Document:

EX-4.1

 

Exhibit 4.1

 

 

NRG ENERGY, INC.,

as Issuer

7.375% SENIOR NOTES DUE 2017

 

NINTH SUPPLEMENTAL INDENTURE

Dated as of November 21, 2006

To

INDENTURE

Dated as of February 2, 2006

 

The Law Debenture Trust Company of New York

as Trustee

 

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	 	 	 
	Trust Indenture	 	Supplemental
	Act Section	 	Indenture Section
	310(a)(1)
	 	N.A.
	(a)(2)
	 	N.A.
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	N.A.
	(b)
	 	N.A.
	(c)
	 	N.A.
	311(a)
	 	N.A.
	(b)
	 	N.A.
	(c)
	 	N.A.
	312(a)
	 	N.A.
	(b)
	 	12.03
	(c)
	 	12.03
	313(a)
	 	N.A.
	(b)(1)
	 	N.A.
	(b)(2)
	 	N.A.
	(c)
	 	12.02
	(d)
	 	N.A.
	314(a)
	 	4.03;12.02; 12.05
	(b)
	 	N.A.
	(c)(1)
	 	12.04
	(c)(2)
	 	12.04
	(c)(3)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	N.A.
	(f)
	 	N.A.
	315(a)
	 	N.A.
	(b)
	 	12.02
	(c)
	 	N.A.
	(d)
	 	N.A.
	(e)
	 	N.A.
	316(a)(last sentence)
	 	N.A.
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	N.A.
	(c)
	 	N.A.
	317(a)(1)
	 	6.08
	(a)(2)
	 	N.A.
	(b)
	 	N.A.
	318(a)
	 	12.01
	(b)
	 	N.A.
	(c)
	 	12.01

 

			
	N.A. means not applicable.
	 
	*	 	This Cross Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE 1.

	DEFINITIONS AND INCORPORATION

	BY REFERENCE

	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Other Definitions
	 	 	28	 
	Section 1.03

	 	Incorporation by Reference of Trust Indenture Act
	 	 	28	 
	Section 1.04

	 	Rules of Construction
	 	 	29	 
	Section 1.05

	 	Relationship with Base Indenture
	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE 2.

	THE NOTES

	 
	 	 	 	 	 	 
	Section 2.01

	 	Form and Dating
	 	 	30	 
	Section 2.02

	 	Execution and Authentication
	 	 	30	 
	Section 2.03

	 	Holder Lists
	 	 	31	 
	Section 2.04

	 	Transfer and Exchange
	 	 	31	 
	Section 2.05

	 	Issuance of Additional Notes
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE 3.

	REDEMPTION AND PREPAYMENT

	 
	 	 	 	 	 	 
	Section 3.01

	 	Notices to Trustee
	 	 	35	 
	Section 3.02

	 	Selection of Notes to Be Redeemed or Purchased
	 	 	35	 
	Section 3.03

	 	Notice of Redemption
	 	 	36	 
	Section 3.04

	 	Effect of Notice of Redemption
	 	 	37	 
	Section 3.05

	 	Deposit of Redemption or Purchase Price
	 	 	37	 
	Section 3.06

	 	Notes Redeemed or Purchased in Part
	 	 	37	 
	Section 3.07

	 	Optional Redemption
	 	 	37	 
	Section 3.08

	 	Mandatory Redemption
	 	 	38	 
	Section 3.09

	 	Offer to Purchase by Application of Excess Proceeds
	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE 4.

	COVENANTS

	 
	 	 	 	 	 	 
	Section 4.01

	 	Payment of Notes
	 	 	40	 
	Section 4.02

	 	Maintenance of Office or Agency
	 	 	40	 
	Section 4.03

	 	Reports
	 	 	41	 
	Section 4.04

	 	Compliance Certificate
	 	 	41	 
	Section 4.05

	 	Taxes
	 	 	42	 
	Section 4.06

	 	Stay, Extension and Usury Laws
	 	 	42	 
	Section 4.07

	 	Restricted Payments
	 	 	42	 
	Section 4.08

	 	Dividend and Other Payment Restrictions Affecting Subsidiaries
	 	 	45	 
	Section 4.09

	 	Incurrence of Indebtedness and Issuance of Preferred Stock
	 	 	47	 
	Section 4.10

	 	Asset Sales
	 	 	51	 
	Section 4.11

	 	Transactions with Affiliates
	 	 	53	 
	Section 4.12

	 	Liens
	 	 	55	 
	Section 4.13

	 	Corporate Existence
	 	 	56	 
	Section 4.14

	 	Offer to Repurchase Upon Change of Control
	 	 	56	 
	Section 4.15

	 	Limitation on Sale and Leaseback Transactions
	 	 	58	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.16

	 	Payments for Consent
	 	 	58	 
	Section 4.17

	 	Additional Subsidiary Guarantees
	 	 	58	 
	Section 4.18

	 	Designation of Restricted, Unrestricted and Excluded Project Subsidiaries
	 	 	58	 
	Section 4.19

	 	Changes in Covenants When Notes Rated Investment Grade
	 	 	59	 
	 
	 	 	 	 	 	 
	ARTICLE 5.

	SUCCESSORS

	 
	 	 	 	 	 	 
	Section 5.01

	 	Merger, Consolidation, or Sale of Assets
	 	 	60	 
	Section 5.02

	 	Successor Corporation Substituted
	 	 	61	 
	 
	 	 	 	 	 	 
	ARTICLE 6.

	DEFAULTS AND REMEDIES

	 
	 	 	 	 	 	 
	Section 6.01

	 	Events of Default
	 	 	62	 
	Section 6.02

	 	Acceleration
	 	 	64	 
	Section 6.03

	 	Waiver of Past Defaults
	 	 	64	 
	Section 6.04

	 	Control by Majority
	 	 	64	 
	Section 6.05

	 	Limitations on Suits
	 	 	64	 
	Section 6.06

	 	Collection Suit by Trustee
	 	 	65	 
	Section 6.07

	 	Priorities
	 	 	65	 
	 
	 	 	 	 	 	 
	ARTICLE 7.

	TRUSTEE’S COMPENSATION AND INDEMNITY

	 
	 	 	 	 	 	 
	Section 7.01

	 	Compensation and Indemnity
	 	 	65	 
	 
	 	 	 	 	 	 
	ARTICLE 8.

	LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	 
	 	 	 	 	 	 
	Section 8.01

	 	Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	66	 
	Section 8.02

	 	Legal Defeasance and Discharge
	 	 	66	 
	Section 8.03

	 	Covenant Defeasance
	 	 	67	 
	Section 8.04

	 	Conditions to Legal or Covenant Defeasance
	 	 	67	 
	Section 8.05

	 	Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions
	 	 	68	 
	Section 8.06

	 	Repayment to Company
	 	 	69	 
	Section 8.07

	 	Reinstatement
	 	 	69	 
	 
	 	 	 	 	 	 
	ARTICLE 9.

	AMENDMENT, SUPPLEMENT AND WAIVER

	 
	 	 	 	 	 	 
	Section 9.01

	 	Without Consent of Holders of Notes
	 	 	69	 
	Section 9.02

	 	With Consent of Holders of Notes
	 	 	70	 
	Section 9.03

	 	Compliance with Trust Indenture Act
	 	 	72	 
	Section 9.04

	 	Revocation and Effect of Consents
	 	 	72	 
	Section 9.05

	 	Notation on or Exchange of Notes
	 	 	72	 
	Section 9.06

	 	Trustee to Sign Amendments, etc.
	 	 	72	 
	 
	 	 	 	 	 	 
	ARTICLE 10.

	SUBSIDIARY GUARANTEES

	 
	 	 	 	 	 	 
	Section 10.01

	 	Guarantee
	 	 	72	 
	Section 10.02

	 	Limitation on Guarantor Liability
	 	 	73	 
	Section 10.03

	 	Execution and Delivery of Subsidiary Guarantee
	 	 	74	 
	Section 10.04

	 	Guarantors May Consolidate, etc., on Certain Terms
	 	 	74	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 10.05

	 	Releases
	 	 	75	 
	 
	 	 	 	 	 	 
	ARTICLE 11.

	SATISFACTION AND DISCHARGE

	 
	 	 	 	 	 	 
	Section 11.01

	 	Satisfaction and Discharge
	 	 	76	 
	Section 11.02

	 	Application of Trust Money
	 	 	77	 
	 
	 	 	 	 	 	 
	ARTICLE 12.

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 12.01

	 	Trust Indenture Act Controls
	 	 	77	 
	Section 12.02

	 	Notices
	 	 	77	 
	Section 12.03

	 	Communication by Holders of Notes with Other Holders of Notes
	 	 	78	 
	Section 12.04

	 	No Personal Liability of Directors, Officers, Employees and Stockholders
	 	 	79	 
	Section 12.05

	 	Governing Law
	 	 	79	 
	Section 12.06

	 	No Adverse Interpretation of Other Agreements
	 	 	79	 
	Section 12.07

	 	Successors
	 	 	79	 
	Section 12.08

	 	Severability
	 	 	79	 
	Section 12.09

	 	Counterpart Originals
	 	 	79	 
	Section 12.10

	 	Table of Contents, Headings, etc.
	 	 	79	 
	 
	 	 	 	 	 	 
	EXHIBITS

	 
	 	 	 	 	 	 
	Exhibit A

	 	Form of Note	 	 	 	 
	Exhibit B

	 	Form of Subsidiary Guarantee	 	 	 	 
	Exhibit C

	 	Form of Supplemental Indenture — Additional Subsidiary Guarantees	 	 	 	 

iii

 

     NINTH SUPPLEMENTAL INDENTURE, dated as of November 21, 2006, by and among NRG Energy, Inc., a
Delaware corporation (the “Company”), the Guarantors (as defined herein) and Law Debenture Trust
Company of New York, as trustee (the “Trustee”).

     The Company has heretofore executed and delivered to the Trustee an Indenture, dated as of
February 2, 2006 (the “Base Indenture”) providing for the issuance from time to time of one or more
series of the Company’s securities.

     The Company and the Guarantors desire and have requested the Trustee pursuant to Section 9.1
of the Base Indenture to join with them in the execution and delivery of this Supplemental
Indenture in order to supplement the Base Indenture as and to the extent set forth herein to
provide for the issuance and the terms of the Notes (as defined below).

     Section 9.1 of the Base Indenture provides that the Company and the Trustee, without the
consent of any holders of the Company’s Securities, may amend or waive certain terms and covenants
in the Indenture as permitted by Sections 2.1 and 2.2 of the Base Indenture.

     The execution and delivery of this Supplemental Indenture has been duly authorized by a Board
Resolution of the Company and each of the Guarantors.

     All conditions and requirements necessary to make this Supplemental Indenture a valid, binding
and legal instrument in accordance with its terms have been performed and fulfilled by the parties
hereto and the execution and delivery thereof have been in all respects duly authorized by the
parties hereto.

     The Company, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined herein) of the 7.375% Senior Notes due
2017 (the “Notes”):

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

     Section 1.01 Definitions.

     For all purposes of the Supplemental Indenture, the following terms shall have the respective
meanings set forth in this Section.

     “Acquired Debt” means, with respect to any specified Person:

     (1) Indebtedness of any other Person or asset existing at the time such other Person or
asset is merged with or into, is acquired by, or became a Subsidiary of such specified
Person, as the case may be, whether or not such Indebtedness is incurred in connection with,
or in contemplation of, such other Person merging with or into, or becoming a Restricted
Subsidiary of, such specified Person; and

     (2) Indebtedness secured by a Lien encumbering any asset acquired by such specified
Person.

     “Acquisition” means the acquisition of all of the outstanding Equity Interests of Texas Genco
LLC by the Company pursuant to the Acquisition Agreement, among Texas Genco LLC, the Company, and
the direct and indirect owners of Texas Genco LLC party thereto, dated as of September 30, 2005.

1

 

     “Additional Notes” means additional notes (other than the Initial Notes) issued from time to
time under this Supplemental Indenture in accordance with Section 2.05 hereof, as part of the same
series as the Initial Notes.

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For
purposes of this definition, “control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to
be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings.

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Applicable Law” shall mean, as to any Person, any ordinance, law, treaty, rule or regulation
or determination by an arbitrator or a court or other Governmental Authority, including ERCOT, in
each case, applicable to or binding on such Person or any of its property or assets or to which
such Person or any of its property is subject.

     “Applicable Premium” means, with respect to any note on any redemption date, the greater of:

	 	(1)	 	1.0% of the principal amount of the note; or
	 
	 	(2)	 	the excess of:

     (a) the present value at such redemption date of (i) the redemption price of the Note at
January 15, 2012, (such redemption price being set forth in the table appearing under Section 3.07
hereof) plus (ii) all required interest payments due on the Note through January 15, 2012
(excluding accrued but unpaid interest to the redemption date), computed using a discount rate
equal to the Treasury Rate as of such redemption date plus 50 basis points; over

     (b) the principal amount of the Note, if greater.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary that apply to such
transfer or exchange.

     “Asset Sale” means:

     (1) the sale, lease, conveyance or other disposition of any assets or rights; provided
that the sale, conveyance or other disposition of all or substantially all of the assets of
the Company and its Restricted Subsidiaries taken as a whole will be governed by the
provisions of this Supplemental Indenture described under Sections 4.14 and 5.01 hereof and
not by the provisions of Section 4.10 hereof; and

     (2) the issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
the sale of Equity Interests in any of its Subsidiaries.

2

 

     Notwithstanding the preceding, none of the following items will be deemed to be an Asset
Sale:

     (1) any single transaction or series of related transactions for which the Company or
its Restricted Subsidiaries receive aggregate consideration of less than $50.0 million;

     (2) a transfer of assets or Equity Interests between or among the Company and its
Restricted Subsidiaries;

     (3) an issuance of Equity Interests by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company;

     (4) the sale or lease of products or services and any sale or other disposition of
damaged, worn-out or obsolete assets;

     (5) the sale or discount, in each case without recourse, of accounts receivable, but
only in connection with the compromise or collection thereof;

     (6) the licensing of intellectual property;

     (7) the sale, lease, conveyance or other disposition for value of energy, fuel or
emission credits or contracts for any of the foregoing;

     (8) the sale or other disposition of cash or Cash Equivalents;

     (9) a Restricted Payment that does not violate Section 4.07 hereof or a Permitted
Investment;

     (10) to the extent allowable under Section 1031 of the Internal Revenue Code of 1986,
any exchange of like property (excluding any “boot” thereon) for use in a Permitted
Business; and

     (11) a disposition of assets in connection with a foreclosure, transfer or deed in lieu
of foreclosure or other exercise of remedial action.

     “Asset Sale Offer” has the meaning assigned to that term in this Supplemental Indenture.

     “Attributable Debt” in respect of a sale and leaseback transaction means, at the time of
determination, the present value of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such sale and leaseback transaction including any period
for which such lease has been extended or may, at the option of the lessor, be extended. Such
present value shall be calculated using a discount rate equal to the rate of interest implicit in
such transaction, determined in accordance with GAAP; provided, however, that if such sale and
leaseback transaction results in a Capital Lease Obligation, the amount of Indebtedness represented
thereby will be determined in accordance with the definition of “Capital Lease Obligation.”

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors.

     “Base Indenture” means has the meaning set forth in the preamble to this Supplemental
Indenture, as amended, supplemented or otherwise modified from time to time in accordance with the
terms thereof.

3

 

     “Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under
the Exchange Act. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding
meaning.

     “Board of Directors” means:

     (1) with respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

     (2) with respect to a partnership, the board of directors of the general partner of the
partnership;

     (3) with respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

     (4) with respect to any other Person, the board or committee of such Person serving a
similar function.

     “Business Day” means any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet in accordance with GAAP, and the Stated Maturity thereof shall be the date of
the last payment of rent or any other amount due under such lease prior to the first date upon
which such lease may be prepaid by the lessee without payment of a penalty.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person, but
excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

     “Cash Equivalents” means:

     (1) United States dollars, Euros or, in the case of any Foreign Subsidiary, any local
currencies held by it from time to time;

     (2) securities issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided that
the full faith and credit of the United States is pledged in support of those securities)
having maturities of not more than twelve months from the date of acquisition;

4

 

     (3) certificates of deposit and eurodollar time deposits with maturities of twelve
months or less from the date of acquisition, bankers’ acceptances with maturities not
exceeding 12 months and overnight bank deposits, in each case, with any domestic commercial
bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating
of “B” or better;

     (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

     (5) commercial paper having one of the two highest ratings obtainable from Moody’s or
S&P and in each case maturing within 12 months after the date of acquisition;

     (6) readily marketable direct obligations issued by any state of the United States or
any political subdivision thereof, in either case having one of the two highest rating
categories obtainable from either Moody’s or S&P; and

     (7) money market funds that invest primarily in securities described in clauses (1)
through (6) of this definition.

     “Change of Control” means the occurrence of any of the following:

     (1) the direct or indirect sale, transfer, conveyance or other disposition (other than
by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties or assets of the Company and its Subsidiaries taken as a
whole to any “person” (as that term is used in Section 13(d) of the Exchange Act, but
excluding any employee benefit plan of the Company or any of its Restricted Subsidiaries,
and any person or entity acting in its capacity as trustee, agent or other fiduciary or
administrator of such plan);

     (2) the adoption of a plan relating to the liquidation or dissolution of the Company;

     (3) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “person” (as defined above) becomes the
Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the
Company, measured by voting power rather than number of shares; or

     (4) the first day on which a majority of the members of the Board of
Directors of the Company are not Continuing Directors.

     “Change of Control Offer” has the meaning assigned to it in this Supplemental Indenture.

     “Company” means NRG Energy, Inc., and any and all successors thereto.

     “Concurrent Cash Distributions” has the meaning assigned to it in the definition of
“Investments.”

5

 

     “Consolidated Cash Flow” means, with respect to any specified Person for any period, the
Consolidated Net Income of such Person for such period plus, without duplication:

     (1) an amount equal to any extraordinary loss (including any loss on the extinguishment
or conversion of Indebtedness) plus any net loss realized by such Person or any of its
Restricted Subsidiaries in connection with an Asset Sale (without giving effect of the
threshold provided in the definition thereof), to the extent such losses were deducted in
computing such Consolidated Net Income; plus

     (2) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; plus

     (3) the Fixed Charges of such Person and its Restricted Subsidiaries for such period,
to the extent that such Fixed Charges were deducted in computing such Consolidated Net
Income; plus

     (4) any expenses or charges related to any equity offering, Permitted Investment,
acquisition, disposition, recapitalization or Indebtedness permitted to be incurred by the
indenture including a refinancing thereof (whether or not successful), including such fees,
expenses or charges related to the offering of the Notes and the Credit Agreement, and
deducted in computing Consolidated Net Income; plus

     (5) any professional and underwriting fees related to any equity offering, Permitted
Investment, acquisition, recapitalization or Indebtedness permitted to be incurred under
this Supplemental Indenture and, in each case, deducted in such period in computing
Consolidated Net Income; plus

     (6) the amount of any minority interest expense deducted in calculating Consolidated
Net Income (less the amount of any cash dividends paid to the holders of such minority
interests); plus

     (7) any non cash gain or loss attributable to Mark to Market Adjustments in connection
with Hedging Obligations; plus

     (8) without duplication, any writeoffs, writedowns or other non-cash charges reducing
Consolidated Net Income for such period, excluding any such charge that represents an
accrual or reserve for a cash expenditure for a future period, plus

     (9) all items classified as extraordinary, unusual or nonrecurring non-cash losses or
charges (including, without limitation, severance, relocation and other restructuring
costs), and related tax effects according to GAAP to the extent such non-cash charges or
losses were deducted in computing such Consolidated Net Income; plus

     (10) depreciation, depletion, amortization (including amortization of intangibles but
excluding amortization of prepaid cash expenses that were paid in a prior period) and other
non-cash charges and expenses (excluding any such non-cash expense to the extent that it
represents an accrual of or reserve for cash expenses in any future period or amortization
of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted
Subsidiaries for such period to the extent that such depreciation, depletion, amortization
and other non-cash expenses were deducted in computing such Consolidated Net Income; minus

6

 

     (11) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business; in each case, on a consolidated
basis and determined in accordance with GAAP (including, without limitation, any increase in
amortization or depreciation or other non-cash charges resulting from the application of
purchase accounting in relation to the Acquisition or any acquisition that is consummated
after the date of this Supplemental Indenture); minus

     (12) interest income for such period;

provided, however, that Consolidated Cash Flow of the Company will exclude the Consolidated Cash
Flow attributable to Excluded Subsidiaries to the extent that the declaration or payment of
dividends or similar distributions by the Excluded Subsidiary of that Consolidated Cash Flow is
not, as a result of an Excluded Subsidiary Debt Default, then permitted by operation of the terms
of the relevant Excluded Subsidiary Debt Agreement; provided that the Consolidated Cash Flow of the
Excluded Subsidiary will only be so excluded for that portion of the period during which the
condition described in the preceding proviso has occurred and is continuing.

     “Consolidated Net Income” means, with respect to any specified Person for any period, the
aggregate of the Net Income of such Person and its Restricted Subsidiaries for such period, on a
consolidated basis, determined in accordance with GAAP; provided that:

     (1) the Net Income of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting will be included only to the extent of the
amount of dividends or similar distributions (including pursuant to other intercompany
payments but excluding Concurrent Cash Distributions) paid in cash to the specified Person
or a Restricted Subsidiary of the Person;

     (2) for purposes of Section 4.07 hereof only, the Net Income of any Restricted
Subsidiary will be excluded to the extent that the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of that Net Income is not at the date of
determination permitted without any prior governmental approval (that has not been obtained)
or, directly or indirectly, by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental regulation applicable to
that Restricted Subsidiary or its stockholders;

     (3) the cumulative effect of a change in accounting principles will be excluded;

     (4) any net after-tax non-recurring or unusual gains, losses (less all fees and
expenses relating thereto) or other charges or revenue or expenses (including, without
limitation, relating to severance, relocation, one-time compensation charges and the
Acquisition) shall be excluded;

     (5) any non-cash compensation expense recorded from grants of stock appreciation or
similar rights, stock options, restricted stock or other rights to officers, directors or
employees shall be excluded, whether under FASB 123R or otherwise;

     (6) any net after-tax income (loss) from disposed or discontinued operations and any
net after-tax gains or losses on disposal of disposed or discontinued operations shall be
excluded;

7

 

     (7) any gains or losses (less all fees and expenses relating thereto) attributable to
asset dispositions shall be excluded;

     (8) any impairment charge or asset write-off pursuant to Financial Accounting Statement
No. 142 and No. 144 or any successor pronouncement shall be excluded; and

     (9) any accruals or reserves or other charges related to the Acquisition and the
Related Financing Transactions incurred on or before January 1, 2007, shall be excluded.

     “Continuing Director” means, as of any date of determination, any member of the Board of
Directors of the Company who:

     (1) was a member of such Board of Directors on the date of this Supplemental Indenture;
or

     (2) was nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board at the time of such
nomination or election.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.

     “Credit Agreement” means the Credit Agreement, dated February 2, 2006, as amended and restated
on November 21, 2006, among the Company, a Delaware corporation, the Lenders from time to time
party thereto, Morgan Stanley Senior Funding, Inc. and Merrill Lynch, Pierce, Fenner & Smith
Incorporated, as joint lead book runners and joint lead arrangers, Morgan Stanley Senior Funding,
Inc., as administrative agent, Morgan Stanley & Co. Incorporated, as collateral agent, and Merrill
Lynch Capital Corporation, as syndication agent.

     “Credit Facilities” means (i) one or more debt facilities (including, without limitation, the
Credit Agreement) or commercial paper facilities, in each case with banks or other institutional
lenders providing for revolving credit loans, term loans, credit-linked deposits (or similar
deposits) receivables financing (including through the sale of receivables to such lenders or to
special purpose entities formed to borrow from such lenders against such receivables) or letters of
credit and (ii) debt securities sold to institutional investors, in each case, as amended,
restated, modified, renewed, refunded, replaced or refinanced (including by means of sales of debt
securities to institutional investors) in whole or in part from time to time.

     “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.04 hereof, substantially in the form of Exhibit A hereto except
that such Note shall not bear the Global Note Legend.

     “Description of Notes” means the section titled “Description of the Notes” in the Prospectus
Supplement, dated November 8, 2006, related to the issuance and sale of the Initial Notes.

8

 

     “Designated Noncash Consideration” means the fair market value of non-cash consideration
received by the Company or a Guarantor in connection with an Asset Sale that is so designated as
Designated Noncash Consideration pursuant to an officers’ certificate, setting forth the basis of
such valuation, executed by a senior financial officer of the Company, less the amount of cash or
Cash Equivalents received in connection with a subsequent sale of such Designated Noncash
Consideration.

     “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any
security into which it is convertible, or for which it is exchangeable, in each case at the option
of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the
holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature. Notwithstanding the preceding sentence, any Capital Stock that
would constitute Disqualified Stock solely because the holders of the Capital Stock have the right
to require the Company to repurchase such Capital Stock upon the occurrence of a change of control
or an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock provide
that the Company may not repurchase or redeem any such Capital Stock pursuant to such provisions
unless such repurchase or redemption complies with Section 4.07 hereof. The amount of Disqualified
Stock deemed to be outstanding at any time for purposes of the indenture will be the maximum amount
that the Company and its Restricted Subsidiaries may become obligated to pay upon the maturity of,
or pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of
accrued dividends.

     “Domestic Subsidiary” means any Restricted Subsidiary of the Company that was formed under the
laws of the United States or any state of the United States or the District of Columbia or that
guarantees or otherwise provides direct credit support for any Indebtedness of the Company.

     “Environmental CapEx Debt” shall mean Indebtedness of the Company or its Restricted
Subsidiaries incurred for the purpose of financing Environmental Capital Expenditures.

     “Environmental Capital Expenditures” shall mean capital expenditures deemed necessary by the
Company or its Restricted Subsidiaries to comply with Environmental Laws.

     “Environmental Law” shall mean any applicable Federal, state, foreign or local statute, law,
rule, regulation, ordinance, code and rule of common law now or hereafter in effect and in each
case as amended, and any binding judicial or administrative interpretation thereof, including any
binding judicial or administrative order, consent decree or judgment, relating to the environment,
human health or safety or Hazardous Materials.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

     “Equity Offering” means a sale of Capital Stock (other than Disqualified Stock) of the Company
pursuant to (1) a public offering or (2) a private placement to Persons who are not Affiliates of
the Company.

     “ERCOT” means the Electric Reliability Council of Texas.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Excluded Foreign Subsidiary” means, at any time, any Foreign Subsidiary that is (or is
treated as) for United States federal income tax purposes either (1) a corporation or (2) a
pass-through entity owned directly or indirectly by another Foreign Subsidiary that is (or is
treated as) a corporation; provided

9

 

that notwithstanding the foregoing, the following entities will be deemed to be “Excluded
Foreign Subsidiaries”: Sterling Luxembourg (No. 4) S.a.r.l., Tosli Acquisition BV, NRG Pacific
Corporate Services Pty Ltd., and any subsidiary of Tosli Acquisition BV incorporated or formed in
connection with the Itiquira Refinancing.

     “Excluded Proceeds” means any Net Proceeds of an Asset Sale involving the sale of up to
$300,000,000 in the aggregate received since February 2, 2006 from one or more Asset Sales of
Equity Interests in, or property or assets of, any Foreign Subsidiaries or any Foreign Subsidiary
Holding Company.

     “Excluded Project Subsidiary” shall mean, at any time,

     (a) each Subsidiary of the Company that is an obligor or otherwise bound with respect to
Non-Recourse Debt on the date of this Supplemental Indenture,

     (b) any Person that becomes a Subsidiary of the Company after the date of this Supplemental
Indenture that is an obligor or otherwise bound solely with respect to Non-Recourse Debt, and

     (c) any Subsidiary of the Company that is designated by the Company’s Board of Directors as an
Excluded Project Subsidiary pursuant to a Board Resolution,

in each case, in accordance with the other provisions of this Supplemental Indenture and if and for
so long as the provision of a full and unconditional guarantee by such subsidiary of the notes will
constitute or result in a breach, termination or default under the agreement or instrument
governing the applicable Non-Recourse Debt of such subsidiary; provided that such subsidiary shall
be an Excluded Project Subsidiary only to the extent that and for so long as the requirements and
consequences above shall exist.

     “Excluded Subsidiaries” means the Excluded Project Subsidiaries, the Excluded Foreign
Subsidiaries and the Immaterial Subsidiaries.

     “Excluded Subsidiary Debt Agreement” means the agreement or documents governing the relevant
Indebtedness referred to in the definition of “Excluded Subsidiary Debt Default.”

     “Excluded Subsidiary Debt Default” means, with respect to any Excluded Subsidiary, the failure
of such Excluded Subsidiary to pay any principal or interest or other amounts due in respect of any
Indebtedness, when and as the same shall become due and payable, or the occurrence of any other
event or condition that results in any Indebtedness of such Excluded Subsidiary becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, lapse
of time or both) the holder or holders of such Indebtedness or any trustee or agent on its or their
behalf to cause such Indebtedness to become due, or to require the prepayment, repurchase,
redemption or defeasance thereof, prior to its scheduled maturity.

     “Exempt Subsidiaries” means, collectively, NRG Ilion LP LLC, NRG Ilion Limited Partnership,
Meriden Gas Turbine LLC, LSP-Pike Energy 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.

10

 

     “Existing Indebtedness” means Indebtedness of the Company and its Subsidiaries (other than
Indebtedness under the Credit Agreement and the Existing Genco Credit Facility and Notes
Indebtedness) in existence on the date of this Supplemental Indenture, until such amounts are
repaid.

     “Existing Senior Notes” means all notes issued pursuant to the indentures governing NRG’s
outstanding 7.250% Senior Notes due 2014 and 7.375% Senior Notes due 2016.

     “Facility” means a power or energy related facility.

     “Facility Instruments” has the meaning set forth in the (i) Affirmation Agreement, dated as of
August 9, 1993, by and among Northern States Power Company, the Company and Ramsey and Washington
Counties and (ii) the Agreement and Consent for Transfer to the Company, dated as of August 20,
2001, between Northern States Power Company, NRG, Anoka County, Hennepin County, Sherburne County
and Tri-County Solid Waste Management Commission, as in effect on the date of this Supplemental
Indenture.

     “fair market value” means the value that would be paid by a willing buyer to an unaffiliated
willing seller in a transaction not involving distress or necessity of either party, determined in
good faith by the Board of Directors of the Company (unless otherwise provided in this Supplemental
Indenture).

     “First Supplemental Indenture” means the First Supplemental Indenture, dated February 2, 2006,
governing NRG’s 7.25% Senior Notes due 2014.

     “Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the
ratio of the Consolidated Cash Flow of such Person for such period to the Fixed Charges of such
Person for such period. In the event that the specified Person or any of its Restricted
Subsidiaries incurs, assumes, Guarantees, repays, repurchases, redeems, defeases or otherwise
discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases
or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge
Coverage Ratio is being calculated and on or prior to the date on which the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed
Charge Coverage Ratio will be calculated giving pro forma effect to such incurrence, assumption,
Guarantee, repayment, repurchase, redemption, defeasance or other discharge of Indebtedness, or
such issuance, repurchase or redemption of preferred stock, and the use of the proceeds therefrom,
as if the same had occurred at the beginning of the applicable four-quarter reference period.

     In addition, for purposes of calculating the Fixed Charge Coverage Ratio:

     (1) Investments and acquisitions that have been made by the specified Person or any of
its Restricted Subsidiaries, including through mergers or consolidations, or any Person or
any of its Restricted Subsidiaries acquired by the specified Person or any of its Restricted
Subsidiaries, and including any related financing transactions and including increases in
ownership of Restricted Subsidiaries, during the four-quarter reference period or subsequent
to such reference period and on or prior to the Calculation Date will be given pro forma
effect (in accordance with Regulation S-X under the Securities Act, but including all Pro
Forma Cost Savings) as if they had occurred on the first day of the four-quarter reference
period and Consolidated Cash Flow for such reference period will be calculated on the same
pro forma basis;

     (2) the Consolidated Cash Flow attributable to discontinued operations, as determined
in accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded;

11

 

     (3) the Fixed Charges attributable to discontinued operations, as determined in
accordance with GAAP, and operations or businesses (and ownership interests therein)
disposed of prior to the Calculation Date, will be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges will not be obligations of the specified
Person or any of its Restricted Subsidiaries following the Calculation Date;

     (4) any Person that is a Restricted Subsidiary on the Calculation Date will be deemed
to have been a Restricted Subsidiary at all times during such four-quarter period;

     (5) any Person that is not a Restricted Subsidiary on the Calculation Date will be
deemed not to have been a Restricted Subsidiary at any time during such four-quarter period;
and

     (6) if any Indebtedness that is being incurred on the Calculation Date bears a floating
rate of interest, the interest expense on such Indebtedness will be calculated as if the
rate in effect on the Calculation Date had been the applicable rate for the entire period
(taking into account any Hedging Obligation applicable to such Indebtedness).

     If since the beginning of such period any Person (that subsequently became a Restricted
Subsidiary or was merged with or into the Company or any Restricted Subsidiary since the beginning
of such period) shall have made any Investment, acquisition, disposition, merger, consolidation or
disposed operation that would have required adjustment pursuant to this definition, then the Fixed
Charge Coverage Ratio shall be calculated giving pro forma effect thereto (including any Pro Forma
Cost Savings) for such period as if such Investment, acquisition or disposition, or classification
of such operation as discontinued had occurred at the beginning of the applicable four-quarter
period.

     “Fixed Charges” means, with respect to any specified Person for any period, the sum, without
duplication, of:

     (1) the consolidated interest expense of such Person and its Restricted Subsidiaries
(other than interest expense of any Excluded Subsidiary the Consolidated Cash Flow of which
is excluded from the Consolidated Cash Flow of such Person pursuant to the definition of
Consolidated Cash Flow hereof) for such period, whether paid or accrued, including, without
limitation, amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations, the interest
component of all payments associated with Capital Lease Obligations, imputed interest with
respect to Attributable Debt, and net of the effect of all payments made or received
pursuant to Hedging Obligations in respect of interest rates; plus

     (2) the consolidated interest of such Person and its Restricted Subsidiaries that was
capitalized during such period; plus

     (3) any interest accruing on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person
or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon;
plus

     (4) the product of (a) all dividends, whether paid or accrued and whether or not in
cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries,
other than dividends on Equity Interests payable in Equity Interests of the Company (other
than Disqualified Stock) or to the Company or a Restricted Subsidiary of the Company, times
(b) a

12

 

fraction, the numerator of which is one and the denominator of which is one minus the
then current combined federal, state and local statutory tax rate of such Person, expressed
as a decimal, in each case, on a consolidated basis and in accordance with GAAP; minus

     (5) interest income for such period.

     “Foreign Subsidiary” means any Restricted Subsidiary that is not a Domestic Subsidiary.

     “Foreign Subsidiary Holding Company” means any Domestic Subsidiary that is a direct parent of
one or more Foreign Subsidiaries and holds, directly or indirectly, no other assets other than
Equity Interests of Foreign Subsidiaries and other de minimis assets related thereto.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect from time to time.

     “Global Notes” means, individually and collectively, each of the Global Notes substantially in
the form of Exhibit A hereto issued in accordance with Section 2.01 hereof.

     “Global Note Legend” means the legend set forth in Section 2.04(f), which is required to be
placed on all Global Notes issued under this Supplemental Indenture.

     “Goldman Sachs Hedge Agreement” means the Master Power Purchase and Sale Agreement dated as of
July 21, 2004, between an affiliate of Goldman, Sachs & Co. and Texas Genco, LP, as amended to the
date of this Supplemental Indenture, and any agreements related thereto.

     “Governmental Authority” shall mean any nation or government, any state, province, territory
or other political subdivision thereof, and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, or any non-governmental
authority regulating the generation and/or transmission of energy.

     “Government Securities” means direct obligations of, or obligations guaranteed by, the United
States of America (including any agency or instrumentality thereof) for the payment of which
obligations or guarantees the full faith and credit of the United States of America is pledged and
which are not callable or redeemable at the issuer’s option.

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any manner including, without
limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements
in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of
partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or
services, to take or pay or to maintain financial statement conditions or otherwise).

     “Guarantors” means each of:

     (1) the Company’s Restricted Subsidiaries other than the Excluded Foreign Subsidiaries,
the Excluded Project Subsidiaries, and the Immaterial Subsidiaries; and

13

 

     (2) any other Restricted Subsidiary that executes a Subsidiary Guarantee in accordance
with the provisions of this Supplemental Indenture;

and their respective successors and assigns.

     “Hazardous Materials” shall mean (a) any petroleum or petroleum products, radioactive
materials, friable asbestos, urea formaldehyde foam insulation, transformers or other equipment
that contain dielectric fluid containing regulated levels of polychlorinated biphenyls and radon
gas; (b) any chemicals, materials or substances defined as or included in the definition of
“hazardous substances,” “hazardous waste,” “hazardous materials,” “extremely hazardous waste,”
“restricted hazardous waste,” “toxic substances,” “toxic pollutants,” “contaminants,” or
“pollutants” or words of similar import, under any applicable Environmental Law; and (c) any other
chemical, material or substance, which is prohibited, limited or regulated by any Environmental
Law.

     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

     (1) currency exchange, interest rate or commodity swap agreements, currency exchange,
interest rate or commodity cap agreements and currency exchange, interest rate or commodity
collar agreements, and

     (2) (i) agreements or arrangements designed to protect such Person against fluctuations
in currency exchange, interest rates, commodity prices or commodity transportation or
transmission pricing or availability, including but not limited to the Merrill Lynch Hedge
Agreement and the Goldman Sachs Hedge Agreement; (ii) any netting arrangements, power
purchase and sale agreements, fuel purchase and sale agreements, swaps, options and other
agreements, in each case, that fluctuate in value with fluctuations in energy, power or gas
prices; and (iii) agreements or arrangements for commercial or trading activities with
respect to the purchase, transmission, distribution, sale, lease or hedge of any energy
related commodity or service.

     “Holder” means a Person in whose name a Note is registered.

     “Immaterial Subsidiary” shall mean, at any time, any Restricted Subsidiary of the Company that
is designated by the Company as an “Immaterial Subsidiary” if and for so long as such Restricted
Subsidiary, together with all other Immaterial Subsidiaries, has (i) total assets at such time not
exceeding 5% of the Company’s consolidated assets as of the most recent fiscal quarter for which
balance sheet information is available and (ii) total revenues and operating income for the most
recent 12-month period for which income statement information is available not exceeding 5% of the
Company’s consolidated revenues and operating income, respectively; provided that such Restricted
Subsidiary shall be an Immaterial Subsidiary only to the extent that and for so long as all of the
above requirements are satisfied.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person
(excluding accrued expenses and trade payables, except as provided in clause (5) below), whether or
not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

14

 

     (3) in respect of banker’s acceptances;

     (4) representing Capital Lease Obligations or Attributable Debt in respect of sale and
leaseback transactions;

     (5) representing the balance deferred and unpaid of the purchase price of any property
(including trade payables) or services due more than six months after such property is
acquired or such services are completed; or

     (6) representing the net amount owing under any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit, Attributable Debt
and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person
prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness
of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness
is assumed by the specified Person) and, to the extent not otherwise included, the Guarantee by the
specified Person of any Indebtedness of any other Person; provided, that the amount of such
Indebtedness shall be deemed not to exceed the lesser of the amount secured by such Lien and the
value of the Person’s property securing such Lien.

