Document:

EX-10.2

Exhibit 10.2

Execution Copy

 

CONTINGENT CONTRIBUTION AGREEMENT

Dated as of May 1, 2009

By and among

NRG ENERGY, INC.

NRG RETAIL, LLC

RERH HOLDINGS, LLC

RELIANT ENERGY RETAIL HOLDINGS, LLC

and

MERRILL LYNCH COMMODITIES, INC.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1 General 
	 	 	1	 
	SECTION 1.2 Specific Terms 
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II CONTRIBUTIONS
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.1 Initial Contribution
	 	 	4	 
	SECTION 2.2 Contingent Equity Contributions
	 	 	4	 
	SECTION 2.3 Accelerated Contribution Events 
	 	 	5	 
	SECTION 2.4 Waiver
	 	 	6	 
	SECTION 2.5 Reinstatement 
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	7	 
	 
	 	 	 	 
	SECTION 3.1 Representations and Warranties of Parent 
	 	 	7	 
	SECTION 3.2 Indemnification; Expenses
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV COVENANTS OF PARENT
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.1 Exclusivity 
	 	 	9	 
	SECTION 4.2 Non-Reliance 
	 	 	9	 
	SECTION 4.3 Investment Basket under NRG Credit Agreement 
	 	 	9	 
	SECTION 4.4 Other Covenants 
	 	 	9	 
	 
	 	 	 	 
	ARTICLE V MISCELLANEOUS
	 	 	10	 
	 
	 	 	 	 
	SECTION 5.1 Liability of Parent 
	 	 	10	 
	SECTION 5.2 Specific Performance 
	 	 	10	 
	SECTION 5.3 Amendments 
	 	 	10	 
	SECTION 5.4 Notices 
	 	 	11	 
	SECTION 5.5 Merger and Integration 
	 	 	11	 
	SECTION 5.6 Severability of Provisions 
	 	 	11	 
	SECTION 5.7 Governing Law 
	 	 	11	 
	SECTION 5.8 Counterparts 
	 	 	11	 
	SECTION 5.9 Nonpetition Covenant; Bankruptcy 
	 	 	11	 
	SECTION 5.10 Binding Effect; Assignability; Third Party Beneficiary
	 	 	12	 
	SECTION 5.11 Term 
	 	 	12	 

 

CONTINGENT CONTRIBUTION AGREEMENT

THIS CONTINGENT CONTRIBUTION AGREEMENT, dated as of May 1, 2009 (this “Agreement”), is
entered into by and among NRG ENERGY, INC., a Delaware corporation (“Parent”), NRG RETAIL,
LLC, a Delaware limited liability company (“NRG Retail”), RERH HOLDINGS, LLC, a Delaware
limited liability company (“RERH Holdings”), RELIANT ENERGY RETAIL HOLDINGS, LLC, a
Delaware limited liability company (“RERH”) and Merrill Lynch Commodities, Inc., a Delaware
corporation (“MLCI”). Capitalized terms used herein but not defined herein shall have the
respective meanings assigned to such terms in the CSRA (as defined below), provided that, if,
within such definition in the CSRA a further term is used which is defined herein, then such
further term shall have the meaning given to such further term herein.

W I T N E S S E T H:

          WHEREAS, MLCI is entering into an Amended and Restated Credit Sleeve and Reimbursement
Agreement (the “CSRA”) dated as of May 1, 2009 with RERH Holdings, the Other Reliant Retail
Obligors and Merrill Lynch & Co., Inc. concurrently with the entering into of this Agreement;

          WHEREAS, NRG Retail has entered into a LLC Membership Interest Purchase Agreement dated as of
May 1, 2009 with Reliant Energy, Inc. (“REI”), a Delaware corporation (the “Purchase
and Sale Agreement”), pursuant to which NRG Retail has agreed to purchase, and REI has agreed
to sell to NRG Retail, 100% of the equity interest in RERH Holdings, Reliant Energy Retail
Services, LLC, a Delaware limited liability company, and Reliant Energy Services Texas, LLC, a
Delaware limited liability company, owned by REI (the “Retail Acquisition”) concurrently
with the entering into of this Agreement;

          WHEREAS, in order to induce the parties to the CSRA to enter into the CRSA pursuant to the
terms and subject to the conditions set forth herein and in the CSRA, Parent desires to make at the
times specified herein and on the terms set forth herein capital contributions to RERH.

          NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter
contained, and for other good and valuable consideration, the receipt of which is hereby
acknowledged, RERH Holdings, Parent, NRG Retail, RERH and MLCI, intending to be legally bound,
hereby agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1 General. The definitions of terms herein shall apply equally to the singular
and plural forms of the terms defined. Whenever the context may require, any pronoun shall include
the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will”
shall be construed to have the same meaning and effect as the word “shall”. Unless the context
requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, restated, supplemented or otherwise modified, renewed or replaced
(subject to any restrictions on such

 

 amendments, restatements, supplements or modifications,
renewals or replacements set forth therein or herein), (b) any reference herein to any Person shall
be construed to include such Person’s successors and permitted assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof and (d) all references herein
to Sections, Exhibits and Schedules shall be construed to refer to Sections of, and Exhibits and
Schedules to, this Agreement.

SECTION 1.2 Specific Terms. Whenever used in this Agreement, the following words and
phrases, unless the context otherwise requires, shall have the following meanings:

          “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, Houston,
Texas or New York City.

          “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

          “Core Collateral Subsidiary” shall mean each of Louisiana Generating LLC, Huntley
Power LLC, Dunkirk Power LLC, Indian River Power LLC, Oswego Harbor Power LLC, Astoria Gas Turbine
LLC, Arthur Kill Power LLC, NRG Texas LP, NRG South Texas LP and NRG Power Marketing.

          “ERCOT” means the Electric Reliability Council of Texas, or any successor thereto.

          “Excluded Subsidiaries” means collectively, the “Excluded Subsidiaries” from time to
time as defined in the NRG Credit Agreement and the “Immaterial Subsidiaries” from time to time as
defined in the Senior Note Documents.

          “Exempt Subsidiaries” shall mean, collectively, NRG Ilion LP LLC, NRG Ilion Limited
Partnership, Meriden Gas Turbine LLC, LSP-Nelson Energy LLC, NRG Nelson Turbines LLC, NRG Jackson
Valley Energy I, Inc., NRG McClain LLC, NRG Audrain Holding LLC, NRG Audrain Generating LLC, NRG
Peaker Finance Company LLC, Bayou Cove Peaking Power, LLC, Big Cajun I Peaking Power LLC, NRG
Rockford LLC, NRG Rockford II LLC, NRG Rockford Equipment II LLC, NRG Sterlington Power LLC and NRG
Rockford Acquisition LLC, and shall not, in any event, include any Core Collateral Subsidiary.

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether state, county, or local, and any agency,
authority, instrumentality, regulatory body, court, central bank, independent system operator,
transmission organization or other entity to the extent exercising executive, legislative,
judicial, taxing, monetary, regulatory, supervisory or administrative powers or functions of or
pertaining to government.

          “Laws” means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of any Governmental Authority.

          “Material Adverse Effect” means, with respect to any Person, a material adverse effect
upon (i) the business, operations, property or financial condition of such Person and its
Subsidiaries taken

2

 

as a whole, or (ii) the validity or enforceability against any such Person or any of its
Subsidiaries of this Agreement or any other Transaction Document to which it is a party or the
transactions contemplated thereby or the rights and remedies of MLCI thereunder or the performance
by such Person of its obligations thereunder.

          “NRG Credit Agreement” means the Second Amended and Restated Credit and Guaranty
Agreement dated as of June 8, 2007 among Parent, the lenders referred to therein, and Citicorp
North America, as administrative agent and collateral agent, as each of the foregoing has been
amended, restated, supplemented or otherwise modified from time to time but shall not include any
restatement, replacement or refinancing thereof unless the principal amount of Indebtedness
outstanding and/or available to be drawn under such replacement or refinancing is at least $100
million.

          “NRG Parent Debt” means (a) Senior Notes and (b) NRG Credit Agreement.

          “Organizational Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

          “Person” means any individual, corporation, firm, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, limited liability company or
government or other entity.

          “Significant Subsidiary” shall mean any Subsidiary that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the
Securities Act, as such Regulation is in effect on the date hereof and shall in any event include
the Core Collateral Subsidiaries.

