Document:

Form of Confirmation

 Exhibit 10(xxx) 
  

					
	

	  	CREDIT SUISSE INTERNATIONAL
			
		  	One Cabot Square	  	Telephone 020 7888 8888
		  	London E14 4QJ	  	www.credit-suisse.com

  

					
	Date:	  	05 November 2007
	To:	  	TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
	Address:	  		  	1601 Bryan
		  		  	Dallas, TX, 75201
	Fax:	  		  	(214) 812-4097
	Attention:	  		  	Treasurer
	From:	  	CREDIT SUISSE INTERNATIONAL
	Ref. No.	  	53314535 TCEH004

 Ladies and Gentlemen: 
 The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between CREDIT SUISSE INTERNATIONAL (“CSI” or “Party A”), and TEXAS COMPETITIVE ELECTRIC
HOLDINGS COMPANY LLC (“Counterparty” or “Party B”) on the Trade Date specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the Swap Agreement (as defined
below), and supersedes any previous confirmation or other writing in respect to the transaction described below. 
 This Confirmation
amends, restates and supersedes in its entirety all Confirmations dated prior to the date hereof in respect of this Transaction. 
 1.
The definitions and provisions contained in the 2006 ISDA Definitions (the “Definitions”), as published by the International Swaps and Derivatives Association, Inc. (“ISDA”), are incorporated into this Confirmation. This
Confirmation evidences a complete and binding agreement between you and us as to the terms of the Transaction to which this Confirmation relates and supplements, forms part of, and is subject to the ISDA Master Agreement, dated as of
October 29, 2007 (as amended, supplemented or otherwise modified from time to time (the “Swap Agreement”) between Party A and Party B. All provisions contained or incorporated by reference in the Swap Agreement will govern this
Confirmation except as expressly modified below. In the event of any inconsistency between this Confirmation, the Definitions or the Swap Agreement, as the case may be, this Confirmation will control for purposes of the Transaction to which this
Confirmation relates. 
 2. The terms of the particular Transaction to which this Confirmation relates are as follows: 
  

			
	Party A:	  	As defined above
		
	Party B:	  	As defined above
		
	Notional Amount:	  	USD                         
		
	Trade Date:	  	29 October 2007
		
	Effective Date:	  	09 November 2007
		
	Termination Date:	  	10 October 2012, subject to adjustment in accordance with the Modified Following Business Day Convention.

  

 2 

 

 
  

			
	Fixed Amounts:	  	
		
	 Fixed Rate Payer:
	  	Party B
		
	Fixed Rate Payer Payment Dates:	  	The 9th day of each February, May, August and November, commencing on 09 February 2008 up to and including the Termination Date, subject to adjustment in accordance with the Modified Following
Business Day Convention.
		
	 Fixed Rate:
	  	                         % per annum.
		
	 Fixed Rate Day Count Fraction:
	  	Actual/360
		
	 Fixed Rate Period End Dates:
	  	Adjusted in accordance with the Modified Following Business Day Convention
		
	Floating Amounts:	  	
		
	 Floating Rate Payer:
	  	Party A
		
	 Floating Rate Payer Payment Dates:
	  	The 9th day of each February, May, August and November, commencing on 09 February 2008 up to and including the Termination Date, subject to adjustment in accordance with the Modified
Following Business Day Convention.
		
	 Floating Rate Option:
	  	USD-LIBOR-BBA; provided, however, that in respect of the final Calculation Period, Linear Interpolation shall apply based upon a Designated Maturity of 2 months and a Designated Maturity
of 3 months
		
	 Designated Maturity:
	  	3 months (except as noted above)
		
	 Floating Rate Spread:
	  	None
		
	 Floating Rate Day Count Fraction:
	  	Actual/360
		
	 Floating Rate Reset Dates:
	  	The first day of each Calculation Period
		
	 Compounding:
	  	Not Applicable
		
	 Floating Rate Period End Dates:
	  	Adjusted in accordance with the Modified Following Business Day Convention
		