     “Indenture” means the Base Indenture, as supplemented by this Supplemental Indenture,
governing the Notes, in each case, as amended, supplemented or otherwise modified from time to time
in accordance with its respective terms.

     “Independent Financial Advisor” means an accounting, appraisal, investment banking firm or
consultant to Persons engaged in a Permitted Business of nationally recognized standing that is, in
the good faith judgment of the Company, qualified to perform the task for which it has been
engaged.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

     “Initial Notes” means the first $1,100 million aggregate principal amount of Notes issued
under this Supplemental Indenture on the Issue Date.

     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by
S&P and equal to or higher than Baa3 (or the equivalent) by Moody’s.

     “Investments” means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other
obligations), advances or capital contributions (excluding commission, travel and similar advances
to officers and employees), purchases or other acquisitions for consideration of Indebtedness,
Equity Interests or other securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP. If the Company or any Subsidiary
of the Company sells or otherwise disposes of any Equity Interests of any direct or indirect
Subsidiary of the Company such that, after giving effect to any such sale or disposition, such
Person is no longer a Subsidiary of the Company, the Company will be deemed to have made an
Investment on the date of any such sale or disposition equal to the fair market value of the
Company’s Investments in such Subsidiary that were not sold or disposed of in an amount determined
as provided in the penultimate paragraph of Section 4.07(b) hereof. The acquisition by the Company
or any Subsidiary of the Company of a Person that holds an Investment in a third Person will be
deemed to be an Investment by the Company or such Subsidiary in such third Person in an amount
equal to the fair market value of the Investments held by the acquired Person in such third

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Person in an amount determined as provided in the penultimate paragraph of Section 4.07(b)
hereof. Except as otherwise provided in the indenture, the amount of an Investment will be
determined at the time the Investment is made and without giving effect to subsequent changes in
value.

     Notwithstanding anything to the contrary herein, in the case of any Investment made by the
Company or a Restricted Subsidiary of the Company in a Person substantially concurrently with a
cash distribution by such Person to the Company or a Guarantor (a “Concurrent Cash Distribution”),
then:

     (a) the Concurrent Cash Distribution shall be deemed to be Net Proceeds received in connection
with an Asset Sale and applied as set forth above under Section 4.10 hereof; and

     (b) the amount of such Investment shall be deemed to be the fair market value of the
Investment, less the amount of the Concurrent Cash Distribution.

     “Issue Date” means November 21, 2006.

     “Itiquira” shall mean Itiquira Energetica S.A.

     “Itiquira Acquisition Sub” shall have the meaning assigned to such term in the definition of
Itiquira Refinancing hereof.

     “Itiquira Refinancing” means the transaction or series of related transactions pursuant to
which (a) any or all of the outstanding preferred stock of Itiquira directly or indirectly held by
Eletrobrás is acquired by Itiquira or a subsidiary of Tosli Acquisition BV (“Itiquira Acquisition
Sub”) for an aggregate consideration not to exceed to $70,000,000, and, following such acquisition,
such preferred stock is redeemed, repaid or otherwise retired or held as treasury stock or
otherwise treated in accordance with the requirements of Brazilian law, and (b) pursuant to which
Itiquira or the Itiquira Acquisition Sub may incur up to $70,000,000 in aggregate principal amount
of Indebtedness secured by Liens on the assets of Itiquira and the Itiquira Acquisition Sub
(“Permitted Itiquira Indebtedness”), in each case on terms and conditions (which may include terms
and conditions other than those set forth in this definition) reasonably satisfactory to the
Administrative Agent under the Credit Agreement.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Lenders” means, at any time, the parties to the Credit Agreement then holding (or committed
to provide) loans, letters of credit, Credit-Linked Deposits or other extensions of credit that
constitute (or when provided will constitute) Indebtedness outstanding under the Credit Agreement.

     “Lien” means, with respect to any asset:

     (1) any mortgage, deed of trust, deed to secure debt, lien (statutory or otherwise),
pledge, hypothecation, encumbrance, restriction, collateral assignment, charge or security
interest in, on or of such asset;

     (2) the interest of a vendor or a lessor under any conditional sale agreement, capital
lease or title retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to such asset; and

16

 

     (3) in the case of Equity Interests or debt securities, any purchase option, call or
similar right of a third party with respect to such Equity Interests or debt securities.

     “Mark-to-Market Adjustments” means:

     (1) any non-cash loss attributable to the mark-to-market movement in the valuation of Hedging
Obligations (to the extent the cash impact resulting from such loss has not been realized) or other
derivative instruments pursuant to Financial Accounting Standards Board Statement No. 133,
“Accounting for Derivative Instruments and Hedging Activities;” plus

     (a) any loss relating to amounts paid in cash prior to the stated settlement date of any
Hedging Obligation that has been reflected in Consolidated Net Income in the current period; plus

     (b) any gain relating to Hedging Obligations associated with transactions recorded in the
current period that has been reflected in Consolidated Net Income in prior periods and excluded
from Consolidated Cash Flow pursuant to clauses (2)(a) and (2)(b) below; less,

     (2) any non-cash gain attributable to the mark-to-market movement in the valuation of Hedging
Obligations (to the extent the cash impact resulting from such gain has not been realized) or other
derivative instruments pursuant to Financial Accounting Standards Board Statement No. 133,
“Accounting for Derivative Instruments and Hedging Activities;” less

     (a) any gain relating to amounts received in cash prior to the stated settlement date of any
Hedging Obligation that has been reflected in Consolidated Net Income in the current period; less

     (b) any loss relating to Hedging Obligations associated with transactions recorded in the
current period that has been reflected in Consolidated Net Income in prior periods and excluded
from Consolidated Cash Flow pursuant to clauses (1)(a) and (1)(b) above.

     “Material Adverse Effect” shall mean a material adverse change in or material adverse effect
on the condition (financial or otherwise), results of operations, assets, liabilities or prospects
of the Company and its Subsidiaries, taken as a whole.

     “Merrill Lynch Hedge Agreement” means the ISDA Master Agreement dated as of October 15, 2006
between an affiliate of Merrill Lynch, Pierce, Fenner & Smith Incorporated and NRG, as amended to
the date of the Supplemental Indenture, and any agreements related thereto.

     “Moody’s” means Moody’s Investors Service, Inc. or any successor entity.

     “Necessary CapEx Debt” shall mean Indebtedness of the Company or its Restricted Subsidiaries
incurred for the purpose of financing Necessary Capital Expenditures.

     “Necessary Capital Expenditures” shall mean capital expenditures that are required by
Applicable Law (other than Environmental Laws) or undertaken for health and safety reasons. The
term “Necessary Capital Expenditures” does not include any capital expenditure undertaken primarily
to increase the efficiency of, expand or re-power any power generation facility.

17

 

     “Net Income” means, with respect to any specified Person, the net income (loss) of such
Person, determined in accordance with GAAP and before any reduction in respect of preferred stock
dividends or accretion, excluding, however:

     (1) any gain or loss, together with any related provision for taxes on such gain or
loss, realized in connection with: (a) any Asset Sale (without giving effect to the
threshold provided for in the definition thereof); or (b) the disposition of any securities
by such Person or any of its Restricted Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Restricted Subsidiaries; and

     (2) any extraordinary gain or loss, together with any related provision for taxes on
such extraordinary gain or loss.

     “Net Proceeds” means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received in any Asset
Sale), net of the direct costs relating to such Asset Sale, including, without limitation, legal,
accounting and investment banking fees, and sales commissions, and any relocation expenses incurred
as a result of the Asset Sale, taxes paid or payable as a result of the Asset Sale, in each case,
after taking into account any available tax deductions and any tax sharing arrangements, and
amounts required to be applied to the repayment of Indebtedness, other than Indebtedness under a
Credit Facility, secured by a Lien on the asset or assets that were the subject of such Asset Sale
and any reserve for adjustment in respect of the sale price of such asset or assets established in
accordance with GAAP.

     “Non-Recourse Debt” means Indebtedness:

     (1) as to which neither the Company nor any of its Restricted Subsidiaries (other than
an Excluded Project Subsidiary) (a) provides credit support of any kind (including any
undertaking, agreement or instrument that would constitute Indebtedness) other than pursuant
to a Non-Recourse Guarantee or any arrangement to provide or guarantee to provide goods and
services on an arm’s length basis, (b) is directly or indirectly liable as a guarantor or
otherwise, other than pursuant to a Non-Recourse Guarantee, or (c) constitutes the lender;

     (2) no default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted Subsidiary) would
permit upon notice, lapse of time or both any holder of any other Indebtedness of the
Company (other than the notes and the Credit Agreement) or any of its Restricted
Subsidiaries to declare a default on such other Indebtedness or cause the payment of such
other Indebtedness to be accelerated or payable prior to its Stated Maturity; and

     (3) in the case of Non-Recourse Debt incurred after the date of this Supplemental
Indenture, as to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Company or any of its Restricted Subsidiaries except
as otherwise permitted by clauses (1) or (2) above;

provided, however, that the following shall be deemed to be Non-Recourse Debt: (i) Guarantees with
respect to debt service reserves established with respect to a Subsidiary to the extent that such
Guarantee shall result in the immediate payment of funds, pursuant to dividends or otherwise, in
the amount of such Guarantee; (ii) contingent obligations of the Company or any other Subsidiary to
make capital contributions to a Subsidiary; (iii) any credit support or liability consisting of
reimbursement obligations in respect of Letters of Credit issued under and subject to the terms of,
the Credit Agreement to support

18

 

obligations of a Subsidiary; and (iv) any Investments in a Subsidiary, to the extent in the case of
(i) through (iv) otherwise permitted by this Supplemental Indenture.

     “Non-Recourse Guarantee” means any Guarantee by the Company or a Guarantor of Non-Recourse
Debt incurred by an Excluded Project Subsidiary as to which the lenders of such Non-Recourse Debt
have acknowledged that they will not have any recourse to the stock or assets of the Company or any
Guarantor, except to the limited extent set forth in such guarantee.

     “Notes” has the meaning assigned to it in the preamble to this Supplemental Indenture. The
Initial Notes and the Additional Notes shall be treated as a single class for all purposes under
this Supplemental Indenture. Unless the context otherwise requires, all references to the Notes
shall include the Initial Notes and any Additional Notes.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, that meets the requirements of
Section 12.05 hereof.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary, Assistant Secretary, or any Vice-President
of such Person.

     “Participant” means, with respect to the Depositary, a Person who has an account with the
Depositary.

     “Permitted Business” means the business of acquiring, constructing, managing, developing,
improving, maintaining, leasing, owning and operating Facilities, together with any related assets
or facilities, as well as any other activities reasonably related to, ancillary to, or incidental
to, any of the foregoing activities (including acquiring and holding reserves), including investing
in Facilities.

     “Permitted Investments” means:

     (1) any Investment in the Company or in a Restricted Subsidiary of the Company that is
a Guarantor;

     (2) any Investment in an Immaterial Subsidiary;

     (3) any Investment in an Excluded Foreign Subsidiary for so long as the Excluded
Foreign Subsidiaries do not collectively own more than 20% of the consolidated assets of the
Company as of the most recent fiscal quarter end for which financial statements are publicly
available;

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     (4) any issuance of letters of credit in an aggregate amount not to exceed $250.0
million solely for working capital requirements and general corporate purposes of any of the
Excluded Subsidiaries;

     (5) any Investment in Cash Equivalents (and, in the case of Excluded Subsidiaries only,
Cash Equivalents or other liquid investments permitted under any Credit Facility to which it
is a party);

     (6) any Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

          (A) such Person becomes a Restricted Subsidiary of the Company and a Guarantor or an
Immaterial Subsidiary; or

          (B) such Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company or a
Restricted Subsidiary of the Company that is a Guarantor;

     (7) any Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof;

     (8) Investments made as a result of the sale of Equity Interests of any Person that is
a Subsidiary of the Company such that, after giving effect to any such sale, such Person is
no longer a Subsidiary of the Company, if the sale of such Equity Interests constitutes an
Asset Sale and the Net Proceeds received from such Asset Sale are applied as set forth under
Section 4.10 hereof;

     (9) Investments to the extent made in exchange for the issuance of Equity Interests
(other than Disqualified Stock) of the Company;

     (10) any Investments received in compromise or resolution of (a) obligations of trade
creditors or customers of the Company or any of its Restricted Subsidiaries, including
pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of any trade creditor or customer; or (b) litigation, arbitration or other
disputes with Persons who are not Affiliates;

     (11) Investments represented by Hedging Obligations;

     (12) loans or advances to employees;

     (13) repurchases of the notes or pari passu Indebtedness;

     (14) any Investment in securities of trade creditors, trade counter-parties or
customers received in compromise of obligations of those Persons, including pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers;

     (15) negotiable instruments held for deposit or collection;

     (16) receivables owing to the Company or any Restricted Subsidiary of the Company and
payable or dischargeable in accordance with customary trade terms; provided,

20

 

however, that such trade terms may include such concessionary trade terms as the
Company of any such Restricted Subsidiary of the Company deems reasonable under the
circumstances;

     (17) payroll, travel and similar advances to cover matters that are expected at the
time of such advances ultimately to be treated as expenses for accounting purposes;

     (18) Investments resulting from the acquisition of a Person that at the time of such
acquisition held instruments constituting Investments that were not acquired in
contemplation of the acquisition of such Person;

     (19) any Investment in any Person engaged primarily in one or more Permitted Businesses
(including, without limitation, Excluded Subsidiaries, Unrestricted Subsidiaries, and
Persons that are not Subsidiaries of the Company) made for cash since February 2, 2006;

     (20) the contribution of any one or more of the Specified Facilities to a Restricted
Subsidiary that is not a Guarantor;

     (21) Investments made pursuant to a commitment that, when entered into, would have
complied with the provisions of this Supplemental Indenture; and

     (22) other Investments made since February 2, 2006 in any Person having an aggregate
fair market value (measured on the date each such Investment was made and without giving
effect to subsequent changes in value), when taken together with all other Investments made
pursuant to this clause (22) that are at the time outstanding not to exceed the greater of
(a) $500.0 million and (b) 2.5% of Total Assets; provided, however, that if any Investment
pursuant to this clause (22) is made in any Person that is not a Restricted Subsidiary of
the Company and a Guarantor at the date of the making of the Investment and such Person
becomes a Restricted Subsidiary and a Guarantor after such date, such Investment shall
thereafter be deemed to have been made pursuant to clause (1) above, and shall cease to have
been made pursuant to this clause (22).

     “Permitted Itiquira Indebtedness” shall have the meaning assigned to such term in the
definition of Itiquira Refinancing hereof.

     “Permitted Liens” means:

     (1) Liens on assets of the Company or any Guarantor securing Indebtedness and other
Obligations under Credit Facilities, in an aggregate principal amount not exceeding, on the
date of the creation of such Liens, the greater of (a) 30.0% of Total Assets or (b) $6.0
billion less the aggregate amount of all repayments, optional or mandatory, of the principal
of any term Indebtedness under a Credit Facility that have been made by the Company or any
of its Restricted Subsidiaries since February 2, 2006 with the Net Proceeds of Asset Sales
(other than Excluded Proceeds) and less, without duplication, the aggregate amount of all
repayments or commitment reductions with respect to any revolving credit borrowings under a
Credit Facility that have been made by the Company or any of its Restricted Subsidiaries
since February 2, 2006 as a result of the application of the Net Proceeds of Asset Sales
(other than Excluded Proceeds) in accordance with Section 4.10 hereof (excluding temporary
reductions in revolving credit borrowings as contemplated by that covenant);

21

 

     (2) Liens to secure obligations with respect to (i) contracts (other than for
Indebtedness) for commercial and trading activities for the purchase, transmission,
distribution, sale, lease or hedge of any energy related commodity or service, and (ii)
Hedging Obligations;

     (3) Liens on assets of Excluded Subsidiaries securing Indebtedness of Excluded
Subsidiaries that was permitted by the terms of the indenture to be incurred;

     (4) Liens (a) in favor of the Company or any of the Guarantors; (b) incurred by
Excluded Project Subsidiaries in favor of any other Excluded Project Subsidiary; or (c)
incurred by Excluded Foreign Subsidiaries in favor of any other Excluded Foreign Subsidiary;

     (5) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature;

     (6) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by
clauses (4) and (13) of Section 4.09(b) hereof covering only the assets acquired with or
financed by such Indebtedness;

     (7) Liens existing on February 2, 2006;

     (8) Liens for taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings promptly
instituted and diligently concluded; provided that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor;

     (9) Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens;

     (10) survey exceptions, easements or reservations of, or rights of others for,
licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines, oil and gas
and other mineral interests and leases and other similar purposes, or zoning or other
restrictions as to the use of real property that were not incurred in connection with
Indebtedness and that do not in the aggregate materially adversely affect the value of said
properties or materially impair their use in the operation of the business of such Person;

     (11) Liens created for the benefit of (or to secure) the notes (or the Subsidiary
Guarantees);

     (12) Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred
under this Supplemental Indenture; provided, however, that:

          (A) the new Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien arose, could
secure the original Lien (plus improvements and accessions to, such property or proceeds or
distributions thereof); and

          (B) the Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount or, if greater, committed amount, of
the Permitted Referencing Indebtedness and (y) an amount necessary to pay any fees and
expenses, including premiums, related to such refinancings, refunding, extension, renewal or
replacement;

22

 

     (13) Liens incurred or deposits made in connection with workers’ compensation,
unemployment insurance and other types of social security;

     (14) Liens encumbering deposits made to secure obligations arising from statutory,
regulatory, contractual or warranty requirements of the Company or any of its Restricted
Subsidiaries, including rights of offset and set-off;

     (15) leases or subleases granted to others that do not materially interfere with the
business of the Company and its Restricted Subsidiaries;

     (16) statutory Liens arising under ERISA;

     (17) Liens on property (including Capital Stock) existing at the time of acquisition of
the property by the Company or any Subsidiary of the Company; provided that such Liens were
in existence prior to, such acquisition, and not incurred in contemplation of, such
acquisition;

     (18) Liens arising from Uniform Commercial Code financing statements filed on a
precautionary basis in respect of operating leases intended by the parties to be true leases
(other than any such leases entered into in violation of the indenture);

     (19) Liens on assets and Equity Interests of a Subsidiary that is an Excluded
Subsidiary;

     (20) Liens granted in favor of Xcel Energy, Inc. pursuant to the Xcel Indemnification
Agreements as in effect on the date of this Supplemental Indenture on the Company’s interest
in all revenues received by the Company pursuant to the Facility Instruments;

     (21) Liens to secure Indebtedness incurred to finance Necessary Capital Expenditures
that encumber only the assets purchased, installed or otherwise acquired with the proceeds
of such Indebtedness;

     (22) Liens to secure Environmental CapEx Debt that encumber only the assets purchased,
installed or otherwise acquired with the proceeds of such Environmental CapEx Debt;

     (23) Liens on assets or securities deemed to arise in connection with the execution,
delivery or performance of contracts to sell such assets or stock otherwise permitted under
this Supplemental Indenture;

     (24) Liens on assets of Itiquira incurred pursuant to the Itiquira Refinancing;

     (25) any restrictions on any Equity Interest or undivided interests, as the case may
be, of a Person providing for a breach, termination or default under any joint venture,
stockholder, membership, limited liability company, partnership, owners’, participation or
other similar agreement between such Person and one or more other holders of Equity
Interests or undivided interests of such Person, as the case may be, if a security interest
or Lien is created on such Equity Interest or undivided interest, as the case may be, as a
result thereof;

     (26) any customary provisions limiting the disposition or distribution of assets or
property (including without limitation Equity Interests) or any related restrictions thereon
in joint venture, partnership, membership, stockholder and limited liability company
agreements,

23

 

asset sale agreements, sale-leaseback agreements, stock sale agreements and other
similar agreements, including owners’, participation or similar agreements governing
projects owned through an undivided interest; provided, however, that any such limitation is
applicable only to the assets that are the subjects of such agreements;

     (27) those Liens or other exceptions to title, in either case on or in respect of any
facility of the Company or any Subsidiary, arising as a result of any shared facility
agreement entered into after the closing date with respect to such facility, except to the
extent that any such Liens or exceptions, individually or in the aggregate, materially
adversely affect the value of the relevant property or materially impair the use of the
relevant property in the operation of the business of the Company or such Subsidiary;

     (28) Liens on cash deposits and other funds maintained with a depositary institution,
in each case arising in the ordinary course of business by virtue of any statutory or common
law provision relating to banker’s liens, including Section 4-210 of the UCC;

     (29) Liens on property and assets (other than certain properties or assets defined as
“core” collateral) designated as Excluded Assets from time to time by the Company in
accordance with clause (xiii) of the related definition under the Credit Agreement, which
shall not have, when taken together with all other property and assets that constitute
Excluded Assets at the relevant time of determination, a fair market value in excess of
$250.0 million in the aggregate (and, to the extent that such fair market value of such
property and assets exceeds $250.0 million in the aggregate, such property or assets shall
cease to be an Excluded Asset to the extent of such excess fair market value); and

     (30) Liens incurred by the Company or any Subsidiary of the Company with respect to
obligations that do not exceed $100.0 million at any one time outstanding.

     “Permitted Refinancing Indebtedness” means any Indebtedness of the Company or any of its
Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to refund,
refinance, replace, defease or discharge other Indebtedness of the Company or any of its Restricted
Subsidiaries (other than intercompany Indebtedness); provided that:

     (1) the principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted value, if
applicable) of the Indebtedness extended, refinanced, renewed, replaced, defeased or
refunded (plus all accrued interest on the Indebtedness and the amount of all expenses and
premiums incurred in connection therewith);

     (2) such Permitted Refinancing Indebtedness has a Weighted Average Life to Maturity
equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded;

     (3) if the Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is subordinated in right of payment to the Notes, such Permitted Refinancing
Indebtedness is subordinated in right of payment to, the Notes on terms at least as
favorable to the Holders of Notes as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased or refunded;

24

 

     (4) such Indebtedness is incurred either by the Company (and may be guaranteed by any
Guarantor) or by the Restricted Subsidiary who is the obligor on the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded; and

     (5) (a) if the Stated Maturity of the Indebtedness being refinanced is earlier than the
Stated Maturity of the notes, the Permitted Refinancing Indebtedness has a Stated Maturity
no earlier than the Stated Maturity of the Indebtedness being refinanced or (b) if the
Stated Maturity of the Indebtedness being refinanced is later than the Stated Maturity of
the Notes, the Permitted Refinancing Indebtedness has a Stated Maturity at least 91 days
later than the Stated Maturity of the Notes.

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

     “PMI” means NRG Power Marketing Inc., a Delaware corporation.

     “Pro Forma Cost Savings” means, without duplication, with respect to any period, reductions in
costs and related adjustments that have been actually realized or are projected by the Company’s
Chief Financial Officer in good faith to result from reasonably identifiable and factually
supportable actions or events, but only if such reductions in costs and related adjustments are so
projected by the Company to be realized during the consecutive four-quarter period commencing after
the transaction giving rise to such calculation.

     “Prospectus Supplement” means the Prospectus Supplement, dated November 8, 2006, related to
the issuance and sale of the Initial Notes.

     “Related Financing Transactions” means the incurrence of Indebtedness and issuance of Capital
Stock of the Company described in the Prospectus Supplement, dated January 26, 2006, under the
heading “The Acquisition —The Financing Transactions”.

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject.

     “Restricted Investment” means an Investment other than a Permitted Investment.

     “Restricted Payments” has the meaning assigned to such term under Section 4.07 hereof. For
purposes of determining compliance with Section 4.07 hereof, no Hedging Obligation shall be deemed
to be contractually subordinated to the notes or any Subsidiary Guarantee.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary.

     “Revolving Loans” means the revolving loans and commitments made by the Lenders under the
Credit Agreement.

     “S&P” means Standard & Poor’s Ratings Group or any successor entity.

     “SEC” means the Securities and Exchange Commission.

25

 

     “Second Supplemental Indenture” means the Second Supplemental Indenture, dated February 2,
2006, governing NRG’s 7.375% Senior Notes due 2016.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Significant Subsidiary” means 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 of this Supplemental Indenture.

     “Specified Facility” means each of the following Facilities: (a) the Facilities held on the
date of this Supplemental Indenture by Vienna Power LLC, Meriden Gas Turbine LLC, Norwalk Power
LLC, Connecticut Jet Power LLC (excluding the Cos Cob assets), Devon Power LLC, Montville Power LLC
(including the Capital Stock of the entities owning such Facilities provided that such entities do
not hold material assets other than the Facilities held on the date of this Supplemental
Indenture); (b) the following Facilities: P.H. Robinson, H.O. Clarke, Webster, Unit 3 at Cedar
Bayou, Unit 2 at T.H. Wharton; and (c) the Capital Stock of the following Subsidiaries of the
Company if such Subsidiary holds no assets other than the Capital Stock of a Foreign Subsidiary of
the Company: NRG Latin America, Inc., NRG International LLC, NRG Insurance Ltd. (Cayman Islands),
NRG Asia Pacific, Ltd., NRG International II Inc. and NRG International III Inc.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which the payment of interest or principal was scheduled to be
paid in the documentation governing such Indebtedness as of the date of this Supplemental
Indenture, and will not include any contingent obligations to repay, redeem or repurchase any such
interest or principal prior to the date originally scheduled for the payment thereof.

     “Subsidiary” means, with respect to any specified Person:

     (1) any corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the occurrence of
any contingency and after giving effect to any voting agreement or stockholders’ agreement
that effectively transfers voting power) to vote in the election of directors, managers or
trustees of the corporation, association or other business entity is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination
thereof).

     “Subsidiary Guarantee” means the Guarantee by each Guarantor of the Company’s obligations
under the Indenture and on the Notes, executed pursuant to the provisions of this Supplemental
Indenture.

     “Supplemental Indenture” means this Supplemental Indenture, dated as of the Issue Date, by and
among the Company, the Guarantors and the Trustee, governing the Notes, as amended, supplemented or
otherwise modified from time to time in accordance with the Base Indenture and the terms hereof.

     “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

26

 

     “Total Assets” means the total consolidated assets of the Company and its Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP, as shown on the most
recent balance sheet of the Company.

     “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption
date of United States Treasury securities with a constant maturity (as compiled and published in
the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available
at least two business days prior to the redemption date (or, if such Statistical Release is no
longer published, any publicly available source of similar market data)) most nearly equal to the
period from the redemption date to January 15, 2012; provided, however, that if the period from the
redemption date to January 15, 2012, is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one year will be used.

     “UCC” means the Uniform Commercial Code as in effect in the State of New York or any other
applicable jurisdiction.

     “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board
of Directors as an Unrestricted Subsidiary pursuant to a Board Resolution, but only to the extent
that such Subsidiary:

     (1) has no Indebtedness other than Non-Recourse Debt;

     (2) except as permitted by Section 4.11 hereof, is not party to any agreement,
contract, arrangement or understanding with the Company or any Restricted Subsidiary of the
Company unless the terms of any such agreement, contract, arrangement or understanding are
no less favorable to the Company or such Restricted Subsidiary than those that might be
obtained at the time from Persons who are not Affiliates of the Company;

     (3) is a Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to maintain or preserve such Person’s financial condition or to cause such
Person to achieve any specified levels of operating results except as otherwise permitted by
the Credit Agreement as in effect on the date of this Supplemental Indenture; and

     (4) has not guaranteed or otherwise directly or indirectly provided credit support for
any Indebtedness of the Company or any of its Restricted Subsidiaries except as otherwise
permitted by the Credit Agreement as in effect on the date of this Supplemental Indenture.

     Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary will be evidenced
to the Trustee by filing with the Trustee a certified copy of the Board Resolution giving effect to
such designation and an Officers’ Certificate certifying that such designation complied with the
conditions described under Section 4.19 hereof and was permitted by Section 4.07 hereof. If, at
any time, any Unrestricted Subsidiary fails to meet the requirements as an Unrestricted Subsidiary,
it will thereafter cease to be an Unrestricted Subsidiary for purposes of this Supplemental
Indenture and any Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred
as of such date under Section 4.09 hereof, the Company will be in default of such covenant. The
Board of Directors of the Company may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that such designation will be deemed to be an incurrence of
Indebtedness by a Restricted Subsidiary of the Company of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation will only be permitted if

27

 

(1) such Indebtedness is permitted under Section 4.09 hereof, calculated on a pro forma basis
as if such designation had occurred at the beginning of the four-quarter reference period; and (2)
no Default or Event of Default would be in existence following such designation.

     “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the Board of Directors of such Person.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing:

     (1) the sum of the products obtained by multiplying (a) the amount of each then
remaining installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect of the Indebtedness, by (b) the
number of years (calculated to the nearest one-twelfth) that will elapse between such date
and the making of such payment; by

     (2) the then outstanding principal amount of such Indebtedness.

     “Xcel” means Xcel Energy Inc., a Minnesota corporation.

     “Xcel Indemnification Agreements” means: (i) the Indemnification Agreement, dated as of
December 5, 2003, between Xcel Energy Inc., Northern States Power Company and the Company; and (ii)
the Indemnification Agreement, dated as of December 5, 2003, between Xcel Energy Inc., Northern
States Power Company and the Company.

     Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in
	Term	 	Section
	“Affiliate Transaction”
	 	 	4.11	 
	“Asset Sale Offer”
	 	 	4.10	 
	“Change of Control Offer”
	 	 	4.14	 
	“Change of Control Payment”
	 	 	4.14	 
	“Change of Control Payment Date”
	 	 	4.14	 
	“Covenant Defeasance”
	 	 	8.03	 
	“Event of Default”
	 	 	6.01	 
	“Excess Proceeds”
	 	 	4.10	 
	“incur”
	 	 	4.09	 
	“Legal Defeasance”
	 	 	8.02	 
	“Offer Amount”
	 	 	3.10	 
	“Offer Period”
	 	 	3.10	 
	“Permitted Debt”
	 	 	4.09	 
	“Purchase Date”
	 	 	3.10	 
	“Restricted Payments”
	 	 	4.07	 

     Section 1.03 Incorporation by Reference of Trust Indenture Act.

     Whenever this Supplemental Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Supplemental Indenture.

     The following TIA terms used in this Supplemental Indenture have the following meanings:

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     “indenture securities” means the Notes;

     “indenture security Holder” means a Holder of a Note;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes and the Subsidiary Guarantees means the Company and the Guarantors,
respectively, and any successor obligor upon the Notes and the Subsidiary Guarantees, respectively.

     All other terms used in this Supplemental Indenture that are defined by the TIA, defined by
TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned
to them. All other capitalized terms used herein and not otherwise defined shall have the meanings
provided in the Base Indenture.

     Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions;

     (7) references to sections of or rules under the Securities Act will be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time; and

     (8) references to sections of the Indenture refer to sections of this Supplemental
Indenture.

     Section 1.05 Relationship with Base Indenture.

     The terms and provisions contained in the Base Indenture shall constitute, and are hereby
expressly made, a part of this Supplemental Indenture and the Company, the Guarantors and the
Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such
terms and provisions and to be bound thereby. However, to the extent any provision of the Base
Indenture conflicts with the express provisions of this Supplemental Indenture, the provisions of
this Supplemental Indenture shall govern and be controlling.

     The Trustee accepts the amendment of the Base Indenture effected by this Supplemental
Indenture and agrees to execute the trust created by the Base Indenture as hereby amended, but only
upon the terms and conditions set forth in the Indenture, including the terms and provisions
defining and limiting the liabilities and responsibilities of the Trustee in the performance of the
trust created by the Base Indenture, and without limiting the generality of the foregoing, the
Trustee shall not be responsible in any manner whatsoever for or with respect to any of the
recitals or statements contained herein, all of

29

 

which recitals or statements are made solely by the Company and the Guarantors, or for or with
respect to (1) the validity or sufficiency of this Supplemental Indenture or any of the terms or
provisions hereof, (2) the proper authorization hereof by the Company and the Guarantors, (3) the
due execution hereof by the Company and the Guarantors or (4) the consequences (direct or indirect
and whether deliberate or inadvertent) of any amendment herein provided for, and the Trustee makes
no representation with respect to any such matters.

ARTICLE 2.

THE NOTES

     Section 2.01 Form and Dating.

     (a) General. The Notes shall be issued in registered global form without interest
coupons. The Notes and the Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law,
stock exchange rule or usage. The Company shall furnish any such notations, legends or
endorsements to the Trustee in writing. Each Note shall be dated the date of its authentication.
The Notes shall be in denominations of $5,000 and integral multiples of $5,000.

     The terms and provisions contained in the Notes shall constitute, and are hereby expressly
made, a part of the Indenture and the Company, the Guarantors and the Trustee, by their execution
and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Note conflicts with the express
provisions of the Base Indenture, the provisions of the Note shall govern and be controlling, and
to the extent any provision of the Note conflicts with the express provisions of this Supplemental
Indenture, the provisions of this Supplemental Indenture shall govern and be controlling.

     (b) Global Notes. Notes issued in global form shall be substantially in the form of Exhibit A
attached hereto (including the Global Note Legend thereon). Notes issued in definitive form shall
be substantially in the form of Exhibit A attached hereto (but without the Global Note Legend
thereon). Each Global Note shall represent such of the outstanding Notes as will be specified
therein and each shall provide that it represents the aggregate principal amount of outstanding
Notes from time to time as reflected in the records of the Trustee and that the aggregate principal
amount of outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. The Trustee’s records shall be noted to reflect
the amount of any increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby, in accordance with instructions given by the Holder thereof as required by
Section 2.04 hereof.

     Section 2.02 Execution and Authentication.

     One Officer must sign the Notes for the Company by manual or facsimile signature.

     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

     A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Supplemental
Indenture.

     The Trustee shall, upon receipt of a Company Order, authenticate Notes for original issue
under this Supplemental Indenture, including any Additional Notes issued pursuant to Section 2.5
hereof. The aggregate principal amount of Notes outstanding at any time may not exceed the
aggregate principal

30

 

amount of Notes authorized for issuance by the Company pursuant to one or more Company Orders,
except as provided in Section 2.8 of the Base Indenture.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Supplemental Indenture to authentication by the Trustee includes authentication
by such agent. An authenticating agent has the same rights as an Agent to deal with Holders, the
Company or an Affiliate of the Company.

     Section 2.03 Holder Lists.

     The Trustee shall preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of all Holders and shall otherwise comply
with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee
at least seven Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders and the Company shall otherwise comply
with TIA § 312(a).

     Section 2.04 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to
the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to
a successor Depositary or a nominee of such successor Depositary. All Global Notes shall be
exchanged by the Company for Definitive Notes if:

     (1) the Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing agency
registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary;

     (2) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) should be exchanged for Definitive Notes and delivers a written notice to such
effect to the Trustee; or

     (3) there has occurred and is continuing a Default or Event of Default with respect to
the Notes.

     Upon the occurrence of any of the preceding events in (1), (2) or (3) above, Definitive Notes
shall be issued in such names and in any approved denominations as the Depositary shall instruct
the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.8 and 2.11 of the Base Indenture. Every Note authenticated and delivered in exchange
for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.04 hereof or
Sections 2.8 and 2.11 of the Base Indenture, shall be authenticated and delivered in the form of,
and shall be, a Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.04(a), however, beneficial interests in a Global Note may be transferred
and exchanged as provided in Section 2.04(b), (c) and (d) hereof.

     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in
accordance with the provisions of this Supplemental Indenture and the Applicable Procedures.
Transfers

31

 

of beneficial interests in the Global Notes also will require compliance with either
subparagraph (1) or (2) below, as applicable, as well as one or more of the other following
subparagraphs, as applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in a Global Note. No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this Section
2.04(b)(1).

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.04(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar both:

     (A) a written order from a Participant or an Indirect Participant given to the
Depositary in accordance with the Applicable Procedures directing the Depositary to
credit or cause to be credited a beneficial interest in another Global Note in an
amount equal to the beneficial interest to be transferred or exchanged; and

     (B) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase.

     Upon satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Supplemental Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount
of the relevant Global Note(s) pursuant to Section 2.04(g) hereof.

     (c) Transfer or Exchange of Beneficial Interests in Global Notes for Definitive Notes.

     (1) If any holder of a beneficial interest in a Global Note proposes to exchange such
beneficial interest for a Definitive Note or to transfer such beneficial interest to a
Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction
of the conditions set forth in Section 2.04(b)(2) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant
to Section 2.04(g) hereof, and the Company shall execute and the Trustee shall authenticate
and deliver to the Person designated in the instructions a Definitive Note in the
appropriate principal amount. Any Definitive Note issued in exchange for a beneficial
interest pursuant to this Section 2.04(c)(1) shall be registered in such name or names and
in such authorized denomination or denominations as the holder of such beneficial interest
requests through instructions to the Registrar from or through the Depositary and the
Participant or Indirect Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.

     A Holder of a Definitive Note may exchange such Note for a beneficial interest in a
Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the
form of a beneficial interest in a Global Note at any time. Upon receipt of a request for
such an exchange or transfer, the Trustee shall cancel the applicable Definitive Note and
increase or cause to be increased the aggregate principal amount of one of the Global Notes.

     If any such exchange or transfer from a Definitive Note to a beneficial interest is
effected pursuant to the previous paragraph at a time when a Global Note has not yet been
issued, the Company shall issue and, upon receipt of a Company Order in accordance with
Section 2.02

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hereof, the Trustee shall authenticate one or more Global Notes in an aggregate
principal amount equal to the principal amount of Definitive Notes so transferred.

     A Holder of Definitive Notes may transfer such Notes to a Person who takes delivery
thereof in the form of a Definitive Note.

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.04(e), the
Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder must present or surrender to the Registrar the
Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in
writing. In addition, the requesting Holder must provide any additional certifications, documents
and information, as applicable, required pursuant to the following provisions of this Section
2.04(e).

     (f) Legends. A legend in substantially the following form will appear on the face of all
Global Notes issued under this Supplemental Indenture unless specifically stated otherwise in the
applicable provisions of this Supplemental Indenture.

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE NINTH SUPPLEMENTAL INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.04 OF THE NINTH SUPPLEMENTAL INDENTURE,
(2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.04(a) OF THE
NINTH SUPPLEMENTAL INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION
PURSUANT TO SECTION 2.12 OF THE BASE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF NRG ENERGY, INC.

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note
has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be
returned to or retained and canceled by the Trustee in accordance with Section 2.12 of the Base
Indenture. At any time

33

 

prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or
transferred to a Person who will take delivery thereof in the form of a beneficial interest in
another Global Note or for Definitive Notes, the principal amount of Notes represented by such
Global Note will be reduced accordingly and a notation will be made on the records maintained by
the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if
the beneficial interest is being exchanged for or transferred to a Person who will take delivery
thereof in the form of a beneficial interest in another Global Note, such other Global Note will be
increased accordingly and a notation will be made on the records maintained by the Trustee or by
the Depositary at the direction of the Trustee to reflect such increase.