          “Solvent” mean, with respect to any Person on any date of determination, that on such
date (i) the fair value of the property of such Person is greater than the total amount of
liabilities, including contingent liabilities, of such Person, (ii) the present fair salable value
of the assets of such Person is not less than the amount that will be required to pay the probable
liability of such Person on its debts as they become absolute and matured, (iii) such Person does
not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay such debts and liabilities as they mature and (iv) such Person is not engaged in
business or a transaction, and is not about to engage in business or a transaction, for which such
Person’s property would constitute an unreasonably small capital. The amount of contingent
liabilities at any time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability; provided, that if the context in which “Solvent” is used
refers to a Person together with its Subsidiaries, Person as used in this definition shall be
deemed to be a reference to such Person together with its Subsidiaries.

          “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares of securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or

3

 

interests having such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by such Person.

          “Unrestricted Subsidiary” shall have the meaning set forth in the NRG Credit
Agreement.

ARTICLE II

CONTRIBUTIONS

SECTION 2.1 Initial Contribution. Contemporaneously with the closing of the Retail
Acquisition, on the date hereof, Parent shall contribute an amount in cash equal to $200,000,000 to
the capital of RERH Holdings (the “Initial Contribution”), without recourse, to fund the
working capital needs of RERH Holdings and its Subsidiaries in accordance with Section 6.11(c) of
the CSRA, and RERH Holdings hereby agrees to accept the Initial Contribution. Parent hereby
acknowledges that the Initial Contribution to RERH Holdings hereunder is absolute and irrevocable,
without reservation or retention of any interest whatsoever by Parent. RERH hereby irrevocably
directs Parent to make the Initial Contribution directly as if it were “revenue” under Section 6.11
of the CSRA.

SECTION 2.2 Contingent Equity Contributions.

          (a) If, and only if, on November 1, 2009, the then outstanding Exposure under the CSRA exceeds
the Target Exposure for such date (the “Additional Contribution Trigger”), Parent shall
within two (2) Business Days of such date, make a capital contribution in cash to RERH equal to
$250,000,000 (“Additional Contribution”). Parent hereby acknowledges that any Additional
Contribution to RERH hereunder, subject to the occurrence of the Additional Contribution Trigger or
an Accelerated Contribution Event, (i) is absolute and irrevocable, without recourse, without
reservation or retention of any interest whatsoever by Parent and (ii) shall be required to be
contributed by Parent regardless of whether the amount of such Additional Contribution would be
sufficient to reduce Exposure under the CSRA to the amount required for such date in the ESDS.
RERH hereby irrevocably directs Parent to make all Additional Contributions directly to the account
of MLCI in accordance with Section 6.18 of the CSRA.

          (b) If, and only if, on October 31, 2010, either (i) the Exposure under the CSRA is in excess
of zero or (ii) the Credit Sleeve Termination Date has not occurred (either of (i) or (ii), a
“Final Contribution Trigger”), Parent shall on such date make a capital contribution in
cash to RERH in an amount sufficient to permit RERH to reduce Exposure under the CSRA to zero on
such date and to the extent necessary to cause the Credit Sleeve Termination Date to occur on such
date (“Final Contribution” and together with any Additional Contribution, the
“Contingent Equity Contributions”); provided, that Parent shall not be obligated to
contribute an amount under this clause (b) in excess of $400 million (“Maximum Amount of the
Final Contribution”). Parent hereby acknowledges that the Final Contribution to RERH
hereunder, subject to the occurrence of the Final Contribution Trigger or an Accelerated
Contribution Event (i) is absolute and irrevocable, without recourse, without reservation or
retention of any interest whatsoever by Parent and (ii) shall be required to be contributed by
Parent regardless of whether the amount of such Final Contribution would be sufficient to reduce
Exposure under the CSRA to zero or to cause the Credit Sleeve Termination Date to occur. RERH
hereby irrevocably directs Parent to make the Final Contribution directly to the account of MLCI in
accordance with Section 6.18 of the CSRA.

4

 

          (c) To the extent required by law or otherwise, the Parent, NRG Retail, RERH Holdings and RERH
agree that, notwithstanding that Parent shall make Contingent Equity Contributions
directly to RERH all Contingent Equity Contributions shall be deemed to have been made by the
Parent to NRG Retail with a subsequent contribution from NRG Retail to RERH Holdings with a
subsequent contribution from RERH Holdings to RERH. Each of NRG Retail and RERH Holdings hereby
acknowledges that it shall not have any interest in or right to any Contingent Equity Contribution
and to the extent it shall be deemed to have any such interest or right therein it hereby
absolutely and irrevocably assigns all of its rights, title and interest hereunder (including to
any Contingent Equity Contributions hereunder), without recourse, without reservation or retention
of any interest whatsoever to RERH.

          (d) It is the intention of Parent, NRG Retail, RERH Holdings and RERH that the Contingent
Equity Contribution amounts contributed by Parent to the capital of RERH pursuant to this Agreement
shall not be part of Parent’s, NRG Retail’s or RERH Holdings’ estate in the event of the filing of
a bankruptcy petition by or against Parent, NRG Retail or RERH Holdings under any bankruptcy or
similar law.

          (e) The Parent, NRG Retail, RERH Holdings and RERH agree that the obligations of the Parent
are not conditioned on RERH, NRG Retail or RERH Holdings issuing any securities to the Parent, NRG
Retail or RERH Holdings in respect of any payment made in respect of the Parent’s obligations
pursuant to Sections 2.1 and 2.2 hereof and the obligations of the Parent shall not be construed as
an obligation of the Parent, NRG Retail or RERH Holdings to extend a loan, credit or financial
accommodation to NRG Retail, RERH Holdings or RERH.

SECTION 2.3 Accelerated Contribution Events. Notwithstanding the forgoing Sections 2.1 and
2.2, if, and only if:

     (a) an involuntary proceeding shall be commenced or an involuntary petition shall be
filed seeking (i) liquidation, reorganization or other relief in respect of the Parent, any
of its Significant Subsidiaries (other than the Exempt Subsidiaries, the Unrestricted
Subsidiaries and the Excluded Subsidiaries) or any group of Significant Subsidiaries (other
than the Exempt Subsidiaries, the Unrestricted Subsidiaries and the Excluded Subsidiaries)
that, taken together, would constitute a Significant Subsidiary or RERH Holdings or RERH or
their debts, or of a substantial part of any of their respective assets, under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator
or similar official for the Parent, any of its Significant Subsidiaries (other than the
Exempt Subsidiaries, the Unrestricted Subsidiaries and the Excluded Subsidiaries) or any
group of Significant Subsidiaries (other than the Exempt Subsidiaries, the Unrestricted
Subsidiaries and the Excluded Subsidiaries) that, taken together, would constitute a
Significant Subsidiary or RERH Holdings or RERH or for a substantial part of their assets,
and, in any such case, such proceeding or petition shall continue undismissed for a period
of 60 or more days or an order or decree approving or ordering any of the foregoing shall be
entered; or

     (b) the Parent, any of its Significant Subsidiaries (other than the Exempt
Subsidiaries, the Unrestricted Subsidiaries and the Excluded Subsidiaries) or any group of
Significant Subsidiaries (other than the Exempt Subsidiaries, the Unrestricted Subsidiaries
and the Excluded Subsidiaries) that, taken together, would constitute a Significant
Subsidiary or RERH Holdings or RERH shall (i) voluntarily commence any proceeding or file
any petition seeking liquidation, reorganization or other relief under any Federal, state or
foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect,
(ii) consent to the institution of,

5

 

or fail to contest in a timely and appropriate manner,
any proceeding or petition described in clause (a) of
this Section 2.3, (iii) apply for or consent to the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Parent, any of its
Significant Subsidiaries (other than the Exempt Subsidiaries, the Unrestricted Subsidiaries
and the Excluded Subsidiaries) or any group of Significant Subsidiaries (other than the
Exempt Subsidiaries, the Unrestricted Subsidiaries and the Excluded Subsidiaries) that,
taken together, would constitute a Significant Subsidiary or RERH Holdings or RERH or for a
substantial part of any of their respective assets, (iv) file an answer admitting the
material allegations of a petition filed against it in any such proceeding, (v) make a
general assignment for the benefit of creditors or (vi) take any action for the purpose of
effecting any of the foregoing; or

     (c) the Parent shall fail to make any principal or interest payment (or with respect to
any Contractual Obligation payment or Specified Transaction payment, any analogous or
similar payment) when due (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise) in respect of (i) any NRG Parent Debt or (ii) any other Contractual
Obligations evidencing or governing (A) Indebtedness (other than Indebtedness arising out of
any Specified Transaction) with an aggregate amount in excess of $150,000,000 or (B)
Specified Transactions with a mark-to-market value in excess of $150,000,000; or