	Business Days:	  	New York and London
		
	Calculation Agent:	  	Party A

  

 3 

 

 
 3. Additional Provision. 
 This Transaction may be assigned by the Counterparty (in whole or in part) to any third party with Party A’s consent (such consent not to be unreasonably withheld or delayed). Party A may assign its position
hereunder (in whole in part) to any third party with Party B’s consent, which will not be unreasonably withheld or delayed. This Transaction and the Confirmation will be binding upon, inure to the benefit of, and be enforceable by, the parties
thereto and their respective successors and permitted assigns. 
 4. Governing Law 
 This Confirmation will be governed by and construed in accordance with the Laws of the State of New York. 
 Counterparty
hereby agrees (a) to check this Confirmation (Reference No.53314535) carefully and immediately upon receipt so that errors and discrepancies can be promptly identified and rectified and (b) to confirm that the foregoing correctly sets
forth the terms of the agreement between Party A and Counterparty with respect to this particular Transaction to which this Confirmation relates, by executing a copy of this Confirmation and providing the other information requested herein and
returning a copy to us by fax at (212)322-0159. 
  

			
	Very truly yours,
	
	CREDIT SUISSE INTERNATIONAL
	    By its agent: CREDIT SUISSE SECURITIES (USA) LLC
		
	By:	 	 /s/ Yolanda Perez-Wilson

	Name:	 	Yolanda Perez-Wilson
	Title:	 	Assistant Vice President
		 	Complex Product Support
	Ref. No.                         

 Accepted and confirmed as of date first above written: 
  

			
	TEXAS COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC
		
	By:	 	 /s/ Michael Perkins

	Name:	 	Michael Perkins
	Title:	 	Dir. Financial Compliance

  

 4Management Agreement, dated as of October 10, 2007

 Exhibit 10(yyy) 
 EXECUTION VERSION 
  

			
	 Energy Future Holdings Corp.
	 	Texas Energy Future
	 Energy Plaza
	 	Holdings Limited Partnership
	 1601 Bryan Street
	 	301 Commerce Street, Suite 3300
	 Dallas, TX 75201
	 	Fort Worth, TX 76102

 October 10, 2007 
 Kohlberg Kravis Roberts & Co L.P. 
 9 West 57th Street, Suite 4200 
 New York, NY 10019 
 TPG Capital, L.P. 
 301 Commerce
Street, Suite 3300 
 Fort Worth, TX 76102 
 Goldman,
Sachs & Co. 
 85 Broad Street 
 New York, NY 10004

 Lehman Brothers Inc. 
 745 Seventh Avenue 
 New York, New York 10019 
 Ladies and Gentlemen: 
 This letter serves to confirm the retention by Energy Future Holdings Corp. (the “Company”) of Kohlberg Kravis Roberts & Co.
L.P. (the “KKR Manager”), TPG Capital, L.P. (the “TPG Manager”), Goldman, Sachs & Co. (the “GS Manager” and together with the KKR Manager and the TPG Manager, the
“Managers” and each a “Manager”) to provide management, consulting and financial services to the Company and its divisions, subsidiaries and affiliates (collectively, the “Company Group”), as
follows: 
 1. The Company has retained the Managers, and each Manager hereby agrees to accept such retention, to provide to the Company
Group, when and if called upon, certain management, consulting and financial services of the type customarily performed by such Managers. Commencing on the date hereof (the “Effective Date”), the Company agrees to pay the Managers
an aggregate annual fee (the “Advisory Fee”) in an amount equal to $35,000,000 (thirty five million dollars), which amount shall increase by 2% annually, payable in quarterly 