     (h) General Provisions Relating to Transfers and Exchanges.

     (1) To permit registrations of transfers and exchanges, the Company shall execute and
the Trustee shall authenticate Global Notes and Definitive Notes upon receipt of a Company
Order in accordance with Section 2.02 hereof or at the Registrar’s request.

     (2) No service charge shall be made to a Holder of a Global Note or to a Holder of a
Definitive Note for any registration of transfer or exchange, but the Company may require
payment of a sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar governmental charge
payable upon exchange or transfer pursuant to Sections 3.06, 3.09, 4.10, 4.14 and 9.05
hereof and Section 2.11 of the Base Indenture).

     (3) The Registrar shall not be required to register the transfer of or exchange any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     (4) All Global Notes and Definitive Notes issued upon any registration of transfer or
exchange of Global Notes or Definitive Notes shall be the valid obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this Supplemental
Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of
transfer or exchange.

     (5) The Company shall not be required:

     (A) to issue, to register the transfer of or to exchange any Notes during a
period beginning at the opening of business 15 days before the day of any selection
of Notes for redemption under Section 3.02 hereof and ending at the close of
business on the day of selection;

     (B) to register the transfer of or to exchange any Note selected for redemption
in whole or in part, except the unredeemed portion of any Note being redeemed in
part; or

     (C) to register the transfer of or to exchange a Note between a record date and
the next succeeding interest payment date.

     (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Company shall be affected by notice to the contrary.

34

 

     (7) The Trustee shall authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

     (8) All orders, certifications, certificates and Opinions of Counsel required to be
submitted to the Registrar pursuant to this Section 2.04 to effect a registration of
transfer or exchange may be submitted by facsimile.

     Section 2.05 Issuance of Additional Notes.

     The Company shall be entitled, upon delivery of an Officer’s Certificate, Opinion of
Counsel and Company Order, subject to its compliance with Sections 4.09 hereof, to issue Additional
Notes under this Supplemental Indenture which shall have identical terms as the Initial Notes
issued on the Issue Date, other than with respect to the date of issuance and issue price. The
Initial Notes issued on the Issue Date and any Additional Notes issued shall be treated as a single
class for all purposes under this Supplemental Indenture.

     With respect to any Additional Notes, the Company shall set forth in a resolution of its Board
of Directors and an Officer’s Certificate, a copy of each which shall be delivered to the Trustee,
the following information:

     (a) the aggregate principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Supplemental Indenture; and

     (b) the issue price, the issue date and the CUSIP number of such Additional Notes.

ARTICLE 3.

REDEMPTION AND PREPAYMENT

     Section 3.01 Notices to Trustee.

     If the Company elects to redeem Notes pursuant to the optional redemption provisions of
Section 3.07 hereof, it must furnish to the Trustee, at least 30 days (45 days in the case of a
partial redemption) but not more than 60 days before a redemption date, an Officer’s Certificate
setting forth:

     (1) the clause of this Supplemental Indenture pursuant to which the redemption shall
occur;

     (2) the redemption date;

     (3) the principal amount of Notes to be redeemed; and

     (4) the redemption price.

     Section 3.02 Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes are to be redeemed at any time, the Trustee shall select
Notes for redemption on a pro rata basis among all outstanding Notes or, if the Notes are listed on
any national securities exchange, in compliance with the requirements of the principal national
securities exchange on which the Notes are listed, in either case, unless otherwise required by
law.

35

 

     In the event of partial redemption by lot, the particular Notes to be redeemed or purchased
shall be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior
to the redemption by the Trustee from the outstanding Notes not previously called for redemption.

     The Trustee shall promptly notify the Company in writing of the Notes selected for redemption
and, in the case of any Note selected for partial redemption, the principal amount thereof to be
redeemed. Notes and portions of Notes selected shall be in amounts of $5,000 or whole multiples of
$5,000 in excess of $5,000; except that if all of the Notes of a Holder are to be redeemed, the
entire outstanding amount of Notes held by such Holder, even if not a multiple of $5,000, shall be
redeemed. Except as provided in the preceding sentence, provisions of this Supplemental Indenture
that apply to Notes called for redemption also apply to portions of Notes called for redemption.

     No Notes of $5,000 or less shall be redeemed in part. Notices of redemption shall be mailed
by first class mail at least 30 but not more than 60 days before the redemption date to each Holder
of Notes to be redeemed at its registered address, except that redemption notices may be mailed
more than 60 days prior to a redemption date if the notice is issued in connection with a
defeasance of the Notes or a satisfaction and discharge of this Supplemental Indenture.

     If any Note is to be redeemed in part only, the notice of redemption that relates to that Note
shall state the portion of the principal amount of that Note that is to be redeemed. A new Note in
principal amount equal to the unredeemed portion of the original Note shall be issued in the name
of the Holder of notes upon cancellation of the original Note. Notes called for redemption become
due on the date fixed for redemption. On and after the redemption date, interest ceases to accrue
on notes or portions of them called for redemption.

     Section 3.03 Notice of Redemption.

     At least 30 days but not more than 60 days before a redemption date, the Company shall
mail or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes
are to be redeemed at its registered address, except that redemption notices may be mailed more
than 60 days prior to a redemption date if the notice is issued in connection with a defeasance of
the Notes or a satisfaction and discharge of this Supplemental Indenture pursuant to Article 8 or
11 of this Supplemental Indenture.

     The notice will identify the Notes to be redeemed and will state:

     (1) the redemption date;

     (2) the redemption price;

     (3) if any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date upon surrender of such Note, a new
Note or Notes in principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price;

     (6) that, unless the Company defaults in making such redemption payment, interest on
Notes called for redemption ceases to accrue on and after the redemption date;

36

 

     (7) the paragraph of the Notes and/or section of this Supplemental Indenture pursuant
to which the Notes called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes.

     At the Company’s request, the Trustee shall give the notice of redemption in the Company’s
name and at its expense; provided, however, that the Company has delivered to the Trustee, at least
45 days prior to the redemption date (or such shorter period as the Trustee in its sole discretion
may allow), an Officer’s Certificate requesting that the Trustee give such notice and setting forth
the information to be stated in such notice as provided in the preceding paragraph.

     Section 3.04 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.03 hereof, Notes called
for redemption become irrevocably due and payable on the redemption date at the redemption price.
A notice of redemption may not be conditional.

     Section 3.05 Deposit of Redemption or Purchase Price.

     One Business Day prior to the redemption or Purchase Date, the Company shall deposit with
the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of,
accrued interest, and premium, if any, on all Notes to be redeemed or purchased on that date.
Promptly after the Company’s written request, the Trustee or the Paying Agent shall promptly return
to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of
the amounts necessary to pay the redemption or purchase price of, accrued interest, and premium, if
any, on, all Notes to be redeemed or purchased.

     If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or Purchase Date, interest will cease to accrue on the Notes or the portions of Notes
called for redemption or purchase. If a Note is redeemed or purchased on or after an interest
record date but on or prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the Person in whose name such Note was registered at the close of
business on such record date. If any Note called for redemption or purchase is not so paid upon
surrender for redemption or purchase because of the failure of the Company to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or
purchase date until such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Notes and in Section 4.01 hereof.

     Section 3.06 Notes Redeemed or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company shall issue
and, upon receipt of a Company Order, the Trustee shall authenticate for the Holder at the expense
of the Company a new Note equal in principal amount to the unredeemed or unpurchased portion of the
Note surrendered.

     Section 3.07 Optional Redemption.

     (a) At any time prior to January 15, 2012, the Company may on any one or more occasions
redeem up to 35% of the aggregate principal amount of the Notes issued under this Supplemental
Indenture, upon not less than 30 nor more than 60 days’ notice, at a redemption price of 107.375%
of the

37

 

principal amount, plus accrued and unpaid interest to the redemption date, with the proceeds
of one or more Equity Offerings; provided that:

     (1) at least 65% of the aggregate principal amount of the Notes issued under this
Supplemental Indenture (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption; and

     (2) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

     (b) At any time prior to January 15, 2012, the Company may on any one or more occasions redeem
all or a part of the Notes, upon not less than 30 nor more than 60 days’ prior notice, at a
redemption price equal to 100% of the principal amount of Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest if any, to the redemption date, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date.

     (c) Except pursuant to clauses (a) and (b) above, the Notes are not redeemable at the
Company’s option prior to January 15, 2012. The Company is not prohibited, however, from acquiring
the notes in market transactions by means other than a redemption, whether pursuant to a tender
offer or otherwise, assuming such action does not otherwise violate the Indenture.

     (d) On or after January 15, 2012, the Company may on any one or more occasions redeem all or a
part of the Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and unpaid interest on
the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant interest payment date:

	 	 	 	 	 
	Year	 	Percentage
	2012
	 	 	103.688	%
	2013
	 	 	102.458	%
	2014
	 	 	101.229	%
	2015 and thereafter
	 	 	100.000	%

     (e) Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of
Section 3.01 through 3.06 hereof.

     Section 3.08 Mandatory Redemption.

     Except as required in Section 3.09 hereof, the Company is not required to make mandatory
redemption or sinking fund payments with respect to the Notes.

     Section 3.09 Offer to Purchase by Application of Excess Proceeds.

     In the event that, pursuant to Section 4.10 hereof, the Company is required to commence
an Asset Sale Offer, it shall follow the procedures specified below.

     The Asset Sale Offer shall be made to all Holders of Notes and all holders of other
Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in
this Supplemental Indenture with respect to offers to purchase or redeem with the proceeds of sales
of assets. The Asset Sale Offer shall remain open for a period of at least 20 Business Days
following its commencement and

38

 

not more than 30 Business Days, except to the extent that a longer period is required by
applicable law (the “Offer Period”). No later than three Business Days after the termination of
the Offer Period (the “Purchase Date”), the Company shall apply all Excess Proceeds (the “Offer
Amount”) to the purchase of Notes and such other pari passu Indebtedness (on a pro rata basis, if
applicable) or, if less than the Offer Amount has been tendered, all Notes and other Indebtedness
tendered in response to the Asset Sale Offer. Payment for any Notes so purchased shall be made in
the same manner as interest payments are made.

     If the Purchase Date is on or after an interest record date and on or before the related
interest payment date, any accrued and unpaid interest shall be paid to the Person in whose name a
Note is registered at the close of business on such record date, and no additional interest will be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.

     Upon the commencement of an Asset Sale Offer, the Company shall send, by first class mail, a
notice to the Trustee and each of the Holders. The notice will contain all instructions and
materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer. The
notice, which will govern the terms of the Asset Sale Offer, will state:

     (1) that the Asset Sale Offer is being made pursuant to this Section 3.09 and Section
4.10 hereof and the length of time the Asset Sale Offer will remain open;

     (2) the Offer Amount, the purchase price and the Purchase Date;

     (3) that any Note not tendered or accepted for payment will continue to accrue
interest;

     (4) that, unless the Company defaults in making such payment, any Note accepted for
payment pursuant to the Asset Sale Offer shall cease to accrue interest after the Purchase
Date;

     (5) that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may
elect to have Notes purchased in denominations of $5,000, or integral multiples of $5,000 in
excess of $5,000;

     (6) that Holders electing to have a Note purchased pursuant to any Asset Sale Offer
shall be required to surrender the Note, with the form entitled “Option of Holder to Elect
Purchase” on the reverse of the Note completed, or transfer by book-entry transfer, to the
Company, a Depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Purchase Date;

     (7) that Holders shall be entitled to withdraw their election if the Company, the
Depositary or the Paying Agent, as the case may be, receives, not later than the expiration
of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note purchased;

     (8) that, if the aggregate principal amount of Notes and other pari passu Indebtedness
surrendered in connection with the Asset Sale Offer exceeds the Offer Amount, the Company
shall select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis
based on the principal amount of Notes and such other pari passu Indebtedness surrendered
(with such adjustments as may be deemed appropriate by the Company so that only Notes in
denominations of $5,000, or integral multiples of $5,000 in excess of $5,000, will be
purchased); and

39

 

     (9) that Holders whose Notes were purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered (or
transferred by book-entry transfer).

     On or before the Purchase Date, the Company shall, to the extent lawful, accept for payment,
on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered
pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officer’s Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the terms of this
Section 3.09. The Company, the Depositary or the Paying Agent, as the case may be, shall promptly
(but in any case not later than five days after the Purchase Date) mail or deliver to each
tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company shall promptly issue a new Note, and the
Trustee, upon written request from the Company shall authenticate and mail or deliver such new Note
to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered.
Any Note not so accepted shall be promptly mailed or delivered by the Company to the Holder
thereof. The Company shall publicly announce the results of the Asset Sale Offer on or as soon as
practicable after the Purchase Date.

     Other than as specifically provided in this Section 3.09, any purchase pursuant to this
Section 3.09 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

ARTICLE 4.

COVENANTS

     Section 4.01 Payment of Notes.

     The Company shall pay or cause to be paid the principal of, premium, if any, and interest
on the Notes on the dates and in the manner provided in the Notes. Principal, premium, if any, and
interest will be considered paid on the date due if the Paying Agent, if other than the Company or
a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the
Company in immediately available funds and designated for and sufficient to pay all principal,
premium, if any, and interest then due.

     Section 4.02 Maintenance of Office or Agency.

     The Company shall maintain in the Borough of Manhattan, the City of New York, an office
or agency (which may be an office of the Trustee or an affiliate of the Trustee or Registrar) where
Notes may be surrendered for registration of transfer or for exchange and where notices and demands
to or upon the Company in respect of the Notes and the Indenture may be served. The Company shall
give prompt written notice to the Trustee of the location, and any change in the location, of such
office or agency. If at any time the Company fails to maintain any such required office or agency
or fails to furnish the Trustee with the address thereof, such presentations, surrenders, notices
and demands may be made or served at the Corporate Trust Office of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or rescission will in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company shall give prompt written notice to
the Trustee of any such designation or rescission and of any change in the location of any such
other office or agency.

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     The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 4.2 of the Base Indenture.

     Section 4.03 Reports.

     (a) Whether or not required by the SEC’s rules and regulations, so long as any Notes are
outstanding, the Company shall furnish to Holders, within the time periods (including any
extensions thereof) specified in the SEC’s rules and regulations:

     (1) all quarterly and annual reports that would be required to be filed with the SEC on
Forms 10-Q and 10-K if the Company were required to file such reports; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

     All such reports shall be prepared in all material respects in accordance with all of the
rules and regulations applicable to such reports. Each annual report on Form 10-K will include a
report on the Company’s consolidated financial statements by the Company’s independent registered
public accounting firm. In addition, the Company shall file a copy of each of the reports referred
to in clauses (1) and (2) above with the SEC for public availability within the time periods
specified in the rules and regulations applicable to such reports (unless the SEC will not accept
such a filing). To the extent such filings are made, the reports shall be deemed to be furnished
to the Trustee and Holders of Notes.

     If, at any time, the Company is no longer subject to the periodic reporting requirements of
the Exchange Act for any reason, the Company shall nevertheless continue filing the reports
specified in this Section 4.03(a) with the SEC within the time periods specified above unless the
SEC will not accept such a filing. The Company agrees that it shall not take any action for the
purpose of causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the
SEC will not accept the Company’s filings for any reason, the Company shall post the reports
referred to in this Section 4.03(a) on its website within the time periods that would apply if the
Company were required to file those reports with the SEC. The Company shall at all times comply
with TIA § 314(a).

     (b) In addition, the Company and the Guarantors agree that, for so long as any Notes remain
outstanding, at any time they are not required to file the reports required by the preceding
paragraphs with the Commission, they shall furnish to the Holders and to securities analysts and
prospective investors, upon their request, the information required to be delivered pursuant to
Rule 144A(d)(4) under the Securities Act.

     Section 4.04 Compliance Certificate.

     (a) The Company and each Guarantor (to the extent that such Guarantor is so required
under the TIA) shall deliver to the Trustee, within 90 days after the end of each fiscal year, an
Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries
during the preceding fiscal year has been made under the supervision of the signing Officers with a
view to determining whether the Company has kept, observed, performed and fulfilled its obligations
under the Indenture, and further stating, as to each such Officer signing such certificate, that to
the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and
every covenant contained in the Indenture and is not in default in the performance or observance of
any of the terms, provisions and conditions of the Indenture (or, if a Default or Event of Default
has occurred, describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with respect thereto) and that
to the best of his or her knowledge no event has occurred and remains

41

 

in existence by reason of which payments on account of the principal of or interest, if any,
on the Notes is prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto. The Company’s fiscal year
ends December 31st.

     (b) So long as any of the Notes are outstanding, the Company shall deliver to the Trustee,
forthwith upon any Officer becoming aware of any Default or Event of Default, an Officer’s
Certificate specifying such Default or Event of Default and what action the Company is taking or
proposes to take with respect thereto.

     Section 4.05 Taxes.

     The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to
delinquency, all material taxes, assessments, and governmental levies except such as are contested
in good faith and by appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders.

     Section 4.06 Stay, Extension and Usury Laws.

     The Company and each of the Guarantors covenants (to the extent that it may lawfully do
so) that they shall not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of the Indenture; and the
Company and each of the Guarantors (to the extent that they may lawfully do so) hereby expressly
waive all benefit or advantage of any such law, and covenant that they shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but
shall suffer and permit the execution of every such power as though no such law has been enacted.

     Section 4.07 Restricted Payments.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly:

     (1) declare or pay any dividend or make any other payment or distribution on account of
the Company’s or any of its Restricted Subsidiaries’ Equity Interests (including, without
limitation, any payment in connection with any merger or consolidation involving the Company
or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Company’s
or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other
than dividends or distributions payable in Equity Interests (other than Disqualified Stock)
of the Company or to the Company or a Restricted Subsidiary of the Company);

     (2) purchase, redeem or otherwise acquire or retire for value (including, without
limitation, in connection with any merger or consolidation involving the Company) any Equity
Interests of the Company or any direct or indirect parent of the Company (other than any
such Equity Interests owned by the Company or any Restricted Subsidiary of the Company);

     (3) make any payment on or with respect to, or purchase, redeem, defease or otherwise
acquire or retire for value any Indebtedness of the Company or any Guarantor that is
contractually subordinated to the Notes or any Subsidiary Guarantee of the Notes (excluding
any intercompany Indebtedness between or among the Company and any of its Restricted
Subsidiaries), except (a) a payment of interest or principal at the Stated Maturity thereof
or (b) a payment, purchase, redemption, defeasance, acquisition or retirement of any
subordinated

42

 

Indebtedness in anticipation of satisfying a sinking fund obligation, principal
installment or payment at final maturity, in each case due within one year of the date of
payment, purchase, redemption, defeasance, acquisition or retirement; or

     (4) make any Restricted Investment

(all such payments and other actions set forth in these clauses (1) through (4) above being
collectively referred to as “Restricted Payments”), unless, at the time of and after giving effect
to such Restricted Payment:

     (1) no Default or Event of Default has occurred and is continuing or would occur as a
consequence of such Restricted Payment; and

     (2) the Company would, at the time of such Restricted Payment and after giving pro
forma effect thereto as if such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a)
hereof; and

     (3) such Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since January 1, 2006
(excluding Restricted Payments permitted by clauses (2), (3), (4), (6), (7), (8), (9), (10),
(11), and (12) of Section 4.07(b) hereof), is less than the sum, without duplication, of:

     (A) 50% of the Consolidated Net Income of the Company for the period (taken as
one accounting period) from January 1, 2006 to the end of the Company’s most
recently ended fiscal quarter for which financial statements are publicly available
at the time of such Restricted Payment (or, if such Consolidated Net Income for such
period is a deficit, less 100% of such deficit), plus

     (B) 100% of the aggregate proceeds received by the Company since February 2,
2006 as a contribution to its equity capital (unless such contribution would
constitute Disqualified Stock) or from the issue or sale of Equity Interests of the
Company (other than Disqualified Stock) or from the issue or sale of convertible or
exchangeable Disqualified Stock or convertible or exchangeable debt securities of
the Company that have been converted into or exchanged for such Equity Interests
(other than Equity Interests (or Disqualified Stock or debt securities) sold to a
Subsidiary of the Company), plus

     (C) 100% of the aggregate proceeds received upon the sale or other disposition
of any Investment (other than a Permitted Investment) made since February 2, 2006;
plus the net reduction in Investments (other than Permitted Investments) in any
Person resulting from dividends, repayments of loans or advances or other transfers
of assets subsequent to February 2, 2006, in each case to the Company or any
Restricted Subsidiary from such Person; plus to the extent that the ability to make
Restricted Payments was reduced as the result of the designation since February 2,
2006 of an Unrestricted Subsidiary or Excluded Project Subsidiary, the portion
(proportionate to the Company’s equity interest in such Subsidiary) of the fair
market value of the net assets of such Unrestricted Subsidiary or Excluded Project
Subsidiary at the time such Unrestricted Subsidiary or Excluded Project Subsidiary
is redesignated, or liquidated or merged into, a Restricted Subsidiary that is not
an Excluded Subsidiary; provided, in each

43

 

case, that the foregoing may not exceed, in the aggregate, the amount of all
Investments which previously reduced the ability to make Restricted Payments; and
provided further, that Concurrent Cash Distributions shall be excluded from this
clause (C).

     (b) The provisions of Section 4.07(a) hereof shall not prohibit:

     (1) the payment of any dividend within 90 days after the date of declaration of the
dividend, if at the date of declaration the dividend payment would have complied with the
provisions of this Supplemental Indenture;

     (2) so long as no Default has occurred and is continuing or would be caused thereby,
the making of any Restricted Payment in exchange for, or out of the aggregate proceeds of
the substantially concurrent sale (other than to a Subsidiary of the Company) of, Equity
Interests of the Company (other than Disqualified Stock) or from the contribution of equity
capital (unless such contribution would constitute Disqualified Stock) to the Company;
provided that the amount of any such proceeds that are utilized for any such Restricted
Payment will be excluded from clause (3)(b) of the preceding paragraph;

     (3) so long as no Default has occurred and is continuing or would be caused thereby,
the defeasance, redemption, repurchase or other acquisition of Indebtedness of the Company
or any Guarantor that is contractually subordinated to the Notes or to any Subsidiary
Guarantee with the proceeds from a substantially concurrent incurrence of Permitted
Refinancing Indebtedness;

     (4) the payment of any dividend (or, in the case of any partnership or limited
liability company, any similar distribution) by a Restricted Subsidiary of the Company to
the holders of its Equity Interests on a pro rata basis;

     (5) so long as no Default has occurred and is continuing or would be caused thereby,
(a) the repurchase, redemption or other acquisition or retirement for value of any Equity
Interests of the Company or any Restricted Subsidiary of the Company held by any current or
former officer, director or employee of the Company or any of its Restricted Subsidiaries
pursuant to any equity subscription agreement, stock option agreement, severance agreement,
shareholders’ agreement or similar agreement, employee benefit plan or (b) the cancellation
of Indebtedness owing to the Company or any of its Restricted Subsidiaries from any current
or former officer, director or employee of the Company or any of its Restricted Subsidiaries
in connection with a repurchase of Equity Interests of the Company or any of its Restricted
Subsidiaries; provided that the aggregate price paid for the actions in clause (a) since
February 2, 2006 may not exceed $10.0 million in any twelve-month period (with unused
amounts in any period being carried over to succeeding periods) and may not exceed $50.0
million in the aggregate since February 2, 2006; provided, further that (i) such amount in
any calendar year may be increased by the cash proceeds of “key man” life insurance policies
received by the Company and its Restricted Subsidiaries after February 2, 2006 less any
amount previously applied to the making of Restricted Payments pursuant to this clause (5)
or Section 4.07(b)(5) of the First Supplemental Indenture and (ii) cancellation of the
Indebtedness owing to the Company from employees, officers, directors and consultants of the
Company or any of its Restricted Subsidiaries in connection with a repurchase of Equity
Interests of the Company from such Persons shall be permitted under this clause (5) as if it
were a repurchase, redemption, acquisition or retirement for value subject hereto;

     (6) the repurchase of Equity Interests in connection with the exercise of stock options
to the extent such Equity Interests represent a portion of the exercise price of those stock
options and the repurchases of Equity Interests in connection with the withholding of a
portion of

44

 

the Equity Interests granted or awarded to an employee to pay for the taxes payable by
such employee upon such grant or award;

     (7) so long as no Default has occurred and is continuing or would be caused thereby,
the declaration and payment of regularly scheduled or accrued dividends to holders of any
class or series of (a) preferred stock outstanding on February 2, 2006, (b) Disqualified
Stock of the Company or any Restricted Subsidiary of the Company issued on or after February
2, 2006 in accordance with the terms of this Supplemental Indenture and the Existing Senior
Notes or (c) preferred stock issued on or after February 2, 2006 in accordance with the
terms of this Supplemental Indenture and the Existing Senior Notes;

     (8) payments to holders of the Company’s Capital Stock in lieu of the issuance of
fractional shares of its Capital Stock;

     (9) the purchase, redemption, acquisition, cancellation or other retirement for a
nominal value per right of any rights granted to all the holders of Capital Stock of the
Company pursuant to any shareholders’ rights plan adopted for the purpose of protecting
shareholders from unfair takeover tactics; provided that any such purchase, redemption,
acquisition, cancellation or other retirement of such rights is not for the purpose of
evading the limitations of this covenant (all as determined in good faith by a senior
financial officer of the Company);

     (10) so long as no Default has occurred and is continuing or would be caused thereby,
upon the occurrence of a Change of Control or Asset Sale and after the completion of the
offer to repurchase the Notes as described in Sections 4.10 and 4.14 hereof (including the
purchase of all Notes tendered), any purchase, defeasance, retirement, redemption or other
acquisition of Indebtedness that is contractually subordinated to the Notes or any
subsidiary guarantee required under the terms of such Indebtedness, with, in the case of an
Asset Sale, Net Proceeds, as a result of such Change of Control or Asset Sale;

     (11) the purchase, redemption, acquisition, cancellation or other retirement of
preferred stock of Itiquira to effectuate the Itiquira Refinancing; and

     (12) so long as no Default has occurred and is continuing or would be caused thereby,
other Restricted Payments in an aggregate amount not to exceed $250.0 million since February
2, 2006.

     The amount of all Restricted Payments (other than cash) will be the fair market value on the
date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued
by the Company or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment. The fair market value of any assets or securities that are required to be valued by this
covenant will be determined by a senior financial officer of the Company whose certification with
respect thereto will be delivered to the Trustee.

     Section 4.08 Dividend and Other Payment Restrictions Affecting Subsidiaries.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries (other
than Excluded Subsidiaries) to, directly or indirectly, create or permit to exist or become
effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary
(other than an Excluded Subsidiary) to:

45

 

     (1) pay dividends or make any other distributions on its Capital Stock to the Company
or any of its Restricted Subsidiaries (other than Excluded Subsidiaries), or with respect to
any other interest or participation in, or measured by, its profits, or pay any indebtedness
owed to the Company or any of its Restricted Subsidiaries (other than Excluded
Subsidiaries);

     (2) make loans or advances to the Company or any of its Restricted Subsidiaries (other
than Excluded Subsidiaries); or

     (3) transfer any of its properties or assets to the Company or any of its Restricted
Subsidiaries (other than Excluded Subsidiaries).

     (b) The restrictions in Section 4.08(a) hereof shall not apply to encumbrances or restrictions
existing under or by reason of:

     (1) agreements governing Existing Indebtedness and the Credit Agreement, on the date of
this Supplemental Indenture;

     (2) this Supplemental Indenture, the Notes, and the Subsidiary Guarantees (including
the Exchange Notes and related Subsidiary Guarantees);

     (3) applicable law, rule, regulation or order;

     (4) customary non-assignment provisions in contracts, agreements, leases, permits and
licenses;

     (5) purchase money obligations for property acquired and Capital Lease Obligations that
impose restrictions on the property purchased or leased of the nature described in clause
(3) of the preceding paragraph;

     (6) any agreement for the sale or other disposition of the stock or assets of a
Restricted Subsidiary that restricts distributions by that Restricted Subsidiary pending the
sale or other disposition;

     (7) Permitted Refinancing Indebtedness; provided that the restrictions contained in the
agreements governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing the
Indebtedness being refinanced;

     (8) Liens permitted to be incurred under Section 4.12 hereof and associated agreements
that limit the right of the debtor to dispose of the assets subject to such Liens;

     (9) provisions limiting the disposition or distribution of assets or property in joint
venture, partnership, membership, stockholder and limited liability company agreements,
asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar
agreements, including owners’, participation or similar agreements governing projects owned
through an undivided interest, which limitation is applicable only to the assets that are
the subject of such agreements;

     (10) restrictions on cash or other deposits or net worth imposed by customers under
contracts entered into in connection with a Permitted Business;

46

 

     (11) restrictions or conditions contained in any trading, netting, operating,
construction, service, supply, purchase, sale or similar agreement to which the Company or
any Restricted Subsidiary of the Company is a party entered into in connection with a
Permitted Business; provided that such agreement prohibits the encumbrance of solely the
property or assets of the Company or such Restricted Subsidiary that are the subject of that
agreement, the payment rights arising thereunder and/or the proceeds thereof and not to any
other asset or property of the Company or such Restricted Subsidiary or the assets or
property of any other Restricted Subsidiary;

     (12) any instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Restricted Subsidiaries as in effect at the time of such acquisition
(except to the extent such Indebtedness or Capital Stock was incurred in connection with or
in contemplation of such acquisition), which encumbrance or restriction is not applicable to
any Person, or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired; provided that, in the case of Indebtedness,
such Indebtedness was permitted by the terms of this Supplemental Indenture to be incurred;

     (13) Indebtedness of a Restricted Subsidiary of the Company existing at the time it
became a Restricted Subsidiary if such restriction was not created in connection with or in
anticipation of the transaction or series of transactions pursuant to which such Restricted
Subsidiary became a Restricted Subsidiary or was acquired by the Company;

     (14) with respect only to Section 4.08(a)(3) hereof, restrictions encumbering property
at the time such property was acquired by the Company or any of its Restricted Subsidiaries,
so long as such restriction relates solely to the property so acquired and was not created
in connection with or in anticipation of such acquisition;

     (15) provisions limiting the disposition or distribution of assets or property in
agreements governing Non-Recourse Debt, which limitation is applicable only to the assets
that are the subject of such agreements; and

     (16) any encumbrance or restrictions of the type referred to in clauses (1), (2) and
(3) of Section 4.08(a) hereof imposed by any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of the contracts,
instruments or obligations referred to in clauses (1) through (15) above; provided that such
amendments, modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, in the good faith judgment of a senior financial officer
of the Company, no more restrictive with respect to such dividend and other payment
restrictions than those contained in the dividend or other payment restrictions prior to
such amendment, modification, restatement, renewals, increase, supplement, refunding,
replacement or refinancing.

     Section 4.09 Incurrence of Indebtedness and Issuance of Preferred Stock.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or
indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any
Indebtedness (including Acquired Debt), and the Company shall not issue any Disqualified Stock and
shall not permit any of its Restricted Subsidiaries to issue any shares of preferred stock;
provided, however, that the Company may incur Indebtedness (including Acquired Debt) or issue
Disqualified Stock, and the Guarantors may incur Indebtedness (including Acquired Debt) or issue
preferred stock, if the Fixed Charge Coverage Ratio for the Company’s most recently ended four full
fiscal quarters for which internal financial statements are

47

 

publicly available immediately preceding the date on which such additional Indebtedness is
incurred or such Disqualified Stock or preferred stock is issued would have been at least 2.0 to 1,
determined on a pro forma basis (including a pro forma application of the net proceeds therefrom),
as if the additional Indebtedness (including Acquired Debt) had been incurred or the Disqualified
Stock or preferred stock had been issued, as the case may be, at the beginning of such four-quarter
period.

     (b) The provisions of Section 4.09(a) shall not prohibit the incurrence of any of the
following items of Indebtedness (collectively, “Permitted Debt”):

     (1) the incurrence by the Company and PMI (and the guarantee thereof by the Guarantors)
of additional Indebtedness and letters of credit under Credit Facilities in an aggregate
principal amount at any one time outstanding under this clause (1) (with letters of credit
being deemed to have a principal amount equal to the maximum potential liability of the
Company and its Restricted Subsidiaries thereunder) not to exceed $6.0 billion less the
aggregate amount of all repayments, optional or mandatory, of the principal of any term
Indebtedness under a Credit Facility that have been made by the Company or any of its
Restricted Subsidiaries since February 2, 2006 with the Net Proceeds of Asset Sales (other
than Excluded Proceeds) and less, without duplication, the aggregate amount of all
repayments or commitment reductions with respect to any revolving credit borrowings under a
Credit Facility that have been made by the Company or any of its Restricted Subsidiaries
since February 2, 2006 as a result of the application of the Net Proceeds of Asset Sales
(other than Excluded Proceeds) in accordance with Section 4.10 hereof (excluding temporary
reductions in revolving credit borrowings as contemplated by that covenant);

     (2) the incurrence by the Company and its Restricted Subsidiaries of the Existing
Indebtedness;

     (3) the incurrence by the Company and the Guarantors of Indebtedness represented by the
Notes and the related Subsidiary Guarantees to be issued on the date of this Supplemental
Indenture;

     (4) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
represented by Capital Lease Obligations, mortgage financings or purchase money obligations,
in each case, incurred for the purpose of financing all or any part of the purchase price or
cost of design, construction, installation or improvement or lease of property (real or
personal), plant or equipment used or useful in the business of the Company or any of its
Restricted Subsidiaries or incurred within 180 days thereafter, in an aggregate principal
amount, including all Permitted Refinancing Indebtedness incurred to refund, refinance,
replace, defease or discharge any Indebtedness incurred pursuant to this clause (4), not to
exceed at any time outstanding 5.0% of Total Assets;

     (5) the incurrence by the Company or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance, replace, defease or discharge Indebtedness (other than intercompany Indebtedness)
that was permitted by this Supplemental Indenture to be incurred under Section 4.09(a)
hereof or clauses (2), (3), (4), (5), (15), (16), (17), (18), and (19) of this paragraph;

     (6) the incurrence by the Company or any of its Restricted Subsidiaries of intercompany
Indebtedness between or among the Company and any of its Restricted Subsidiaries; provided,
however, that:

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     (A) if the Company or any Guarantor is the obligor on such Indebtedness and the
payee is not the Company or a Guarantor, such Indebtedness must be expressly
subordinated to the prior payment in full in cash of all Obligations then due with
respect to the Notes, in the case of the Company, or the Subsidiary Guarantee, in
the case of a Guarantor; and

     (B) (i) any subsequent issuance or transfer of Equity Interests that results in
any such Indebtedness being held by a Person other than the Company or a Restricted
Subsidiary of the Company and (ii) any sale or other transfer of any such
Indebtedness to a Person that is not either the Company or a Restricted Subsidiary
of the Company;

will be deemed, in each case, to constitute an incurrence of such Indebtedness by
the Company or such Restricted Subsidiary, as the case may be, that was not
permitted by this clause (6);

     (7) the issuance by any of the Company’s Restricted Subsidiaries to the Company or to
any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

     (A) any subsequent issuance or transfer of Equity Interests that results in any
such preferred stock being held by a Person other than the Company or a Restricted
Subsidiary of the Company; and

     (B) any sale or other transfer of any such preferred stock to a Person that is
not either the Company or a Restricted Subsidiary of the Company;

will be deemed, in each case, to constitute an issuance of such preferred stock by
such Restricted Subsidiary that was not permitted by this clause (7);

     (8) the incurrence by the Company or any of its Restricted Subsidiaries of Hedging
Obligations;

     (9) the guarantee by (i) the Company or any of the Guarantors of Indebtedness of the
Company or a Guarantor that was permitted to be incurred by another provision of this
covenant; (ii) any of the Excluded Project Subsidiaries of Indebtedness of any other
Excluded Project Subsidiary; and (iii) any of the Excluded Foreign Subsidiaries of
Indebtedness of any other Excluded Foreign Subsidiary; provided that if the Indebtedness
being guaranteed is subordinated to or pari passu with the Notes, then the guarantee shall
be subordinated to the same extent as the Indebtedness guaranteed;

     (10) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument (except in the case of daylight overdrafts) inadvertently drawn
against insufficient funds in the ordinary course of business, so long as such Indebtedness
is covered within five business days;

     (11) the incurrence by the Company or any of its Restricted Subsidiaries of
Indebtedness in respect of (i) workers’ compensation claims, self-insurance obligations,
bankers’ acceptance and (ii) performance and surety bonds provided by the Company or a
Restricted Subsidiary in the ordinary course of business;

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     (12) (i) the incurrence of Non-Recourse Debt by any Excluded Project Subsidiary, and
(ii) the incurrence of Indebtedness and guarantees pursuant to the Itiquira Refinancing;

     (13) the incurrence of Indebtedness that may be deemed to arise as a result of
agreements of the Company or any Restricted Subsidiary of the Company providing for
indemnification, adjustment of purchase price or any similar obligations, in each case,
incurred in connection with the disposition of any business, assets or Equity Interests of
any Subsidiary; provided that the aggregate maximum liability associated with such
provisions may not exceed the gross proceeds (including non-cash proceeds) of such
disposition;

     (14) the incurrence by the Company or any Restricted Subsidiary of the Company of
Indebtedness represented by letters of credit, guarantees or other similar instruments
supporting Hedging Obligations of the Company or any of its Restricted Subsidiaries (other
than Excluded Subsidiaries) permitted to be incurred by this Supplemental Indenture;

     (15) Indebtedness, Disqualified Stock or preferred stock of Persons or assets that are
acquired by the Company or any Restricted Subsidiary of the Company or merged into the
Company or a Restricted Subsidiary of the Company in accordance with the terms of this
Supplemental Indenture; provided that such Indebtedness, Disqualified Stock or preferred
stock is not incurred in contemplation of such acquisition or merger; and provided further
that after giving effect to such acquisition or merger, either:

     (A) the Company would be permitted to incur at least $1.00 of additional
Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in the first
sentence of Section 4.09(a) hereof; or

     (B) the Fixed Charge Coverage Ratio would be greater than immediately prior to
such acquisition or merger;

     (16) Environmental CapEx Debt; provided, that prior to the incurrence of any
Environmental CapEx Debt, the Company shall deliver to the Trustee an Officers’ Certificate
designating such Indebtedness as Environmental CapEx Debt;

     (17) Indebtedness incurred to finance Necessary Capital Expenditures; provided, that
prior to the incurrence of any Indebtedness to finance Necessary Capital Expenditures, the
Company shall deliver to the Trustee an Officers’ Certificate designating such Indebtedness
as Necessary CapEx Debt;

     (18) Indebtedness of the Company or any Restricted Subsidiary of the Company consisting
of (i) the financing of insurance premiums or (ii) take-or-pay obligations contained in
supply arrangements, in each case, in the ordinary course of business; and

     (19) the incurrence by the Company and/or any of its Restricted Subsidiaries of
additional Indebtedness in an aggregate principal amount (or accreted value, as applicable)
at any time outstanding, including all Permitted Refinancing Indebtedness incurred to
refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this
clause (19), not to exceed $500.0 million.