     (d) the Parent shall fail to make (i) the Initial Contribution when due and (ii) any
Contingent Equity Contributions when due; or

     (e) the Parent shall fail to perform or observe any term, covenant or agreement
contained in this Agreement (other than payment of Contingent Equity Contributions) and such
failure continues for five (5) Business Days after the earlier to occur of (i) the Parent
receiving written notice thereof from MLCI and (ii) a Responsible Officer or other executive
officer of the Parent obtaining knowledge of such occurrence; or

     (f) any representation, warranty, certification or statement of fact made or deemed
made by the Parent herein, in any Transaction Document or in any document delivered in
connection herewith or therewith shall be incorrect or misleading in any material respect
when made or deemed made; or

     (g) the occurrence of an Event of Default under the CSRA after the expiration of any
applicable cure or grace periods; or

     (h) any event of default or termination event shall occur under the PMI/REPS ISDA after
the expiration of any applicable cure or grace periods;

then, and in every such event (each an “Accelerated Contribution Event”), an amount equal
to (i) $850,000,000, minus (2) any amount previously contributed by the Parent pursuant to
Sections 2.1 and 2.2, may be declared due and payable by MLCI (except with respect to clause (a)
and (b), in which cases such amount shall automatically become due and payable), without
presentment, demand, protest or other notice of any kind, all of which are hereby waived by the
Parent.

SECTION 2.4 Waiver.

          (a) RERH or MLCI may at any time, without the consent of the Parent, without notice to the
Parent and without affecting or impairing RERH’s or the MLCI’s rights, or impairing the Parent’s
obligations hereunder, do any of the following with respect to any Obligation under the Transaction
Documents: (a) in accordance with the terms of the Transaction Documents, make changes,

6

 

modifications, amendments or alterations, by operation of law or otherwise, including without
limitation, any change to the method of calculating Target Exposure, ESDS or Exposure under the
CSRA, (b) grant renewals and extensions of time, for payment or otherwise, (c) accept new or
additional documents, instruments or agreements relating to or in substitution of Obligations under
the Transaction Documents, or (d) otherwise handle the enforcement of their respective rights and
remedies in accordance with their business judgment.

          (b) Until such time as all of the Obligations under the Transaction Documents have been paid
in full (other than indemnities and similar reimbursement Obligations not then due and payable),
the Parent hereby waives all rights of subrogation or contribution, whether arising by contract or
operation of law (including, without limitation, any such right arising under the federal
bankruptcy code) or otherwise by reason of any payment by it pursuant to the provisions of this
Agreement and further agrees with RERH for the benefit of the MLCI that any such payment by it
shall constitute a nonrescindable cash contribution by the Parent to RERH.

SECTION 2.5 Reinstatement. The obligations of the Parent under this Section 2.2 and
Section 2.3 shall be automatically reinstated if and to the extent that for any reason any
payment in respect of any Contingent Equity Contribution is rescinded or must be otherwise restored
by any recipient of the Contingent Equity Contribution, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, and the Parent agrees that it will indemnify MLCI on
demand for all reasonable costs and expenses (including, without limitation, fees of counsel)
incurred by MLCI in connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any claim alleging that such payment constituted a
preference, fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

SECTION 3.1 Representations and Warranties of Parent. Parent on behalf of itself and NRG
Retail makes the following representations and warranties, on which RERH, RERH Holdings and MLCI
rely in entering into this Agreement and the CSRA. Such representations are made only as of the
execution and delivery of this Agreement, but shall survive the Contingent Equity Contributions.

          (a) Existence; Qualification and Power; Compliance with Laws. Each of Parent and NRG
Retail (i) are duly organized, validly existing and in good standing under the laws of the State of
Delaware, (ii) have all requisite power and authority and all requisite governmental licenses,
authorizations, consents and approvals to (A) own their assets and carry on their business and (B)
execute, deliver and perform their respective obligations under this Agreement and the other
Transaction Documents to which each is a party, (iii) are duly qualified and licensed and in good
standing under the Laws of each jurisdiction where their ownership, lease or operation of
properties or the conduct of its business requires such qualification or license, and (iv) are in
compliance with all Laws, except in each case referred to in clause (ii)(A), (iii) or (iv), to the
extent the failure to do so could not reasonably be expected to have a Material Adverse Effect.

          (b) Authorization; No Contravention. The execution, delivery and performance by
Parent and NRG Retail of this Agreement and the other Transaction Documents to which either is a
party has been duly authorized by all necessary corporate action, and does not and will not
(i) contravene the
terms of any of either Parent’s or NRG Retail’s Organizational Documents; (ii) conflict with
or result in any breach or contravention of, or the creation of any Lien under, or require any
payment to be made

7

 

under (A) (1) the NRG Parent Debt or (2) any other Contractual Obligation to
which Parent is a party or affecting Parent or the properties of Parent or any of its Subsidiaries
except as could not reasonably be expected in the case of this clause (2) to have a Material
Adverse Effect, or (B) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which Parent or its property is subject which could reasonably be expected to
have a Material Adverse Effect; or (iii) violate any Law the violation of which could reasonably be
expected to have a Material Adverse Effect.

          (c) Binding Effect. This Agreement has been, and each other Transaction Document to
which Parent and/or NRG Retail is a party, when executed and delivered hereunder, will have been,
duly executed and delivered by Parent and/or NRG Retail. This Agreement constitutes, and each
other Transaction Document when so executed and delivered will constitute a legal, valid and
binding obligation of Parent and/or NRG Retail, enforceable against Parent and/or NRG Retail in
accordance with their respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by
general principles of equity, whether such enforceability is considered in a proceeding at law or
in equity.

          (d) No Proceedings. There are no actions, suits, proceedings, claims or disputes
pending or, to the knowledge of Parent or NRG Retail, threatened or contemplated, at law, in
equity, in arbitration or before any Governmental Authority, by or against Parent or NRG Retail or
against either of their respective properties or revenues that purport to affect or pertain to this
Agreement, the other Transaction Documents to which either is a party or any of the transactions
contemplated hereby, if determined adversely, could reasonably be expected to have a Material
Adverse Effect.

          (e) Solvency. Parent is, together with its Subsidiaries on a consolidated basis,
Solvent.

SECTION 3.2 Indemnification; Expenses.

          (a) Parent shall defend, indemnify and hold harmless MLCI from and against any and all costs,
expenses, losses, damages, claims, and liabilities, suffered or sustained by MLCI arising out of or
resulting from any breach of any of Parent’s or NRG Retail’s representations, warranties or
covenants contained herein, except for any such amounts resulting from any gross negligence, bad
faith or willful misconduct of MLCI.

          (b) The Parent agrees to reimburse MLCI for all reasonable, documented out of pocket costs and
expenses of MLCI (including, without limitation, the reasonable, documented fees and expenses of
legal counsel) in connection with (a) any default under this Agreement and any enforcement or
collection proceeding resulting therefrom, including, without limitation, all manner of
participation in or other involvement with (i) bankruptcy, insolvency, receivership, foreclosure,
winding up or liquidation proceedings, (ii) judicial or regulatory proceedings and (iii) workout,
restructuring or other negotiations or proceedings (whether or not the workout, restructuring or
transaction contemplated thereby is consummated) and (b) the enforcement of this Section 3.2. The
expense and indemnity obligations hereunder shall be in addition to any obligation that Parent may
otherwise have under applicable law or this Agreement.

          (c) NO PARTY SHALL BE LIABLE UNDER THIS AGREEMENT FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE,
EXEMPLARY OR INDIRECT DAMAGES,
INCLUDING CONSEQUENTIAL LOST PROFITS OR OTHER CONSEQUENTIAL BUSINESS INTERRUPTION DAMAGES, BY
STATUTE, IN TORT OR CONTRACT OR OTHERWISE.

8

 

ARTICLE IV

COVENANTS OF PARENT

SECTION 4.1 Exclusivity. From and after the date hereof until the Credit Sleeve
Termination Date, Parent shall not and shall not permit any of its Subsidiaries (other than RERH
Holdings and its Subsidiaries) to, engage, directly or indirectly, in the Retail Energy Business in
the ERCOT market area or any other market area in which RERH Holdings and its Subsidiaries engage
in the Retail Energy Business. The foregoing shall not in any way limit the ability of (i) Parent
and its Subsidiaries (other than RERH Holdings and its Subsidiaries) to sell wholesale power and
related products or to enter into Prohibited New C&I Contracts or (ii) Parent or any Subsidiary (or
a surviving entity) to engage in a previously existing Retail Energy Business in the ERCOT market
immediately following, and acquired directly as the result of, a transaction contemplated by the
last paragraph of the definition of “Change of Control” (as defined in the CSRA).