 
installments in arrears at the end of each calendar quarter. The initial Advisory Fee shall be pro rated to reflect the portion of the current fiscal year
which has elapsed prior to the Effective Date. The Managers shall split the Advisory Fee so that (i) the KKR Manager shall initially receive a portion of the Advisory Fee equal to $12,727,500 (twelve million seven hundred twenty seven thousand
and five hundred dollars) (ii) the TPG Manager shall initially receive a portion of the Advisory Fee equal to $12,727,500 (twelve million seven hundred twenty seven thousand and five hundred dollars) and (iii) the Goldman Manager shall
initially receive a portion of the Advisory Fee equal to $9,545,000 (nine million five hundred and forty five thousand dollars). Increases in the Advisory Fee in subsequent years shall be paid to the Managers in the same proportion as the initial
Advisory Fee. 
 2. To the extent the Company is not permitted to pay the Advisory Fee by reason of any prohibition on such payment pursuant
to the terms of any debt financing agreement or instrument of the Company or any of its subsidiaries, the payment by the Company to the Managers, of the Advisory Fee shall be deferred and shall not be due and payable until immediately on the earlier
of (i) the first date on which the payment of such deferred Advisory Fee is no longer prohibited under the applicable agreement or instrument and the Company is otherwise able to make such payment, and (ii) total or partial liquidation,
dissolution or winding up of the Company. 
 3. In consideration for structuring services rendered by the Managers and Lehman Brothers Inc.
in connection with the acquisition of the outstanding shares of the Company by Parent pursuant to the Agreement and Plan of Merger, dated as of February 25, 2007, by and among Texas Energy Future Holdings Limited Partnership
(“Parent”), Texas Energy Future Merger Sub Corp. and the Company (the “Merger Agreement”), which services included, but were not limited to, financial advisory services and capital structure review (the
“Initial Services”), the Company agrees to also pay the Managers and Lehman Brothers Inc. a one-time transaction fee in an aggregate amount equal to $300,000,000 (three hundred million dollars) (the “Merger Fee”),
payable immediately upon the Closing (as defined in the Merger Agreement), which Merger Fee shall be apportioned so that (i) the KKR Manager shall receive a portion of the Merger Fee equal to $106,840,909.09 (one hundred and six million eight
hundred and forty thousand nine hundred and nine dollars and nine cents), (ii) the TPG Manager shall receive a portion of the Merger Fee equal to $106,840,909.09 (one hundred and six million eight hundred and forty thousand nine hundred and
nine dollars and nine cents), (iii) the Goldman Manager shall receive a portion of the Merger Fee equal to $80,130,681.82 (eighty million one hundred and thirty thousand and six hundred eighty one dollars and eighty two cents) and
(iv) Lehman Brothers Inc. shall receive a portion of the Merger Fee equal to $6,187,500.00 (six million one hundred and eighty seven thousand and five hundred dollars). 
 4. The Company shall, with respect to each proposed transaction, including, without limitation, any proposed acquisition, merger, full or partial
recapitalization, structural reorganization (including any divestiture of one or more subsidiaries or operating divisions of any member of the Company Group), reorganization of the shareholdings or other ownership structure of the Company Group,
sales or dispositions of assets or equity interests or any other similar transaction (each, a “Transaction”) directly or indirectly involving the members of the Company Group, pay to the Managers an aggregate fee (a
“Transaction Fee”) equal to 1% of the Transaction Value, or such lesser amount as the Managers and the Company may agree, any such Transaction Fee to be apportioned so that (i) the KKR Manager shall receive a portion of 