     The Company shall not, and shall not permit any Guarantor to, incur any Indebtedness
(including Permitted Debt) that is contractually subordinated in right of payment to any other
Indebtedness of the Company or that Guarantor unless such Indebtedness is also contractually
subordinated in right of

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payment to the Notes and the applicable Subsidiary Guarantee on substantially identical terms;
provided, however, that no Indebtedness of the Company shall be deemed to be contractually
subordinated in right of payment to any other Indebtedness of the Company solely by virtue of being
unsecured or by virtue of being secured on a first or junior Lien basis.

     For purposes of determining compliance with this Section 4.09, in the event that an item of
proposed Indebtedness meets the criteria of more than one of the categories of Permitted Debt
described in clauses (1) through (19) above, or is entitled to be incurred pursuant to Section
4.09(a) hereof, the Company shall be permitted to classify such item of Indebtedness on the date of
its incurrence, or later reclassify all or a portion of such item of Indebtedness, in any manner
that complies with this Section 4.09. Indebtedness under the Credit Agreement outstanding on the
date of the Supplemental Indenture will initially be deemed to have been incurred on such date in
reliance on the exception provided by clause (1) above. The accrual of interest, the accretion or
amortization of original issue discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, and the payment of dividends on Disqualified Stock in
the form of additional shares of the same class of Disqualified Stock shall not be deemed to be an
incurrence of Indebtedness or an issuance of Disqualified Stock for purposes of this Section 4.09;
provided, in each such case, that the amount thereof is included in Fixed Charges of the Company as
accrued.

     For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated
in a foreign currency will be calculated based on the relevant currency exchange rate in effect on
the date such Indebtedness was incurred; provided that if such Indebtedness is incurred to
refinance other Indebtedness denominated in a foreign currency, and such refinancing would cause
the applicable U.S. dollar-dominated restriction to be exceeded if calculated at the relevant
currency exchange rate in effect on the date of such refinancing, such U.S. dollar-dominated
restriction shall be deemed not to have been exceeded so long as the principal amount of such
refinancing Indebtedness does not exceed the principal amount of the Indebtedness being refinanced.

     The amount of any Indebtedness outstanding as of any date will be:

     (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued
with original issue discount;

     (2) the principal amount of the Indebtedness, in the case of any other Indebtedness;
and

     (3) in respect of Indebtedness of another Person secured by a Lien on the assets of
the specified Person, the lesser of:

     (A) the fair market value of such asset at the date of determination, and

     (B) the amount of the Indebtedness of the other Person;

provided that any changes in any of the above shall not give rise to a default under this Section 4.09.

     Section 4.10 Asset Sales.

     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

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     (1) the Company (or the Restricted Subsidiary, as the case may be) receives
consideration at the time of the Asset Sale at least equal to the fair market value of the
assets or Equity Interests issued or sold or otherwise disposed of; and

     (2) at least 75% of the consideration received in the Asset Sale by the Company or such
Restricted Subsidiary is in the form of cash. For purposes of this provision, each of the
following will be deemed to be cash:

     (A) any liabilities, as shown on the Company’s most recent consolidated balance
sheet, of the Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms subordinated to the Notes or any
Subsidiary Guarantee) that are assumed by the transferee of any such assets pursuant
to a customary novation agreement that releases the Company or such Restricted
Subsidiary from further liability;

     (B) any securities, notes or other obligations received by the Company or any
such Restricted Subsidiary from such transferee that are converted by the Company or
such Restricted Subsidiary into cash within 180 days of the receipt of such
securities, notes or other obligations, to the extent of the cash received in that
conversion;

     (C) any stock or assets of the kind referred to in clauses (4) or (6) of the
next paragraph of this Section 4.10; and

     (D) any Designated Noncash Consideration received by the Company or any
Restricted Subsidiary of the Company in such Asset Sale having an aggregate fair
market value, taken together with all other Designated Noncash Consideration
received pursuant to this clause (D) and Section 4.10(a)(2)(D) of the First
Supplemental Indenture that is at the time outstanding, not to exceed the greater of
(x) $500.0 million or (y) 2.5% of Total Assets at the time of the receipt of such
Designated Noncash Consideration, with the fair market value of each item of
Designated Noncash Consideration being measured at the time received and without
giving effect to subsequent changes in value.

     (b) Within 365 days after the receipt of any Net Proceeds from an Asset Sale, other than
Excluded Proceeds, the Company (or the applicable Restricted Subsidiary, as the case may be) may
apply such Net Proceeds or, at its option, enter into a binding commitment to apply such Net
Proceeds within the 365-day period following the date of such commitment (an “Acceptable
Commitment”):

     (1) to repay Indebtedness and other Obligations under a Credit Facility and, if such
Indebtedness is revolving credit Indebtedness, to correspondingly reduce commitments with
respect thereto;

     (2) in the case of a sale of assets pledged to secured Indebtedness (including Capital
Lease Obligations), to repay the Indebtedness secured by those assets;

     (3) in the case of an Asset Sale by a Restricted Subsidiary that is not a Guarantor, to
repay Indebtedness of a Restricted Subsidiary that is not a Guarantor (other than
Indebtedness owed to the Company or another Restricted Subsidiary of the Company);

     (4) to acquire all or substantially all of the assets of, or any Capital Stock of,
another Person engaged primarily in a Permitted Business, if, after giving effect to any
such acquisition of

52

 

Capital Stock, such Person is or becomes a Restricted Subsidiary of the Company and a
Guarantor;

     (5) to make a capital expenditure;

     (6) to acquire other assets that are not classified as current assets under GAAP and
that are used or useful in a Permitted Business; or

     (7) any combination of the foregoing.

Pending the final application of such Net Proceeds in accordance with this Section 4.10 and
notwithstanding clause (1) above, the Company may temporarily reduce revolving credit borrowings or
otherwise use the Net Proceeds in any manner that is not prohibited by this Supplemental Indenture.

     (c) Notwithstanding the preceding paragraph, in the event that regulatory approval is
necessary for an asset or investment, or construction, repair or restoration on any asset or
investment has commenced, then the Company or any Restricted Subsidiary shall have an additional
365 days to apply the Net Proceeds from such Asset Sale in accordance with the preceding paragraph.

     Any Acceptable Commitment that is later canceled or terminated for any reason before such Net
Proceeds are so applied shall be treated as a permitted application of the Net Proceeds if the
Company or such Restricted Subsidiary enters into another Acceptable Commitment within the later of
(a) nine months of such cancellation or termination or (b) the end of the initial 365-day period.

     (d) Any Net Proceeds from Asset Sales (other than Excluded Proceeds) that are not applied or
invested as provided in this Section 4.10 shall constitute “Excess Proceeds.” When the aggregate
amount of Excess Proceeds exceeds $100.0 million, or at such earlier date as may be selected by the
Company, the Company will make an Asset Sale Offer to all Holders of Notes and all holders of other
Indebtedness (including Indebtedness evidenced by the Existing Senior Notes) that is pari passu
with the Notes containing provisions similar to those set forth in this Supplemental Indenture with
respect to offers to purchase or redeem with the proceeds of sales of assets to purchase the
maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out
of the Excess Proceeds (an “Asset Sale Offer”). The offer price in any Asset Sale Offer will be
equal to 100% of the principal amount plus accrued and unpaid interest to the date of purchase and
will be payable in cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
the Company may use those Excess Proceeds for any purpose not otherwise prohibited by this
Supplemental Indenture. If the aggregate principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee
will select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis.
Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

     (e) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and
any other securities laws and regulations thereunder to the extent such laws and regulations are
applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer. To the
extent that the provisions of any securities laws or regulations conflict with the provisions of
Sections 3.09 or 4.10 hereof, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under Sections 3.09 and 4.10
hereof by virtue of such compliance.

     Section 4.11 Transactions with Affiliates.

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     (a) The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property or assets from, or enter into or make or amend any transaction,
contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Company (each, an “Affiliate Transaction”) involving aggregate payments in excess
of $10.0 million, unless, unless:

     (1) the Affiliate Transaction is on terms that are no less favorable to the Company (as
reasonably determined by the Company) or the relevant Restricted Subsidiary than those that
would have been obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person; and

     (2) the Company delivers to the Trustee:

     (A) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $50.0 million, a
resolution of the Board of Directors set forth in an Officers’ Certificate
certifying that such Affiliate Transaction complies with this covenant and that such
Affiliate Transaction has been approved by a majority of the disinterested members
of the Board of Directors; and

     (B) with respect to any Affiliate Transaction or series of related Affiliate
Transactions involving aggregate consideration in excess of $100.0 million, an
opinion as to the fairness to the Company or such Restricted Subsidiary of such
Affiliate Transaction from a financial point of view issued by an accounting,
appraisal or investment banking firm of national standing.

     (b) The following items shall not be deemed to be Affiliate Transactions and, therefore, shall
not be subject to the provisions of the prior paragraph:

     (1) any employment agreement or director’s engagement agreement, employee benefit plan,
officer and director indemnification agreement or any similar arrangement entered into by
the Company or any of its Restricted Subsidiaries or approved by the Board of Directors of
the Company in good faith;

     (2) transactions between or among the Company and/or its Restricted Subsidiaries;

     (3) transactions with a Person (other than an Unrestricted Subsidiary of the Company)
that is an Affiliate of the Company solely because the Company owns, directly or through a
Restricted Subsidiary, an Equity Interest in, or controls, such Person;

     (4) payment of directors’ fees;

     (5) any issuance of Equity Interests (other than Disqualified Stock) of the Company or
its Restricted Subsidiaries;

     (6) Restricted Payments that do not violate the provisions of Section 4.07 hereof;

     (7) any agreement in effect as of the date of this Supplemental Indenture or any
amendment thereto or replacement thereof and any transaction contemplated thereby or
permitted thereunder, so long as any such amendment or replacement agreement taken as a
whole is not more disadvantageous to the Holders than the original agreement as in effect on
the date of this Supplemental Indenture;

54

 

     (8) payments or advances to employees or consultants that are incurred in the ordinary
course of business or that are approved by the Board of Directors of the Company in good
faith;

     (9) the existence of, or the performance by the Company or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement (including
any registration rights agreement or purchase agreement related thereto) to which it is a
party as of the date of this Supplemental Indenture and any similar agreements which it may
enter into thereafter; provided, however, that the existence of, or the performance by the
Company or any of its Restricted Subsidiaries of obligations under, any future amendment to
any such existing agreement or under any similar agreement entered into after the date of
this Supplemental Indenture shall only be permitted by this clause (9) to the extent that
the terms of any such amendment or new agreement are not otherwise more disadvantageous to
the Holders of the Notes in any material respect;

     (10) transactions permitted by, and complying with, the provisions of Section 5.01
hereof;

     (11) transactions with customers, clients, suppliers, joint venture partners or
purchasers or sellers of goods or services (including pursuant to joint venture agreements)
otherwise in compliance with the terms of this Supplemental Indenture that are fair to the
Company and its Restricted Subsidiaries, in the reasonable determination of a senior
financial officer of the Company, or are on terms not materially less favorable taken as a
whole as might reasonably have been obtained at such time from an unaffiliated party;

     (12) any repurchase, redemption or other retirement of Capital Stock of the Company
held by employees of the Company or any of its Subsidiaries;

     (13) loans or advances to employees or consultants;

     (14) the transactions contemplated by the Acquisition Agreement and the payment of all
fees and expenses related thereto;

     (15) any Permitted Investment in another Person involved in a Permitted Business;

     (16) transactions in which the Company or any Restricted Subsidiary of the Company, as
the case may be, delivers to the Trustee a letter from an Independent Financial Advisor
stating that such transaction is fair to the Company or such Restricted Subsidiary from a
financial point of view or meets the requirements of clause (1) of the preceding paragraph;

     (17) guarantee of Permitted Itiquira Indebtedness; and

     (18) any agreement to do any of the foregoing.

     Section 4.12 Liens.

     The Company will not, and will not permit any of its Restricted Subsidiaries to, create,
incur, assume or otherwise cause or suffer to exist or become effective any Lien of any kind (other
than Permitted Liens) securing Indebtedness or Attributable Debt upon any of their property or
assets, now owned or hereafter acquired, unless all payments due under this Supplemental and the
Notes are secured

55

 

on an equal and ratable basis with the obligations so secured until such time as such
obligations are no longer secured by a Lien.

     Section 4.13 Corporate Existence.

     Subject to Article 5 hereof, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents (as the same
may be amended from time to time) of the Company or any such Subsidiary; and

     (2) the rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries;

provided, however, that the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any of its Subsidiaries, if (a) the
Company shall determine that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Notes and (b) if a Subsidiary is to be
dissolved, such Subsidiary has no assets.

     Section 4.14 Offer to Repurchase Upon Change of Control.

     (a) Upon the occurrence of a Change of Control, each Holder of Notes shall have the right
to require the Company to make an offer (a “Change of Control Offer”) to each Holder to repurchase
all or any part (equal to $5,000 or an integral multiple of $5,000) of each Holder’s Notes at a
purchase price equal to 101% of the aggregate principal amount of Notes repurchased plus accrued
and unpaid interest on the Notes repurchased, if any, to the date of purchase, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date (the “Change of Control Payment”). Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder describing the transaction or transactions
that constitute the Change of Control and stating:

     (1) that the Change of Control Offer is being made pursuant to this Section 4.14 and
that all Notes tendered will be accepted for payment;

     (2) the purchase price and the purchase date, which date will be no earlier than 30
days and no later than 60 days from the date such notice is mailed (the “Change of Control
Payment Date”);

     (3) that any Note not tendered will continue to accrue interest;

     (4) that, unless the Company defaults in the payment of the Change of Control Payment,
all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue
interest after the Change of Control Payment Date;

     (5) that Holders electing to have any Notes purchased pursuant to a Change of Control
Offer shall be required to surrender the Notes, with the form entitled “Option of Holder to
Elect Purchase” on the reverse of the Notes completed, to the Paying Agent at the address
specified in the notice prior to the close of business on the third Business Day preceding
the Change of Control Payment Date;

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     (6) that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of Notes delivered for purchase, and a
statement that such Holder is withdrawing his election to have the Notes purchased; and

     (7) that Holders whose Notes are being purchased only in part will be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered, which
unpurchased portion must be equal to $5,000 in principal amount or an integral multiple of
$5,000.

     The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change in Control. To
the extent that the provisions of any securities laws or regulations conflict with the provisions
of this Section 4.14, the Company shall comply with the applicable securities laws and regulations
and shall not be deemed to have breached its obligations under this Section 4.14 by virtue of such
compliance.

     (b) On the Change of Control Payment Date, the Company shall, to the extent lawful:

     (1) accept for payment all Notes or portions of Notes properly tendered pursuant to the
Change of Control Offer;

     (2) deposit with the Paying Agent an amount equal to the Change of Control Payment in
respect of all Notes or portions of Notes properly tendered; and

     (3) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officer’s Certificate stating the aggregate principal amount of Notes or
portions of Notes being purchased by the Company.

     The Paying Agent shall promptly mail to each Holder of Notes properly tendered the Change of
Control Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to
be transferred by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any; provided that each new Note shall be in a
principal amount of $5,000 or an integral multiple of $5,000. The Company shall publicly announce
the results of the Change of Control Offer on or as soon as practicable after the Change of Control
Payment Date.

     (c) The provisions described in Sections 4.14 (a) and (b) shall apply whether or not other
provisions of this Supplemental Indenture are applicable. Except as described in Sections 4.14 (a)
and (b) hereof, Holders of Notes shall not be permitted to require that the Company repurchase or
redeem the Notes in the event of a takeover, recapitalization or similar transaction.

     (d) Notwithstanding anything to the contrary in this Section 4.14, the Company shall not be
required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.14 hereof and purchases all Notes properly tendered and
not withdrawn under the Change of Control Offer, or (2) notice of redemption has been given
pursuant to Section 3.07 hereof, unless and until there is a default in payment of the applicable
redemption price. A Change of Control Offer may be made in advance of a Change of Control, with
the obligation to pay and the timing of payment conditioned upon the consummation of the Change of
Control, if a definitive agreement to effect a Change of Control is in place at the time of the
Offer.

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     Section 4.15 Limitation on Sale and Leaseback Transactions.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to, enter
into any sale and leaseback transaction; provided that the Company or any Guarantor may enter into
a sale and leaseback transaction if:

     (1) the Company or that Guarantor, as applicable, could have (a) incurred Indebtedness
in an amount equal to the Attributable Debt relating to such sale and leaseback transaction
under the provisions of Section 4.09 hereof and (b) incurred a Lien to secure such
Indebtedness pursuant to the provisions of Section 4.12 hereof;

     (2) the gross proceeds of that sale and leaseback transaction are at least equal to the
fair market value of the property that is the subject of that sale and leaseback
transaction, as determined in good faith by a senior financial officer of the Company; and

     (3) if such sale and leaseback transaction constitutes an Asset Sale, the transfer of
assets in that sale and leaseback transaction is permitted by, and the Company applies the
proceeds of such transaction in compliance with, the provisions of Section 4.10 hereof.

     Section 4.16 Payments for Consent.

     The Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, pay or cause to be paid any consideration to or for the benefit of any
Holder for or as an inducement to any consent under or waiver or amendment of any of the terms or
provisions of the Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders that consent, waive or agree to amend in the time frame set forth in the
solicitation documents relating to such consent, waiver or agreement.

     Section 4.17 Additional Subsidiary Guarantees.

     If,

     (1) the Company or any of its Restricted Subsidiaries acquires or creates another
Domestic Subsidiary (other than an Excluded Subsidiary or a Domestic Subsidiary that does
not Guarantee any other Indebtedness of the Company) after the date of this Supplemental
Indenture,

     (2) any Excluded Subsidiary that is a Domestic Subsidiary ceases to be an Excluded
Subsidiary after the date of this Supplemental Indenture, or

     (3) any Domestic Subsidiary that does not Guarantee any other Indebtedness of the
Company subsequently Guarantees other Indebtedness of the Company,

then such newly acquired or created Subsidiary, former Excluded Subsidiary, or Domestic Subsidiary,
as the case may be, will become a Guarantor and execute a supplemental indenture in the form
attached hereto as Exhibit C and deliver an Opinion of Counsel satisfactory to the Trustee within
30 business days of the date on which it was acquired or created or ceased to be an Excluded
Subsidiary or Guaranteed other Indebtedness of the Company, as the case may be.

     Section 4.18 Designation of Restricted, Unrestricted and Excluded Project Subsidiaries.

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     The Board of Directors may designate any Restricted Subsidiary to be an Unrestricted
Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary is designated
as an Unrestricted Subsidiary, the aggregate fair market value of all outstanding Investments owned
by the Company and its Restricted Subsidiaries in the Subsidiary designated as Unrestricted will be
deemed to be an Investment made as of the time of the designation and will reduce the amount
available for Restricted Payments under the provisions of Section 4.07 hereof or under one or more
clauses of the definition of Permitted Investments, as determined by the Company. That designation
will only be permitted if the Investment would be permitted at that time and if the Restricted
Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. The Board of Directors
may redesignate any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation
would not cause a Default.

     The Board of Directors may designate any Restricted Subsidiary to be an Excluded Project
Subsidiary if that designation would not cause a Default. If a Restricted Subsidiary that is not
an Excluded Project Subsidiary is designated as an Excluded Project Subsidiary, the aggregate fair
market value of all outstanding Investments owned by the Company and its Restricted Subsidiaries in
the Subsidiary designated as an Excluded Project Subsidiary will be deemed to be an Investment made
as of the time of the designation and will reduce the amount available for Restricted Payments
under the provisions of Section 4.07 hereof or under one or more clauses of the definition of
Permitted Investments, as determined by the Company. That designation will only be permitted if
the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the
definition of an Excluded Project Subsidiary. The Board of Directors may redesignate any Excluded
Project Subsidiary to be a Restricted Subsidiary that is not an Excluded Project Subsidiary if that
redesignation would not cause a Default.

     Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary or Excluded
Project Subsidiary will be evidenced to the Trustee by filing with the Trustee a certified copy of
a resolution of the Board of Directors giving effect to such designation and an Officers’
Certificate certifying that such designation complied with the preceding conditions and was
permitted by Section 4.07 hereof. If, at any time, any Unrestricted Subsidiary or Excluded Project
Subsidiary should fail to meet the preceding requirements as, respectively, an Unrestricted
Subsidiary or Excluded Project Subsidiary, it will thereafter cease to be an Unrestricted
Subsidiary or Excluded Project Subsidiary for the purposes of this Supplement Indenture and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary or an
Excluded Project Subsidiary of the Company as of such date and, if such Indebtedness is not
permitted to be incurred as of such date under Section 4.09 hereof, the Company will be in default
of such covenant. The Board of Directors of the Company may at any time designate any Unrestricted
Subsidiary or Excluded Project Subsidiary to be a Restricted Subsidiary; provided that such
designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of the
Company of any outstanding Indebtedness of such Unrestricted Subsidiary or Excluded Project
Subsidiary, and such designation will only be permitted if (1) such Indebtedness is permitted under
Section 4.09(a) hereof, calculated on a pro forma basis as if such designation had occurred at the
beginning of the four-quarter reference period; and (2) no Default or Event of Default would be in
existence following such designation.

     Section 4.19 Changes in Covenants When Notes Rated Investment Grade

     If on any date following the date of this Supplemental Indenture:

     (1) the rating assigned to the Notes by each of S&P and Moody’s is an Investment Grade
Rating; and

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     (2) no Default or Event of Default shall have occurred and be continuing, then,
beginning on that day and subject to the provisions of the following two paragraphs, the
covenants specifically listed under the following Sections of this Supplemental Indenture
will be suspended as to the Notes:

     (a) Section 4.10 hereof;

     (b) Section 4.07 hereof;

     (c) Section 4.09 hereof;

     (d) Section 4.08 hereof;

     (e) Section 4.18 hereof;

     (f) Section 4.11 hereof; and

     (g) clause (4) of Section 5.01 hereof.

Clauses (a) through (g) above are collectively referred to as the “Suspended Covenants.”

     During any period that the foregoing covenants have been suspended, the Company’s Board of
Directors may not designate any of its Subsidiaries as Unrestricted Subsidiaries or Excluded
Project Subsidiaries pursuant to Section 4.18 hereof, the second paragraph of the definition of
Unrestricted Subsidiary, or the definition of Excluded Project Subsidiary, unless it could do so if
the foregoing covenants were in effect.

     If at any time the Notes are downgraded from an Investment Grade Rating by either S&P or
Moody’s, the Suspended Covenants will thereafter be reinstated as if such covenants had never been
suspended and be applicable pursuant to the terms of this Supplemental Indenture (including in
connection with performing any calculation or assessment to determine compliance with the terms of
the indenture), unless and until the Notes subsequently attain an Investment Grade Rating from each
of S&P and Moody’s (in which event the Suspended Covenants will again be suspended for such time
that the Notes maintain an Investment Grade Rating from each of S&P and Moody’s); provided,
however, that no Default, Event of Default or breach of any kind will be deemed to exist under this
Supplemental Indenture, the Notes or the Subsidiary Guarantees with respect to the Suspended
Covenants based on, and none of the Company or any of its Subsidiaries will bear any liability for,
any actions taken or events occurring after the Notes attain an Investment Grade Rating from each
of S&P and Moody’s and before any reinstatement of the Suspended Covenants as provided above, or
any actions taken at any time pursuant to any contractual obligation arising prior to the
reinstatement, regardless of whether those actions or events would have been permitted if the
applicable Suspended Covenant had remained in effect during such period.

ARTICLE 5.

SUCCESSORS

     Section 5.01 Merger, Consolidation, or Sale of Assets.

     The Company shall not, directly or indirectly: (1) consolidate or merge with or into another
Person (whether or not the Company is the surviving corporation); or (2) sell, assign, transfer,
convey or

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otherwise dispose of all or substantially all of the properties or assets of the Company and
its Restricted Subsidiaries taken as a whole, in one or more related transactions, to another
Person; unless:

     (1) either:

     (A) the Company is the surviving corporation; or

     (B) the Person formed by or surviving any such consolidation or merger (if
other than the Company) or to which such sale, assignment, transfer, conveyance or
other disposition has been made is a corporation, partnership or limited liability
company organized or existing under the laws of the United States, any state of the
United States or the District of Columbia; provided that if the Person is a
partnership or limited liability company, then a corporation wholly-owned by such
Person organized or existing under the laws of the United States, any state of the
United States or the District of Columbia that does not and will not have any
material assets or operations shall become a co-issuer of the Notes pursuant to a
supplemental indenture executed by the Trustee;

     (2) the Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance or other
disposition has been made assumes all the obligations of the Company under the Notes and the
Indenture pursuant to supplemental indentures or other documents and agreements reasonably
satisfactory to the Trustee;

     (3) immediately after such transaction, no Default or Event of Default exists; and

     (4) (i) the Company or the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale, assignment,
transfer, conveyance or other disposition has been made will, on the date of such
transaction after giving pro forma effect thereto and to any related financing transactions
as if the same had occurred at the beginning of the applicable four-quarter period, be
permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed
Charge Coverage Ratio test set forth in the provisions of Section 4.09(a) hereof; or (ii)
the Company’s Fixed Charge Coverage Ratio is greater after giving pro forma effect to such
consolidation or merger and any related financing transactions as if the same had occurred
at the beginning of the applicable four-quarter period than the Company’s actual Fixed
Charge Coverage Ratio for the period.

     In addition, the Company shall not, directly or indirectly, lease all or substantially all of
its properties or assets, in one or more related transactions, to any other Person.

     This Section 5.01 shall not apply to:

     (1) a merger of the Company with an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction or forming a direct holding company of
the Company; and

     (2) any sale, transfer, assignment, conveyance, lease or other disposition of assets
between or among the Company and its Restricted Subsidiaries, including by way of merger
or consolidation.

     Section 5.02 Successor Corporation Substituted.

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     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Company and its Restricted
Subsidiaries taken as a whole in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof, the successor corporation formed by such consolidation or into
or with which the Company is merged or to which such sale, assignment, transfer, lease, conveyance
or other disposition is made shall succeed to, and be substituted for (so that from and after the
date of such consolidation, merger, sale, lease, conveyance or other disposition, the provisions of
the Indenture referring to the “Company” shall refer instead to the successor corporation and not
to the Company), and may exercise every right and power of the Company under the Indenture with the
same effect as if such successor Person had been named as the Company herein; provided, however,
that the predecessor Company shall not be relieved from the obligation to pay the principal of,
interest, premium on the Notes except in the case of a sale of all of the Company’s assets in a
transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof.

ARTICLE 6.

DEFAULTS AND REMEDIES

     Section 6.01 Events of Default.

     Each of the following is an “Event of Default”:

     (1) default for 30 days in the payment when due of interest on the Notes;

     (2) default in payment when due of the principal of, or premium, if any, on the Notes;

     (3) failure by the Company or any of its Restricted Subsidiaries for 30 days after
written notice given by the Trustee or Holders, to comply with any of the other agreements
in this Supplemental Indenture;

     (4) default under any mortgage, indenture or instrument under which there may be issued
or by which there may be secured or evidenced any Indebtedness for money borrowed by the
Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now
exists, or is created after the date of this Supplemental Indenture, if that default:

     (A) is caused by a failure to pay principal of, or interest or premium, if any,
on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $100.0 million or more;
provided that this clause (4) shall not apply to (i) secured Indebtedness that becomes due
as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness to a Person that is not an Affiliate of the Company; (ii) Non-Recourse Debt of
NRG Peaker Finance Company LLC; and (iii) Non-Recourse Debt of the Company or any of its
Subsidiaries (except to the extent that the Company or any of its Restricted Subsidiaries
that are not parties to such Non-Recourse Debt

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becomes directly or indirectly liable, including pursuant to any contingent obligation, for
any Indebtedness thereunder and such liability, individually or in the aggregate, exceeds
$100.0 million);

     (5) one or more judgments for the payment of money in an aggregate amount in excess of
$100.0 million (excluding therefrom any amount reasonably expected to be covered by
insurance) shall be rendered against the Company any Restricted Subsidiary or any
combination thereof and the same shall not have been paid, discharged or stayed for a period
of 60 days after such judgment became final and non-appealable;

     (6) except as permitted by this Supplemental Indenture, any Subsidiary Guarantee shall
be held in any final and non-appealable judicial proceeding to be unenforceable or invalid
or shall cease for any reason to be in full force and effect or any Guarantor (or any group
of Guarantors) that constitutes a Significant Subsidiary, or any Person acting on behalf of
any Guarantor (or any group of Guarantors) that constitutes a Significant Subsidiary, shall
deny or disaffirm its or their obligations under its or their Subsidiary Guarantee(s); and

     (7) the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Company that, taken together, would
constitute a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a custodian of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors, or

     (E) generally is not paying its debts as they become due;

     (8) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief against the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary in an
involuntary case;

     (B) appoints a custodian of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary or for all
or substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant
Subsidiary; or

     (C) orders the liquidation of the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary;

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and the order or decree remains unstayed and in effect for 60 consecutive days.

     Section 6.02 Acceleration.

     In the case of an Event of Default specified in Section 6.01(9) or (10) hereof, with respect
to the Company, any Restricted Subsidiary (other than the Exempt Subsidiaries) that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would
constitute a Significant Subsidiary, all Notes that are outstanding will become due and payable
immediately without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the holders of at least 25% in principal amount of all Notes that are
outstanding may declare all the Notes to be due and payable immediately.

     Section 6.03 Waiver of Past Defaults.

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may on behalf of the Holders of all of the Notes waive any existing
Default or Event of Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium, if any, or interest on, the Notes (including
in connection with an offer to purchase); provided, however, that the Holders of a majority in
aggregate principal amount of the then outstanding Notes may rescind an acceleration and its
consequences, including any related payment default that resulted from such acceleration. Upon any
such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be
deemed to have been cured for every purpose of the Indenture; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereon.

     Section 6.04 Control by Majority.

     Subject to certain limitations, Holders of a majority in principal amount of the Notes that
are then outstanding may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from holders of the Notes notice of any continuing Default or Event of Default if it
determines that withholding notice is in their interest, except a Default or Event of Default
relating to the payment of principal or interest.

     Section 6.05 Limitations on Suits.

     Subject to the provisions of this Supplemental Indenture relating to the duties of the
Trustee, in case an Event of Default occurs and is continuing, the Trustee will be under no
obligation to exercise any of the rights or powers under this Supplemental Indenture at the request
or direction of any holders of Notes unless such holders have offered to the Trustee reasonable
indemnity or security against any loss, liability or expense. Except to enforce the right to
receive payment of principal, premium (if any) or interest when due, no Holder of a Note may pursue
any remedy with respect to this Supplemental Indenture or the Notes unless:

     (1) such Holder has previously given the Trustee notice that an Event of Default is
continuing;

     (2) Holders of at least 25% in aggregate principal amount of the Notes that are then
outstanding have requested the Trustee to pursue the remedy;

     (3) such Holders have offered the Trustee reasonable security or indemnity against any
loss, liability or expense;

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     (4) the Trustee has not complied with such request within 60 days after the receipt
thereof and the offer of security or indemnity; and

     (5) Holders of a majority in aggregate principal amount of the Notes that are then
outstanding have not given the Trustee a direction inconsistent with such request within
such 60-day period.

     Section 6.06 Collection Suit by Trustee.

     If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing, the
Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount of principal of, premium, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel.

     Section 6.07 Priorities.

     If the Trustee collects any money pursuant to this Article 6, it shall pay out the money
in the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.01
hereof and Section 7.7 of the Base Indenture, including payment of all compensation,
expenses and liabilities incurred, and all advances made, by the Trustee and the costs and
expenses of collection;

     Second: to Holders of Notes for amounts due and unpaid on the Notes for principal,
premium, if any, and interest, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for principal, premium, if any, and
interest, respectively; and

     Third: to the Company or to such party as a court of competent jurisdiction shall
direct.

     The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

ARTICLE 7.

TRUSTEE’S COMPENSATION AND INDEMNITY

     Section 7.01 Compensation and Indemnity.

     (a) The Company and Guarantors, jointly and severally, shall pay to the Trustee from time
to time reasonable compensation for its acceptance of this Supplemental Indenture and services
hereunder. The Trustee’s compensation will not be limited by any law on compensation of a trustee
of an express trust. The Company and Guarantors, jointly and severally, shall reimburse the
Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred or
made by it in addition to the compensation for its services. Such expenses will include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

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     (b) The Company and the Guarantors, jointly and severally, shall indemnify the Trustee against
any and all losses, liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Supplemental Indenture and the Subsidiary
Guarantees including the costs and expenses of enforcing this Supplemental Indenture and the
Subsidiary Guarantees against the Company and the Guarantors (including this Section 7.01) and
defending itself against any claim (whether asserted by the Company, the Guarantors or any Holder
or any other Person) or liability in connection with the exercise or performance of any of its
powers or duties hereunder, except to the extent any such loss, liability or expense may be
attributable to its negligence or bad faith or willful misconduct. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. Failure by the Trustee to so notify
the Company shall not relieve the Company or any of the Guarantors of their obligations hereunder.
The Company or such Guarantor shall defend the claim and the Trustee shall cooperate in the
defense. The Trustee may have separate counsel and the Company and / or Guarantors shall pay the
reasonable fees and expenses of such counsel. Neither the Company nor any Guarantor need pay for
any settlement made without its consent, which consent shall not be unreasonably withheld.

     (c) The obligations of the Company and the Guarantors under this Section 7.01 will survive the
satisfaction and discharge of this Supplemental Indenture.

     (d) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(9) and (10) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

     (e) The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable.

     (f) The Company’s and Guarantors’ obligations under this Section 7.01 shall survive the
resignation or removal of the Trustee, any termination of this Supplemental Indenture, including
any termination or rejection of this Supplemental Indenture in any insolvency or similar proceeding
and the repayment of all the Notes.

ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

     Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

     The Company may, at the option of its Board of Directors evidenced by a resolution set
forth in an Officer’s Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be
applied to all outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

     Section 8.02 Legal Defeasance and Discharge.

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.02, the Company and each of the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, be deemed to have been discharged from their
obligations with respect to all outstanding Notes (including the Subsidiary Guarantees) on the date
the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Legal Defeasance”).
For this purpose, Legal Defeasance means that the Company and the Guarantors shall be deemed to
have paid and discharged the entire Indebtedness represented by the outstanding Notes (including
the Subsidiary Guarantees), which will thereafter be deemed to be “outstanding” only for the
purposes of Section 8.05 hereof and the other Sections of the Indenture referred to in clauses (1)
and (2) below, and to have satisfied all their other obligations under such Notes, the Subsidiary
Guarantees and this Supplemental Indenture and, to the extent applicable, the

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Base Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions which will survive
until otherwise terminated or discharged hereunder:

     (1) the rights of Holders of outstanding Notes to receive payments in respect of the
principal of, or interest or premium, if any, and on such Notes when such payments are due
from the trust referred to in Section 8.04 hereof;

     (2) the Company’s obligations with respect to such Notes under Article 2 and Section
4.02 hereof;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and
under the Base Indenture, and the Company’s and the Guarantors’ obligations in connection
therewith; and

     (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

     Section 8.03 Covenant Defeasance.

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, the Company and the Guarantors shall, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be released from each of their obligations under Sections 4.07,
4.08, 4.09, 4.10, 4.11, 4.12, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 hereof and clause (4) of
Section 5.01 hereof with respect to the outstanding Notes on and after the date the conditions set
forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will
thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in connection with such
covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes will not be deemed outstanding for accounting purposes). For this
purpose, Covenant Defeasance means that, with respect to the outstanding Notes and Subsidiary
Guarantees, the Company and the Guarantors may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply will not constitute a Default or an Event of Default under Section 6.01 hereof,
but, except as specified above, the remainder of the Indenture and such Notes and Subsidiary
Guarantees shall be unaffected thereby. In addition, upon the Company’s exercise under Section
8.01 hereof of the option applicable to this Section 8.03, subject to the satisfaction of the
conditions set forth in Section 8.04 hereof, Sections 6.01(3) and 6.01(4) hereof shall not
constitute Events of Default.

     Section 8.04 Conditions to Legal or Covenant Defeasance.

     (a) In order to exercise either Legal Defeasance or Covenant Defeasance under either
Section 8.02 or 8.03 hereof:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of the Notes, cash in U.S. dollars, non-callable Government Securities, or a
combination of cash in U.S. dollars and non-callable Government Securities, in amounts as
will be sufficient, in the opinion of a nationally recognized investment bank, appraisal
firm or firm of

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independent public accountants to pay the principal of, or interest and premium on the
Notes that are then outstanding on the Stated Maturity or on the applicable redemption date,
as the case may be, and the Company must specify whether the Notes are being defeased to
maturity or to a particular redemption date;

     (2) in the case of Legal Defeasance, the Company has delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that (a) the Company has
received from, or there has been published by, the Internal Revenue Service a ruling or (b)
since the date of this Supplemental Indenture, there has been a change in the applicable
federal income tax law, in either case to the effect that, and based thereon such Opinion of
Counsel will confirm that, the holders of the Notes that are then outstanding will not
recognize income, gain or loss for federal income tax purposes as a result of such Legal
Defeasance and will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Legal Defeasance had not occurred;

     (3) in the case of Covenant Defeasance, the Company has delivered to the Trustee an
Opinion of Counsel reasonably acceptable to the Trustee confirming that the holders of the
Notes that are then outstanding will not recognize income, gain or loss for federal income
tax purposes as a result of such Covenant Defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the
case if such Covenant Defeasance had not occurred;

     (4) no Default or Event of Default has occurred and is continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under any material agreement or instrument (other than
this Supplemental Indenture) to which the Company or any of its Subsidiaries is a party or
by which the Company or any of its Subsidiaries is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of Notes over
the other creditors of the Company with the intent of defeating, hindering, delaying or
defrauding creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

     Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions.

     Subject to Section 8.06 hereof, all money and non-callable Government Securities
(including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in
respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance
with the provisions of such Notes and the Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the
Holders of such Notes of all sums due and to become due thereon in respect of principal, premium,
if any, and interest, but such money need not be segregated from other funds except to the extent
required by law.

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     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes.

     Notwithstanding anything in this Article 8 to the contrary, the Trustee shall deliver or pay
to the Company from time to time upon the request of the Company any money or non-callable
Government Securities held by it as provided in Section 8.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof),
are in excess of the amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

     Section 8.06 Repayment to Company.

     Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium, if any, or interest on any Note and remaining
unclaimed for two years after such principal, premium, if any, or interest has become due and
payable shall be paid to the Company on its written request or (if then held by the Company) will
be discharged from such trust; and the Holder of such Note will thereafter be permitted to look
only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee thereof, will thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published once, in the New York Times
and The Wall Street Journal (national edition), notice that such money remains unclaimed and that,
after a date specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining shall be repaid to
the Company.

     Section 8.07 Reinstatement.