SECTION 4.2 Non-Reliance. Each of Parent and NRG Retail acknowledge that they have made
their our own independent decision to enter into the Retail Acquisition and as to whether the
Retail Acquisition is appropriate or proper for Parent and NRG Retail based upon their own judgment
and upon advice from such legal and financial advisers as they have deemed necessary. The terms of
the Retail Acquisition have been negotiated by Parent with REI on an arms-length basis and Parent
and NRG Retail are not relying on any communication (written or oral) of MLCI or any of its
affiliates for investment advice or as a recommendation to enter into the Retail Acquisition and
have not considered any information or explanations related to the terms and conditions of the
Retail Acquisition as investment advice or a recommendation to enter into the Retail Acquisition.
No communication (written or oral) received from MLCI or it affiliates shall be deemed to be an
assurance or guarantee as to the expected results of the Retail Acquisition and neither Parent nor
NRG Retail shall have any claim against MLCI or any of its affiliates with respect to the Retail
Acquisition all of which are hereby waived by Parent and NRG Retail.

SECTION 4.3 Investment Basket under NRG Credit Agreement.

          (a) From and after the date hereof until the Credit Sleeve Termination Date, Parent shall
maintain sufficient capacity under the exception to the negative covenant restricting “Investments”
(as defined in the NRG Credit Agreement) pursuant to clauses (h), (l) or (m) of Section 6.05 of the
NRG Credit Agreement to permit it to make the then maximum amount of Contingent Equity
Contributions it would be obligated to make hereunder if the contingencies giving rise to its
capital contribution obligations were to occur.

          (b) Deliver to the Lender as soon as available, but in any event within fifty (50) calendar
days after the end of each of the first three Fiscal Quarter of each Fiscal Year and within ninety
(90) calendar days after the end of each Fiscal Year a duly completed certificate signed by a
Financial Officer of the Parent certifying that the Parent is (and was at all times since the date
of the last delivered certificate under this Section 4.3(b), or in the case of the first
certificate delivered hereunder, since the date hereof) in compliance with its covenant in clause
(a) of this Section and providing a calculation in reasonable detail as of such date setting forth
such compliance.

SECTION 4.4 Other Covenants. The provisions of Article V and Article VI of the NRG Credit
Agreement (other than Sections 5.06, 5.07(b) and (c), 5.08, 5.09, 5.10, 6.11 and 6.15 thereof),
together with all underlying definitions (the “Specified Covenants”), all as in effect from
time to time, are hereby incorporated herein by reference mutatis mutandis and
shall be deemed to continue in effect (with any

9

 

 amendments, modifications or waivers thereof) for
the benefit of MLCI; provided that if the NRG Credit Agreement is no longer in effect or at
any time the aggregate outstanding principal amount of Indebtedness outstanding and/or available to
be drawn thereunder is less than $100 million then the foregoing clause shall be deemed to apply to
such Specified Covenants as the same were in effect immediately before the NRG Credit Agreement
ceased to be in effect or immediately before the aggregate outstanding principal amount and/or
amount available to be drawn thereunder was reduced to less than $100 million, as the case may be,
and without giving effect to any amendments or waivers entered into immediately prior to or
otherwise in connection with the termination of such agreement or such reduction in principal
amount and provided further that (i) with respect to Section 5.02 of the NRG Credit
Agreement the following clause shall not apply “maintain such other insurance as otherwise required
by the Security Documents”, (ii) with respect to Section 6.07 of the NRG Credit Agreement, to the
extent that the incorporation of such Section herein would result in a breach under such Section
under the NRG Credit Agreement or under Section 4.08 of the Senior Note Documents, such
incorporation shall be deemed null and void only to the extent necessary to prevent such breach
from occurring and (iii) nothing in this Agreement shall limit the Liens of the lenders or the
loans under the NRG Credit Agreement with respect to the Parent or any of its Subsidiaries other
than RERH Holdings and its Subsidiaries.

     Notwithstanding anything to the contrary in this Agreement or any other Transaction Document,
(x) Parent shall have at all times the right (and MLCI shall have no right or claim in respect of
any such action) to amend, restate, supplement, replace, obtain waivers or consents, or otherwise
modify any and all terms and conditions of the NRG Credit Agreement (including the Specified
Covenants) in accordance with the terms thereof (provided that after the date when the aggregate
outstanding principal amount of Indebtedness outstanding and/or available to be drawn thereunder
was reduced to less than $100 million, no such amendment, restatement, supplement, replacement,
waiver or modification shall affect the Specified Covenants hereunder), and (y) (except following
the date when the aggregate outstanding principal amount of Indebtedness outstanding and/or
available to be drawn under the NRG Credit Agreement was reduced to less than $100 million) a
waiver of any breach of, or consent obtained under, any term or condition of the NRG Credit
Agreement (including with respect to the Specified Covenants) obtained in accordance with the terms
and conditions thereof shall operate, automatically and without further action, as a waiver or
consent in respect of the same terms and conditions under this Agreement and any other Transaction
Document as relevant to the Specified Covenants.

ARTICLE V

MISCELLANEOUS

SECTION 5.1 Liability of Parent. Parent shall be liable in accordance herewith only to the
extent of the obligations in this Agreement specifically undertaken by Parent and with respect to
its representations and warranties set forth hereunder.

SECTION 5.2 Specific Performance. Each of Parent and NRG Retail acknowledges and agrees
that the other parties hereto would be irreparably damaged in the event that any of the terms or
provisions of this Agreement are not performed in accordance
with their specific terms or otherwise are breached. Therefore, each of Parent and NRG Retail
hereby agrees that each other party hereto shall be entitled to an injunction or injunctions to
prevent breaches of any of the terms or provisions of this Agreement, and to enforce specifically
the performance by Parent and NRG Retail under this Agreement.

SECTION 5.3 Amendments. Neither this Agreement nor any provision hereof may be waived,
amended or modified except pursuant to an agreement or agreements in writing entered into by the
Parent, NRG Retail, RERH Holdings, RERH and MLCI.

10

 

SECTION 5.4 Notices. All demands, notices and communications to Parent, NRG Retail, RERH
Holdings, RERH or MLCI hereunder shall be in writing, personally delivered, or sent by telecopier
(subsequently confirmed in writing), reputable overnight courier or mailed by certified mail,
return receipt requested, and shall be deemed to have been given upon receipt (a) in the case of
Parent at the following address: NRG Energy, Inc., 211 Carnegie Center, Princeton, New Jersey
08540, Attn: Treasurer, Chief Financial Officer and General Counsel, Telecopy No. (609) 524-4501,
(b) in the case of NRG Retail at the following address: NRG Retail, LLC, c/o NRG Energy, Inc., 211
Carnegie Center, Princeton, New Jersey 08540, Attn: Treasurer, Chief Financial Officer and General
Counsel, Telecopy No. (609) 524-4501, (c) in the case of RERH Holdings at the following address:
RERH Holdings, LLC, c/o NRG Energy, Inc., 211 Carnegie Center, Princeton, New Jersey 08540, Attn:
Treasurer, Chief Financial Officer and General Counsel, Telecopy No. (609) 524-4501, or such other
address as shall be designated by RERH Holdings in a written notice delivered to Parent, (d) in the
case of RERH at the following address: Reliant Energy Retail Holdings, LLC, c/o NRG Energy, Inc.,
211 Carnegie Center, Princeton, New Jersey 08540, Attn: Treasurer, Chief Financial Officer and
General Counsel, Telecopy No. (609) 524-4501, or such other address as shall be designated by RERH
in a written notice delivered to Parent or (e) in the case of MLCI at the following address: 20
East Greenway Plaza, Suite 700, Houston, Texas, 77046, Attn: Legal Department, Telephone (713)
544-5263, Telecopy No. (713) 544-5551.

SECTION 5.5 Merger and Integration. Except as specifically stated otherwise herein, this
Agreement and the other Transaction Documents set forth the entire understanding of the parties
hereto relating to the subject matter hereof, and all prior understandings, written or oral, are
superseded by this Agreement and the other Transaction Documents.