 
any Transaction Fee equal to four elevenths of such Transaction Fee (ii) the TPG Manager shall receive a portion of any Transaction Fee equal to four
elevenths of such Transaction Fee and (iii) the Goldman Manager shall receive a portion of any Transaction Fee equal to three elevenths of such Transaction Fee. The Company, on behalf of the members of the Company Group, may agree to pay a
Transaction Fee in excess of 1% of the Transaction Value of a Transaction, subject to the consent of the board of directors of the Company. As used herein, “Transaction Value” means the total value of the applicable Transaction,
including, without limitation, the aggregate amount of the cash funds and the aggregate value of the other securities or obligations required to complete such Transaction (excluding any fees payable pursuant to this paragraph 4), including any
indebtedness, guarantees, capital stock or similar items issued or made to facilitate, and the amount of any revolving credit or other liquidity facilities or arrangements established in connection with, such Transaction or assumed, refinanced or
left outstanding in connection with or immediately following such Transaction. For purposes of calculating a Transaction Fee, the value of any securities included in the Transaction Value will be determined by the average of the last sales prices
for such securities on the five trading days ending five days prior to the consummation of the applicable Transaction, provided that if such securities do not have an existing public trading market, the value of the securities shall be their fair
market value as mutually reasonably agreed between the Managers and the Company, on behalf of the members of the Company Group, on the day prior to consummation of such Transaction. For the avoidance of doubt, no Transaction Fee (other than the
Merger Fee) shall be payable to any Manager in respect of the Initial Services. 
 5. In addition to any fees that may be payable to the
Managers under this agreement, the Company shall, or shall cause one or more of its affiliates to, on behalf of itself and the other members of the Company Group (subject to paragraph 6), reimburse the Managers and their affiliates and their
respective employees and agents, from time to time upon request, for all reasonable out-of-pocket expenses incurred, including unreimbursed expenses incurred prior to the date hereof, in connection with this retention and/or transactions
contemplated by the Merger Agreement, including travel expenses and expenses of any legal, accounting or other professional advisors to the Managers or their affiliates. The Managers may submit monthly expense statements to the Company or any other
member of the Company Group, which statements shall be payable within thirty days. Nothing in this paragraph 5 shall limit any obligations of Parent to reimburse any costs and expenses to the Managers, their subsidiaries or affiliates as provided in
the Amended and Restated Limited Partnership Agreement of Parent, dated as of the date hereof, among the parties thereto, as the same may be amended from time to time (the “Partnership Agreement”), or in the Amended and Restated
Limited Liability Company Agreement of Texas Energy Future Capital Holdings LLC, dated as of the date hereof, among the parties thereto. 
 6. Parent and the Company (on behalf of itself and the other members of the Company Group) hereby acknowledge and agree that the obligations of the Company under paragraphs 1- 5 shall be borne jointly and severally by each member of the
Company Group. 
 7. Parent and the Company (on behalf of itself and the other members of the Company Group) hereby acknowledge and agree
that the services provided by the Managers hereunder are being provided subject to the terms of the Indemnification Agreement, dated as of the date hereof, between Parent, the Company, and the Managers (as the same may be amended from time to time,
the “Indemnification Agreement”). 

 8. Any advice or opinions provided by the Managers may not be disclosed or referred to publicly or to any
third party (other than the Company Group’s legal, tax, financial or other advisors), except in accordance with our prior written consent. 
 9. Each Manager shall act as an independent contractor, with duties solely to the Company Group. The provisions hereof shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and assigns.
Nothing in this agreement, expressed or implied, is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights or remedies under or by reason of this agreement. Without limiting the
generality of the foregoing, the parties acknowledge that nothing in this agreement, expressed or implied, is intended to confer on any present or future holders of any securities of the Company or its subsidiaries or affiliates, or any present or
future creditor of the Company or its subsidiaries or affiliates, any rights or remedies under or by reason of this agreement or any performance hereunder. 
 10. This agreement shall be governed by and construed in accordance with the internal laws of the State of New York. 
 11. All notices and other communications provided for hereunder shall be in writing and shall be sent by first class mail, telex, telecopier or hand delivery: 
  

			
	If to Parent:	  	 Texas Energy Future Holdings Limited Partnership
 301
Commerce Street, Suite 3300
Fort Worth, TX 76102
Attention: Clive D. Bode
Facsimile: (817) 871-4001

		
	with a copy to:
(which shall not
constitute notice)	  	 Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
Attention: David J. Sorkin
                   Andrew W. Smith
Facsimile:(212)
455-2502