     If the Trustee or Paying Agent is unable to apply any United States dollars or
non-callable Government Securities in accordance with Section 8.02 or 8.03 hereof, as the case may
be, by reason of any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, then the Company’s and the Guarantors’
obligations under the Indenture and the Notes and the Subsidiary Guarantees will be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such
time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment
of principal of, premium, if any, or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive
such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9.

AMENDMENT, SUPPLEMENT AND WAIVER

     Section 9.01 Without Consent of Holders of Notes.

     Notwithstanding Article IX of the Base Indenture and Section 9.02 of this Supplemental
Indenture, the Company, the Guarantors and the Trustee may amend or supplement this Supplemental
Indenture, the Subsidiary Guarantees or the Notes without the consent of any Holder of Notes:

     (1) to cure any ambiguity, defect or inconsistency;

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     (2) to provide for uncertificated notes in addition to or in place of certificated
notes;

     (3) to provide for the assumption of the Company’s obligations to Holders of Notes in
the case of a merger or consolidation or sale of all or substantially all of the Company’s
assets;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of Notes or that does not adversely affect the legal rights under this Supplemental
Indenture of any such Holder;

     (5) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Supplemental Indenture under the Trust Indenture Act;

     (6) to conform the text of this Supplemental Indenture or the Notes to any provision of
the “Description of the Notes” section of the Company’s Prospectus Supplement, relating to
the initial offering of the Notes, to the extent that such provision in the “Description of
the Notes” was intended to be a verbatim recitation of a provision of this Supplemental
Indenture or the Notes;

     (7) to evidence and provide for the acceptance and appointment under this Supplemental
Indenture of a successor Trustee pursuant to the requirements thereof;

     (8) to provide for the issuance of Additional Notes in accordance with the limitations
set forth in this Supplemental Indenture as of the date hereof; or

     (9) to allow any Guarantor to execute a supplemental indenture and/or a Subsidiary
Guarantee with respect to the Notes.

     Upon the request of the Company accompanied by a resolution of its Board of Directors
authorizing the execution of any such amended or supplemental indenture, and upon receipt by the
Trustee of the documents described in Section 7.2 of the Base Indenture the Trustee shall join with
the Company and the Guarantors in the execution of any amended or supplemental indenture authorized
or permitted by the terms of this Supplemental Indenture and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall not be obligated
to enter into such amended or supplemental indenture that affects its own rights, duties or
immunities under the Indenture or otherwise.

     Section 9.02 With Consent of Holders of Notes.

     (a) Except as provided below in this Section 9.02, the Company and the Trustee may amend
or supplement this Ninth Supplemental Indenture (including, without limitation, Sections 3.09, 4.10
and 4.14 hereof), the Subsidiary Guarantees and the Notes with the consent of the Holders of at
least a majority in principal aggregate amount of the Notes then outstanding (including, without
limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), and, subject to Section 6.04 hereof, any existing Default or Event of Default
(other than a Default or Event of Default in the payment of the principal of, premium or interest
on the Notes, except a payment default resulting from an acceleration that has been rescinded) or
compliance with any provision of this Supplemental Indenture, the Subsidiary Guarantees or the
Notes may be waived with the consent of the Holders of a majority in principal aggregate amount of
the then outstanding Notes (including, without limitation, consents obtained in connection with a
tender offer or exchange offer for, or purchase of, the Notes).

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     Section 1.1 of the Base Indenture shall determine which Notes are considered to be
“outstanding” for purposes of this Section 9.02.

     Upon the request of the Company accompanied by a resolution of its Board of Directors and upon
the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders
of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.2 of
the Base Indenture and Section 9.06 hereof, the Trustee shall join with the Company in the
execution of such amended or supplemental indenture unless such amended or supplemental indenture
directly affects the Trustee’s own rights, duties or immunities under the Indenture or otherwise,
in which case the Trustee may in its discretion, but will not be obligated to, enter into such
amended or supplemental indenture.

     It is not necessary for the consent of the Holders under this Section 9.02 to approve the
particular form of any proposed amendment or waiver, but it is sufficient if such consent approves
the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company shall mail to the Holders affected thereby a notice briefly describing the amendment,
supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, will
not, however, in any way impair or affect the validity of any such amended or supplemental
indenture or waiver.

     Subject to Section 6.04 hereof and Section 8.2 of the Base Indenture, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a single class may
waive compliance in a particular instance by the Company with any provision of this Supplemental
Indenture or the Notes or the Subsidiary Guarantees. However, without the consent of each Holder
affected, an amendment, supplement or waiver under this Section 9.02 may not (with respect to any
Notes held by a non-consenting Holder):

     (1) reduce the principal amount of Notes whose holders must consent to an amendment,
supplement or waiver;

     (2) reduce the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of the Notes (other than provisions relating to
the covenants described in Section 3.07 hereof);

     (3) reduce the rate of or change the time for payment of interest on any Note;

     (4) waive a Default or Event of Default in the payment of principal of, or interest
or premium on the Notes (except a rescission of acceleration of the Notes by the holders
of at least a majority in aggregate principal amount of the Notes and a waiver of the
payment default that resulted from such acceleration);

     (5) make any Note payable in currency other than that stated in the Notes;

     (6) make any change in the provisions of this Supplemental Indenture relating to
waivers of past Defaults or the rights of holders of Notes to receive payments of
principal of, or interest or premium on the Notes;

     (7) waive a redemption payment with respect to any Note (other than a payment
required by one of the covenants described in Section 3.07 hereof; or

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     (8) make any change in Section 9.02 hereof or Section 9.2 of the Base Indenture, as
to the Notes, or in the foregoing amendment and waiver provisions.

     (b) Other than as expressly provided in Section 9.02 above, the Base Indenture may only be
amended, supplemented or otherwise modified as and to the extent provided in the Base Indenture.

     Section 9.03 Compliance with Trust Indenture Act.

     Every amendment or supplement to this Supplemental Indenture or the Notes will be set
forth in a amended or supplemental Indenture that complies with the TIA as then in effect.

     Section 9.04 Revocation and Effect of Consents.

     Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date the amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms and thereafter binds every Holder.

     Section 9.05 Notation on or Exchange of Notes.

     The Trustee may place an appropriate notation about an amendment, supplement or waiver on
any Note thereafter authenticated. The Company in exchange for all Notes may issue and the Trustee
shall, upon receipt of a Company Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

     Failure to make the appropriate notation or issue a new Note will not affect the validity and
effect of such amendment, supplement or waiver.

     Section 9.06 Trustee to Sign Amendments, etc.

     The Trustee shall sign any amended or supplemental indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until
the Board of Directors of the Company approves it. In executing any amended or supplemental
indenture, the Trustee will be entitled to receive and (subject to Section 7.1 of the Base
Indenture) will be fully protected in relying upon an Officer’s Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is authorized or
permitted by the Indenture.

ARTICLE 10.

SUBSIDIARY GUARANTEES

     Section 10.01 Guarantee.

     (a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note authenticated and delivered by the Trustee and
to the Trustee and its successors and assigns, irrespective of the validity and enforceability of
the Indenture, the Notes or the obligations of the Company hereunder or thereunder, that:

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     (1) the principal of, premium, if any, and interest on the Notes shall be promptly paid
in full when due, whether at maturity, by acceleration, redemption or otherwise, and
interest on the overdue principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the Trustee hereunder or thereunder shall
be promptly paid in full or performed, all in accordance with the terms hereof and thereof;
and

     (2) in case of any extension of time of payment or renewal of any Notes or any of such
other obligations, that same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes or the Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with
respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any
action to enforce the same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Subsidiary Guarantee will not be
discharged except by complete performance of the obligations contained in the Notes and the
Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Subsidiary Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes
of this Subsidiary Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the Guarantors for the
purpose of this Subsidiary Guarantee. The Guarantors will have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair the rights of the
Holders under the Subsidiary Guarantee.

     Section 10.02 Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is
the intention of all such parties that the Subsidiary Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Subsidiary Guarantee. To effectuate the foregoing intention, the Trustee, the
Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be
limited to the maximum amount

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that will, after giving effect to such maximum amount and all other contingent and fixed
liabilities of such Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other
Guarantor in respect of the obligations of such other Guarantor under this Article 10, result in
the obligations of such Guarantor under its Subsidiary Guarantee not constituting a fraudulent
transfer or conveyance.

     Section 10.03 Execution and Delivery of Subsidiary Guarantee.

     To evidence its Subsidiary Guarantee set forth in Section 10.01, each Guarantor hereby
agrees that a notation of such Subsidiary Guarantee substantially in the form attached as Exhibit B
hereto shall be endorsed by an Officer of such Guarantor on each Note authenticated and delivered
by the Trustee and that this Supplemental Indenture shall be executed on behalf of such Guarantor
by one of its Officers.

     Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in Section 10.01 will
remain in full force and effect notwithstanding any failure to endorse on each Note a notation of
such Subsidiary Guarantee.

     If an Officer whose signature is on this Supplemental Indenture or on the Subsidiary Guarantee
no longer holds that office at the time the Trustee authenticates the Note on which a Subsidiary
Guarantee is endorsed, the Subsidiary Guarantee will be valid nevertheless.

     The delivery of any Note by the Trustee, after the authentication thereof hereunder, will
constitute due delivery of the Subsidiary Guarantee set forth in this Supplemental Indenture on
behalf of the Guarantors.

     In the event that the Company creates or acquires any Domestic Subsidiary after the Issue
Date, if required by Section 4.17 hereof, the Company shall cause such Domestic Subsidiary to
comply with the provisions of Section 4.17 hereof and this Article 10, to the extent applicable.

     Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.

     Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise
dispose of all or substantially all of its assets to, or consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person) another Person, other than the Company or
another Guarantor, unless:

     (1) immediately after giving effect to that transaction, no Default or Event of Default
exists; and

     (2) either:

          (a) subject to Section 10.05 hereof, the Person acquiring the property in any such sale
or disposition or the Person formed by or surviving any such consolidation or merger assumes
all the obligations of that Guarantor under this Supplemental Indenture and its Subsidiary
Guarantee pursuant to supplemental agreements reasonably satisfactory to the Trustee;

          (b) the Net Proceeds of such sale or other disposition are applied in accordance with
the applicable provisions of this Supplemental Indenture, including without limitation,
Section 4.10 hereof; or

          (c) immediately after giving effect to that transaction, such Person qualifies as an
Excluded Subsidiary.

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     In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Subsidiary Guarantee endorsed upon the Notes and the due and
punctual performance of all of the covenants and conditions of this Supplemental Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be substituted for the
Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor
Person thereupon may cause to be signed any or all of the Subsidiary Guarantees to be endorsed upon
all of the Notes issuable hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Subsidiary Guarantees so issued will in all respects have the
same legal rank and benefit under this Supplemental Indenture as the Subsidiary Guarantees
theretofore and thereafter issued in accordance with the terms of this Supplemental Indenture as
though all of such Subsidiary Guarantees had been issued on the Issue Date.

     Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses (a) and (b) above,
nothing contained in this Supplemental Indenture or in any of the Notes will prevent any
consolidation or merger of a Guarantor with or into the Company or another Guarantor, or will
prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

     Section 10.05 Releases.

     (a) The Subsidiary Guarantee of a Guarantor shall be released automatically:

          (1) in connection with any sale or other disposition of all or substantially all of the assets
of that Guarantor (including by way of merger or consolidation) to a Person that is not (either
before or after giving effect to such transaction) the Company or a Restricted Subsidiary of the
Company, if the sale or other disposition does not violate the provisions of Section 4.10 hereof;

          (2) in connection with any sale or other disposition of Capital Stock of that Guarantor to a
Person that is not (either before or after giving effect to such transaction) the Company or a
Restricted Subsidiary of the Company, if (a) the sale or other disposition does not violate the
provisions of Section 4.10 hereof and (b) following such sale or other disposition, that Guarantor
is not a direct or indirect Subsidiary of the Company;

          (3) if the Company designates any Restricted Subsidiary that is a Guarantor to be an
Unrestricted Subsidiary in accordance with the applicable provisions of this Supplemental
Indenture;

          (4) the date that any Subsidiary that is not an Excluded Subsidiary becomes an Excluded
Subsidiary;

          (5) upon defeasance or satisfaction and discharge of the Notes as provided in Sections 8.01,
8.02, 8.03, 8.04 and 11.01 hereof;

          (6) upon the dissolution of a Guarantor that is permitted under this Supplemental Indenture;
or

          (7) otherwise with respect to the Guarantee of any Guarantor, upon:

                    (A) the prior consent of Holders of at least a majority in aggregate principal amount of the
Notes then outstanding;

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                    (B) the consent of requisite lenders under the Credit Agreement (as amended, restated,
modified, renewed, refunded, replaced or refinanced from time to time) to the release of such
Guarantor’s Guarantee of all Obligations under the Credit Agreement; or

                    (C) the contemporaneous release of such Guarantor’s Guarantee of all Obligations under the
Credit Agreement (as amended, restated, modified, renewed, refunded, replaced or refinanced from
time to time).

     (b) The Subsidiary Guarantee of a Guarantor shall be released with respect to the Notes
automatically upon Legal Defeasance, Covenant Defeasance or satisfaction and discharge of this
Supplemental Indenture pursuant to Articles 8 and 11 hereof.

     (c) Upon delivery by the Company to the Trustee of an Officer’s Certificate and an Opinion of
Counsel to the effect that the action or event giving rise to the applicable release has occurred
or was made by the Company in accordance with the provisions of this Supplemental Indenture,
including without limitation Section 4.10 hereof, the Trustee shall execute any documents
reasonably required in order to evidence the release of any Guarantor from its obligations under
its Subsidiary Guarantee.

     (d) Any Guarantor not released from its obligations under its Subsidiary Guarantee as provided
in this Section 10.05 will remain liable for the full amount of principal of and interest and
premium, if any, on the Notes and for the other obligations of any Guarantor under the Indenture as
provided in this Article 10.

ARTICLE 11.

SATISFACTION AND DISCHARGE

     Section 11.01 Satisfaction and Discharge.

     This Supplemental Indenture will be discharged and will cease to be of further effect as
to all Notes issued hereunder, when:

     (1) either:

          (a) all Notes that have been authenticated, except lost, stolen or destroyed Notes that
have been replaced or paid and Notes for whose payment money has been deposited in trust and
thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or

          (b) all Notes that have not been delivered to the Trustee for cancellation have become
due and payable by reason of the mailing of a notice of redemption or otherwise or will
become due and payable within one year and the Company or any Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination of cash in U.S. dollars and non-callable Government Securities, in such amounts
as will be sufficient without consideration of any reinvestment of interest, to pay and
discharge the entire indebtedness on the Notes not delivered to the Trustee for cancellation
for principal, premium, if any, and accrued interest to the date of maturity or redemption;

     (2) no Default or Event of Default has occurred and is continuing on the date of the
deposit (other than a Default or Event of Default resulting from the borrowing of funds to
be applied to such deposit) and the deposit will not result in a breach or violation of, or
constitute a

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default under, any other instrument to which the Company or any Guarantor is a party or
by which the Company or any Guarantor is bound;

     (3) the Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Supplemental Indenture; and

     (4) the Company has delivered irrevocable instructions to the Trustee under this
Supplemental Indenture to apply the deposited money toward the payment of the Notes at
maturity or the redemption date, as the case may be.

In addition, the Company must deliver an Officer’s Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

     Notwithstanding the satisfaction and discharge of this Supplemental Indenture, if money has
been deposited with the Trustee pursuant to subclause (b) of clause (1) of this Section, the
provisions of Section 11.02 hereof and Section 8.06 hereof will survive. In addition, nothing in
this Section 11.01 will be deemed to discharge those provisions of Section 7.01 hereof and Section
7.7 of the Base Indenture, that, by their terms, survive the satisfaction and discharge of this
Supplemental Indenture.

     Section 11.02 Application of Trust Money.

     Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes and the Indenture, to the payment, either directly or through any Paying
Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the
Persons entitled thereto, of the principal, premium, if any, and interest for whose payment such
money has been deposited with the Trustee; but such money need not be segregated from other funds
except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this Supplemental Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section
11.01 hereof; provided that if the Company has made any payment of principal of, premium, if any,
or interest on any Notes because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment from the money or
Government Securities held by the Trustee or Paying Agent.

ARTICLE 12.

MISCELLANEOUS

     Section 12.01 Trust Indenture Act Controls.

     If any provision of this Supplemental Indenture limits, qualifies or conflicts with the
duties imposed by TIA §318(c), the imposed duties will control.

     Section 12.02 Notices.

     Any notice or communication by the Company, any Guarantor or the Trustee to the others is
duly given if in writing and delivered in Person or mailed by first class mail (registered or
certified, return

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receipt requested), telex, telecopier or overnight air courier guaranteeing next day delivery,
to the others’ address:

     If to the Company and/or any Guarantor:

NRG Energy, Inc.

211 Carnegie Place

Princeton, NJ 08540

Telecopier No.: (609) 524-4501

Attention: General Counsel

With a copy to:

Kirkland & Ellis LLP

Aon Center

200 East Randolph Drive

Chicago, IL 60601

Telecopier No.: (312) 861-2200

Attention: Gerald T. Nowak, Esq.

If to the Trustee:

Law Debenture Trust Company of New York

767 Third Avenue, 31st floor

New York, NY 10017

Telecopier No.: (212) 750-1361

Attention: Corporate Trust Department

     The Company, any Guarantor or the Trustee, by notice to the others may designate additional or
different addresses for subsequent notices or communications.

     All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

     Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

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     Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their
rights under the Indenture or the Notes. The Company, the Trustee, the Registrar and anyone else
shall have the protection of TIA § 312(c).

     Section 12.04 No Personal Liability of Directors, Officers, Employees and Stockholders.

     No director, officer, employee, incorporator or stockholder of the Company or any
Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors
under the Notes, this Supplemental Indenture, the Subsidiary Guarantees, or for any claim based on,
in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under
the federal securities laws.

     Section 12.05 Governing Law.

     THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     Section 12.06 No Adverse Interpretation of Other Agreements.

     This Supplemental Indenture may not be used to interpret any other indenture, loan or
debt agreement of the Company or its Subsidiaries or of any other Person. Any such indenture, loan
or debt agreement may not be used to interpret this Supplemental Indenture.

     Section 12.07 Successors.

     All agreements of the Company in the Indenture and the Notes will bind its successors.
All agreements of the Trustee in the Indenture will bind its successors. All agreements of each
Guarantor in this Supplemental Indenture will bind its successors.

     Section 12.08 Severability.

     In case any provision in the Indenture or in the Notes is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

     Section 12.09 Counterpart Originals.

     The parties may sign any number of copies of this Supplemental Indenture. Each signed
copy will be an original, but all of them together represent the same agreement.

     Section 12.10 Table of Contents, Headings, etc.

     The Table of Contents, Cross-Reference Table and Headings of the Articles and Sections of
this Supplemental Indenture have been inserted for convenience of reference only, are not to be
considered a part of this Supplemental Indenture and will in no way modify or restrict any of the
terms or provisions hereof.

79

 

[Signatures on following pages]

80

 

SIGNATURES

Dated as of November 21, 2006

	 	 	 	 	 
	 	NRG ENERGY, INC.,

as Issuer

 	 
	 	By:  	/s/ Clint Freeland
 	 
	 	 	Name:  	Clint Freeland 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	GUARANTORS:

ARTHUR KILL POWER LLC

ASTORIA GAS TURBINE POWER LLC

BERRIANS I GAS TURBINE POWER LLC

BIG CAJUN II UNIT 4 LLC

CABRILLO POWER I LLC

CABRILLO POWER II LLC

CHICKAHOMINY RIVER ENERGY CORP.

COMMONWEALTH ATLANTIC POWER LLC

CONEMAUGH POWER LLC

CONNECTICUT JET POWER LLC

DEVON POWER LLC

DUNKIRK POWER LLC

EASTERN SIERRA ENERGY COMPANY

EL SEGUNDO POWER LLC

EL SEGUNDO POWER II LLC

GCP FUNDING COMPANY LLC

HANOVER ENERGY COMPANY

HOFFMAN SUMMIT WIND PROJECT, LLC

HUNTLEY IGCC LLC

HUNTLEY POWER LLC

INDIAN RIVER IGCC LLC

INDIAN RIVER OPERATIONS INC.

INDIAN RIVER POWER LLC

JAMES RIVER POWER LLC

KAUFMAN COGEN LP

KEYSTONE POWER LLC

LAKE ERIE PROPERTIES INC.

LONG BEACH GENERATION LLC

LOUISIANA GENERATING LLC

MIDDLETOWN POWER LLC

MONTVILLE IGCC LLC

MONTVILLE POWER LLC

NEO CALIFORNIA POWER LLC

NEO CHESTER-GEN LLC

 	 

Signature page to Ninth Supplemental Indenture

 

 

	 	 	 	 	 
	 	 NEO CORPORATION

NEO FREEHOLD-GEN LLC

NEO LANDFILL GAS HOLDINGS INC.

NEO POWER SERVICES INC.

NEW GENCO GP LLC

NEW GENCO LP LLC

NORWALK POWER LLC

NRG AFFILIATE SERVICES INC.

NRG ARTHUR KILL OPERATIONS INC.

NRG ASIA-PACIFIC, LTD.

NRG ASTORIA GAS TURBINE OPERATIONS, INC.

NRG BAYOU COVE LLC

NRG CABRILLO POWER OPERATIONS INC.

NRG CADILLAC OPERATIONS INC.

NRG CALIFORNIA PEAKER OPERATIONS LLC

NRG CONNECTICUT AFFILIATE SERVICES INC.

NRG DEVON OPERATIONS INC.

NRG DUNKIRK OPERATIONS INC.

NRG EL SEGUNDO OPERATIONS INC.

NRG GENERATION HOLDINGS INC.

NRG HUNTLEY OPERATIONS INC.

NRG INTERNATIONAL LLC

NRG KAUFMAN LLC

NRG MESQUITE LLC

NRG MIDATLANTIC AFFILIATE SERVICES INC.

NRG MIDDLETOWN OPERATIONS INC.

NRG MONTVILLE OPERATIONS INC.

NRG NEW JERSEY ENERGY SALES LLC

NRG NEW ROADS HOLDINGS LLC

NRG NORTH CENTRAL OPERATIONS INC.

NRG NORTHEAST AFFILIATE SERVICES INC.

NRG NORWALK HARBOR OPERATIONS INC.

NRG OPERATING SERVICES, INC.

NRG OSWEGO HARBOR POWER OPERATIONS INC.

NRG POWER MARKETING INC.

NRG ROCKY ROAD LLC

NRG SAGUARO OPERATIONS INC.

NRG SOUTH CENTRAL AFFILIATE SERVICES INC.

NRG SOUTH CENTRAL GENERATING LLC

NRG SOUTH CENTRAL OPERATIONS INC.

NRG SOUTH TEXAS LP

NRG TEXAS LLC

NRG TEXAS LP

NRG WEST COAST LLC

NRG WESTERN AFFILIATE SERVICES INC.

OSWEGO HARBOR POWER LLC

PADOMA WIND POWER LLC

SAGUARO POWER LLC

SAN JUAN MESA WIND PROJECT II LLC

SOMERSET OPERATIONS INC.

SOMERSET POWER LLC

 	 

Signature page to Ninth Supplemental Indenture

 

 

	 	 	 	 	 
	 	TEXAS GENCO FINANCING CORP.

TEXAS GENCO GP LLC

TEXAS GENCO HOLDINGS INC.

TEXAS GENCO LP LLC

TEXAS GENCO OPERATING SERVICES LLC

TEXAS GENCO SERVICES LP

VIENNA OPERATIONS INC.

VIENNA POWER LLC

WCP (GENERATION) HOLDINGS LLC

WEST COAST POWER LLC

 	 

	 	 	 	 	 
	 	 	 
	 	By:  	                                      /s/ Clint Freeland
 	 
	 	 	Name:  	Clint Freeland 	 
	 	 	Title:  	Authorized Signatory 	 

Attest:

	 	 	 	 	 
	 	 	 
	/s/ Tanuja Dehne
 	 	 
	Name:  	Tanuja Dehne 	 	 
	Title:  	Secretary 	 	 
	 

Signature page to Ninth Supplemental Indenture

 

 

	 	 	 	 	 
	 	LAW DEBENTURE TRUST COMPANY OF NEW YORK,

as Trustee

 	 
	 	By:  	/s/ Adam Berman
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature page to Ninth Supplemental Indenture

 

 

Schedule I

SCHEDULE OF GUARANTORS

     The following schedule lists each Guarantor under the Supplemental Indenture as of the Issue
Date:

Arthur Kill Power LLC, a Delaware limited liability company

Astoria Gas Turbine Power LLC, a Delaware limited liability company

Berrians I Gas Turbine Power LLC, a Delaware limited liability company

Big Cajun II Unit 4 LLC, a Delaware limited liability company

Cabrillo Power I LLC, a Delaware limited liability company

Cabrillo Power II LLC, a Delaware limited liability company

Chickahominy River Energy Corp., a Virginia corporation

Commonwealth Atlantic Power LLC, a Delaware limited liability company

Conemaugh Power LLC, a Delaware limited liability company

Connecticut Jet Power LLC, a Delaware limited liability company

Devon Power LLC, a Delaware limited liability company

Dunkirk Power LLC, a Delaware limited liability company

Eastern Sierra Energy Company, a California corporation

El Segundo Power, LLC, a Delaware limited liability company

El Segundo Power II LLC, a Delaware limited liability company

GCP Funding Company, LLC, a Delaware limited liability company

Hanover Energy Company, a California corporation

Hoffman Summit Wind Project, LLC, a Delaware limited liability company

Huntley IGCC LLC, a Delaware limited liability company

Huntley Power LLC, a Delaware limited liability company

Indian River IGCC LLC, a Delaware limited liability company

Indian River Operations Inc., a Delaware corporation

Indian River Power LLC, a Delaware limited liability company

James River Power LLC, a Delaware limited liability company

Kaufman Cogen LP, a Delaware limited partnership

Keystone Power LLC, a Delaware limited liability company

Lake Erie Properties Inc., a Delaware corporation

Long Beach Generation LLC, a Delaware limited liability company

Louisiana Generating LLC, a Delaware limited liability company

Middletown Power LLC, a Delaware limited liability company

Montville IGCC LLC, a Delaware limited liability company

Montville Power LLC, a Delaware limited liability company

NEO California Power LLC, a Delaware limited liability company

NEO Chester-Gen LLC, a Delaware limited liability company

NEO Corporation, a Minnesota corporation

NEO Freehold-Gen LLC, a Delaware limited liability company

NEO Landfill Gas Holdings Inc., a Delaware corporation

NEO Power Services Inc., a Delaware corporation

New Genco GP, LLC, a Delaware limited liability company

New Genco LP, LLC, a Delaware limited liability company

Norwalk Power LLC, a Delaware limited liability company

NRG Affiliate Services Inc., a Delaware corporation

NRG Arthur Kill Operations Inc., a Delaware corporation

NRG Asia-Pacific, Ltd., a Delaware corporation

NRG Astoria Gas Turbine Operations Inc., a Delaware corporation

NRG Bayou Cove LLC, a Delaware limited liability company

NRG Cabrillo Power Operations Inc., a Delaware corporation

NRG Cadillac Operations Inc., a Delaware corporation

I-1

 

NRG California Peaker Operations LLC, a Delaware limited liability company

NRG Connecticut Affiliate Services Inc., a Delaware corporation

NRG Devon Operations Inc., a Delaware corporation

NRG Dunkirk Operations Inc., a Delaware corporation

NRG El Segundo Operations Inc., a Delaware corporation

NRG Generation Holdings, Inc., a Delaware corporation

NRG Huntley Operations Inc., a Delaware corporation

NRG International LLC, a Delaware limited liability company

NRG Kaufman LLC, a Delaware limited liability company

NRG Mesquite LLC, a Delaware limited liability company

NRG MidAtlantic Affiliate Services Inc., a Delaware corporation

NRG Middletown Operations Inc., a Delaware corporation

NRG Montville Operations Inc., a Delaware corporation

NRG New Jersey Energy Sales LLC, a Delaware limited liability company

NRG New Roads Holdings LLC, a Delaware limited liability company

NRG North Central Operations Inc., a Delaware corporation

NRG Northeast Affiliate Services Inc., a Delaware corporation

NRG Norwalk Harbor Operations Inc., a Delaware corporation

NRG Operating Services, Inc., a Delaware corporation

NRG Oswego Harbor Power Operations Inc., a Delaware corporation

NRG Power Marketing Inc., a Delaware corporation

NRG Rocky Road LLC, a Delaware limited liability company

NRG Saguaro Operations Inc., a Delaware corporation

NRG South Central Affiliate Services Inc., a Delaware corporation

NRG South Central Generating LLC, a Delaware limited liability company

NRG South Central Operations Inc., a Delaware corporation

NRG South Texas LP, a Delaware limited partnership

NRG Texas LLC, a Delaware limited liability company

NRG Texas LP, a Delaware limited partnership

NRG West Coast LLC, a Delaware limited liability company

NRG Western Affiliate Services Inc., a Delaware corporation

Oswego Harbor Power LLC, a Delaware limited liability company

Padoma Wind Power, LLC, a Delaware limited liability company

Saguaro Power LLC, a Delaware limited liability company

San Juan Mesa Wind Project II, LLC, a Delaware limited liability company

Somerset Operations Inc., a Delaware corporation

Somerset Power LLC, a Delaware limited liability company

Texas Genco Financing Corp., a Delaware corporation

Texas Genco GP, LLC, a Texas limited liability company

Texas Genco Holdings, Inc., a Texas corporation

Texas Genco LP, LLC, a Delaware limited liability company

Texas Genco Operating Services, LLC, a Delaware limited liability company

Texas Genco Services, LP, a Texas corporation

Vienna Operations Inc., a Delaware corporation

Vienna Power LLC, a Delaware limited liability company

WCP (Generation) Holdings LLC, a Delaware limited liability company

West Coast Power LLC, a Delaware limited liability company

I-2

 

EXHIBIT A

[Face of Note]

 

CUSIP/CINS 629377AX0

7.375% Senior Notes due 2017

			
	No.                            
	 	$                           

NRG ENERGY, INC.

promises to pay to                                                                                                                                                                                     

or registered assigns,

the principal sum of                                                                                                                                                                                     

Dollars on January 15, 2017.

Interest Payment Dates: January 15 and July 15

Record Dates: January 1 and July 1

Dated: November 21, 2006

A-1

 

     IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

	 	 	 	 	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Clint Freeland 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

Date of Authentication: November 21, 2006

This Note is one of the Securities of

a series designated therein referred to

in the within-mentioned Base Indenture:

	 	 	 	 	 
	LAW DEBENTURE TRUST COMPANY OF NEW YORK,

as Trustee	 	 
	 
	By: 	 	 
	 	 	Authorized Signatory
	 	 

Note

 

[Back of Note]

7.375% Senior Notes due 2017

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Supplemental
Indenture]

     Capitalized terms used herein have the meanings assigned to them in the Supplemental Indenture
referred to below unless otherwise indicated.

     (1) Interest. NRG Energy, Inc., a Delaware corporation (the “Company”), promises to
pay interest on the principal amount of this Note at 7.375% per annum from November 21, 2006
until maturity. The Company shall pay interest semi-annually in arrears on January 15 and
July 15 of each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from the
date of issuance; provided that if there is no existing Default in the payment of interest,
and if this Note is authenticated between a record date referred to on the face hereof and
the next succeeding Interest Payment Date, interest shall accrue from such next succeeding
Interest Payment Date; provided, further, that the first Interest Payment Date shall be July
15, 2007. Interest will be computed on the basis of a 360-day year of twelve 30-day months.

     (2) Method of Payment. The Company shall pay interest on the Notes to the Persons who
are registered Holders of Notes at the close of business on the January 1 or July 1 next
preceding the Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.13 of the Base
Indenture with respect to defaulted interest. The Notes will be payable as to principal,
premium, if any, and interest at the office or agency of the Company maintained for such
purpose within the City and State of New York, or, at the option of the Company, payment of
interest and may be made by check mailed to the Holders at their addresses set forth in the
register of Holders; provided that payment by wire transfer of immediately available funds
will be required with respect to principal of and interest and premium, if any, on, all
Global Notes and all other Notes the Holders of which will have provided wire transfer
instructions to the Company or the Paying Agent. Such payment shall be in such coin or
currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.

     (3) Paying Agent and Registrar. Initially, Law Debenture Trust Company of New York,
the Trustee under the Indenture, will act as Paying Agent and the Registrar. The Company
may change any Paying Agent or the Registrar without notice to any Holder. The Company or
any of its Subsidiaries may act in any such capacity.

     (4) Indenture. This Note is one of a duly authenticated series of securities of the
Company issued and to be issued in one or more series under an Indenture (the “Base
Indenture”), dated as of February 2, 2006, between the Company and the Trustee, as amended
by the Ninth Supplemental Indenture (the “Supplemental Indenture” and, together with the
Base Indenture, the “Indenture”), dated as of November 21, 2006, among the Company, the
Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture
and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as
amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the Base
Indenture, the provisions of this Note shall govern and be controlling, and to the extent
any provision of this Note conflicts with the express

Note

 

provisions of the Supplemental Indenture, the provisions of the Supplemental Indenture shall govern
and be controlling. The Company shall be entitled to issue Additional Notes pursuant to
Section 2.05 of the Supplemental Indenture.

     (5) Optional Redemption.

     (a) At any time prior to January 15, 2012, the Company may on any one or more occasions redeem
up to 35% of the aggregate principal amount of the Notes, upon not less than 30 nor more than 60
days’ notice, at a redemption price of 107.375% of the principal amount, plus accrued and unpaid
interest to the redemption date, with the proceeds of one or more Equity Offerings; provided that:

     (1) at least 65% of the aggregate principal amount of the Notes issued pursuant to the
Supplemental Indenture (excluding notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption; and

     (2) the redemption occurs within 90 days of the date of the closing of such Equity
Offering.

     (b) At any time prior to January 15, 2012, the Company may on any one or more occasions redeem
all or a part of the Notes, upon not less than 30 nor more than 60 days’ prior notice, at a
redemption price equal to 100% of the principal amount of Notes redeemed plus the Applicable
Premium as of, and accrued and unpaid interest if any, to the redemption date, subject to the
rights of Holders of Notes on the relevant record date to receive interest due on the relevant
interest payment date.

     (c) Except pursuant to clauses (a) and (b) above, the Notes are not redeemable at the
Company’s option prior to January 15, 2012. The Company is not prohibited, however, from acquiring
the notes in market transactions by means other than a redemption, whether pursuant to a tender
offer or otherwise, assuming such action does not otherwise violate the Supplemental Indenture.

     (d) On or after January 15, 2012, the Company may on any one or more occasions redeem all or a
part of the Notes upon not less than 30 nor more than 60 days’ notice, at the redemption prices
(expressed as percentages of principal amount) set forth below plus accrued and unpaid interest on
the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month period
beginning on February 1 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant interest payment date:

	 	 	 	 	 
	Year	 	Percentage
	2012
	 	 	103.688	%
	2013
	 	 	102.458	%
	2014
	 	 	101.229	%
	2015 and thereafter
	 	 	100.000	%

     (6) Repurchase at Option of Holder.

(a) If there is a Change of Control, the Company shall be required to make an offer (a
“Change of Control Offer”) to repurchase all or any part (equal to $5,000 or integral
multiples of $5,000) of each Holder’s Notes at a purchase price equal to 101% of the
aggregate principal amount of Notes repurchased plus accrued and unpaid interest to the date
of purchase (the “Change of Control Payment”). Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder setting forth the procedures
governing the Change of Control Offer as required by the Indenture.

Note

 

(b) If the Company or a Restricted Subsidiary consummates any Asset Sales, and the aggregate
amount of Excess Proceeds exceeds $100.0 million, the Company shall commence an offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes
containing provisions similar to those set forth in the Supplemental Indenture with respect
to offers to purchase (or repay, prepay or redeem, as applicable) an aggregate principal
amount of Notes and such other pari passu Indebtedness that may be purchased out of the
Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount
thereof plus accrued and unpaid interest to the date fixed for the closing of such offer
(the “Asset Sale Offer”), in accordance with the procedures set forth in the Supplemental
Indenture. To the extent that the aggregate amount of Notes and other pari passu
Indebtedness tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Company may use such deficiency for any purpose not otherwise prohibited by the Indenture.
If the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by
holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes
and other pari passu Indebtedness to be purchased on a pro rata basis. Upon completion of
each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero. Holders of
Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes purchased by
completing the form entitled “Option of Holder to Elect Purchase” on the reverse of the
Notes.

     (7) Notice of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder whose Notes are to be redeemed
at its registered address. Notes in denominations larger than $5,000 may be redeemed in
part but only in whole multiples of $5,000, unless all of the Notes held by a Holder are to
be redeemed. On and after the redemption date interest ceases to accrue on Notes or
portions thereof called for redemption.

     (8) Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in denominations of $5,000 and integral multiples of $5,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Supplemental Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay any taxes
and fees required by law or permitted by the Supplemental Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for redemption,
except for the unredeemed portion of any Note being redeemed in part. Also, the Company
need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     (9) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner
for all purposes.

     (10) Amendment, Supplement and Waiver. The Base Indenture may be amended as provided
therein. Subject to certain exceptions, the Supplemental Indenture or the Notes may be
amended or supplemented with the consent of the Holders of at least a majority in principal
amount of the then outstanding Notes, and any existing default or compliance with any
provision of the Supplemental Indenture or the Notes may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes. Without the
consent of any Holder of a Note, the Supplemental Indenture or the Notes may be amended or
supplemented (i) to cure any ambiguity, defect or inconsistency, (ii) to provide for
uncertificated Notes in addition to or in place of certificated Notes, (iii) to provide for
the assumption of the Company’s obligations to

Note

 

Holders of the Notes in the case of a merger or consolidation or sale of all or
substantially all of the Company’s assets pursuant to Article 5 of the Supplemental
Indenture, (iv) to make any change that would provide any additional rights or benefits to
the Holders of Notes, including the addition of guarantees, or that does not adversely
affect the legal rights under the Supplemental Indenture of any such Holder, (v) to comply
with the requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the Trust Indenture Act, (vi) to conform the text of the Supplemental
Indenture or the Notes to any provision of the Description of Notes in the Prospectus
Supplement to the extent that such provision in the Description of Notes was intended to be
a verbatim recitation of a provision of the Supplemental Indenture or the Notes, (viii) to
evidence and provide for the acceptance and appointment under the Indenture of a successor
trustee pursuant to the requirements thereof, (ix) to provide for the Issuance of Additional
Notes in accordance with the limitations set forth in the Supplemental Indenture and (x) to
allow any Guarantor to execute a supplemental indenture and/or Subsidiary Guarantee with
respect to the Notes to become a Guarantor.

