediately become null and void on the date of such termination and the vested
portion of the Option shall, to the extent not previously exercised, remain
exercisable for thirty (30) days after the date of such termination; or

                                                                               2
<PAGE>   3

            (f) If the employment of Employee is terminated by the Employee on
or after the Final Vesting Date, the Option shall, to the extent not previously
exercised, remain exercisable for thirty (30) days after the date of such
termination.

            For purposes of this Agreement, the terms "Permanent Disability" and
"Cause" shall have the meanings ascribed to such terms in Annex A attached
hereto.

         7. Upon the occurrence of a "Change in Control" (as defined in the
Plan), the Option shall immediately become fully exercisable and shall terminate
thirty (30) days after the occurrence of the Change in Control. Upon such
termination, Employee shall receive, with respect to the unexercised portion of
the Option, an amount in cash, in one or more kinds of property (including the
property, if any, payable in the transaction) or in a combination thereof, as
the Committee, in its discretion, shall determine, equal to the product of (X)
the amount, if any, by which the Fair Market Value of a share of Common Stock
immediately prior to the occurrence of such Change in Control exceeds the
exercise price per share specified in Paragraph 3 hereof and (Y) the number of
shares with respect to which the Option remained exercisable on the date of such
termination; provided, however, that the apportionment and kind of property, if
any, to be received by the Employee shall not differ in any material respect
from the property to be received by the holders of Common Stock.

         8. Employee may exercise the Option regardless of whether any other
option that Employee has been granted by the Company remains unexercised. In no
event may Employee exercise the Option for a fraction of a share or for less
than 100 shares unless such number is the remaining balance for which the Option
is then exercisable.

         9. The Option's exercise price shall be paid by Employee on the date
the Option is exercised, in full in cash or, in the sole discretion of the
Committee, in shares of Common Stock or any other method that the Committee
shall prescribe, including, without limitation, by the withholding of shares or
the delivery of an executed promissory note to the Company on such terms and
conditions as the Committee shall determine in its sole discretion.

         10. The Company or any subsidiary corporation may withhold from sums
due or to become due to Employee from the Company or any subsidiary corporation
an amount necessary to satisfy its obligation to withhold taxes incurred by
reason of the issuance or disposition of shares pursuant to the Option, or may
require Employee to reimburse the Company or any subsidiary corporation in such
amount. The exercise of the Option shall not be effective until the withholding
tax liability associated with the exercise of the Option has been satisfied.

         11. Employee shall not have any of the rights of a stockholder with
respect to the shares of Common Stock underlying the Option while the Option is
unexercised.

         12. Any exercise of this Option shall be in writing addressed to the
Corporate Secretary of the Company at the principal place of business of the
Company, specifying

                                                                               3
<PAGE>   4

the Option being exercised and the number of shares to be purchased, accompanied
by payment therefor.

         13. This Option shall not be transferable otherwise than by will or the
laws of descent and distribution, and shall be exercisable, during Employee's
lifetime, only by Employee. Notwithstanding the foregoing, but subject to the
approval of the form of the transfer by the Committee which approval shall not
be unreasonably withheld, this Option may be transferred by Employee solely to
Employee's spouse, siblings, parents, children and grandchildren or trusts for
the benefit of such persons, subject to any restriction included in this
Agreement.

         14. If the Company, in its sole discretion, shall determine that it is
necessary, to comply with applicable securities laws, the certificate or
certificates representing the shares purchased pursuant to the exercise of the
Option shall bear an appropriate legend in form and substance, as determined by
the Company, giving notice of applicable restrictions on transfer under or in
respect of such laws.

         15. The Company agrees that at the time of exercise of the Option it
will use reasonable efforts in good faith to have an effective Registration
Statement on Form S-8 under the Securities Act of 1933, as amended (the "Act"),
which includes a prospectus that is current with respect to the shares subject
to the Option. Employee covenants and agrees with the Company that if, at the
time of exercise of the Option, there does not exist a Registration Statement on
an appropriate form under the Act, which Registration Statement shall have
become effective and shall include a prospectus that is current with respect to
the shares subject to the Option, (i) that he or she is purchasing the shares
for his or her own account and not with a view to the resale or distribution
thereof, (ii) that any subsequent offer for sale or sale of any such shares
shall be made either pursuant to (x) a Registration Statement on an appropriate
form under the Act, which Registration Statement shall have become effective and
shall be current with respect to the shares being offered and sold, or (y) a
specific exemption from the registration requirements of the Act and applicable
state securities laws, but in claiming such exemption, Employee shall, prior to
any offer for sale or sale of such shares, obtain a favorable written opinion
from counsel for or approved by the Company as to the applicability of such
exemption and (iii) that Employee agrees that the certificates evidencing such
shares shall bear a legend to the effect of the foregoing.

         16. This Agreement is subject to all terms, conditions, limitations and
restrictions contained in the Plan, which shall be controlling in the event of
any conflicting or inconsistent provisions.

         17. This Agreement is not a contract of employment and the terms of
Employee's employment shall not be affected hereby or by any agreement referred
to herein except to the extent specifically so provided herein or therein.
Nothing herein shall be construed to impose any obligation on the Company or any
subsidiary corporation to continue Employee's employment, and it shall not
impose any obligation on Employee's part to remain in the employ of the Company
or any subsidiary corporation.

                                                                               4
<PAGE>   5

         18. Employee acknowledges and agrees that neither the Company, its
stockholders nor its directors and officers, has any duty or obligation to
disclose to the Employee any material information regarding the business of the
Company or any subsidiary corporation or affecting the value of the Common Stock
before or at the time of a termination of the employment of Employee by the
Company or any subsidiary corporation, including, without limitation, any
information concerning plans for the Company or any subsidiary corporation to
make a public offering of its securities or to be acquired by or merged with or
into another firm or entity.

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

                                    NUCENTRIX BROADBAND NETWORKS, INC.

                                    By: /s/ Carroll D. McHenry
                                        ----------------------------------------
                                        Carroll D. McHenry
                                        Chairman and Chief Executive Officer

ACCEPTED: /s/ J. David Darnell
          ------------------------------
          J. David Darnell

                                                                               5
<PAGE>   6

                                     ANNEX A
                     TO NONQUALIFIED STOCK OPTION AGREEMENT
            BETWEEN NUCENTRIX BROADBAND NETWORKS, INC. ("NUCENTRIX")
                              AND J. DAVID DARNELL

"Cause" shall mean a finding by a majority of the directors of Nucentrix that
you have:

(1)      acted with gross negligence or willful misconduct in connection with
         the performance of your duties as an officer of Nucentrix;

(2)      engaged in a material act of insubordination or of common law fraud
         against Nucentrix or its employees;

(3)      acted against the best interests of Nucentrix in a manner that has or
         could have a material adverse affect on the financial condition of
         Nucentrix;

(4)      been convicted of a crime or pleaded nolo contendere (other than minor
         infractions and traffic violations);

(5)      materially violated your duty of loyalty to Nucentrix which results or
         may reasonably be expected to result in material injury to Nucentrix or
         any subsidiary; or

(6)      engaged in chronic alcohol or drug abuse.

"Permanent Disability" shall mean any physical or mental disability which
renders you unable to perform the essential functions of your job as an employee
of Nucentrix on a full-time basis with or without reasonable accommodation for
180 calendar days whether or not consecutive, within any period of 12
consecutive months.

                                                                               6

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