SECTION 5.6 Severability of Provisions. If any one or more of the covenants, provisions or
terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants,
provisions or terms shall be deemed severable from the remaining covenants, provisions or terms of
this Agreement and shall in no way affect the validity or enforceability of the other provisions of
this Agreement.

SECTION 5.7 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

SECTION 5.8 Counterparts. For the purpose of facilitating the execution of this Agreement
and for other purposes, this Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument. Delivery of an executed counterpart
of a signature page to this Agreement by facsimile or electronic mail shall be effective as
delivery of a manually executed counterpart of this Agreement.

SECTION 5.9 Nonpetition Covenant; Bankruptcy.

          (a) Each of Parent and NRG Retail agree that prior to the date which is one year and one day
(or, if longer, the applicable preference period then in effect and one day) after the satisfaction
and performance in full of all Secured Obligations under the Transaction Documents, it will not nor
shall it cause any of its Subsidiaries to institute against, or join any other Person in
instituting against, NRG Retail (in the case of Parent) or RERH Holdings or any of its Subsidiaries
(in the case of both Parent and NRG Retail) any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings or other proceedings under any bankruptcy, insolvency, reorganization or
similar law.

          (b) The obligations of the Parent and NRG Retail under this Agreement will remain

11

 

in full
force and effect following any bankruptcy, insolvency, reorganization, appointment of a receiver,
liquidator, trustee or assignee in bankruptcy or insolvency, winding up or liquidation of RERH
Holdings or RERH.

SECTION 5.10 Binding Effect; Assignability; Third Party Beneficiary.

          (a) This Agreement shall be binding upon and inure to the benefit of Parent, NRG Retail, RERH
Holdings, RERH, MLCI and their respective permitted successors and assigns; provided,
however, that no party may assign its rights or obligations hereunder or any interest
herein without the prior written consent of the other parties hereto. Notwithstanding the
foregoing, each of the parties hereto hereby acknowledges that (i) MLCI may assign all of its
rights hereunder to an assignee pursuant to the terms of the Transaction Documents, and such
assignee shall have all rights of MLCI under this Agreement (as if such assignee were MLCI
hereunder), including without limitation the Collateral Trustee, and (ii) RERH will assign its
rights hereunder to Collateral Trustee and each of Parent and NRG Retail and RERH Holdings hereby
consents to any such assignments under the foregoing clauses (i) and (ii). All such assignees
shall be third party beneficiaries of, and shall be entitled to enforce MLCI’s rights and remedies
under this Agreement to the same extent as if they were parties thereto, except to the extent
specifically limited under the terms of their assignment.

          (b) MLCI shall be a third party beneficiary of all of RERH Holdings’ and RERH’s rights and
remedies hereunder, and shall be entitled, to the exclusion of RERH Holdings and RERH, to enforce
all of RERH Holdings’ and RERH’s rights and remedies under this Agreement.

          (C) This Agreement shall create and constitute the continuing obligation of the parties hereto
in accordance with its terms, and shall remain in full force and effect until the Credit Sleeve
Termination Date; provided, however, that rights and remedies with respect to any
breach of any representation and warranty made by Parent or NRG Retail pursuant to Article
III hereof and the provisions of Section 3.2 and Section 5.8 shall survive any
termination of this Agreement.

SECTION 5.11 Term. This Agreement shall commence as of the date of execution and delivery
hereof and shall continue in full force and effect until the Credit Sleeve Termination Date.

12

 

     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by or on behalf of
each party hereto as of the date first above written.

	 	 	 	 	 
	 	RELIANT ENERGY RETAIL HOLDINGS, LLC

 	 
	 	By:  	/s/ Christopher S. Sotos
 	 
	 	 	Name:  	Christopher S. Sotos 	 
	 	 	Title:  	Vice President 	 
	 
	 	RERH HOLDINGS, LLC

 	 
	 	By:  	/s/ Christopher S. Sotos
 	 
	 	 	Name:  	Christopher S. Sotos 	 
	 	 	Title:  	Vice President 	 
	 
	 	NRG RETAIL, LLC

 	 
	 	By:  	/s/ Christopher S. Sotos
 	 
	 	 	Name:  	Christopher S. Sotos 	 
	 	 	Title:  	President 	 
	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	/s/ Christopher S. Sotos
 	 
	 	 	Name:  	Christopher S. Sotos 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	MERRILL LYNCH COMMODITIES, INC.

 	 
	 	By:  	/s/ Dennis Albrecht
 	 
	 	 	Name:  	Dennis Albrecht 	 
	 	 	Title:  	Managing Director and COO 	 

[Signature Page to Contingent Contribution Agreement]EX-10.44

Exhibit 10.44

GREENHILL & CO., INC. EQUITY INCENTIVE PLAN

(as amended and restated)

     Section 1. Purpose. The purposes of this Equity Incentive Plan (as amended and restated)
(the “Plan”) are to attract, retain and motivate key employees and directors of and consultants and
advisors to Greenhill & Co., Inc. (the “Company”) and its subsidiaries and to align the interests
of key employees, directors, consultants and advisors with shareholders with equity-based
compensation and enhanced opportunities for ownership of shares of the Company’s common stock.

     Section 2. Definitions. The following terms used in the Plan and any agreement entered into
pursuant to the Plan shall have the meaning set forth below:

     “Affiliate” means (i) any Person that directly, or through one or more intermediaries,
controls, or is controlled by, or is under common control with, the Company or (ii) any entity in
which the Company has a significant equity interest, as determined by the Committee.

     “Award” means any Option, award of Restricted Stock or Restricted Stock Units, Performance
Award, Other Stock-Based Award, or any other right, interest or grant relating to Shares or other
property granted pursuant to the Plan.

     “Award Agreement” means any written agreement, contract or other instrument or document
evidencing any Award, which may, but need not be (as determined by the Committee) executed or
acknowledged by a Participant as a condition to receiving an Award or the benefits under an Award.

     “Board” or “Board of Directors” means the Board of Directors of the Company.

     “Change in Control” means the consummation of a merger, consolidation, statutory share
exchange or similar form of corporate transaction involving the Company or the sale or other
disposition of all or substantially all of the assets of the Company to an entity that is not an
affiliate or that, in each case, requires shareholder approval under the laws of the Company’s
jurisdiction of organization, unless immediately following such transaction, either: (i) at least
50% of the total voting power of the surviving entity or its parent entity, if applicable, is
represented by securities of the Company that were outstanding immediately prior to the transaction
(or securities into which the Company’s securities were converted or exchanged in such
transaction); or (ii) at least 50% of the members of the board of directors (including directors
whose election or nomination was approved by the incumbent directors of the Board) of the company
resulting from the transaction were members of the Board at the time of

 

 

the Board’s approval of the execution of the initial agreement providing for the transaction.

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

     “Committee” means the Compensation Committee of the Board, or any successor to such committee,
or any other committee of our Board appointed or designated by the Board, in each case, composed of
no fewer than two directors each of whom is a “non-Employee director” within the meaning of Rule
16b-3 of the Securities and Exchange Act of 1934, as amended, and an “outside director” within the
meaning of Section 162(m) of the Code and the regulations promulgated thereunder.

     “Covered Employee” means an individual who is both (i) a “covered employee” within the meaning
of Section 162(m)(3) of the Code, or any successor provision thereto and (ii) expected by the
Committee to be the recipient of compensation (other than “qualified performance based
compensation” as defined in Section 162(m) of the Code) in excess of $1,000,000 for the tax year of
the Company with regard to which a deduction in respect of such individual’s Award would be
allowed.

     “Disability” means the disability of a Participant (i) such that the Participant is considered
disabled under any long term disability plan of the Company, or otherwise (ii) as determined by the
Committee in its sole discretion.

     “Eligible Person” means any full time or part time employee (including an officer or director
who is also an employee), consultant or advisor of the Company or any Affiliate selected by the
Committee. Other than for awards of Options, “Eligible Person” shall also include any individual
to whom an offer of employment has been extended, a member of the Board or a member of the board of
directors of a Subsidiary. References to “employment” and related terms in the Plan shall include
the provision of services in any capacity.

     “Fair Market Value” means the closing sale price of the Shares, as reported on the composite
tape of New York Stock Exchange, or any other reporting system selected by the Committee on the
relevant dates, or, if no sale of Shares is reported for that date, on the date or dates that the
Committee determines, in its sole discretion, to be appropriate for purposes of the valuation.