     (11) Defaults and Remedies. Events of Default include: (1) default for 30 days in the
payment when due of interest on the Notes; (2) default in payment when due of the principal
of, or premium, if any, on the Notes; (3) failure by the Company or any of its Restricted
Subsidiaries for 30 days after written notice given by the Trustee or Holders, to comply
with any of the other agreements in the Supplemental Indenture; (4) default under any
mortgage, indenture or instrument under which there may be issued or by which there may be
secured or evidenced any Indebtedness for money borrowed by the Company or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its
Restricted Subsidiaries) whether such Indebtedness or guarantee now exists, or is created
after the date of this Supplemental Indenture, if that default: (A) is caused by a failure
to pay principal of, or interest or premium, if any, on such Indebtedness prior to the
expiration of the grace period provided in such Indebtedness on the date of such default (a
“Payment Default”); or (B) results in the acceleration of such Indebtedness prior to its
express maturity, and, in each case, the principal amount of any such Indebtedness, together
with the principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates $100.0 million
or more; provided that this clause (4) shall not apply to (i) secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or assets securing
such Indebtedness to a Person that is not an Affiliate of the Company; (ii) Non-Recourse
Debt of the NRG Peaker Finance Company LLC; and (iii) Non-Recourse Debt of the Company or
any of its Subsidiaries (except to the extent that the Company or any of its Restricted
Subsidiaries that are not parties to such Non-Recourse Debt becomes directly or indirectly
liable, including pursuant to any contingent obligation, for any Indebtedness thereunder and
such liability, individually or in the aggregate, exceeds $100.0 million); (5) one or more
judgments for the payment of money in an aggregate amount in excess of $100.0 million
(excluding therefrom any amount reasonably expected to be covered by insurance) shall be
rendered against the Company any Restricted Subsidiary or any combination thereof and the
same shall not have been paid, discharged or stayed for a period of 60 days after such
judgment became final and non-appealable; (6) except as permitted by the Supplemental
Indenture, any Subsidiary Guarantee shall be held in any final and non-appealable judicial
proceeding to be unenforceable or invalid or shall cease for any reason to be in full force
and effect or any Guarantor (or any group of Guarantors) that constitutes a Significant
Subsidiary, or any Person acting on behalf of any Guarantor (or any group of Guarantors)
that constitutes a Significant Subsidiary, shall deny or disaffirm its or their obligations
under its or their Subsidiary Guarantee(s); (7) the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary pursuant to or
within the meaning of Bankruptcy Law: (A) commences a voluntary case, (B)

Note

 

consents to the entry of an order for relief against it in an involuntary case, (C)
consents to the appointment of a custodian of it or for all or substantially all of its
property, (D) makes a general assignment for the benefit of its creditors, or (E) generally
is not paying its debts as they become due; or (10) a court of competent jurisdiction enters
an order or decree under any Bankruptcy Law that: (A) is for relief against the Company or
any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Company that, taken together, would constitute a Significant
Subsidiary in an involuntary case; (B) appoints a custodian of the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a Significant Subsidiary
or for all or substantially all of the property of the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary; or (C) orders the
liquidation of the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary or any group of Restricted Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary; and the order or decree remains unstayed and in
effect for 60 consecutive days.

     (12) Trustee Dealings with Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Company or
its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not
the Trustee. However, in the event that the Trustee acquires any conflicting interest it
must eliminate such conflict within 90 days, apply to the SEC for permission to continue as
trustee or resign. Any Agent may do the same with like rights and duties. The Trustee is
also subject to and entitled to the benefits of Article VII of the Base Indenture.

     (13) No Recourse Against Others. No director, officer, employee, incorporator or
stockholder of the Company or any Guarantor, as such, will have any liability for any
obligations of the Company or the Guarantors under the Notes, the Indenture, the Subsidiary
Guarantees or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of the Notes.
The waiver may not be effective to waive liabilities under the federal securities laws.

     (14) Authentication. This Note will not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

     (15) Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

     (16) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such numbers either
as printed on the Notes or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

     (17) Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED
TO CONSTRUE THE SUPPLEMENTAL INDENTURE, THE NOTES AND THE SUBSIDIARY GUARANTEES WITHOUT
GIVING EFFECT

Note

 

TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE
LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

The Company shall furnish to any Holder upon written request and without charge a copy of
the Base Indenture, the Supplemental Indenture and the Subsidiary Guarantees. Requests may
be made to:

NRG Energy, Inc.

211 Carnegie Center

Princeton, New Jersey 08540

Attention: General Counsel

Note

 

Assignment Form

     To assign this Note, fill in the form below:

	 	 	 
	(I) or (we) assign and transfer this Note to:

	 	 
	 

	 	 
	 

	 	(Insert assignee’s legal name)

  

(Insert
assignee’s soc. sec. or tax I.D. no.)

 

 
  
  
  

(Print

or type assignee’s name, address and zip code)

and irrevocably appoint                                                                 
                                                        
to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date:                                    

	 	 	 	 	 
	 

	 	Your Signature: 
	 	 
	 

	 	 	 	 
	 

	 	 	(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*:                                                        

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

1

 

Option of Holder to Elect Purchase

     If you want to elect to have this Note purchased by the Company pursuant to Section 4.10
or 4.14 of the Supplemental Indenture, check the appropriate box below:

o Section 4.10                   o Section 4.14

     If you want to elect to have only part of the Note purchased by the Company pursuant to
Section 4.10 or Section 4.14 of the Supplemental Indenture, state the amount you elect to have
purchased:

$                     

Date:                                       

	 	 	 	 	 	 	 
	 

	 	 	 	Your Signature: 
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	(Sign exactly as your name appears on the face of this Note)
	 	 
	 	 	 	 	 
	 

	 	 	 	Tax Identification No.:
	 
	 

	 	 	 	 	 	 
	Signature Guarantee*:
	 	 	 	 	 	 

	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

B-1

 

EXHIBIT B

FORM OF NOTATION OF GUARANTEE

     For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed on a senior basis, to the extent
set forth in the Indenture and subject to the provisions in the indenture (the “Base Indenture”),
dated as of February 2, 2006, between NRG Energy, Inc., (the “Company") and Law Debenture Trust
Company of New York, as trustee (the “Trustee”), as amended by the Ninth Supplemental Indenture
(the “Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), dated as of
November 21, 2006, among the Company, the Guarantors listed on Schedule I thereto and the Trustee,
(a) the due and punctual payment of the principal of, premium, if any, and interest on the Notes
(as defined in the Supplemental Indenture), whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal of and interest on the
Notes, if any, if lawful, and the due and punctual performance of all other obligations of the
Company to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in
case of any extension of time of payment or renewal of any Notes or any of such other obligations,
that the same will be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at stated maturity, by acceleration or otherwise. The
Obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary
Guarantee and the Indenture are expressly set forth in Article 10 of the Supplemental Indenture and
reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee. Each
Holder of a Note, by accepting the same, agrees to and shall be bound by such provisions and
appoints the Trustee attorney-in-fact of such Holder for such purpose.

ARTHUR KILL POWER LLC

ASTORIA GAS TURBINE POWER LLC

BERRIANS I GAS TURBINE POWER LLC

BIG CAJUN II UNIT 4 LLC

CABRILLO POWER I LLC

CABRILLO POWER II LLC

CHICKAHOMINY RIVER ENERGY CORP.

COMMONWEALTH ATLANTIC POWER LLC

CONEMAUGH POWER LLC

CONNECTICUT JET POWER LLC

DEVON POWER LLC

DUNKIRK POWER LLC

EASTERN SIERRA ENERGY COMPANY

EL SEGUNDO POWER LLC

EL SEGUNDO POWER II LLC

GCP FUNDING COMPANY LLC

HANOVER ENERGY COMPANY

HOFFMAN SUMMIT WIND PROJECT, LLC

HUNTLEY IGCC LLC

HUNTLEY POWER LLC

INDIAN RIVER IGCC LLC

INDIAN RIVER OPERATIONS INC.

INDIAN RIVER POWER LLC

JAMES RIVER POWER LLC

KAUFMAN COGEN LP

KEYSTONE POWER LLC

Notation Guarantee

 

LAKE ERIE PROPERTIES INC.

LONG BEACH GENERATION LLC

LOUISIANA GENERATING LLC

MIDDLETOWN POWER LLC

MONTVILLE IGCC LLC

MONTVILLE POWER LLC

NEO CALIFORNIA POWER LLC

NEO CHESTER-GEN LLC

NEO CORPORATION

NEO FREEHOLD-GEN LLC

NEO LANDFILL GAS HOLDINGS INC.

NEO POWER SERVICES INC.

NEW GENCO GP LLC

NEW GENCO LP LLC

NORWALK POWER LLC

NRG AFFILIATE SERVICES INC.

NRG ARTHUR KILL OPERATIONS INC.

NRG ASIA-PACIFIC, LTD.

NRG ASTORIA GAS TURBINE OPERATIONS, INC.

NRG BAYOU COVE LLC

NRG CABRILLO POWER OPERATIONS INC.

NRG CADILLAC OPERATIONS INC.

NRG CALIFORNIA PEAKER OPERATIONS LLC

NRG CONNECTICUT AFFILIATE SERVICES INC.

NRG DEVON OPERATIONS INC.

NRG DUNKIRK OPERATIONS INC.

NRG EL SEGUNDO OPERATIONS INC.

NRG GENERATION HOLDINGS INC.

NRG HUNTLEY OPERATIONS INC.

NRG INTERNATIONAL LLC

NRG KAUFMAN LLC

NRG MESQUITE LLC

NRG MIDATLANTIC AFFILIATE SERVICES INC.

NRG MIDDLETOWN OPERATIONS INC.

NRG MONTVILLE OPERATIONS INC.

NRG NEW JERSEY ENERGY SALES LLC

NRG NEW ROADS HOLDINGS LLC

NRG NORTH CENTRAL OPERATIONS INC.

NRG NORTHEAST AFFILIATE SERVICES INC.

NRG NORWALK HARBOR OPERATIONS INC.

NRG OPERATING SERVICES, INC.

NRG OSWEGO HARBOR POWER OPERATIONS INC.

NRG POWER MARKETING INC.

NRG ROCKY ROAD LLC

NRG SAGUARO OPERATIONS INC.

NRG SOUTH CENTRAL AFFILIATE SERVICES INC.

NRG SOUTH CENTRAL GENERATING LLC

NRG SOUTH CENTRAL OPERATIONS INC.

NRG SOUTH TEXAS LP

NRG TEXAS LLC

NRG TEXAS LP

Notation Guarantee

 

NRG WEST COAST LLC

NRG WESTERN AFFILIATE SERVICES INC.

OSWEGO HARBOR POWER LLC

PADOMA WIND POWER LLC

SAGUARO POWER LLC

SAN JUAN MESA WIND PROJECT II LLC

SOMERSET OPERATIONS INC.

SOMERSET POWER LLC

TEXAS GENCO FINANCING CORP.

TEXAS GENCO GP LLC

TEXAS GENCO HOLDINGS INC.

TEXAS GENCO LP LLC

TEXAS GENCO OPERATING SERVICES LLC

TEXAS GENCO SERVICES LP

VIENNA OPERATIONS INC.

VIENNA POWER LLC

WCP (GENERATION) HOLDINGS LLC

WEST COAST POWER LLC

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Clint Freeland 	 
	 	 	Title:  	Authorized Signatory 	 

Notation Guarantee

 

 

FORM OF
SUPPLEMENTAL INDENTURE
ADDITIONAL SUBSIDIARY GUARANTEES

     Supplemental Indenture (this “Supplemental Indenture for Additional Guarantees”),
dated as of                     , 20     , among                      (the “Guaranteeing
Subsidiary”), a subsidiary of NRG Energy, Inc. (or its permitted successor), a                     
corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture
referred to herein) and Law Debenture Trust Company of New York, as trustee under the indentures
referred to below (the “Trustee”).

WITNESSETH

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
"Base Indenture”), dated as of February 2, 2006, between the Company and the Trustee, as amended by
a ninth supplemental indenture (the “Supplemental Indenture” and, together with the Base Indenture,
the “Indenture”), dated as of November 21, 2006, among the Company, the Guarantors named therein
and the Trustee, providing for the original issuance of an aggregate principal amount of $1,100
million of 7.375% Senior Notes due 2017 (the “Initial Notes”), and, subject to the terms of the
Supplemental Indenture, future unlimited issuances of 7.375% Senior Notes due 2017 (the “Additional
Notes,” and together with the Initial Notes, the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture (the “Subsidiary Guarantee”); and

     WHEREAS, pursuant to Section 4.17 of the Supplemental Indenture, the Trustee, the Company and
the other Guarantors are authorized and required to execute and deliver this Supplemental Indenture
for Additional Guarantees.

     NOW THEREFORE, in consideration of the foregoing and for good and valuable consideration, the
receipt of which is hereby acknowledged, the Guaranteeing Subsidiary, the Trustee, the Company and
the other Guarantors mutually covenant and agree for the equal and ratable benefit of the Holders
of the Notes as follows:

     1. Capitalized Terms. Unless otherwise defined in this Supplemental Indenture for Additional
Guarantees, capitalized terms used herein without definition shall have the meanings assigned to
them in the Supplemental Indenture.

     2. Agreement to be Bound; Guarantee. The Guaranteeing Subsidiary hereby becomes a party to
the Supplemental Indenture as a Guarantor and as such will have all of the rights and be subject to
all of the Obligations and agreements of a Guarantor under the Indenture. The Guaranteeing
Subsidiary hereby agrees to be bound by all of the provisions of the Supplemental Indenture
applicable to a Guarantor and to perform all of the Obligations and agreements of a Guarantor under
the Supplemental Indenture. In furtherance of the foregoing, the Guaranteeing Subsidiary shall be
deemed a Guarantor for purposes of Article 10 of the Supplemental Indenture, including, without
limitation, Section 10.02 thereof.

     3. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL

D-1

 

INDENTURE FOR ADDITIONAL GUARANTEES BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

     4. Counterparts. The parties may sign any number of copies of this Supplemental Indenture for
Additional Guarantees. Each signed copy shall be an original, but all of them together represent
the same agreement.

     5. Effect of Headings. The Section headings herein are for convenience only and shall not
affect the construction hereof.

     6. The Trustee. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture for Additional Guarantees or
for or in respect of the recitals contained herein, all of which recitals are made solely by the
Guaranteeing Subsidiary and the Company.

     7. Ratification of Indenture; Supplemental Indenture for Additional Guarantees Part of
Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in full force and
effect. This Supplemental Indenture for Additional Guarantees shall form a part of the Indenture
for all purposes, and every Holder of Notes heretofore or hereafter authenticated and delivered
shall by bound hereby.

D-2

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture for Additional
Guarantees to be duly executed and attested, all as of the date first above written.

Dated:                                          , 20      

	 	 	 	 	 
	 	[Guaranteeing Subsidiary]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Company]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Existing Guarantors]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[Trustee],

as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Signatory 	 

D-3EX-10.1

 

Execution
Copy

 

 

 

CREDIT AGREEMENT

dated as of February 2, 2006,

as amended and restated as of November 21, 2006

among

NRG ENERGY, INC.,

as Borrower,

THE LENDERS PARTY HERETO,

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and

MORGAN STANLEY SENIOR FUNDING, INC.,

as Joint Book Runners and Joint Lead Arrangers,

MORGAN STANLEY SENIOR FUNDING, INC.,

as Administrative Agent,

MORGAN STANLEY & CO. INCORPORATED,

as Collateral Agent,

and

MERRILL LYNCH CAPITAL CORPORATION,

as Syndication Agent

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	ARTICLE I.

	 	 	 
	 	 	 	 
	Definitions

	 	 	 
	 	 	 	 
	SECTION 1.01.	 	Defined Terms
	 	 	2	 
	SECTION 1.02.	 	Terms Generally
	 	 	56	 
	SECTION 1.03.	 	Classification of Loans and Borrowings
	 	 	56	 
	SECTION 1.04.	 	Pro Forma Calculations
	 	 	56	 
	SECTION 1.05.	 	Exchange Rates
	 	 	56	 
	ARTICLE II.

	 	 	 
	 	 	 	 
	The Credits

	 	 	 
	 	 	 	 
	SECTION 2.01.	 	Commitments
	 	 	57	 
	SECTION 2.02.	 	Loans
	 	 	57	 
	SECTION 2.03.	 	Borrowing Procedure
	 	 	59	 
	SECTION 2.04.	 	Repayment of Loans; Evidence of Debt
	 	 	60	 
	SECTION 2.05.	 	Fees
	 	 	60	 
	SECTION 2.06.	 	Interest on Loans
	 	 	62	 
	SECTION 2.07.	 	Default Interest
	 	 	62	 
	SECTION 2.08.	 	Alternate Rate of Interest
	 	 	62	 
	SECTION 2.09.	 	Termination and Reduction of Commitments; Return, Reduction
and Conversion of Credit-Linked Deposits
	 	 	63	 
	SECTION 2.10.	 	Conversion and Continuation of Borrowings
	 	 	64	 
	SECTION 2.11.	 	Repayment of Term Borrowings
	 	 	65	 
	SECTION 2.12.	 	Prepayment
	 	 	66	 
	SECTION 2.13.	 	Mandatory Prepayments
	 	 	67	 
	SECTION 2.14.	 	Reserve Requirements; Change in Circumstances
	 	 	71	 
	SECTION 2.15.	 	Change in Legality
	 	 	72	 
	SECTION 2.16.	 	Indemnity
	 	 	73	 
	SECTION 2.17.	 	Pro Rata Treatment
	 	 	74	 
	SECTION 2.18.	 	Sharing of Setoffs
	 	 	74	 
	SECTION 2.19.	 	Payments
	 	 	74	 
	SECTION 2.20.	 	Taxes
	 	 	75	 
	SECTION 2.21.	 	Assignment of Commitments Under Certain Circumstances;
Duty to Mitigate
	 	 	77	 
	SECTION 2.22.	 	Swingline Loans
	 	 	78	 
	SECTION 2.23.	 	Letters of Credit
	 	 	79	 
	SECTION 2.24.	 	Credit-Linked Deposit Account
	 	 	85	 
	SECTION 2.25.	 	Incremental Facilities
	 	 	86	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	ARTICLE III.

	 	 	 
	 	 	 	 
	Representations and Warranties

	 	 	 
	 	 	 	 
	SECTION 3.01.	 	Organization; Powers
	 	 	88	 
	SECTION 3.02.	 	Authorization; No Conflicts
	 	 	88	 
	SECTION 3.03.	 	Enforceability
	 	 	89	 
	SECTION 3.04.	 	Governmental Approvals
	 	 	89	 
	SECTION 3.05.	 	Financial Statements
	 	 	89	 
	SECTION 3.06.	 	No Material Adverse Change
	 	 	90	 
	SECTION 3.07.	 	Title to Properties; Possession Under Leases
	 	 	90	 
	SECTION 3.08.	 	Subsidiaries
	 	 	90	 
	SECTION 3.09.	 	Litigation; Compliance with Laws
	 	 	90	 
	SECTION 3.10.	 	Agreements
	 	 	91	 
	SECTION 3.11.	 	Federal Reserve Regulations
	 	 	91	 
	SECTION 3.12.	 	Investment Company Act
	 	 	91	 
	SECTION 3.13.	 	Use of Proceeds
	 	 	91	 
	SECTION 3.14.	 	Tax Returns
	 	 	92	 
	SECTION 3.15.	 	No Material Misstatements
	 	 	92	 
	SECTION 3.16.	 	Employee Benefit Plans
	 	 	92	 
	SECTION 3.17.	 	Environmental Matters
	 	 	92	 
	SECTION 3.18.	 	Insurance
	 	 	93	 
	SECTION 3.19.	 	Security Documents
	 	 	93	 
	SECTION 3.20.	 	Location of Real Property
	 	 	94	 
	SECTION 3.21.	 	Labor Matters
	 	 	95	 
	SECTION 3.22.	 	Intellectual Property
	 	 	95	 
	SECTION 3.23.	 	Energy Regulation
	 	 	95	 
	SECTION 3.24.	 	Solvency
	 	 	96	 
	SECTION 3.25.	 	Acquisition Documentation
	 	 	97	 
	 	 	 
	 	 	 	 
	ARTICLE IV.

	 	 	 
	 	 	 	 
	Conditions of Lending

	 	 	 
	 	 	 	 
	SECTION 4.01.	 	All Credit Events
	 	 	97	 
	SECTION 4.02.	 	Conditions Precedent to Restatement Date
	 	 	98	 
	 	 	 
	 	 	 	 
	ARTICLE V.

	 	 	 
	 	 	 	 
	Affirmative Covenants

	 	 	 
	 	 	 	 
	SECTION 5.01.	 	Corporate Existence
	 	 	100	 
	SECTION 5.02.	 	Insurance
	 	 	100	 
	SECTION 5.03.	 	Taxes
	 	 	100	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	SECTION 5.04.	 	Financial Statements, Reports, etc
	 	 	100	 
	SECTION 5.05.	 	Litigation and Other Notices
	 	 	102	 
	SECTION 5.06.	 	Information Regarding Collateral
	 	 	102	 
	SECTION 5.07.	 	Maintaining Records; Access to Properties and Inspections;
Environmental Assessments
	 	 	103	 
	SECTION 5.08.	 	Use of Proceeds
	 	 	104	 
	SECTION 5.09.	 	Additional Collateral, etc
	 	 	104	 
	SECTION 5.10.	 	Further Assurances
	 	 	106	 
	 	 	 
	 	 	 	 
	ARTICLE VI.

	 	 	 
	 	 	 	 
	Negative Covenants

	 	 	 
	 	 	 	 
	SECTION 6.01.	 	Indebtedness and Preferred Stock
	 	 	107	 
	SECTION 6.02.	 	Liens
	 	 	111	 
	SECTION 6.03.	 	Limitation on Sale and Leaseback Transactions
	 	 	111	 
	SECTION 6.04.	 	Mergers, Consolidations and Sales of Assets
	 	 	111	 
	SECTION 6.05.	 	Limitation on Investments
	 	 	112	 
	SECTION 6.06.	 	Limitation on Dividends
	 	 	114	 
	SECTION 6.07.	 	Limitations on Debt Payments; Restrictive Agreements
	 	 	115	 
	SECTION 6.08.	 	Transactions with Affiliates
	 	 	118	 
	SECTION 6.09.	 	Business Activities
	 	 	120	 
	SECTION 6.10.	 	Other Indebtedness and Agreements
	 	 	120	 
	SECTION 6.11.	 	Designation of Restricted and Unrestricted Subsidiaries and
Excluded Subsidiaries
	 	 	120	 
	SECTION 6.12.	 	Capital Expenditures
	 	 	121	 
	SECTION 6.13.	 	Consolidated Interest Coverage Ratio
	 	 	121	 
	SECTION 6.14.	 	Consolidated Leverage Ratio
	 	 	121	 
	SECTION 6.15.	 	Fiscal Year
	 	 	121	 
	 	 	 
	 	 	 	 
	ARTICLE VII.

	 	 	 
	 	 	 	 
	Events of Default

	 	 	 
	 	 	 	 
	ARTICLE VIII.

	 	 	 
	 	 	 	 
	The Agents and the Arrangers

	 	 	 
	 	 	 	 
	ARTICLE IX.

	 	 	 
	 	 	 	 
	Miscellaneous

	 	 	 
	 	 	 	 
	SECTION 9.01.	 	Notices
	 	 	127	 
	SECTION 9.02.	 	Survival of Agreement
	 	 	128	 
	SECTION 9.03.	 	Binding Effect
	 	 	128	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 	 	 
	 	 	 	 
	SECTION 9.04.	 	Successors and Assigns
	 	 	128	 
	SECTION 9.05.	 	Expenses; Indemnity
	 	 	132	 
	SECTION 9.06.	 	Right of Setoff
	 	 	133	 
	SECTION 9.07.	 	Applicable Law
	 	 	133	 
	SECTION 9.08.	 	Waivers; Amendment; Replacement of Non-Consenting Lenders
	 	 	133	 
	SECTION 9.09.	 	Interest Rate Limitation
	 	 	135	 
	SECTION 9.10.	 	Entire Agreement
	 	 	135	 
	SECTION 9.11.	 	WAIVER OF JURY TRIAL
	 	 	135	 
	SECTION 9.12.	 	Severability
	 	 	135	 
	SECTION 9.13.	 	Counterparts
	 	 	136	 
	SECTION 9.14.	 	Headings
	 	 	136	 
	SECTION 9.15.	 	Jurisdiction; Consent to Service of Process
	 	 	136	 
	SECTION 9.16.	 	Confidentiality
	 	 	136	 
	SECTION 9.17.	 	Delivery of Lender Addenda
	 	 	137	 
	SECTION 9.18.	 	Lien Sharing and Priority Confirmation
	 	 	137	 
	SECTION 9.19.	 	Mortgage Modifications
	 	 	137	 
	SECTION 9.20.	 	Certain Undertakings with Respect to Securitization Vehicles
	 	 	138	 
	SECTION 9.21.	 	Effect of Amendment and Restatement of the Existing Credit Agreement
	 	 	139	 

Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Form of Administrative Questionnaire
	Exhibit B

	 	Form of Affiliate Subordination Agreement
	Exhibit C

	 	Form of Assignment and Acceptance
	Exhibit D

	 	Form of Borrowing Request
	Exhibit E-1

	 	Form of NRG Collateral Trust Agreement
	Exhibit E-2

	 	Form of Texas Genco Collateral Trust Agreement
	Exhibit F-1

	 	Form of Guarantee and Collateral Agreement
	Exhibit F-2

	 	Form of Texas Genco Security Agreement
	Exhibit G

	 	Form of Lender Addendum
	Exhibit H

	 	Form of Mortgage
	Exhibit I

	 	Form of Joinder Agreement
	Exhibit J

	 	Form of Perfection Certificate
	Exhibit K

	 	Form of Revolving Note
	Exhibit L

	 	Form of Term Note
	Exhibit M

	 	Form of Opinion of Kirkland & Ellis LLP
	 
	 	 
	Schedule 1.01(a)

	 	Excluded Foreign Subsidiaries
	Schedule 1.01(b)

	 	Excluded Project Subsidiaries
	Schedule 1.01(c)

	 	Existing Commodity Hedging Agreements
	Schedule 1.01(d)

	 	Existing Letters of Credit
	Schedule 1.01(e)

	 	Existing Non-Recourse Indebtedness
	Schedule 1.01(f)

	 	Mortgaged Properties

iv

 

	 	 	 
	Schedule 1.01(g)

	 	Subsidiary Guarantors
	Schedule 3.07

	 	Properties
	Schedule 3.08

	 	Subsidiaries
	Schedule 3.09

	 	Litigation
	Schedule 3.17

	 	Environmental Matters
	Schedule 3.18

	 	Insurance
	Schedule 3.19(a)

	 	UCC Filing Offices
	Schedule 3.19(c)

	 	Mortgage Filing Offices
	Schedule 3.20

	 	Owned and Leased Real Property
	Schedule 3.23(g)

	 	Designated Facilities
	Schedule 5.09(b)

	 	Title Insurance and Survey Requirements
	Schedule 6.01

	 	Existing Indebtedness
	Schedule 6.02

	 	Existing Liens

v

 

     CREDIT AGREEMENT dated as of February 2, 2006, as amended and restated as of November 21,
2006, among NRG ENERGY, INC., a Delaware corporation (the “Borrower”), the LENDERS from
time to time party hereto, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED and MORGAN STANLEY
SENIOR FUNDING, INC., as joint book runners and joint lead arrangers (in such capacities,
collectively, the “Arrangers”), MORGAN STANLEY SENIOR FUNDING, INC., as administrative
agent (in such capacity and together with its successors, the “Administrative Agent”),
MORGAN STANLEY & CO. INCORPORATED, as collateral agent (in such capacity and together with its
successors, the “Collateral Agent”), and MERRILL LYNCH CAPITAL CORPORATION, as syndication
agent (in such capacity, the “Syndication Agent”).

     A. On the Closing Date, the Borrower, the Administrative Agent and certain of the Lenders
entered into the Existing Credit Agreement pursuant to which certain of the Lenders agreed to
extend credit to the Borrower on a revolving credit basis and/or to make term loans and/or
credit-linked deposits to the Borrower.

     B. Pursuant to the terms and conditions of the Purchase Agreement, on the Closing Date the
Borrower purchased (a) 82% of the outstanding Equity Interests of Texas Genco LLC (the
“Target” or “Texas Genco”) directly from certain sellers named therein (the
“Sellers”) and (b) all of the issued outstanding shares of certain corporations affiliated
with the Sellers that held the remaining 18% of the outstanding Equity Interests of the Target (the
“Acquisition”). As consideration for such purchase, the Borrower paid consideration in
cash and preferred and/or common stock of the Borrower (subject to adjustment in accordance with
the Purchase Agreement) in connection with the Acquisition (the “Acquisition
Consideration”).

     C. On the Closing Date all loans outstanding under the Borrower’s Credit Agreement, dated as
of December 24, 2004, as amended on August 5, 2005 and December 27, 2005, among the Borrower, NRG
Power Marketing, the lenders party thereto, Credit Suisse (formerly known as Credit Suisse First
Boston), as administrative agent, joint lead bookrunner, joint lead arranger and co-documentation
agent, and Goldman Sachs Credit Partners L.P., as syndication agent, joint lead bookrunner, joint
lead arranger and co-documentation agent (the “2005 Credit Agreement”) were assigned in
their entirety to the Lenders under the Existing Credit Agreement, and the Commitments (as defined
in the 2005 Credit Agreement) of such assigning Lenders were assigned to the Lenders under the
Existing Credit Agreement, and thereafter continued as and deemed to be a portion of the
Commitments under the Existing Credit Agreement. It is understood that the terms and conditions of
the 2005 Credit Agreement were superseded by the terms and conditions of the Existing Credit
Agreement; provided that terms of the 2005 Credit Agreement that were to expressly survive
termination of such agreement pursuant to the terms thereof continued (and continue) to be
effective. The Borrower requested the Lenders to continue to extend credit under the Existing
Credit Agreement in the form of (a) Term Loans re-evidenced on the Closing Date in an aggregate
principal amount of $3,575,000,000, (b) Credit-Linked Deposits re-evidenced on the Closing Date in
an aggregate principal amount of $1,000,000,000 and (c) Revolving Loans, Revolving Letters of
Credit and Swingline Loans re-evidenced, made or issued at any time and from time to time on or
after the Closing Date and prior to the Revolving Credit Maturity Date in an aggregate principal
amount at any time outstanding not to exceed $1,000,000,000 (subject to the limitations set forth
herein).

     D. The proceeds of the Term Loans and the Credit-Linked Deposits re-evidenced or made on the
Closing Date were used to (a) repay or return, as applicable, all amounts due or outstanding under
the 2005 Credit Agreement on the Closing Date to those assigning Lenders who thereafter were not
Lenders on the Closing Date, (b) fund the cash portion of the Acquisition Consideration, (c) fund
the related refinancing of (i) the Target’s Credit Agreement, dated as of December 14, 2004, as
amended on January 29, 2006, among the Target, the lenders party thereto, Goldman Sachs Credit
Partners L.P., as administrative agent, joint lead arranger and joint bookrunner, Morgan Stanley
Senior Funding, Inc., as

 

 

syndication agent, joint lead arranger and joint bookrunner, Deutsche Bank AG, Cayman Islands
Branch, as co-documentation agent and joint bookrunner, Citicorp USA, Inc., as co-documentation
agent and joint bookrunner and Deutsche Bank Securities Inc., as joint lead arranger for the
Special Letter of Credit Facility (the “Existing Texas Genco Credit Agreement”), (ii) the
Target’s Funded L/C Credit Agreement, dated as of June 24, 2005, among the Target, the lenders
party thereto, Goldman Sachs Credit Partners L.P., as administrative agent, syndication agent, lead
arranger and bookrunner, Sumitomo Mitsui Banking Corporation, as letter of credit issuer, and
Commerzbank AG New York and Grand Cayman Branches and Union Bank of California, N.A., as
co-documentation agents (the “Existing LC Credit Agreement”), (iii) the Borrower’s 8%
second priority senior secured notes due 2013 (the “Existing NRG Notes”) and (iv) the
Target’s 6.875% senior unsecured notes due 2014 (the “Existing Texas Genco Notes”) and (d)
pay related fees, costs and expenses. Revolving Letters of Credit issued on the Closing Date were
used to replace certain existing Letters of Credit and the proceeds of any Revolving Loans made on
the Closing Date were used for other general corporate purposes on the Closing Date (but not,
directly or indirectly, to fund the Acquisition). After the Closing Date, Revolving Loans may be
available, and Revolving Letters of Credit may be issued, for the ongoing working capital
requirements of the Borrower and for general corporate purposes, including acquisitions not
prohibited hereunder. Funded Letters of Credit may be issued to support the Borrower’s Commodity
Hedging Obligations and to support the Borrower’s obligations under power purchase agreements.

     E. The Lenders have agreed, severally and not jointly, to amend and restate the Existing
Credit Agreement and, in connection therewith, the New Funded L/C Lenders are willing to make,
severally and not jointly, Additional Credit-Linked Deposits on the Restatement Date in an
aggregate amount of $500,000,000 and the Lenders are willing to continue to extend such credit
extended under the Existing Credit Agreement and the Issuing Bank is willing to continue to issue
Letters of Credit on the terms and subject to the conditions set forth herein. Accordingly, in
consideration of the mutual agreements contained herein and other good and valuable consideration,
the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree that this
Agreement shall, upon satisfaction (or waiver in accordance with Section 9.08) of the conditions
set forth in Section 4.02, be amended and restated to read in its entirety as follows:

ARTICLE I.

Definitions

     SECTION 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings
specified below:

     “2005 Credit Agreement” shall have the meaning assigned to such term in the recitals.

     “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

     “Account” shall have the meaning assigned to such term in the UCC.

     “Acquisition” shall have the meaning assigned to such term in the recitals.

     “Acquisition Consideration” shall have the meaning assigned to such term in the
recitals.

2

 

     “Acquisition Documentation” shall mean, collectively, the Purchase Agreement and all
schedules, exhibits, annexes and amendments thereto and all side letters and agreements affecting
the terms thereof or entered into in connection therewith.

     “Acquisition Transactions” shall mean, collectively, (a) the Acquisition, including
the payment of the Acquisition Consideration, (b) the related assignment of the loans and
commitments outstanding under the 2005 Credit Agreement, the related refinancing of the Existing
Texas Genco Credit Agreement, the Existing LC Credit Agreement, the Existing Texas Genco Notes and
the Existing NRG Notes and the funding of the Texas Genco Refinancing Escrow Account and (c) the
payment of fees, costs and expenses incurred in connection with the foregoing.

     “Additional Credit-Linked Deposit” shall mean the Credit-Linked Deposit made by each
New Funded L/C Lender on the Restatement Date. The amount of each New Funded L/C Lender’s
Additional Credit-Linked Deposit on the Restatement Date is set forth on signature page to the
Amendment Agreement executed by such New Funded L/C Lender. The aggregate amount of the Additional
Credit-Linked Deposits on the Restatement Date is $500,000,000.

     “Additional Non-Recourse Indebtedness” shall mean secured or unsecured Indebtedness
for borrowed money of a Subsidiary that is not a Loan Party; provided that

     (a) except as provided below, such Indebtedness is without recourse to the Borrower or
any other Restricted Subsidiary or to any property or assets of the Borrower or any other
Restricted Subsidiary (other than, in each such case, another Restricted Subsidiary (x)
which is the direct parent or a direct or indirect Subsidiary of the Subsidiary that
directly incurred or issued such Indebtedness (the “Issuing Subsidiary”) (except if
the Issuing Subsidiary has incurred or issued such Indebtedness in the form of a Guarantee)
or (y) that is a Restricted Subsidiary that itself has Non-Recourse Indebtedness (except if
such Restricted Subsidiary has incurred or issued such Indebtedness in the form of a
Guarantee) or is the direct parent or a direct or indirect Subsidiary of an Issuing
Subsidiary that itself has Non-Recourse Indebtedness (except if such Non-Recourse
Indebtedness of such Issuing Subsidiary is in the form of a Guarantee)); provided,
that a Restricted Subsidiary that is the parent of an Excluded Project Subsidiary and owns
no assets other than the Equity Interests in such Excluded Project Subsidiary, Equity
Interests in other Excluded Subsidiaries and any de minimis assets may incur Additional
Non-Recourse Indebtedness that is guaranteed by such Excluded Project Subsidiaries and such
Excluded Project Subsidiaries may incur Additional Non-Recourse Indebtedness in the form of
a Guarantee of such Restricted Subsidiary’s Additional Non-Recourse Indebtedness,

     (b) neither the Borrower nor any other Restricted Subsidiary (other than another
Restricted Subsidiary (x) which is the direct parent or a direct or indirect Subsidiary of
the Issuing Subsidiary (except if the Issuing Subsidiary has incurred or issued such
Indebtedness in the form of a Guarantee) or (y) that is a Restricted Subsidiary that itself
has Non-Recourse Indebtedness (except if such Restricted Subsidiary incurred or issued such
Indebtedness in the form of a Guarantee) or is the direct parent or a direct or indirect
Subsidiary of an Issuing Subsidiary that itself has Non-Recourse Indebtedness (except if
such Non-Recourse Indebtedness of such Issuing Subsidiary is in the form of a Guarantee))
provides credit support of any kind (including any undertaking, agreement or instrument that
would constitute Indebtedness) or is directly or indirectly liable as a guarantor or
otherwise in respect of such Indebtedness or in respect of the business or operations of the
applicable Subsidiary that is the obligor on such Indebtedness or any of its subsidiaries
(other than (i) any such credit support or liability consisting of reimbursement obligations
in respect of Letters of Credit issued under, and subject to the terms of, Section 2.23 to
support obligations of such applicable Subsidiary, (ii) any Investments in such applicable

3

 

Subsidiary made in accordance with Section 6.05 and (iii) any of those items expressly
provided for in subclauses (u) through (z) of clause (e) below; provided, that a Restricted
Subsidiary that is the parent of an Excluded Project Subsidiary and owns no assets other
than the Equity Interests in such Excluded Project Subsidiary, Equity Interests in other
Excluded Subsidiaries and any de minimis assets may incur Additional Non-Recourse
Indebtedness that is guaranteed by such Excluded Project Subsidiaries and such Excluded
Project Subsidiaries may incur Additional Non-Recourse Indebtedness in the form of a
Guarantee of such Restricted Subsidiary’s Additional Non-Recourse Indebtedness,

     (c) no default with respect to such Indebtedness (including any rights that the holders
of such Indebtedness may have to take enforcement action against a Subsidiary that is not a
Loan Party) would permit upon notice, lapse of time or both any holder of any other
Indebtedness of the Borrower or any other Loan Party (other than Indebtedness incurred
pursuant to Section 6.01(a), (b) or (c) and any Permitted Refinancing Indebtedness incurred
to refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to
Section 6.01(b) or (c) or with respect to Obligations under any Specified Hedging Agreement)
to declare a default on such other Indebtedness or cause the payment of the Indebtedness to
be accelerated or payable prior to its stated maturity,

     (d) the Liens securing such Indebtedness shall exist only on (i) the property and
assets of any Subsidiary that is not a Loan Party (it being understood and agreed that a
Lien granted by such Subsidiary on an undivided interest owned by such Subsidiary shall not
be considered a Lien on assets of any other Person for the purposes of this definition), and
(ii) the Equity Interests in any Subsidiary that is not a Loan Party (and shall not apply to
any other property or assets of the Borrower or any other Subsidiary that is a Loan Party),
and

     (e) the lenders of such Indebtedness have been notified or have otherwise agreed in
writing that they will not have any recourse to the stock or assets of the Borrower or any
other Loan Party,

     except, in the case of each of clauses (a), (b) and (d) for the following (each of
which is deemed to be non-recourse for purposes of this definition): (u) pledges by the
Borrower or any Subsidiary of the Equity Interests of any Excluded Subsidiary that are
directly owned by the Borrower or any Subsidiary in favor of the agent or lenders in respect
of such Excluded Subsidiary’s Additional Non-Recourse Indebtedness, (v) obligations to pay
or guarantees by the Borrower or any other Subsidiary in respect of a development fee,
management fee, success fee, royalty or other similar obligation owed to a seller or
developer (or any affiliate thereof) of a Facility in connection with the contribution or
acquisition of such Facility (or of a Subsidiary holding such Facility or development rights
to such Facility) or development rights to such Facility to the extent such obligations or
guarantees are treated as an Investment under (and are permitted by) Section 6.05(l); (w)
Guarantees by the Borrower or any other Subsidiary of such Indebtedness that are incurred
pursuant to Section 6.01(p), (x) agreements of the Borrower or any other Subsidiary to
provide, or Guarantees by the Borrower or any Subsidiary of any agreement of another
Subsidiary to provide, corporate or management or construction services or operation and
maintenance services to such Subsidiary, including in respect of the acquisition of fuel,
oil, gas or other supply of energy, (y) Guarantees of the Borrower or any other Subsidiary
with respect to debt service reserves established with respect to such Subsidiary to the
extent that such Guarantee shall result in the immediate payment of funds, pursuant to
dividends or otherwise, in the amount of such Guarantee to the Borrower or such other
Subsidiary and (z) contingent obligations of the Borrower or any other Subsidiary to make
capital contributions to such

4

 

Subsidiary, in the case of each of clauses (u) through (z), which are otherwise
permitted hereunder.