		
	If to the Company:	  	 Energy Future Holdings Corp.
Energy Plaza
1601 Bryan Street
 Dallas, TX 75201
Attention: General Counsel
 Facsimile: (214) 812 4600

			
	with a copy to:
(which shall not constitute notice)	  	Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
Attention: David J.
Sorkin
                  Andrew W. Smith
Facsimile:(212) 455-2502
		
	If to the KKR
Manager:	  	Kohlberg Kravis Roberts & Co. L.P.
9 West 57th Street, Suite 4200
New York, NY
10019
Attention: Marc Lipschultz
Facsimile: (212) 750-0003
		
	with copies to:
(which shall not constitute notice)	  	 Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
 Attention: David J. Sorkin
                  Andrew W. Smith
Facsimile:(212) 455-2502

		
	If to the TPG
Manager:	  	TPG Capital, L.P.
301 Commerce Street
Fort Worth, TX 76102
Attention: Clive Bode
Facsimile: (813) 871 4001
		
	with copies to:
(which shall not constitute notice)	  	Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, New York 10017
Attention: David J.
Sorkin
                  Andrew W. Smith
Facsimile:(212) 455-2502
		
	If to the GS Manager:	  	Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004
Attention: Kenneth A. Pontarelli
Facsimile: (212) 357-5505
		
	with copies to:
(which shall not constitute notice)	  	Fried, Frank, Harris, Shriver & Jacobson LLP
One New York Plaza
New York, New York 10004
Attention: Robert C.
Schwenkel
                  Brian Mangino
Facsimile: (212) 859-4000

			
	If to Lehman Brothers Inc.:	  	 Lehman Brothers Inc.
 745 Seventh Avenue
 New York, New York 10019
 Attention: Martin Laguerre
 Facsimile: 646-758-4126

		
	with copies to:
(which shall not constitute notice)	  	 Lehman Brothers Inc.
 399 Park Avenue
 New York, New York 10022
 Attention: Ashvin Rao
 Facsimile: 646-834-4769

 or to such other address as any of the above shall have designated in writing to the other above. All such notices
and communications shall be deemed to have been given or made (i) when delivered by hand, (ii) five business days after being deposited in the mail, postage prepaid or (iii) when telecopied, receipt acknowledged. 
 12. This agreement shall continue in effect from year to year unless amended or terminated by mutual consent. In addition, in connection with the
consummation of a Change of Control (as defined in the Partnership Agreement) or an IPO (as defined in the Partnership Agreement), the Company may terminate this agreement by delivery of a written notice of termination to the Managers. In the event
of such a termination by the Company of this agreement, the Company shall pay in cash to the Managers (i) all unpaid Advisory Fees payable to such Manager hereunder, all unpaid fees payable to such Manager pursuant to Section 4 of this
agreement and all expenses due under this agreement to such Manager with respect to periods prior to the termination date, plus (ii) the net present value (using a discount rate equal to the yield as of such termination date on U.S. Treasury
securities of like maturity based on the times such payments would have been due) of the Advisory Fees that would have been payable with respect to the period from the termination date through the twelfth anniversary of the Effective Date, or, if
terminated following the twelfth anniversary of the Effective Date, through the first anniversary of the Effective Date occurring after the termination date, any such fees payable pursuant to this clause (ii) to be apportioned so that
(i) the KKR Manager shall receive a portion of such fees equal to four elevenths of the aggregate amount of such fees (ii) the TPG Manager shall receive a portion of such fees equal to four elevenths of the aggregate amount of such fees
and (iii) the Goldman Manager shall receive a portion of such fees equal to three elevenths of the aggregate amount of such fees. 
 13.
Each party hereto represents and warrants that the execution and delivery of this agreement by such party has been duly authorized by all necessary action of such party. 
 14. If any term or provision of this agreement or the application thereof shall, in any jurisdiction and to any extent, be invalid and unenforceable, such term or provision shall be ineffective, as to such
jurisdiction, solely to the extent of such invalidity or unenforceability without rendering invalid or unenforceable any remaining terms or provisions hereof or affecting the validity or enforceability of such term or provision in any other
jurisdiction. To the extent permitted by applicable law, the parties hereto waive any provision of law that renders any term or provision of this agreement invalid or unenforceable in any respect. 