     “Incentive Stock Option” means any Option designated as an incentive stock option within the
meaning of Section 422 of the Code and qualifying thereunder.

     “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option.

2

 

     “Option” means an option to purchase a Share or Shares granted under the Plan.

     “Other Stock-Based Award” means an Award granted pursuant to Section 9 of the Plan.

     “Participant” means a person who has been granted an Award under the Plan which remains
outstanding, including a person who is no longer an Eligible Person.

     “Performance Award” means an Award structured in accordance with Section 10 of the Plan.

     “Performance Period” means the period established by the Committee at the time any Performance
Award is granted or at any time thereafter during which any performance goals specified by the
Committee with respect to such Award are measured.

     “Person” means an individual, corporation, partnership, association, trust, limited liability
company or any other entity or organization, including a government or political subdivision or an
agency, unit or instrumentality thereof.

     “Restricted Stock” means an award of shares which are subject to certain restrictions and to a
risk of forfeiture.

     “Restricted Stock Unit” means a contractual right granted under Section 8 that is denominated
in Shares. Each Restricted Stock Unit represents a right to receive the value of one Share upon
the terms and conditions set forth in the Plan and the applicable Award Agreement.

     “Retirement” means termination of employment on or after the date the Participant has (i)
attained age 65 and completed at least two years of service; (ii) completed at least twelve years
of service as a managing director of the Company or its predecessors, (iii) has completed at least
twenty years of service with the Company or its predecessors or (iv) effective for retirement on or
after May 11, 2014, attained age 55 and completed at least five years of service as a managing
director of the Company.

     “Share” means a share of common stock of the Company, par value $0.01.

     “Subsidiary” means a company where 50% or more of its issued stock or other membership
interests is owned directly or indirectly by the Company at the time an Award is issued under the
Plan.

     “Substitute Award” means an Award granted in assumption of, or in substitution for, an
outstanding equity award previously granted by a business or

3

 

entity all or a portion of which is acquired by the Company or any Affiliate or with which the
Company or an Affiliate combines.

     Section 3. Administration. (a) The Plan will be administered by the Committee. To the
extent permitted by applicable law, the Committee or the Board may delegate to one or more officers
of the Company the authority to grant awards except that such delegation shall not be applicable to
any Award for a person then covered by Section 16 of the Act. Subject to and consistent with the
provisions of the Plan, the Committee (or its delegate or a delegate of the Board) will have full
power and authority, in its discretion, and without limitation, to: (i) select Eligible Persons to
become Participants; (ii) determine the type and number of Awards to be granted to each
Participant; (iii) determine the number of Shares to be covered by each Award; (iv) determine the
dates on which Awards may be exercised and on which the risk of forfeiture or deferral period
relating to Awards shall lapse or terminate, and the acceleration of any such dates; (v) determine
the expiration date of any Award; (vi) determine whether, to what extent, and under what
circumstances an Award may be settled, or the exercise price of an Award may be paid, in cash,
Shares, other Awards, or other property; (vii) determine any other terms and conditions of, and all
other matters relating to, Awards; (viii) prescribe Award Agreements (such Award Agreements need
not be identical for each Participant) and amendments thereto; (ix) construe and interpret the Plan
and the respective Award Agreements entered into pursuant to the Plan; and (x) make all other
determinations necessary or advisable for administering the Plan. All decisions and determinations
of the Committee with respect to the administration and interpretation of the Plan shall be final,
conclusive, and binding upon all persons interested in the Plan, including Participants,
beneficiaries, and other persons claiming rights from or through a Participant, and shareholders.

     (b) To the fullest extent permitted by law, each member and former member of the Committee and
each person to whom the Committee or the Board delegates or has delegated authority under this Plan
shall be entitled to indemnification by the Company against and from any loss, liability, judgment,
damage, cost and reasonable expense incurred by such member, former member or other person by
reason of any action taken, failure to act or determination made in good faith under or with
respect to this Plan.

     Section 4. Shares Subject to the Plan; Limits on Awards.

     (a) Shares to be issued under the Plan may consist, in whole or in part, of authorized and
unissued Shares, treasury Shares or Shares purchased by the Company in the open market or
otherwise. Subject to adjustment made in accordance with Section 12 of the Plan, the maximum
number of Shares that may be issued under the Plan will not exceed 30,000,000. Notwithstanding the
foregoing and subject to adjustment as provided in Section 12 of the Plan, under the Plan no
Covered Employee may be granted in any calendar year (i) Options that relate to more than 700,000
Shares, (ii) Performance Awards denominated in Shares that relate to more than 700,000 Shares and
(iii) Performance Awards

4

 

denominated in cash or valued with reference to property other than Shares with a maximum
dollar value payable equal to $25,000,000.

     (b) Shares subject to an Award (other than a Substitute Award) that is canceled, expired,
forfeited, settled in cash or otherwise terminated without a delivery of Shares to the Participant
will again be available for Awards, and Shares withheld in payment of the exercise price or taxes
relating to an Award and Shares equal to the number surrendered in payment of any exercise price or
taxes relating to an Award shall be deemed to constitute Shares not delivered to the Participant
and shall be deemed to again be available for Awards under the Plan. Shares underlying Substitute
Awards shall not reduce the number of Shares available for delivery under the Plan.

     Section 5. Eligibility. Awards may be granted only to Eligible Persons who are selected to
be Participants by the Committee in accordance with the provisions of the Plan. Holders of
equity-based awards granted by a business or entity all or a portion of which is acquired by the
Company or any Affiliate or with which the Company or an Affiliate combines are eligible to receive
Substitute Awards hereunder.

     Section 6. Options. The Committee is authorized to grant Options to Participants on the
following terms and conditions and with such additional terms and conditions, not inconsistent with
the provisions of the Plan, as the Committee shall determine.

     (a) Exercise Price. The exercise price of each Option granted under the Plan shall be
determined by the Committee and shall not be less than the Fair Market Value of a Share on the date
of grant of such Option. Notwithstanding the foregoing, any Substitute Award may be granted with
an exercise price per Share other than as required above.

     (b) Term and Termination of Options. The term of each Option, together with the effect of
termination of employment or service by a Participant on such term, will be determined by the
Committee, but in no event will an Option be exercisable, either in whole or in part, after the
expiration of ten years from the date of grant of such Option.

     (c) Exercise of Option. Each Option shall be exercisable at such times and subject to such
terms and conditions as the Committee may, in its sole discretion, specify in the applicable Award
Agreement or thereafter. The Committee may impose such conditions with respect to the exercise of
Options, including without limitation, any conditions relating to the application of federal or
state securities laws, as it may deem necessary or advisable and shall determine the time in which
Options shall be exercisable in whole or in part and the methods by which such exercise price may
be paid or deemed to be paid and the form of such payment, including, without limitation, cash,
Shares, or other property (including notes and other contractual obligations of Participants to
make

5

 

payment on a deferred basis, such as through “cashless exercise” arrangements, to the extent
permitted by applicable law), and the methods by or forms in which Shares will be delivered or
deemed to be delivered in satisfaction of Options to Participants.

     Section 7. Incentive Stock Options. In accordance with rules and procedures established by
the Committee, the aggregate Fair Market Value (determined as of the time of grant) of the Shares
with respect to which Incentive Stock Options held by any Participant which are exercisable for the
first time by such Participant during any calendar year under the Plan (and under any other benefit
plans of the Company or any Subsidiary) shall not exceed $100,000 or, if different, the maximum
limitation in effect at the time of grant under Section 422 of the Code, or any successor
provision, and any regulations promulgated thereunder. Incentive Stock Options shall be granted
only to participants who are employees of the Company or a Subsidiary of the Company. The terms of
any Incentive Stock Option granted hereunder shall comply in all respects with the provisions of
Section 422 of the Code, or any successor provision, and any regulations promulgated thereunder.

     Section 8. Restricted Stock and Restricted Stock Unit Awards. The Committee is authorized to
grant Restricted Stock and/or Restricted Stock Units to Participants.

     (a) The Awards granted under this Section 8 shall be subject to such restrictions as the
Committee may impose (including, without limitation, any limitation on the right to vote Shares
underlying Restricted Stock Awards or the right to receive any dividend, other right or property),
which restrictions may lapse separately or in combination at such time or times, in such
installments or otherwise, as the Committee may deem appropriate.

     (b) Any Award of Restricted Stock or Restricted Stock Units may be evidenced in such manner as
the Committee may deem appropriate, including, without limitation, book-entry registration or
issuance of a stock certificate or certificates. In the event any stock certificate is issued in
respect of Shares underlying a Restricted Stock Award, such certificate shall be registered in the
name of the Participant and shall bear an appropriate legend referring to the terms, conditions,
and restrictions applicable to such Shares.