     “Adjusted LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum equal to the product of (a) the LIBO Rate in effect for
such Interest Period and (b) Statutory Reserves.

     “Administrative Agent” shall have the meaning assigned to such term in the preamble.

     “Administrative Agent Fees” shall have the meaning assigned to such term in Section
2.05(b).

     “Administrative Questionnaire” shall mean an Administrative Questionnaire
substantially in the form of Exhibit A, or such other similar form as may be supplied from time to
time by the Administrative Agent.

     “Affiliate” of any specified Person shall mean any other Person directly or indirectly
controlling or controlled by or under direct or indirect common control with such specified Person.
For purposes of this definition, “control,” as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a
Person will be deemed to be control; provided, further, however, that none
of the Sponsors will be deemed to be an “Affiliate” of the Borrower and/or any of the Subsidiaries.
For purposes of this definition, the terms “controlling,” “controlled by” and “under common
control with” have correlative meanings.

     “Affiliate Subordination Agreement” shall mean an Affiliate Subordination Agreement in
the form of Exhibit B pursuant to which intercompany obligations and advances owed by any Loan
Party to a Person that is not a Loan Party are required to be subordinated to the Guaranteed
Obligations hereunder pursuant to Section 6.01(f).

     “Affiliate Transaction” shall have the meaning assigned to such term in Section 6.08.

     “Agents” shall have the meaning assigned to such term in Article VIII.

     “Aggregate Revolving Credit Exposure” shall mean the aggregate amount of the Lenders’
Revolving Credit Exposures.

     “Agreement” shall mean the Existing Credit Agreement, as amended and restated on the
Restatement Date and as the same may thereafter from time to time be further amended, restated,
supplemented or otherwise modified and in effect from time to time.

     “Alternate Base Rate” shall mean, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to the greater of (a) the Prime Rate in effect on such
day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any
change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective
Rate shall be effective as of the opening of business on the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

     “Amendment Agreement” shall mean the Amendment Agreement dated as of November 21,
2006, among the Borrower, the Administrative Agent, NRG Collateral Trustee, the Texas Genco
Collateral Trustee and the Lenders party thereto.

5

 

     “Annual Calculated ECF Sweep Amount” shall have the meaning assigned to such term in
Section 2.13(d).

     “Applicable Laws” shall mean, as to any Person, any law, rule, regulation, ordinance
or treaty, or any determination, ruling or other directive by or from a court, arbitrator or other
Governmental Authority, including ERCOT, in each case applicable to or binding on such Person or
any of its property or assets or to which such Person or any of its property or assets is subject.

     “Applicable Margin” shall mean, for any day, for each Type of Loan, the rate per annum
set forth under the relevant column heading below based upon the Consolidated Senior Leverage Ratio
as of the relevant date of determination:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Consolidated Senior	 	Eurodollar Term	 	 	 	 	 	Eurodollar	 	ABR Revolving Loans
	Leverage Ratio	 	Loans	 	ABR Term Loans	 	Revolving Loans	 	and Swingline Loans
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Greater than 3.50 to 1.00
	 	 	2.00	%	 	 	1.00	%	 	 	2.00	%	 	 	1.00	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Greater than 3.00 to
1.00 but less than or
equal to 3.50 to 1.00
	 	 	1.75	%	 	 	0.75	%	 	 	1.75	%	 	 	0.75	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category 3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less than or equal
to 3.00 to 1.00
	 	 	1.75	%	 	 	0.75	%	 	 	1.50	%	 	 	0.50	%

     Each change in the Applicable Margin resulting from a change in the Consolidated Senior
Leverage Ratio shall be effective with respect to all Commitments, Loans and Letters of Credit
outstanding on or after the date of delivery to the Administrative Agent of the financial
statements and certificates required by Section 5.04(a) or (b) and Section 5.04(c), respectively,
indicating such change until the date immediately preceding the next date of delivery of such
financial statements and certificates indicating another such change. In addition, at any time
during which the Borrower has failed to deliver the financial statements and certificates required
by Section 5.04(a) or (b) and Section 5.04(c), respectively, the Consolidated Senior Leverage Ratio
shall be deemed to be in Category 1 for purposes of determining the Applicable Margin.
Notwithstanding any of the foregoing, the Applicable Margin that is applicable for each Type of
Loan at any time shall be increased by an additional 0.25% per annum for any period on or after the
Restatement Date during which the Borrower’s corporate family rating from Moody’s shall not be at
least Ba3 or the Borrower’s corporate rating from S&P shall not be at least B+ (a “Downgrade
Event”); provided that such additional 0.25% per annum increase to the Applicable
Margin shall cease to apply for any period during which a Downgrade Event shall cease to exist.

     “Arrangers” shall have the meaning assigned to such term in the preamble.

6

 

     “Asset Sale” shall mean the direct or indirect (a) sale, lease (other than an
operating lease), sale and leaseback, lease and leaseback, assignment (other than a collateral
assignment), conveyance, transfer or other disposition (by way of merger, consolidation, casualty,
condemnation, operation of law or otherwise (other than pursuant to an event that may result in a
Recovery Event)) by the Borrower or any Restricted Subsidiary to any Person other than, in the case
of assets not constituting Core Collateral, the Borrower or any Subsidiary Guarantor of (1) any
Equity Interests of any of the Subsidiaries (other than directors’ qualifying shares or investments
by foreign nationals required by Applicable Laws) or (2) any other assets of the Borrower or any
Restricted Subsidiary, including Equity Interests of any Person that is not the Borrower or a
Subsidiary or (b) issuance of Equity Interests in any of the Restricted Subsidiaries to any Person
other than the Borrower or any Subsidiary Guarantor; provided that (i) any asset sale or
series of related asset sales described in clause (a) or (b) above of assets not constituting Core
Collateral and having a value not in excess of $50,000,000 shall be deemed not to be an “Asset
Sale” for purposes of this Agreement; and (ii) each of the following transactions shall be deemed
not to be an “Asset Sale” for purposes of this Agreement: (A) the sale, transfer or other
disposition by the Borrower or any Restricted Subsidiary of (x) damaged, worn-out, obsolete assets
and scrap and (y) cash or Cash Equivalents, (B) the sale by the Borrower or any Restricted
Subsidiary of power, capacity, energy, ancillary services, and other products or services, or the
sale of any other inventory or contracts related to any of the foregoing, (C) the sale, lease,
conveyance or other disposition for value by the Borrower or any Restricted Subsidiary of fuel or
emission credits in the ordinary course of business, (D) the sale, transfer or other disposition of
any assets (other than any such assets which are Collateral) in connection with a foreclosure,
transfer or deed in lieu of foreclosure or other remedial action, (E) the sale, transfer or other
disposition by any Restricted Subsidiary that is not a Loan Party of any of its assets (other than
any such assets constituting Collateral) or the issuance of Equity Interests by any Subsidiary
(that is not a Loan Party) of such Restricted Subsidiary, in each case to any other Subsidiary that
is not a Loan Party, (F) the licensing of intellectual property, (G) the sale or discount, in each
case without recourse, of accounts receivable arising in the ordinary course of business, but only
in connection with the compromise or collection thereof and (H) the sale, transfer or other
disposition of spare parts and spare parts inventory to any other Restricted Subsidiary in the
ordinary course of business so long as such spare parts and spare parts inventory are required in
the ordinary course operation of the transferee’s business or operations at the time of such
disposition.

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any Person whose consent is required by Section 9.04),
substantially in the form of Exhibit C or such other similar form as shall be approved by the
Administrative Agent.

     “Attributable Debt” in respect of a sale and leaseback transaction shall mean, at the
time of determination, the present value of the obligation of the lessee for net rental payments
during the remaining term of the lease included in such sale and leaseback transaction, including
any period for which such lease has been extended or may, at the option of the lessor, be extended.
Such present value shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP; provided,
however, that if such sale and leaseback transaction results in a Capital Lease Obligation,
the amount of Indebtedness represented thereby will be determined in accordance with the definition
of “Capital Lease Obligation”, and shall not be deemed to be Attributable Debt.

     “Available Amount” shall mean, on any date (the “Reference Date”), an amount
equal at such time to (a) the sum of, without duplication:

     (i) $500,000,000 in the aggregate;

7

 

     (ii) the sum of (A) on and after the date on which the Borrower shall have provided its
calculation of the Excess Cash Flow for the fiscal year ending December 31, 2006 pursuant to
Section 5.04(c), an amount equal to such Excess Cash Flow for such fiscal year
multiplied by 25% and (B) for each ECF Period for which the Borrower shall have
provided its calculation of Excess Cash Flow pursuant to Section 5.04(c) ending after fiscal
year 2006 and prior to the Reference Date, an amount equal to the sum of the amounts
calculated for each such ECF Period which is equal to (A) the Excess Cash Flow for such ECF
Period minus (B) an amount equal to the Required Prepayment Percentage for such ECF
Period multiplied by such Excess Cash Flow for such ECF Period;

     (iii) the amount of any capital contributions received in cash or the net cash proceeds
of other equity issuances made by the Borrower (other than any Cure Amount or any amount
used to make Dividends pursuant to Section 6.06(a)) during the period from and including the
Business Day immediately following the Restatement Date through and including the Reference
Date;

     (iv) the aggregate amount of all cash dividends and other cash distributions received
by the Borrower or any Subsidiary Guarantor from any Minority Investment or Unrestricted
Subsidiary after the Restatement Date and on or prior to the Reference Date (other than the
portion of any such dividends and other distributions that is used by the Borrower or any
Subsidiary Guarantor to pay taxes);

     (v) the aggregate amount of all cash repayments of principal and interest received by
the Borrower or any Subsidiary Guarantor from any Minority Investment or Unrestricted
Subsidiary after the Restatement Date and on or prior to the Reference Date in respect of
loans made by the Borrower or any Subsidiary Guarantor to such Minority Investment or
Unrestricted Subsidiary; and

     (vi) the aggregate amount of all Net Asset Sale Proceeds received by the Borrower or
any Subsidiary Guarantor in connection with the sale, transfer or other disposition of its
ownership interest in any Minority Investment or Unrestricted Subsidiary after the
Restatement Date and on or prior to the Reference Date,

     minus (b) the sum of:

     (i) the aggregate amount of any Investments made by the Borrower or any Restricted
Subsidiary pursuant to Section 6.05(l)(ii)(A)(y) after the Restatement Date and on or prior
to the Reference Date;

     (ii) the aggregate amount of any Dividends made by the Borrower pursuant to Section
6.06(c) after the Restatement Date and on or prior to the Reference Date;

     (iii) the aggregate amount of prepayments, repurchases and redemptions made by the
Borrower or any Restricted Subsidiary pursuant to Section 6.07(a)(v) after the Restatement
Date and on or prior to the Reference Date; and

     (iv) the aggregate amount of Capital Expenditures made by the Borrower or any
Restricted Subsidiary (other than any Excluded Subsidiaries) pursuant to clause (a) of the
proviso in Section 6.12 after the Restatement Date and on or prior to the Reference Date.

8

 

     “Bankruptcy Code” shall mean Title 11 of United States Code, 11 U.S.C. §§ 101,
et seq., as amended from time to time.

     “Bankruptcy Law” shall mean the Bankruptcy Code or any similar federal or state or
other law for the relief of debtors.

     “Basket Assets” shall have the meaning assigned to such term in Section 6.01(p).

     “Benchmark LIBO Rate” shall have the meaning assigned to such term in Section 2.24(b).

     “Beneficial Owner” shall have the meaning assigned to such term in Rule 13d-3 and Rule
13d-5 under the Exchange Act. The terms “Beneficially Owns” and “Beneficially Owned” have a
corresponding meaning.

     “Benefit Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Tax Code
or Section 302 of ERISA, and which is maintained, sponsored or contributed to by the Borrower or
any ERISA Affiliate or with respect to which the Borrower otherwise has any liability.

     “Blackstone Group” shall mean each of Blackstone TG Capital Partners IV L.P.,
Blackstone Participation Partnership IV L.P., Blackstone Capital Partners IV-A L.P. and Blackstone
Family Investment Partnership IV-A L.P.

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

     “Board of Directors” shall mean (a) with respect to a corporation, the board of
directors of the corporation or any committee thereof duly authorized to act on behalf of such
board; (b) with respect to a partnership, the Board of Directors of the general partner of the
partnership; (c) with respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and (d) with respect to any other Person, the
board or committee of such Person serving a similar function.

     “Borrower” shall have the meaning assigned to such term in the preamble.

     “Borrowing” shall mean (a) Loans of the same Class and Type made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest
Period is in effect, or (b) a Swingline Loan.

     “Borrowing Request” shall mean a request by the Borrower in accordance with the terms
of Section 2.03 and substantially in the form of Exhibit D.

     “Breakage Event” shall have the meaning assigned to such term in Section 2.16.

     “Business Day” shall mean any day other than a Saturday, Sunday or day on which
commercial banks in New York City are authorized or required by law to close; provided,
however, that when used in connection with a Eurodollar Loan (including with respect to all
notices and determinations in connection therewith and any payments of principal, interest or other
amounts thereon), the term “Business Day” shall also exclude any day on which banks are not
open for dealings in dollar deposits in the London interbank market.

9

 

     “Capital Expenditures” shall mean, for any period, with respect to any Person, (a) the
additions to property, plant and equipment and other capital expenditures of such Person and its
consolidated subsidiaries that are (or should be) set forth in a consolidated statement of cash
flows of such Person for such period prepared in accordance with GAAP and (b) Capital Lease
Obligations incurred by such Person and its consolidated subsidiaries during such period to the
extent paid in cash; provided, however, that Capital Expenditures shall not include
(i) Environmental Capital Expenditures, (ii) Necessary Capital Expenditures, (iii) expenditures
made to restore, rebuild or replace property following any damage, loss, destruction or
condemnation of such property, to the extent such expenditure is made or financed with proceeds
received or to be received from a Recovery Event, (iv) expenditures constituting reinvestment
proceeds from the sale or other disposition of assets (including Asset Sales) otherwise permitted
herein, (v) expenditures made to acquire an Investment permitted under Section 6.05, including
pursuant to a Permitted Acquisition (it being understood and agreed, however, that an acquisition
of assets (other than an acquisition of assets comprising a division or a line of business or an
acquisition of an Excluded Subsidiary or all or substantially all of the assets of a Person by an
Excluded Subsidiary) that would otherwise constitute Capital Expenditures pursuant to the
definition hereof shall not be excluded by this clause (v)), (vi) expenditures made to the extent
reimbursed by a Person other than the Loan Parties and their Subsidiaries or (vii) expenditures
constituting capitalized interest.

     “Capital Lease Obligation” shall mean, at the time any determination is to be made,
the amount of the liability in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet in accordance with GAAP, and the Stated Maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease prior to the first
date upon which such lease may be prepaid by the lessee without payment of a penalty.

     “Capital Stock” shall mean (a) in the case of a corporation, corporate stock; (b) in
the case of an association or business entity, any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock; (c) in the case of a
partnership or limited liability company, partnership interests (whether general or limited) or
membership interests; and (d) any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible into Capital Stock,
whether or not such debt securities include any right of participation with Capital Stock.

     “Cash Equivalents” shall mean

     (a) United States dollars, Euros, Australian dollars, Swiss Francs or, in the case of any
Foreign Subsidiary, any local currencies (including Australian dollars and Brazilian Reais) held by
it from time to time;

     (b) securities issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States government (provided that
the full faith and credit of the United States is pledged in support of those securities) having in
each case maturities of not more than 12 months from the date of acquisition;

     (c) certificates of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not exceeding 12 months and
overnight bank deposits, in each case, with any domestic commercial bank having capital and surplus
in excess of $500,000,000 and a Thomson Bank Watch Rating of “B” or better or, if Thomson Bank
Watch Rating does not rate the relevant bank, an equivalent rating issued by an equivalent non-U.S.
rating agency, if any;

10

 

     (d) repurchase obligations with a term of not more than thirty days for underlying securities
of the types described in clauses (b) and (c) above entered into with any financial institution
meeting the qualifications specified in clause (c) above;

     (e) commercial paper having one of the two highest ratings obtainable from Moody’s or S&P and
in each case maturing within 12 months after the date of acquisition;

     (f) readily marketable direct obligations issued or guaranteed by any state of the United
States or any political subdivision thereof (including municipalities), in either case having one
of the two highest rating categories obtainable from any of Moody’s, S&P or Fitch;

     (g) auction rate securities having one of the two highest ratings obtainable from any of
Moody’s, S&P or Fitch and in each case maturing within 12 months after the date of acquisition;

     (h) money market funds that invest primarily in securities described in clauses (a) through
(g) of this definition; and

     (i) other short-term investments utilized by Foreign Subsidiaries in accordance with normal
investment practices for cash management in investments of a type analogous to the foregoing.

     “CGMI” shall mean Citigroup Global Markets Inc., as syndication agent under the
Existing Credit Agreement.

     “Change of Control” shall mean the occurrence of any of the following: (a) the direct
or indirect sale, transfer, conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all or substantially all of the
properties or assets of the Borrower and its Subsidiaries taken as a whole to any “person” (as that
term is used in Section 13(d) of the Exchange Act, but excluding any employee benefit plan of the
Borrower or any of its Restricted Subsidiaries, and any Person or entity acting in its capacity as
trustee, agent or other fiduciary or administrator of such plan); (b) the adoption of a plan
relating to the liquidation or dissolution of the Borrower; (c) the consummation of any transaction
(including any merger or consolidation) the result of which is that any “person” (as defined above)
becomes the Beneficial Owner, directly or indirectly, of more than 40% of the Voting Stock of the
Borrower, measured by voting power rather than number of shares; (d) the Borrower consolidates
with, or merges with or into, any Person, or any Person consolidates with, or merges with or into,
the Borrower, in any such event pursuant to a transaction in which any of the outstanding Voting
Stock of the Borrower or such other Person is converted into or exchanged for cash, securities or
other property, other than any such transaction where the Voting Stock of the Borrower outstanding
immediately prior to such transaction is converted into or exchanged for Voting Stock (other than
Disqualified Stock) of the surviving or transferee Person constituting a majority of the
outstanding shares of such Voting Stock of such surviving or transferee Person (immediately after
giving effect to such issuance); (e) the first day on which a majority of the members of the Board
of Directors of the Borrower are not Continuing Directors; or (f) any change of control (or similar
event, however denominated) shall occur under and as defined in the Senior Note Documents.

     “Change in Law” shall mean (a) the adoption of any law, rule or regulation after
the Closing Date, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the Closing Date or (c) compliance by any
Lender or the Issuing Bank (or, for purposes of Section 2.14, by any lending office of such Lender
or by such Lender’s or Issuing Bank’s holding company, if any) with any request, guideline or
directive (whether or not having the force of law) of any Governmental Authority made or issued
after the Closing Date.

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     “Charges” shall have the meaning assigned to such term in Section 9.09.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Term Loans, Swingline Loans, New
Revolving Credit Loans or New Term Loans and, when used in reference to any Commitment, refers to
whether such Commitment is a Revolving Credit Commitment, Term Loan Commitment, Swingline
Commitment, Credit-Linked Deposit, New Revolving Credit Commitment or New Term Loan Commitment.

     “Closing Date” shall mean February 2, 2006.

     “Collateral” shall mean all property and assets of the Loan Parties, now owned or
hereafter acquired, other than the Excluded Assets. “Collateral” shall include, without
limitation, all Core Collateral.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble.

     “Collateral Trust Agreement” shall mean each of the NRG Collateral Trust Agreement
and/or the Texas Genco Collateral Trust Agreement, as applicable.

     “Collateral Trust Joinder” shall have the meaning assigned to such term in the
applicable Collateral Trust Agreement.

     “Collateral Trustee” shall mean each of the NRG Collateral Trustee and/or the Texas
Genco Collateral Trustee, as applicable.

     “Commitment” shall mean, with respect to any Lender and as of any date of
determination, such Lender’s Revolving Credit Commitment, Term Loan Commitment, Swingline
Commitment, Credit-Linked Deposit, New Revolving Credit Commitment and New Term Loan Commitment as
of such date.

     “Commitment Fee” shall have the meaning assigned to such term in Section 2.05(a).

     “Commitment Fee Rate” shall mean a rate per annum equal to 0.50%.

     “Commodity Contract” shall have the meaning assigned to such term in the UCC.

     “Commodity Hedging Agreements” shall mean the Existing Commodity Hedging Agreements
and any other agreement (including each confirmation entered into pursuant to any master agreement)
providing for swaps, caps, collars, puts, calls, floors, futures, options, spots, forwards, power
purchase or sale agreements, fuel purchase or sale agreements, emissions credit purchase or sales
agreements, power transmission agreements, fuel transportation agreements, fuel storage agreements,
netting agreements, commercial or trading agreements, each with respect to, or involving the
purchase, transmission, distribution, sale, lease or hedge of, any energy, generation capacity or
fuel, or any other energy related commodity or service, price or price indices for any such
commodities or services or any other similar derivative agreements, and any other similar
agreements, entered into by the Borrower or any Restricted Subsidiary, in each case under this
definition, in the ordinary course of business in order to manage fluctuations in the price or
availability to the Borrower or any Restricted Subsidiary of any commodity.

     “Commodity Hedging Obligations” shall mean, with respect to any specified Person, the
obligations of such Person under a Commodity Hedging Agreement.

     “Concurrent Cash Distributions” has the meaning set forth in the definition of
Investments.

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     “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum of the Borrower dated January 2006.

     “Consolidated EBITDA” shall mean, with respect to any specified Person for any period,
the Consolidated Net Income of such Person for such period plus, without duplication

     (a) an amount equal to any extraordinary loss (including any loss on the extinguishment
or conversion of Indebtedness) plus any net loss realized by such Person or any of
its Restricted Subsidiaries in connection with an Asset Sale (without giving effect of the
threshold provided in the definition thereof), to the extent such losses were deducted in
computing such Consolidated Net Income; plus

     (b) provision for taxes based on income or profits of such Person and its Restricted
Subsidiaries for such period, to the extent that such provision for taxes was deducted in
computing such Consolidated Net Income; plus

     (c) to the extent deducted in computing such Consolidated Net Income, (i) the
consolidated interest expense of such Person and its Restricted Subsidiaries for such
period, whether paid or accrued, including, without limitation, amortization of debt
issuance costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all payments
associated with Capital Lease Obligations, imputed interest with respect to Attributable
Debt, and net of the effect of all payments made or received pursuant to Hedging Obligations
in respect of interest rates; plus (ii) the consolidated interest of such Person and
its Restricted Subsidiaries that was capitalized during such period; plus (iii) any
interest accruing on Indebtedness of another Person that is Guaranteed by such Person or one
of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its
Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus
(iv) the product of (A) all dividends, whether paid or accrued and whether or not in cash,
on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other
than dividends on Equity Interests payable in Equity Interests of the Borrower (other than
Disqualified Stock) or to the Borrower or a Restricted Subsidiary of the Borrower,
times (B) a fraction, the numerator of which is one and the denominator of which is
one minus the then current combined federal, state and local statutory tax rate of
such Person, expressed as a decimal, in each case, on a consolidated basis and in accordance
with GAAP; minus (v) interest income for such period; plus

     (d) any expenses or charges related to any equity offering, Investment, acquisition,
disposition, recapitalization or Indebtedness permitted to be incurred under this Agreement
including a refinancing thereof (whether or not successful), including such fees, expenses
or charges related to the Acquisition Transactions, the offering of the Senior Notes and
this Agreement, and, in each case, deducted in computing such Consolidated Net Income;
plus

     (e) any professional and underwriting fees related to any equity offering, Investment,
acquisition, recapitalization or Indebtedness permitted to be incurred under this Agreement
and, in each case, deducted in such period in computing Consolidated Net Income;
plus

     (f) the amount of any minority interest expense deducted in calculating Consolidated
Net Income (less the amount of any cash dividends paid to the holders of such minority
interests); plus

13

 

     (g) any non cash gain or loss attributable to Mark-to-Market Adjustments in connection
with Hedging Obligations; plus

     (h) without duplication, any writeoffs, writedowns or other non-cash charges reducing
Consolidated Net Income for such period, excluding any such charge that represents an
accrual or reserve for a cash expenditure for a future period; plus

     (i) all items classified as extraordinary, unusual or nonrecurring non-cash losses or
charges (including severance, relocation and other restructuring costs), and related tax
effects according to GAAP to the extent such non-cash charges or losses were deducted in
computing such Consolidated Net Income; plus

     (j) depreciation, depletion, amortization (including amortization of intangibles but
excluding amortization of prepaid cash expenses that were paid in a prior period) and other
non-cash charges and expenses (excluding any such non-cash expense to the extent that it
represents an accrual of or reserve for cash expenses in any future period or amortization
of a prepaid cash expense that was paid in a prior period) of such Person and its Restricted
Subsidiaries for such period to the extent that such depreciation, depletion, amortization
and other non-cash expenses were deducted in computing such Consolidated Net Income;
minus

     (k) non-cash items increasing such Consolidated Net Income for such period, other than
the accrual of revenue in the ordinary course of business; in each case, on a consolidated
basis and determined in accordance with GAAP (including any increase in amortization or
depreciation or other non-cash charges resulting from the application of purchase accounting
in relation to the Acquisition Transactions or any acquisition that is consummated after the
Closing Date);

     provided, however, that Consolidated EBITDA of the Borrower will exclude the
Consolidated EBITDA attributable to Excluded Subsidiaries unless (and solely to the extent)
actually distributed in cash to the Borrower or any Subsidiary Guarantor; provided
further that for purposes of calculating Consolidated EBITDA for any period for purposes of
the covenants set forth in Sections 6.13 and 6.14, (A) the Consolidated EBITDA of any Person or
line of business acquired by the Borrower or any Subsidiary Guarantor pursuant to a Permitted
Acquisition made in accordance with the terms of this Agreement during such period for which the
aggregate consideration paid by the Borrower or any Subsidiary Guarantor shall be equal to or
greater than $25,000,000 shall be included on a pro forma basis for such period (assuming the
consummation of such acquisition and the incurrence or assumption of any Indebtedness in connection
therewith occurred as of the first day of such period) and (B) the Consolidated EBITDA of any
Person or line of business sold or otherwise disposed of by the Borrower or any Subsidiary
Guarantor during such period for which the aggregate consideration received by the Borrower or any
Subsidiary Guarantor shall be equal to or greater than $25,000,000 shall be excluded for such
period (assuming the consummation of such sale or other disposition and the repayment of any
Indebtedness in connection therewith occurred as of the first day of such period).

     Notwithstanding anything to the contrary contained herein (but subject to pro
forma adjustment in the event of any Permitted Acquisition or disposition as described in
the immediately preceding sentence), Consolidated EBITDA for the fiscal quarters ended June 30,
2005, September 30, 2005, December 31, 2005 and March 31, 2006 (in each case with respect to the
portion of such period ending prior to the Closing Date) shall be calculated on a pro forma basis
to include the Consolidated EBITDA of Texas Genco and its subsidiaries for such periods (assuming
the consummation of the Acquisition and the Acquisition Transactions and the incurrence and
assumption of the Indebtedness incurred in connection with the Acquisition Transactions occurred as
of the first day of such applicable period); provided that with respect to those fiscal quarters
ending in 2005, the Borrower delivers an officer’s certificate setting

14

 

forth such calculations of
Consolidated EBITDA to the Administrative Agent within 60 days following the Closing Date (together
with any other documentation reasonably requested by the Administrative
Agent with respect thereto) and the Administrative Agent is reasonably satisfied with such
calculations of Consolidated EBITDA for such periods.

     “Consolidated Interest Coverage Ratio” shall mean, on any date, the ratio of (a)
Consolidated EBITDA of the Borrower for the period of four consecutive fiscal quarters most
recently ended on or prior to such date to (b) Consolidated Interest Expense for the period of four
consecutive fiscal quarters most recently ended on or prior to such date.

     “Consolidated Interest Expense” shall mean, for any period, (a) the cash interest
expense (including imputed cash interest expense in respect of Capital Lease Obligations and
Synthetic Lease Obligations) of the Borrower and the Restricted Subsidiaries for such period
(including all commissions, discounts and other fees and charges owed by the Borrower and the
Restricted Subsidiaries with respect to letters of credit and bankers’ acceptance financing), net
of interest income, in each case determined on a consolidated basis in accordance with GAAP,
minus (b) to the extent included in such consolidated cash interest expense for such
period, amounts attributable to the amortization of financing costs and non-cash amounts
attributable to the amortization of debt discounts and other debt issuance costs, fees and
expenses; provided, however, that Consolidated Interest Expense of the Borrower
will exclude cash interest expense attributable to Non-Recourse Indebtedness and all other cash
interest expense of Excluded Subsidiaries. For purposes of the foregoing, interest expense shall
be determined after giving effect to any net payments made or received by the Borrower or any
Restricted Subsidiary with respect to Interest Rate/Currency Hedging Agreements relating to
interest rate hedging activities (other than any such Interest Rate/Currency Hedging Agreements in
respect of Non-Recourse Indebtedness of Excluded Subsidiaries).

     Notwithstanding anything to the contrary contained herein, for purposes of calculating
Consolidated Interest Expense (a) for the period of four consecutive fiscal quarters ending March
31, 2006, Consolidated Interest Expense for such period shall be deemed to be an amount equal to
Consolidated Interest Expense for the period beginning on the Closing Date and ending March 31,
2006 divided by the number of days in such period and multiplied by 365, (b) for the period of four
consecutive fiscal quarters ending June 30, 2006, Consolidated Interest Expense for such period
shall be deemed to be an amount equal to Consolidated Interest Expense for the period beginning on
the Closing Date and ending June 30, 2006 divided by the number of days in such period and
multiplied by 365, (c) for the period of four consecutive fiscal quarters ending September 30,
2006, Consolidated Interest Expense for such period shall be deemed to be an amount equal to
Consolidated Interest Expense for the period beginning on the Closing Date and ending September 30,
2006 divided by the number of days in such period and multiplied by 365 and (d) for the period of
four consecutive fiscal quarters ending December 31, 2006, Consolidated Interest Expense for such
period shall be deemed to be an amount equal to Consolidated Interest Expense for the period
beginning on the Closing Date and ending December 31, 2006 divided by the number of days in such
period and multiplied by 365.

     “Consolidated Leverage Ratio” shall mean, on any date, the ratio of (a) Total Debt on
such date to (b) Consolidated EBITDA of the Borrower for the period of four consecutive fiscal
quarters most recently ended on or prior to such date.

     “Consolidated Net Income” shall mean, with respect to any specified Person for any
period, the aggregate of the Net Income of such Person and its Restricted Subsidiaries for such
period, on a consolidated basis, determined in accordance with GAAP; provided that

15

 

     (a) the Net Income of any Person that is not a Restricted Subsidiary or that is
accounted for by the equity method of accounting will be included only to the extent of the
amount of dividends or similar distributions (including pursuant to other intercompany
payments but
excluding Concurrent Cash Distributions) paid in cash to the specified Person or a
Restricted Subsidiary of the specified Person;

     (b) the Net Income of any Restricted Subsidiary will be excluded to the extent that the
declaration or payment of dividends or similar distributions by that Restricted Subsidiary
of that Net Income is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or indirectly, by operation
of the terms of its charter or any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to that Restricted Subsidiary or its
stockholders;

     (c) the cumulative effect of a change in accounting principles will be excluded;

     (d) any net after-tax non-recurring or unusual gains, losses (less all fees and
expenses relating thereto) or other charges or revenue or expenses (including relating to
severance, relocation, one-time compensation charges and the Acquisition Transactions) shall
be excluded;

     (e) any non-cash compensation expense recorded from grants of stock appreciation or
similar rights, stock options, restricted stock or other rights to officers, directors or
employees shall be excluded, whether under Financial Accounting Standards Board Statement
No. 123R, “Accounting for Stock-Based Compensation” or otherwise;

     (f) any net after-tax income (loss) from disposed or discontinued operations and any
net after-tax gains or losses on disposal of disposed or discontinued operations shall be
excluded;

     (g) any gains or losses (less all fees and expenses relating thereto) attributable to
asset dispositions shall be excluded;

     (h) any impairment charge or asset write-off pursuant to Financial Accounting Statement
No. 142 and No. 144 or any successor pronouncement shall be excluded;

     (i) any accruals or reserves or other charges related to the Transactions and incurred
on or before January 1, 2007 shall be excluded; and

     (j) notwithstanding clause (a) above, the Net Income of any Unrestricted Subsidiary
will be excluded, whether or not distributed to the specified Person or one of its
Subsidiaries.

     “Consolidated Senior Leverage Ratio” shall mean, on any date, the ratio of (a) Senior
Debt on such date to (b) Consolidated EBITDA of the Borrower for the period of four consecutive
fiscal quarters most recently ended on or prior to such date.

     “Consolidated Working Capital” shall mean, at any date, the excess of (a) the sum of
all amounts (other than cash, cash equivalents and bank overdrafts) that would, in conformity with
GAAP, be set forth opposite the caption “total current assets” (or any like caption) on a
consolidated balance sheet of the Borrower and the Restricted Subsidiaries at such date over (b)
the sum of all amounts that would, in conformity with GAAP, be set forth opposite the caption
“total current liabilities” (or any like caption) on a consolidated balance sheet of the Borrower
and the Restricted Subsidiaries on such date, but excluding (i) the current portion of any
long-term Indebtedness, (ii) without duplication of clause (i) above, all

16

 

Indebtedness consisting
of Loans and L/C Exposure to the extent otherwise included therein and (iii) the current portion of
deferred income taxes.

     “Continuing Directors” shall mean, as of any date of determination, any member of the
Board of Directors of the Borrower who (a) was a member of such Board of Directors on the Closing
Date; or (b) was nominated for election or elected to such Board of Directors with the approval of
a majority of the Continuing Directors who were members of such Board of Directors at the time of
such nomination or election.

     “Control Agreement” shall mean each Control Agreement to be executed and delivered by
each Loan Party and the other parties thereto, as required by the applicable Loan Documents as the
same may be amended, restated, supplemented or otherwise modified from time to time in accordance
with the terms hereof and thereof.

     “Core Collateral” shall mean all Equity Interests in, and property and assets of, any
Core Collateral Subsidiary, in each case whether now owned or hereafter acquired; provided,
however, that in the case of Louisiana Generating LLC, NRG Texas LP and NRG South Texas LP
only the following property and assets of such Subsidiaries shall be considered Core Collateral
hereunder: (a) Louisiana Generating LLC’s 100% Project Interest in Units 1 and 2 and 58% Project
Interest in Unit 3 of the Big Cajun II Facility, (b) NRG Texas LP Project Interest in the Parish
and Limestone Facilities, (c) NRG South Texas LP’s 44% Project Interest in the South Texas Project
Facility and (d) in each case any assets related primarily to any of the Facilities described in
clause (a), (b) or (c); provided further, that “Core Collateral” shall not include
any South Central Securitization Assets that are sold to a Securitization Vehicle in a South
Central Securitization in accordance with the provisions of this Agreement; and provided,
further, however, that at any time and from time to time, the Borrower may deliver
to the Administrative Agent an officer’s certificate designating Core Collateral having an
aggregate Fair Market Value not in excess of $750,000,000 in the aggregate, valued at the Fair
Market Value of such Core Collateral at the time such designation is made, as no longer being Core
Collateral, and thereafter, such Equity Interests or property or assets shall no longer be
considered Core Collateral for any purpose hereunder.

     “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.

     “Credit Event” shall have the meaning assigned to such term in Section 4.01.

     “Credit-Linked Deposit” shall mean, with respect to each Funded L/C Lender, the cash
deposit made by such Funded L/C Lender pursuant to clause (c) or (d) of Section 2.01 and Section
2.23(d), as the same may be (a) reduced from time to time pursuant to Section 2.02(f), 2.09(b) or
2.09(d) and (b) reduced or increased from time to time pursuant to assignments by or to such Funded
L/C Lender pursuant to Section 9.04. Unless the context shall otherwise require, on and after the
Restatement Date the term “Credit-Linked Deposit” shall include any Additional Credit-Linked
Deposit.

     “Credit-Linked Deposit Account” shall mean, collectively, one or more operating,
certificates of deposits and/or investment accounts of, and established by, the Deposit Bank under
its sole and exclusive control and maintained at the office of the Deposit Bank located at 60 Wall
Street, New York, New York 10005 (or such other office as the Deposit Bank shall from time to time
designate to the Borrower), in any such case that shall be used for the purposes set forth in
Article II.

     “Cure Amount” shall have the meaning provided in Article VII.

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     “Cure Right” shall have the meaning provided in Article VII.

     “Default” shall mean any event or condition which upon notice, lapse of time (pursuant
to Article VII) or both would constitute an Event of Default.

     “Deposit Account” shall have the meaning assigned to such term in the UCC.

     “Deposit Bank” shall mean Deutsche Bank AG, New York Branch, or any Affiliate of
Deutsche Bank AG, New York Branch designated by Deutsche Bank AG, New York Branch to act in such
capacity.

     “Designated Country” shall mean Australia, Austria, Belgium, Canada, Denmark, Finland,
France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Norway,
Portugal, Spain, Sweden, Switzerland, the United Kingdom, the United States and any other country
that shall at any time after the Closing Date become a member state of the European Union.