 15. Each party hereto waives all right to trial by jury in any action, proceeding or counterclaim
(whether based upon contract, tort or otherwise) related to or arising out of our retention pursuant to, or our performance of the services contemplated by this agreement. 
 16. It is expressly understood that the foregoing paragraphs 2-6, 9 and 13 - 17, in their entirety, survive any termination of this agreement.

 17. Except in cases of gross negligence or willful misconduct, none of the Managers, their respective affiliates or any of their
respective employees, officers, directors, partners, consultants, members, stockholders or their respective affiliates shall have any liability of any kind whatsoever to any member of the Company Group for any damages, losses or expenses (including,
without limitation, special, punitive, incidental or consequential damages and interest, penalties and fees and disbursements of attorneys, accountants, investment bankers and other professional advisors) with respect to the provision of services
hereunder. 
 18. This letter agreement, the Partnership Agreement and the Indemnification Agreement contain the complete and entire
understanding and agreement between the Managers and the Company with respect to the subject matter hereof and supersede all prior and contemporaneous understandings, conditions and agreements, whether written or oral, express or implied, in respect
of the subject matter hereof. The Company acknowledges and agrees that neither Manager makes any representations or warranties in connection with this letter agreement or its provision of services pursuant hereto. The Company agrees that any
acknowledgment or agreement made by the Company in this letter agreement is made on behalf of the Company and the other members of the Company Group. 
 19. A Manager may assign the right to receive any fees payable to the Manager under this Agreement to an affiliate of such Manager or an investment fund managed by such Manager or a subsidiary thereof upon written
notice to the Company. 
 20. This agreement may be executed in counterparts, each of which shall be deemed an original agreement, but all of
which together shall constitute one and the same instrument. 
 [Remainder of page intentionally left blank.] 

 If the foregoing sets forth the understanding between us, please so indicate on the enclosed signed copy
of this letter in the space provided therefor and return it to us, whereupon this letter shall constitute a binding agreement among us. 
  

					
	Very truly yours,
	
	ENERGY FUTURE HOLDINGS CORP.
		
	By:	 	/s/ Jeffrey Liaw
		 	Name:	 	Jeffrey Liaw
		 	Title:	 	Authorized Signatory

  

					
	TEXAS ENERGY FUTURE HOLDINGS
LIMITED PARTNERSHIP
		
	By:	 	Texas Energy Future Capital Holdings
LLC, its general partner
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

					
	Very truly yours,
	
	ENERGY FUTURE HOLDINGS CORP.
		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

  

					
	TEXAS ENERGY FUTURE HOLDINGS
LIMITED PARTNERSHIP
		
	By:	 	Texas Energy Future Capital Holdings
LLC, its general partner
		
	By:	 	/s/ Jonathan D. Smidt
		 	Name:	 	Jonathan D. Smidt
		 	Title:	 	Vice-President and Treasurer

					
	AGREED TO AND ACCEPTED BY:
	
	KOHLBERG KRAVIS ROBERTS & CO. L.P.
		
	By:	 	KKR & Co. L.L.C., its general partner
		
	By:	 	/s/ Marc S. Lipschultz
		 	Name:	 	Marc S. Lipschultz
		 	Title:	 	Member

					
	TPG CAPITAL, L.P.
		
	By:	 	Tarrant Capital, LLC
		
	By:	 	/s/ Clive Bode
		 	Name:	 	Clive Bode
		 	Title:	 	Vice-President

					
	GOLDMAN, SACHS & CO.
		
	By:	 	/s/ Kenneth A. Pontarelli
		 	Name:	 	Kenneth A. Pontarelli
		 	Title:	 	Managing Director

					
	LEHMAN BROTHERS INC.
		
	By:	 	/s/ Ashvin Rao
		 	Name:	 	Ashvin Rao
		 	Title:	 	Vice President

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