     (c) If the Committee intends that an Award of Restricted Stock or Restricted Stock Units shall
constitute or give rise to “qualified performance based compensation” under Section 162(m) of the
Code, such Award of Restricted Stock or Restricted Stock Units may be structured in accordance with
Section 10 and any such Award of Restricted Stock or Restricted Stock Units shall be considered a
Performance Award for purposes of this Plan.

     Section 9. Other Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other

6

 

Awards that may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Shares or factors that may influence the value of Shares,
including, without limitation, convertible or exchangeable debt securities, other rights
convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment
contingent upon performance of the Company or business units thereof or any other factors
designated by the Committee. The Committee shall determine the terms and conditions of such
Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under this
Section 9 shall be purchased for such consideration, paid for at such times, by such methods, and
in such forms, including, without limitation, cash, Shares, other Awards, notes, or other property,
as the Committee shall determine. Cash awards, as an element of or supplement to any other Award
under the Plan, may also be granted pursuant to this Section 9.

     Section 10. Performance Awards.

     (a) General. Performance Awards may be denominated as a cash amount, number of Shares, or a
combination thereof and are awards which may be earned upon achievement or satisfaction of
performance conditions specified by the Committee. In addition, the Committee may specify that any
other Award shall constitute a Performance Award by conditioning the right of a Participant to
exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of
such performance conditions as may be specified by the Committee. The Committee may use such
business criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions.

     (b) Performance Awards Granted to Covered Employees. If the Committee determines that a
Performance Award to be granted to an Eligible Person who is designated by the Committee as likely
to be a Covered Employee should qualify as “performance-based compensation” for purposes of Section
162(m) of the Code, the grant, exercise and/or settlement of such Performance Award shall be
contingent upon achievement of a preestablished performance goal and other terms set forth in this
Section 10(b). The Committee shall have the power to impose such other restrictions on Awards
subject to this Section 10(b) as it may deem necessary or appropriate to ensure that such Awards
satisfy all requirements for “performance-based compensation” within the meaning of Section
162(m)(4)(C) of the Code, or any successor provision thereto.

     (c) Performance Goals Generally. The performance goals for such Performance Awards shall
consist of one or more business criteria and a targeted level or levels of performance with respect
to each of such criteria, as specified by the Committee consistent with this Section 10. The
performance goals shall be objective, shall be pre-established by the Committee and shall otherwise
meet the requirements of Section 162(m) of the Code and regulations thereunder. The Committee may
determine that such Performance Awards shall be granted, exercised and/or settled upon achievement
of any one performance goal or that

7

 

two or more of the performance goals must be achieved as a condition to grant, exercise and/or
settlement of such Performance Awards. Performance goals may differ for Performance Awards granted
to any one Participant or to different Participants.

     (d) Business Criteria. One or more of the following business criteria for the Company, on a
consolidated basis, and/or for specified subsidiaries or affiliates or other business units of the
Company shall be used by the Committee in establishing performance goals for such Performance
Awards: (i) earnings per share, (ii) return on average common equity, (iii) pre-tax income, (iv)
pre-tax operating income, (v) net revenues, (vi) net income, (vii) profits before taxes, (viii)
book value per share, (ix) stock price, (x) earnings available to common shareholders, (xi) ratio
of compensation and benefits to net revenues and (xii) execution and origination of assignments
directly related to the individual covered employee. Such targets may relate to the Company as a
whole, or to one or more units thereof, and may be measured over such periods, as the Committee
shall determine. The targeted level or levels of performance with respect to such business
criteria may be established at such levels and in such terms as the Committee may determine, in its
discretion, including in absolute terms, as a goal relative to performance in prior periods, or as
a goal compared to the performance of one or more comparable companies or an index covering
multiple companies.

     (e) Settlement of Performance Awards; Other Terms. Settlement of Performance Awards shall be
in cash, Shares, other Awards or other property, or a combination thereof, in the discretion of the
Committee. Performance Awards will be distributed only after the end of the relevant Performance
Period. The Committee may, in its discretion, increase or reduce the amount of a settlement
otherwise to be made in connection with such Performance Awards, but may not exercise discretion to
increase any such amount payable to a Covered Employee in respect of a Performance Award subject to
Paragraph (b) above. Any settlement which changes the form of payment from that originally
specified shall be implemented in a manner such that the Performance Award and other related Awards
do not, solely for that reason, fail to qualify as “performance-based compensation” for purposes of
Section 162(m) of the Code. The Committee shall specify the circumstances in which such
Performance Awards shall be paid or forfeited in the event of termination of employment by the
Participant.

     Section 11. Termination of Employment. Unless otherwise determined by the Committee or
provided by the Committee in the applicable Award Agreement, the following provisions shall apply:

     (a) Upon a termination of employment as a result of death, Disability or Retirement:

     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the
Participant will be immediately accelerated and become fully vested, exercisable and
payable, and

8

 

     (ii) any Option then held by the Participant will be immediately accelerated and
become fully vested, exercisable and payable and will expire on the earlier of (A) the
date the option would have expired had the Participant continued in such employment and
(B) one year after the date such Participant’s service ceases.

     (b) Upon termination of employment by the Company for cause (as determined by the Committee in
its sole discretion):

     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the
Participant whose restrictions have not lapsed will automatically be forfeited in full and
canceled by the Company upon such termination of employment, and

     (ii) any Option then held by the Participant, to the extent exercisable, will
automatically be forfeited in full and canceled by the Company upon such termination of
employment.

     (c) Upon a termination of employment by the Company without cause (as determined by the
Committee in its sole discretion) within two years following the occurrence of a Change in Control
or upon a termination of employment by the Company without cause (as determined by the Committee in
its sole discretion) six months prior to the occurrence of a Change in Control if the Committee
reasonably determines in its sole discretion that such termination was at the behest of the
acquiring entity (each such termination of employment deemed to be a termination of employment “in
connection with” the occurrence of a Change in Control):

     (i) any Restricted Stock Award or Restricted Stock Unit Award then held by the
Participant will be immediately accelerated and become fully vested, exercisable and
payable, and

     (ii) any Option then held by the Participant will be immediately accelerated and
become fully vested, exercisable and payable shall automatically expire on the earlier of
(A) the date the Option would have expired had the Participant continued in such
employment and (B) one year after the date such Participant’s service ceases.

     (d) Upon termination of employment for any reason other than death, Disability, Retirement or
termination of employment by the Company for cause (as determined by the Committee in its sole
discretion) or in connection with the occurrence of a Change in Control:

     (i) any time vesting Restricted Stock Award or time vesting Restricted Stock Unit
Award then held by the Participant whose restrictions have not lapsed will automatically
be forfeited in full and canceled by the Company upon such termination of employment,

9

 

     (ii) any Option then held by the Participant, to the extent exercisable, shall
automatically expire on the earlier of (A) the date the Option would have expired had the
Participant continued in such employment and (B) one hundred and eighty days (or ninety
days in the case of an Option that is intended to qualify as an Incentive Stock Option)
after the date the such Participant’s service ceases, and

     (iii) any Restricted Stock Award or Restricted Stock Unit Award then held by the
Participant which is not then payable and remains subject to achievement of performance
vesting goals will be paid in accordance with its terms at the time such Award would have
been payable if the termination of employment had not occurred.

     Section 12. Adjustment. In the event that the Committee shall determine that any dividend or
other distribution (whether in the form of cash, Shares, other securities, or other property),
recapitalization, forward or reverse split, reorganization, merger, consolidation, spin-off,
combination, repurchase, share exchange, liquidation, dissolution or other similar corporate
transaction or event affects Shares such that an adjustment is appropriate under the Plan, then the
Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and
kind of Shares which may be delivered in connection with Awards granted thereafter, (ii) the number
and kind of Shares by which annual per person Award limitations are measured under Section 4(a),
(iii) the number and kind of Shares subject to or deliverable in respect of outstanding Awards and
(iv) the exercise price, grant price or purchase price relating to any Award or, if deemed
appropriate, the Committee may make provision for a payment of cash or property to the holder of an
outstanding Option. In addition, the Committee is authorized to make adjustments in the terms and
conditions of, and the criteria included in, Awards (including Performance Awards and performance
goals) in recognition of unusual or nonrecurring events (including, without limitation, events
described in the preceding sentence, as well as acquisitions and dispositions of businesses and
assets) affecting the Company, any Subsidiary or Affiliate or other business unit, or the financial
statements of the Company or any Subsidiary or Affiliate, or in response to changes in applicable
laws, regulations, accounting principles, tax rates and regulations or business conditions or in
view of the Committee’s assessment of the business strategy of the Company, any Subsidiary or
Affiliate or business unit thereof, performance of comparable organizations, economic and business
conditions, personal performance of a Participant, and any other circumstances deemed relevant.

     Section 13. Change In Control. Subject to Section 11 of this Agreement and except as
otherwise provided in the applicable Award Agreement, upon the occurrence of a Change in Control,
the Committee shall determine whether outstanding Options under the Plan shall become fully
exercisable and whether outstanding Awards (other than Options) under the Plan shall become fully
vested and payable.

10

 

     Section 14. Compliance with Laws; Transferability.

     (a) The Company may, to the extent deemed necessary or advisable by the Committee, postpone
the issuance or delivery of Shares or payment of other benefits under any Award until completion of
such registration or qualification of such Shares or other required action under any federal or
state law, rule or regulation, listing or other required action with respect to any stock exchange
or automated quotation system upon which the Shares or other securities of the Company are listed
or quoted, or compliance with any other obligation of the Company, as the Committee may consider
appropriate, and may require any Participant to make such representations, furnish such information
and comply with or be subject to such other conditions as it may consider appropriate in connection
with the issuance or delivery of Shares or payment of other benefits in compliance with applicable
laws, rules, and regulations, listing requirements, or other obligations.

     (b) Limits on Transferability; Beneficiaries. Except as the Committee may otherwise determine
from time to time, (i) no Award and no right under any Award shall be assignable, alienable,
saleable or transferable by a Participant otherwise than by will or by the laws of descent and
distribution; provided, however, that, if so determined by the Committee, a Participant may, in the
manner established by the Committee, designate a beneficiary or beneficiaries to exercise the
rights of the Participant, and to receive any property distributable, with respect to any Award
upon the death of the Participant; (ii) each Award, and each right under any Award, shall be
exercisable during the Participant’s lifetime only by the Participant or, if permissible under
applicable law, by the Participant’s guardian or legal representative; and (iii) no Award and no
right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any
purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company. The provisions of this Section 14(b) shall not apply to any Award which has
been fully exercised, earned or paid, as the case may be, and shall not preclude forfeiture of an
Award in accordance with the terms thereof.

     Section 15. Certain Tax Provisions.

     (a) Withholding. The Company and any Subsidiary or Affiliate is authorized to withhold from
any Award granted, any payment relating to an Award under the Plan, including from a distribution
of Shares, or any payroll or other payment to a Participant, amounts of withholding and other taxes
due or potentially payable in connection with any transaction involving an Award, and to take such
other action as the Committee may deem advisable to enable the Company and Participants to satisfy
obligations for the payment of withholding taxes and other tax obligations relating to any Award.
This authority shall include authority to withhold or receive Shares or other property and to make
cash payments in respect thereof in satisfaction of a Participant’s withholding obligations, either
on a mandatory or elective basis in the discretion of the

11

 

Committee. Notwithstanding any other provision of the Plan, only the minimum amount of
Shares deliverable in connection with an Award necessary to satisfy statutory withholding
requirements will be withheld.

     (b) Requirement of Notification Upon Disqualifying Disposition Under Code Section 421(b). If
any Participant shall make any disposition of Shares delivered pursuant to the exercise of an
Incentive Stock Option under the circumstances described in Section 421(b) of the Code, such
Participant shall notify the Company of such disposition within ten days thereof.

     (c) Section 409A of the Code. With respect to Awards subject to Section 409A of the Code, if
any, the Plan is intended to comply with the requirements of Section 409A, and the provisions
hereof shall be interpreted in a manner that satisfies the requirements of Section 409A and the
related regulations, and the Plan shall operate accordingly. If any provision of the Plan or any
term or condition of any Award would otherwise frustrate or conflict with this intent, the
provision, term or condition will be interpreted and deemed amended so as to avoid this conflict.

     Section 16. General Provisions.

     (a) Neither the Plan nor any action taken hereunder shall be construed as (i) giving any
Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the
employ or service of the Company or a Subsidiary or Affiliate, (ii) interfering in any way with the
right of the Company or a Subsidiary or Affiliate to terminate any Eligible Person’s or
Participant’s employment or service at any time (subject to the terms and provisions of any
separate written agreements), (iii) giving an Eligible Person or Participant any claim to be
granted any Award under the Plan or to be treated uniformly with other Participants and employees,
or (iv) conferring on a Participant any of the rights of a shareholder of the Company unless and
until the Participant is duly issued or transferred Shares in accordance with the terms of an Award
or an Option is duly exercised. Except as expressly provided in the Plan and an Award Agreement,
neither the Plan nor any Award Agreement shall confer on any person other than the Company and the
Participant any rights or remedies thereunder.

     (b) The prospective recipient of any Award under the Plan shall not, with respect to such
Award, be deemed to have become a Participant, or to have any rights with respect to such Award,
until and unless such recipient shall have received or executed (if execution is required) an Award
Agreement or other instrument evidencing the Award and delivered a copy thereof to the Company, and
otherwise complied with the then applicable terms and conditions.

     (c) The Committee shall have full power and authority to determine whether, to what extent and
under what circumstances any Award shall be canceled or suspended. In addition, all outstanding
Awards to any Participant shall be canceled if the Participant, without the consent of the Company,
while

12

 

employed by the Company or after termination of such employment, establishes a relationship
with a competitor of the Company or engages in activity which is in conflict with or adverse to the
interest of the Company, as determined under the Company’s non-competition policy, as in effect
from time to time.

     (d) Subject to applicable law, the Committee shall be authorized to establish procedures
pursuant to which the payment of any Award may be deferred, either automatically, or at the
election of the Committee or a Participant. Subject to the provisions of the Plan and any Award
Agreement, the recipient of the Award (including, without limitation, any deferred Award) may, if
so determined by the Committee, be entitled to receive, currently or on a deferred basis, cash
dividends, or cash payments in amounts equivalent to cash dividends on Shares (“dividend
equivalents”), with respect to the number of Shares covered by the Award, as determined by the
Committee, in its sole discretion, and the Committee may provide that such amounts (if any) shall
be deemed to have been reinvested in additional Shares or otherwise reinvested.

     (e) If any provision of this Plan is or becomes or is deemed invalid, illegal or unenforceable
in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by
the Committee, such provision shall be construed or deemed amended to conform to applicable laws or
if it cannot be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan, it shall be stricken and the remainder of the Plan
shall remain in full force and effect.

     (f) Awards may be granted to employees of the Company or any Subsidiary or Affiliate who are
foreign nationals or employed outside the United States, or both, on such terms and conditions
different from those applicable to Awards to those employees employed in the United States as may,
in the judgment of the Committee, be necessary or desirable in order to recognize differences in
local law or tax policy. The Committee also may impose conditions on the exercise or vesting of
Awards in order to minimize the Company’s obligation with respect to tax equalization for employees
of the Company or any Subsidiary or Affiliate on assignments outside their home country.

     Section 17. Effective Date; Amendment and Termination.

     (a) The Plan shall become effective upon its adoption by the Board on May 4, 2004.

     (b) Unless the Plan will have been previously terminated by the Board, the Plan will terminate
ten years from the date of its adoption. The Board will have the right, at any time to suspend,
amend, alter, discontinue or terminate the Plan, provided, however that no such action shall be
made without shareholder approval if such approval is necessary to qualify for or comply with any
tax or regulatory requirement for which or with which the Board deems it necessary or

13

 

desirable to qualify or comply. No termination of the Plan or action by the Board in amending
or suspending the Plan may materially impair the rights of a Participant under any outstanding
Award, without the consent of the affected Participant, except any such amendment made to cause the
Plan to comply with applicable law, stock exchange rules and regulations or accounting or tax rules
and regulations.

     (c) The Committee may waive any conditions or rights under, amend any terms of, or amend,
alter, suspend, discontinue or terminate, any Award theretofore granted, prospectively or
retroactively, without the consent of any Participant or holder of beneficiary of any Award,
provided, however, that no such action shall impair the rights of a Participant or holder of
beneficiary under any Award theretofore granted under the Plan.

     Section 18. Governing Law. The Plan will be governed by and construed in accordance with the
law of the State of New York.

14

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