     “Designated Non-Recourse Indebtedness” shall mean the Non-Recourse Indebtedness of NRG
Peaker Finance Co. LLC existing on the Closing Date.

     “Disqualified Stock” shall mean any Capital Stock that, by its terms (or by the terms
of any security into which it is convertible, or for which it is exchangeable, in each case at the
option of the holder of the Capital Stock), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the
option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91
days after the Term Loan Maturity Date. Notwithstanding the preceding sentence, any Capital Stock
that would constitute Disqualified Stock solely because the holders of the Capital Stock have the
right to require the Borrower to repurchase such Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of such Capital Stock
provide that the Borrower may not repurchase or redeem any such Capital Stock pursuant to such
provisions unless such repurchase or redemption complies with Section 6.06 hereof. The amount of
Disqualified Stock deemed to be outstanding at any time for purposes of this Agreement will be the
maximum amount that the Borrower and its Restricted Subsidiaries may become obligated to pay upon
the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock,
exclusive of accrued dividends.

     “Dividends” shall have the meaning provided in Section 6.06.

     “dollars” or “$”shall mean lawful money of the United States of America,
except when expressly used in reference to the lawful money of another country.

     “Domestic Subsidiaries” shall mean all Subsidiaries incorporated, formed or organized
under the laws of the United States of America, any State thereof or the District of Columbia.

     “Downgrade Event” shall have the meaning assigned to such term in the definition of
“Applicable Margin”.

     “Easement” shall have the meaning assigned to such term in Section 3.07.

     “ECF Period” shall mean (a) in the event that the Borrower shall exercise its option
under (and in accordance with) Section 2.13(d) to calculate Excess Cash Flow (and make the required
prepayment and prepayment offer) for any fiscal period other than a fiscal year, (i) each such
fiscal period and (ii) each fiscal period during the applicable fiscal year that is not a fiscal
period described in the preceding clause

18

 

(i) and (b) in the event that the Borrower shall not
exercise such option during any fiscal year, a fiscal
year. For purposes of this definition, “fiscal period” shall mean a period of one or more
consecutive fiscal quarters.

     “Environmental CapEx Debt” shall mean Indebtedness of the Borrower or its Restricted
Subsidiaries incurred for the purpose of financing Environmental Capital Expenditures.

     “Environmental Capital Expenditures” shall mean capital expenditures to the extent
deemed reasonably necessary, as determined by the Borrower or its Restricted Subsidiaries, as
applicable, in good faith and pursuant to prudent judgment, to comply with applicable Environmental
Laws.

     “Environmental Laws” shall mean all former, current and future Federal, state, local
and foreign laws (including common law), treaties, regulations, rules, ordinances and codes, and
legally binding decrees, judgments, directives and orders (including consent orders), in each case,
relating to protection of the environment, natural resources, occupational health and safety or the
presence, Release of, or exposure to, hazardous materials, substances or wastes, or the generation,
manufacture, processing, distribution, use, treatment, storage, disposal, transport, recycling or
handling of, or the arrangement for such activities with respect to, hazardous materials,
substances or wastes.

     “Environmental Liability” shall mean all liabilities, obligations, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) non-compliance with any Environmental Law, (b) the
generation, manufacture, processing, distribution, recycling, use, handling, transportation,
storage, treatment or disposal of, or the arrangement of such activities with respect to, any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials at or from any location or (e) any contract or agreement pursuant to which liability is
assumed, imposed or covered by an indemnity with respect to any of the foregoing.

     “Equally and Ratably” shall have the meaning assigned to such term in the applicable
Collateral Trust Agreement.

     “Equity Interests” shall mean Capital Stock and all warrants, options or other rights
to acquire Capital Stock (but excluding, except for purposes of the definitions of “Additional
Non-Recourse Indebtedness”, “Existing Non-Recourse Indebtedness” and “Net Cash Proceeds”, any debt
security that is convertible into, or exchangeable for, Capital Stock).

     “Equity Securities” shall mean (a) the 20,855,057 shares of common stock, par value
$0.01 per share, of the Borrower and (b) the Mandatory Convertible Preferred Stock, in each case
issued on the Closing Date to fund a portion of the Acquisition Consideration.

     “ERCOT” shall mean the Electric Reliability Council of Texas or any other entity
succeeding thereto.

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended
from time to time.

     “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Tax
Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Tax Code, is treated as
a single employer under Section 414 of the Tax Code.

19

 

     “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder, with respect to a Benefit Plan (other than an event for
which the 30-day notice period is waived); (b) the existence with respect to any Benefit Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Tax Code or Section 302 of
ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Tax Code or Section
303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Benefit Plan; (d) the incurrence by the Borrower or any ERISA Affiliate of any liability under
Title IV of ERISA with respect to the termination of any Benefit Plan or the withdrawal or partial
withdrawal of the Borrower or any ERISA Affiliate from any Benefit Plan or Multiemployer Plan; (e)
the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any
notice relating to the intention to terminate any Benefit Plan or to appoint a trustee to
administer any Benefit Plan; (f) the adoption of any amendment to a Benefit Plan that would require
the provision of security pursuant to Section 401(a)(29) of the Tax Code or Section 307 of ERISA;
or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

     “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

     “Event of Default” shall have the meaning assigned to such term in Article VII.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

     “Excess Cash Flow” shall mean, for any period, an amount equal to the excess of (a)
the sum, without duplication, of:

     (i) Consolidated Net Income of the Borrower for such period;

     (ii) an amount equal to the amount of all non-cash charges to the extent deducted in
arriving at such Consolidated Net Income;

     (iii) decreases in Consolidated Working Capital for such period;

     (iv) an amount equal to the aggregate net non-cash loss on the sale, lease, transfer or
other disposition of assets by the Borrower and the Restricted Subsidiaries during such
period (other than sales in the ordinary course of business) to the extent deducted in
arriving at such Consolidated Net Income;

     (v) to the extent not included in the determination of Consolidated Net Income, any
termination payments or similar payments received by the Borrower or any Restricted
Subsidiary during such period in connection with the termination, partial termination or
other reduction of any Commodity Hedging Agreement; and

     (vi) any cash and Cash Equivalents that is returned to the Borrower and the Restricted
Subsidiaries during such period that was, immediately prior to such return, pledged or
deposited as collateral to a contract counterparty, issuer of surety bonds or issuer of
letters of credit by the Borrower or any of the Restricted Subsidiaries, in each case to
secure obligations with respect to (A) contracts for commercial and trading activities and
contracts (including physical delivery, option (whether cash or financial), exchange, swap
and futures contracts) for the purchase,

20

 

transmission, transportation, distribution, sale, lease or hedge of any fuel-related or
power-related commodity or service or (B) Commodity Hedging Agreements;

     over (b) the sum, without duplication, of:

     (i) an amount equal to the amount of all non-cash credits included in arriving at such
Consolidated Net Income;

     (ii) the aggregate amount actually paid by the Borrower and the Restricted Subsidiaries
in cash during such period on account of Capital Expenditures (to the extent financed with
cash flow internally generated within such period by the Borrower and the Restricted
Subsidiaries), and including Necessary Capital Expenditures and Environmental Capital
Expenditures;

     (iii) the aggregate amount of all prepayments of Revolving Loans and Swingline Loans
made during such period to the extent accompanying reductions of the Total Revolving Credit
Commitment except to the extent financed with the proceeds of other Indebtedness of the
Borrower or the Restricted Subsidiaries;

     (iv) the aggregate amount of all principal payments of Indebtedness of the Borrower or
the Restricted Subsidiaries (including any Term Loans and the principal component of
payments in respect of Capital Lease Obligations but excluding Revolving Loans, Swingline
Loans, voluntary prepayments of Term Loans pursuant to Section 2.12 and mandatory
prepayments of Term Loans pursuant to Section 2.13) made during such period (other than in
respect of any revolving credit facility to the extent there is not an equivalent permanent
reduction in commitments thereunder) except to the extent financed with the proceeds of
other Indebtedness of the Borrower or the Restricted Subsidiaries;

     (v) an amount equal to the aggregate net non-cash gain on the sale, lease, transfer or
other disposition of assets by the Borrower and the Restricted Subsidiaries during such
period (other than sales in the ordinary course of business) to the extent included in
arriving at such Consolidated Net Income;

     (vi) increases in Consolidated Working Capital for such period;

     (vii) payments by the Borrower and the Restricted Subsidiaries during such period in
respect of long-term liabilities of the Borrower and the Restricted Subsidiaries other than
Indebtedness;

     (viii) the amount of Investments made during such period pursuant to Section 6.05 to
the extent that such Investments were financed with cash flow internally generated within
such period by the Borrower and the Restricted Subsidiaries;

     (ix) the aggregate amount of expenditures actually made by the Borrower and the
Restricted Subsidiaries in cash during such period (including expenditures for the payment
of financing fees) to the extent that such expenditures are not expensed during such period;

     (x) the aggregate amount of any premium, make-whole or penalty payments actually paid
in cash by the Borrower and the Restricted Subsidiaries during such period that are required
to be made in connection with any prepayment of Indebtedness and that are accounted for as
extraordinary items;

21

 

     (xi) to the extent not included in the determination of Consolidated Net Income, any
termination payments or similar payments made by the Borrower or any Restricted Subsidiary
during such period in connection with the termination, partial termination or other
reduction of any Commodity Hedging Agreement (but in any case for purposes of calculating
Excess Cash Flow for the fiscal year ending on December 31, 2006, excluding any such
payments made in connection with the Transactions described in clause (b)(iv) of the
definition of “Transaction”);

     (xii) to the extent not included in the determination of Consolidated Net Income, the
aggregate amount of pension plan contributions required by law and actually made in cash by
the Borrower or any Restricted Subsidiary during such period in connection with the Texas
Genco Retirement Plan;

     (xiii) to the extent not included in the determination of Consolidated Net Income, the
aggregate amount of expenditures actually made by the Borrower and the Restricted
Subsidiaries relating to the acquisition of nuclear fuel; and

     (xiv) any cash and Cash Equivalents pledged or deposited by the Borrower and the
Restricted Subsidiaries during such period as collateral to a contract counterparty, issuer
of surety bonds or issuer of letters of credit, in each case to secure obligations with
respect to (A) contracts for commercial and trading activities and contracts (including
physical delivery, option (whether cash or financial), exchange, swap and futures contracts)
for the purchase, transmission, transportation, distribution, sale, lease or hedge of any
fuel-related or power-related commodity or service or (B) Commodity Hedging Agreements.

     “Excess Credit-Linked Deposits” shall mean, at any time, the excess, if any, of the
Total Credit-Linked Deposit over the aggregate Funded L/C Exposure at such time.

     “Excluded Assets” shall mean

     (i) any lease, license, contract, property right or agreement to which any Loan Party
is a party or any of such Loan Party’s rights or interests thereunder if and only for so
long as the grant of a security interest therein under the Security Documents shall
constitute or result in a breach, termination or default or invalidity under any such lease,
license, contract, property right or agreement (other than to the extent that any such term
would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC
of any relevant jurisdiction or any other applicable law or principles of equity);
provided that such lease, license, contract, property right or agreement shall be an
Excluded Asset only to the extent and for so long as the consequences specified above shall
exist and shall cease to be an Excluded Asset and shall become subject to the security
interest granted under the Security Documents, immediately and automatically, at such time
as such consequences shall no longer exist;

     (ii) any interests in real property owned or leased by any Loan Party only for so long
as such interest represents an Excluded Perfection Asset;

     (iii) any Equity Interests in, and any assets of, any Excluded Project Subsidiary the
pledge of which pursuant to the Security Documents would constitute a default under the
applicable Non-Recourse Indebtedness in respect of which it is an obligor and any voting
Equity Interests in excess of 66% (or, in the case of NRGenerating International BV, 65%) of
the total outstanding voting Equity Interests in any Excluded Foreign Subsidiary;

22

 

     (iv) any Deposit Account, Securities Account or Commodities Account (and all cash, cash
equivalents and Commodity Contracts held therein) if and only for so long as such Deposit
Account, Securities Account or Commodities Account is subject to a Lien permitted under
clause (r) of the definition of “Permitted Liens”;

     (v) the Equity Interests in, and all properties and assets of, NRG Energy Insurance
Ltd. (Cayman Islands);

     (vi) the Equity Interests in, and all properties and assets of, NRG International
Holdings (No.2) GmbH (only for so long as such entity shall own only de minimis assets) and
NRG Pacific Corporate Services Pty Ltd.;

     (vii) the Equity Interests in, and all properties and assets of, NRG Latin America
Inc., Sterling Luxembourg (No. 4) S.a.r.l., Tosli Acquisition BV (only for so long as such
entity shall own no assets other than de minimis assets and, directly or indirectly, the
Equity Interests in Itiquira) and NRGenerating Holdings (No. 21) BV (only for so long as
such entity shall own only de minimis assets and the stock of its subsidiaries owned on the
Closing Date);

     (viii) any Equity Interest of a Person or Project Interest held by any Loan Party if
and for so long as the pledge thereof under the Security Documents shall constitute or
result in a breach, termination or default under any joint venture, stockholder, membership,
limited liability company, partnership, owners, participation, shared facility or other
similar agreement between such Loan Party and one or more other holders of Equity Interests
of such Person or Project Interest (other than any such other holder who is the Borrower or
a Subsidiary thereof); provided that such Equity Interest shall be an Excluded Asset
only to the extent and for so long as the consequences specified above shall exist and shall
cease to be an Excluded Asset and shall become subject to the security interest granted
under the Security Documents, immediately and automatically, at such time as such
consequences shall no longer exist;

     (ix) all properties and assets of the Borrower’s resource recovery facility located at
North Newport, MN and all properties and assets of the Borrower’s resource recovery facility
located at Elk River, MN if and for so long as the grant of a security interest therein
under the Security Documents shall constitute or result in a breach, termination or default
under any service agreement with the applicable municipalities in which such facilities
reside; provided that such properties and assets shall be an Excluded Asset only to
the extent and for so long as the consequences specified above shall exist and shall cease
to be an Excluded Asset and shall become subject to the security interest granted under the
Security Documents, immediately and automatically, at such time as such consequences shall
no longer exist;

     (x) any Account of NRG Power Marketing solely to the extent that (1) such Account
relates to the sale by NRG Power Marketing of power or capacity that was purchased by NRG
Power Marketing from an Excluded Project Subsidiary and (2) the grant of a security interest
in such Account under the Security Documents shall constitute or result in a breach,
termination or default under any agreement or instrument governing the applicable Existing
Non-Recourse Indebtedness of such Subsidiary (as such agreement or instrument was in effect
on the Closing Date);

     (xi) the working capital account of Camas Power Boiler Inc.;

     (xii) all properties and assets of the Borrower or any of its Restricted Subsidiaries
(other than Equity Interests) secured by Indebtedness permitted by Section 6.01(d) so long
as the

23

 

granting of a Lien in favor of the Secured Parties would constitute or result in a
breach, termination or default under any agreement or instrument governing the applicable
Indebtedness permitted by Section 6.01(d), and such properties or assets shall cease to be
Excluded Assets once such prohibition ceases to exist and shall immediately and
automatically become subject to the security interest granted under the Security Documents;

     (xiii) any other property and assets (other than any such properties or assets
constituting Core Collateral) designated as Excluded Assets to the Administrative Agent in
writing by the Borrower which shall not have, when taken together with all other property
and assets that constitute Excluded Assets at the relevant time of determination by virtue
of the operation of this clause (xiii), a Fair Market Value at any time exceeding
$250,000,000 in the aggregate (and, to the extent that the Fair Market Value thereof shall
exceed $250,000,000 in the aggregate, such property or assets shall cease to be an Excluded
Asset to the extent of such excess Fair Market Value and shall become subject to the
security interest granted under the Security Documents, immediately and automatically, at
such time as such amount is exceeded);

     (xiv) the Texas Genco Refinancing Escrow Account;

     (xv) any Intellectual Property (as defined in the Guarantee and Collateral Agreement)
if and to the extent a grant of a security interest therein will result in the loss,
abandonment or termination of any material right, title or interest in or to such
Intellectual Property; provided, however, that such Intellectual Property
shall be an Excluded Asset only to the extent and for so long as the consequences specified
above shall exist and shall cease to be an Excluded Asset and shall become subject to the
security interest granted under the Security Documents, immediately and automatically, at
such time as such consequences shall no longer exist;

     (xvi) the Texas Genco Pledged Notes and Pledged Equity Interests owned by the Texas
Genco Parties shall constitute Excluded Assets until the earlier of (i) the fifth day
following the Closing Date and (ii) the release of all Liens thereon granted pursuant to
that certain Pledge Agreement dated as of December 14, 2004 among Texas Genco, each of the
other Texas Genco Parties party thereto and Goldman Sachs Credit Partners L.P., as
collateral trustee (including its successors in such capacity, including Wachovia Bank,
National Association); and

     (xvii) upon the sale of such assets to a Securitization Vehicle in accordance with the
provisions of this Agreement, the South Central Securitization Assets and, in the event that
the pledge of any Seller’s Retained Interest in respect of any such Securitization Vehicle
shall be prohibited by the governing documentation with respect to the applicable South
Central Securitization (after the Borrower or the applicable Restricted Subsidiary shall
have used its commercially reasonable efforts to avoid such prohibition in such governing
documentation), such Seller’s Retained Interest.

     “Excluded Foreign Subsidiaries” shall mean, at any time, any Foreign Subsidiary that
is a Restricted Subsidiary and that is (or is treated as) for United States federal income tax
purposes either (a) a corporation or (b) a pass-through entity owned directly or indirectly by
another Foreign Subsidiary that is (or is treated as) a corporation; provided that (i) none
of the Subsidiaries constituting or owning Core Collateral may at any time be an Excluded Foreign
Subsidiary and (ii) notwithstanding the foregoing, the following entities will be deemed to be
“Excluded Foreign Subsidiaries”: Sterling Luxembourg (No. 4) S.a.r.l., Tosli Acquisition BV (only
for so long as such entity shall own no assets other than de minimis assets and the Equity
Interests in Itiquira), NRG Pacific Corporate Services Pty Ltd., NRGenerating Holdings (No. 21)
B.V., and any subsidiary of Tosli Acquisition BV incorporated or formed in

24

 

connection with the Itiquira Refinancing. The Excluded Foreign Subsidiaries on the Closing
Date are set forth on Schedule 1.01(a).

     “Excluded Perfection Assets” shall mean any property or assets (i) that do not have a
Fair Market Value at any time exceeding $10,000,000 (or, if such property or asset is a Deposit
Account or Securities Account, $3,000,000) individually or $50,000,000 in the aggregate in which a
security interest cannot be perfected by the filing of a financing statement under the UCC of the
relevant jurisdiction or, in the case of Equity Interests, either the filing of a financing
statement under the UCC of the relevant jurisdiction or the possession of certificates representing
such Equity Interests, (ii) that constitute leasehold interests of the Borrower or any of its
Restricted Subsidiaries in real property (other than any real property constituting a Facility) or
(iii) that constitute any Deposit Account that is a “zero-balance” account (as long as (x) the
balance in such “zero balance” account does not exceed at any time the applicable threshold
described in clause (i) above for a period of 24 consecutive hours or more and (y) all amounts in
such “zero-balance” account shall either be swept on a daily basis into another Deposit Account
that does not constitute an Excluded Perfection Asset or used for third party payments in the
ordinary course of business). To the extent that the Fair Market Value of any such property or
asset exceeds $10,000,000 (or, if such property or asset is a Deposit Account or Securities
Account, $3,000,000) individually, such property or asset shall cease to be an Excluded Perfection
Asset and, to the extent that the Fair Market Value of such property or assets shall exceed
$50,000,000 in the aggregate at any time, such property or assets shall cease to be Excluded
Perfection Assets to the extent of such excess Fair Market Value.

     “Excluded Project Subsidiaries” shall mean, at any time, any Restricted Subsidiary
that is an obligor with respect to any Non-Recourse Indebtedness outstanding at such time, in each
case if and for so long as the grant of a security interest in the property or assets of such
Subsidiary, or the guarantee by such Subsidiary of the Obligations, or the pledge of the Equity
Interests of such Subsidiary, in each case in favor of the applicable Collateral Trustee, for the
benefit of the Secured Parties, shall constitute or result in a breach, termination or default
under the agreement or instrument governing the applicable Non-Recourse Indebtedness;
provided that such Subsidiary shall be an Excluded Project Subsidiary only to the extent
that and for so long as the requirements and consequences above shall exist; and provided
further that none of the Subsidiaries constituting or owning Core Collateral may at any
time be an Excluded Project Subsidiary. The Excluded Project Subsidiaries on the Restatement Date
are set forth on Schedule 1.01(b).

     “Excluded Subsidiary” shall mean an Excluded Foreign Subsidiary, an Excluded Project
Subsidiary and any other Subsidiary all of whose assets constitute Excluded Assets pursuant to
clause (xiii) of the definition of Excluded Assets.

     “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, the
Issuing Bank and any other recipient of any payment to be made by or on account of any obligation
of the Borrower hereunder, and, for purposes of Section 2.20 only, by or on account of any
obligation of the Administrative Agent pursuant to Section 2.24(b), (a) income or franchise taxes
imposed on (or measured in whole or in part by) each such Person’s net income by the United States
of America (or any political subdivision thereof), or as a result of a present or former connection
between such recipient and the jurisdiction imposing such tax (or any political subdivision
thereof), other than any such connection arising solely from such recipient having executed,
delivered or performed its obligations or received a payment under, or enforced, this Agreement or
any other Loan Document and (b) in the case of a Foreign Lender (other than an assignee pursuant to
a request by the Borrower under Section 2.21(a)), any United States withholding tax that is imposed
on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this
Agreement (or designates a new lending office) or is attributable to such Foreign Lender’s failure
to comply with Section 2.20(e), except to the extent that such Foreign Lender (or its assignor, if
any) was entitled, at the time of designation of a new lending office (or

25

 

assignment), to receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 2.20(a) or (b) (it being understood and agreed, for the avoidance of doubt,
that any withholding tax imposed on a Foreign Lender as a result of a Change in Law or regulation
or interpretation thereof occurring after the time such Foreign Lender became a party to this
Agreement shall not be an Excluded Tax).

     “Exempt Subsidiaries” shall mean, collectively, NRG Ilion LP LLC, NRG Ilion Limited
Partnership, Meriden Gas Turbine LLC, LSP-Pike Energy 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.

     “Existing Commodity Hedging Agreements” shall mean (i) the Master Power Purchase and
Sale Agreement and Cover Sheet dated as of July 21, 2004, the Confirmation thereunder dated as of
July 21, 2004 and the Confirmation thereunder dated as of November 30, 2004, each between J. Aron &
Company and NRG Texas LP (as successor by merger), and any additional confirmations thereunder, as
the same may be amended, supplemented, replaced or otherwise modified from time to time in
accordance with the terms hereof and thereof, (ii) the Master Power Purchase and Sale Agreement and
Cover Sheet dated as of December 1, 2004 and the Confirmation thereunder dated as of December 2,
2004, each between Morgan Stanley Capital Group Inc. and NRG Texas LP (as successor by merger), and
any confirmation of any relevant transaction thereunder, as the same may be amended, supplemented,
replaced or otherwise modified from time to time in accordance with the terms hereof and thereof
and (iii) any other master agreement listed on Schedule 1.01(c), and any confirmations thereunder,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof and thereof.

     “Existing Credit Agreement” shall mean the Credit Agreement, dated as of the Closing
Date, among the Borrower, Morgan Stanley Senior Funding, Inc. and Citigroup Global Markets Inc., as
joint lead book runners, joint lead arrangers and co-documentation agents, Morgan Stanley Senior
Funding, Inc., as administrative agent, Morgan Stanley & Co. Incorporated, as collateral agent, and
Citigroup Global Markets, Inc., as syndication agent, as amended or modified and in effect
immediately prior to the Restatement Date.

     “Existing Indebtedness” shall mean Indebtedness of the Borrower and its Subsidiaries
(other than Indebtedness under the Senior Note Documents) in existence on the Closing Date and set
forth on Schedule 6.01, until such amounts are repaid, or are refunded, refinanced, replaced,
defeased or discharged pursuant to Section 6.01(e) hereof.

     “Existing LC Credit Agreement” shall have the meaning assigned to such term in the
recitals.

     “Existing Letter of Credit” shall mean each letter of credit listed on Schedule
1.01(d) that is outstanding on the Closing Date.

     “Existing Non-Recourse Indebtedness” shall mean secured or unsecured Indebtedness for
borrowed money outstanding as of the Closing Date of a Subsidiary (or of Cadillac Renewable Energy
LLC) that is not a Loan Party existing as of the Closing Date and any Permitted Refinancing
Indebtedness in respect of such Indebtedness; provided that, except as set forth on
Schedule 1.01(e),

     (a) such Indebtedness is without recourse to the Borrower or any other Restricted
Subsidiary or to any property or assets of the Borrower or any other Restricted Subsidiary
(other

26

 

than, in each such case, another Restricted Subsidiary (x) which is the direct parent
or a direct or indirect Subsidiary of the Subsidiary that incurred or issued such
Indebtedness (other than such Indebtedness constituting a Guarantee) or (y) that is a
Subsidiary that itself has Non-Recourse Indebtedness (other than such Indebtedness
constituting a Guarantee) or is the direct parent or a direct or indirect Subsidiary of a
Subsidiary that itself has Non-Recourse Indebtedness (other than such Indebtedness
constituting a Guarantee)),

     (b) neither the Borrower nor any other Restricted Subsidiary (other than another
Restricted Subsidiary (x) which is the direct parent or a direct or indirect Subsidiary of
the Subsidiary that incurred or issued such Indebtedness (other than such Indebtedness
constituting a Guarantee) or (y) that is a Subsidiary that itself has Non-Recourse
Indebtedness (other than such Indebtedness constituting a Guarantee) or is the direct parent
or a direct or indirect Subsidiary of a Subsidiary that itself has Non-Recourse Indebtedness
(other than such Indebtedness constituting a Guarantee) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute Indebtedness) or
is directly or indirectly liable as a guarantor or otherwise in respect of such Indebtedness
or in respect of the business or operations of the applicable Subsidiary that is the obligor
on such Indebtedness or any of its subsidiaries (other than (i) any such credit support or
liability consisting of reimbursement obligations in respect of Letters of Credit issued
under, and subject to the terms of, Section 2.23 to support obligations of such applicable
subsidiary and (ii) any Investments in such applicable subsidiary made in accordance with
Section 6.05),

     (c) no default with respect to such Indebtedness (including any rights that the holders
of such Indebtedness may have to take enforcement action against a Subsidiary that is not a
Loan Party) would permit upon notice, lapse of time or both any holder of any other
Indebtedness of the Borrower or any other Loan Party (other than Indebtedness incurred
pursuant to Section 6.01(a), (b), (c) or (k)) to declare a default on such other
Indebtedness or cause the payment of the Indebtedness to be accelerated or payable prior to
its stated maturity and

     (d) the Liens securing such Indebtedness shall exist only on (i) the property and
assets of any Subsidiary that is not a Loan Party and (ii) the Equity Interests in any
Subsidiary that is not a Loan Party (and shall not apply to any other property or assets of
the Borrower or any other Subsidiary that is a Loan Party), except, in the case of each of
clauses (a) and (b) for the following (each of which is deemed to be non-recourse for
purposes of this definition): (w) Guarantees by the Borrower or any other Subsidiary of
such Indebtedness that are incurred pursuant to Section 6.01(p), (x) agreements of the
Borrower or any other Subsidiary to provide corporate or management services or operation
and maintenance services to such Subsidiary, including in respect of the acquisition of
fuel, oil, gas or other supply of energy, (y) Guarantees of the Borrower or any other
Subsidiary with respect to debt service reserves established with respect to such Subsidiary
to the extent that such Guarantee shall result in the immediate payment of funds, pursuant
to dividends or otherwise, in the amount of such Guarantee to the Borrower or such other
Subsidiary and (z) contingent obligations of the Borrower or any other Subsidiary to make
capital contributions to such Subsidiary, in the case of each of clauses (x), (y) and (z),
which are otherwise permitted hereunder.

     “Existing NRG Notes” shall have the meaning assigned to such term in the recitals.

     “Existing Texas Genco Credit Agreement” shall have the meaning assigned to such term
in the recitals.

     “Existing Texas Genco Notes” shall have the meaning assigned to such term in the
recitals.

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     “Facility” shall mean a power or energy related facility.

     “Facility Instruments” shall have the meaning set forth in (a) the Affirmation
Agreement, dated as of August 9, 1993, by and among Northern States Power Company, the Borrower and
Ramsey and Washington Counties and (b) the Agreement and Consent for Transfer to the Borrower,
dated as of August 20, 2001, between Northern States Power Company, the Borrower, Anoka County,
Hennepin County, Sherburne County and Tri-County Solid Waste Management Commission, as in effect on
the Closing Date.

     “Fair Market Value” shall mean the value that would be paid by a willing buyer to an
unaffiliated willing seller in a transaction not involving distress of either party, determined in
good faith by (i) the Board of Directors of the Borrower with respect to assets and Investments
having a Fair Market Value of $100,000,000 or more and (ii) the Chief Financial Officer of the
Borrower with respect to assets and Investments having a Fair Market Value less than $100,000,000.

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day for such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by it.

     “Fee Letter” shall mean that certain amended and restated fee letter, dated as of
November 16, 2005, among the Borrower, Morgan Stanley Senior Funding, Inc. and Citigroup Global
Markets Inc., as the same may be amended, restated, supplemented or otherwise modified from time to
time in accordance with the terms thereof.

     “Fees” shall mean the Commitment Fees, the Administrative Agent’s Fees, the L/C
Participation Fees and the Issuing Bank Fees.

     “FERC” shall mean the Federal Energy Regulatory Commission or its successor.

     “Financial Institution” shall mean a bank, an investment bank or an Affiliate of a
bank or an investment bank.

     “Fitch” shall mean Fitch Ratings, Ltd. or any successor entity.

     “Financial Officer” of any Person shall mean any of the chief executive officer, chief
financial officer or treasurer (or if no individual shall have such designation, the Person charged
by the Board of Directors of such Person with such powers and duties as are customarily bestowed
upon the individual with such designation) or the audit or finance committee of the Board of
Directors of such Person.

     “Foreign Lender” shall mean any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is incorporated or organized. For purposes of
this definition, the United States of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

     “Foreign Net Asset Sale Proceeds” shall have the meaning assigned to such term in the
definition of “Net Cash Proceeds”.

     “Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

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     “Foreign Subsidiary Holding Company” shall mean any Domestic Subsidiary that is a
direct parent of one or more Foreign Subsidiaries and holds, directly or indirectly, no other
assets other than Equity Interests of Foreign Subsidiaries and other de minimis assets related
thereto.

     “FPA” shall mean the Federal Power Act and the rules and regulations promulgated
thereunder, as amended from time to time.

     “Funded Issuing Bank Fees” shall have the meaning assigned to such term in Section
2.05(d).

     “Funded L/C Commitment” shall mean the commitment of the Issuing Bank to issue Funded
Letters of Credit pursuant to Section 2.23.

     “Funded L/C Disbursements” shall mean a payment or disbursement made by the Issuing
Bank pursuant to a Funded Letter of Credit.

     “Funded L/C Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Funded Letters of Credit at such time and (b) the aggregate amount of all
Funded L/C Disbursements that have not yet been reimbursed at such time (or deemed to have not yet
been reimbursed at such time pursuant to Section 2.23(e)). The Funded L/C Exposure of any Funded
L/C Lender at any time shall equal its Pro Rata Percentage of the aggregate Funded L/C Exposure at
such time.

     “Funded L/C Fee Payment Date” shall have the meaning assigned to such term in Section
2.05(d).

     “Funded L/C Lender” shall mean a Lender with a Credit-Linked Deposit and shall
include, for the avoidance of doubt, each New Funded L/C Lender.

     “Funded L/C Participation Fee” shall have the meaning assigned to such term in Section
2.05(d).

     “Funded Letter of Credit Availability Period” shall mean the period from and including
the Closing Date to but excluding the earlier of the Funded Letter of Credit Maturity Date and the
date on which all of the Credit-Linked Deposits are returned to the Funded L/C Lenders, utilized to
reimburse the Issuing Bank for Funded L/C Disbursements or converted into Term Loans.

     “Funded Letter of Credit Maturity Date” shall mean the Term Loan Maturity Date.

     “Funded Letter of Credit” shall mean, at any time, any Letter of Credit that has been
designated by the Borrower (or deemed designated) as a Funded Letter of Credit in accordance with
the provisions of Section 2.23 and is supported by the Credit-Linked Deposit Account.

     “GAAP” shall mean generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are in effect from time to time.

     “Governmental Authority” shall mean the government of the United States of America or
any other nation, any political subdivision thereof, whether state or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative,

29

 

judicial, taxing, regulatory or administrative powers or functions of government or any
governmental or non-governmental authority regulating the generation and/or transmission of energy,
including ERCOT.

     “Granting Lender” shall have the meaning assigned to such term in Section 9.04(i).

     “Guarantee” shall mean a guarantee, other than by endorsement of negotiable
instruments for collection in the ordinary course of business, direct or indirect, in any manner,
including by way of a pledge of assets or through letters of credit or reimbursement agreements in
respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to
take or pay or to maintain financial statement conditions or otherwise); provided that
standard contractual indemnities which do not relate to Indebtedness shall not be considered a
Guarantee.

     “Guarantee and Collateral Agreement” shall mean the Guarantee and Collateral
Agreement, dated as of the Closing Date, in the form of Exhibit F-1, executed and delivered by the
Borrower and each Subsidiary Guarantor, as the same may be amended, restated, supplemented or
otherwise modified from time to time in accordance with the terms thereof.

     “Guaranteed Obligations” shall mean the Credit Agreement Borrower Obligations and the
Guarantor Obligations in respect thereof, in each case as such terms are defined in the Guarantee
and Collateral Agreement.

     “H&F Group” shall mean each of Hellman & Friedman Capital Partners IV, L.P., H&F
International Partners IV-A, L.P., H&F Executive Fund IV, L.P. and H&F International Partners IV-C,
L.P.

     “Hazardous Materials” shall mean (a) any petroleum products or byproducts, coal ash,
coal combustion by-products or waste, boiler slag, scrubber residue, flue desulfurization material,
radon gas, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, radioactive
materials, waste or byproducts, chlorofluorocarbons and all other ozone-depleting substances and
(b) any chemical, material, substance or waste that is prohibited, limited or regulated by or
pursuant to any Environmental Law.

     “Hedging Obligations” shall mean, with respect to any specified Person, the
obligations of such Person under (a) interest rate swap agreements (whether from fixed to floating
or from floating to fixed), interest rate cap agreements and interest rate collar agreements, (b)
other agreements or arrangements designed to manage interest rates or interest rate risk, (c) other
agreements or arrangements designed to protect such Person against fluctuations in currency
exchange rates and (d) agreements (including each confirmation entered into pursuant to any master
agreement) providing for swaps, caps, collars, puts, calls, floors, futures, options, spots,
forwards, power purchase or sale agreements, fuel purchase or sale agreements, emissions credit
purchase or sales agreements, power transmission agreements, fuel transportation agreements, fuel
storage agreements, netting agreements, commercial or trading agreements, each with respect to, or
involving the purchase, transmission, distribution, sale, lease or hedge of, any energy, generation
capacity or fuel, or any other energy related commodity or service, price or price indices for any
such commodities or services or any other similar derivative agreements, and any other similar
agreements, in each case under clause (a), (b), (c) and (d), entered into by such Person, including
Commodity Hedging Obligations and Interest Rate/Currency Hedging Obligations.

     “Increased Amount Date” shall have the meaning provided in Section 2.25(a).

     “incur” shall have the meaning assigned to such term in Section 6.01.

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     “Indebtedness” shall mean, with respect to any specified Person, any
indebtedness of such Person (excluding accrued expenses and trade payables except as provided in
clause (e) below), whether or not contingent (a) in respect of borrowed money; (b) evidenced by
bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements
in respect thereof); (c) in respect of banker’s acceptances; (d) representing Capital Lease
Obligations or Attributable Debt in respect of sale and leaseback transactions; (e) representing
the balance deferred and unpaid of the purchase price of any property (including trade payables) or
services due more than six months after such property is acquired or such services are completed;
or (f) representing Hedging Obligations, if and to the extent any of the preceding items (other
than letters of credit, Attributable Debt and Hedging Obligations) would appear as a liability upon
a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term
“Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified
Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.
The amount of any Indebtedness outstanding as of any date will be (a) the accreted value of the
Indebtedness, in the case of any Indebtedness issued with original issue discount; (b) the
principal amount of the Indebtedness, in the case of any other Indebtedness; and (c) in respect of
Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser
of (i) the Fair Market Value of such asset at the date of determination, and (ii) the amount of the
Indebtedness of the other Person.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes and Other Taxes.

     “Indemnitee” shall have the meaning assigned to such term in Section 9.05(b).

     “Information” shall have the meaning assigned to such term in Section 9.16.

     “Intellectual Property Collateral” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Intellectual Property Security Agreement” shall mean all Intellectual Property
Security Agreements executed and delivered by the Loan Parties, each substantially in the
applicable form required by the Guarantee and Collateral Agreement or the Texas Genco Security
Agreement, as applicable, as the same may be amended, restated, supplemented or otherwise modified
from time to time in accordance with the terms hereof and thereof.

     “Interest Payment Date” shall mean (a) with respect to any ABR Loan (other than a
Swingline Loan), the last Business Day of each March, June, September and December (beginning with
March 31, 2006), (b) with respect to any Eurodollar Loan, the last day of the Interest Period
applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing
with an Interest Period of more than three months’ duration, each day that would have been an
Interest Payment Date had successive Interest Periods of three months’ duration been applicable to
such Borrowing, and (c) with respect to any Swingline Loan, the day that such Loan is required to
be repaid.

     “Interest Period” shall mean (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending seven days thereafter or on the numerically
corresponding day in the calendar month that is 1, 2, 3 or 6 months thereafter (or 9 or 12 months
thereafter if, at the time of the relevant Borrowing, an interest period of such duration is
available to all Lenders participating therein), as the Borrower may elect, (b) with respect to the
Credit-Linked Deposits made on the Closing Date, each period commencing on the date such
Credit-Linked Deposits were initially funded or on the last day of the preceding Interest Period
applicable thereto, as the case may be, and ending (x) in the case of the first Interest Period in
respect of such Credit-Linked Deposits, on March 31, 2006 and (y) in the case of each Interest
Period in respect of such Credit-Linked Deposits thereafter,

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on the numerically corresponding date in the calendar month that is 3 months thereafter and
(c) with respect to the Additional Credit-Linked Deposits, each period commencing on the date such
Additional Credit-Linked Deposits are initially funded or on the last day of the preceding Interest
Period applicable thereto, as the case may be, and ending (x) in the case of the first Interest
Period in respect of such Additional Credit-Linked Deposits, on December 31, 2006 and (y) in the
case of each Interest Period in respect of such Additional Credit-Linked Deposits thereafter, on
the numerically corresponding date in the calendar month that is 3 months thereafter;
provided, however, that (i) at any time after December 31, 2006, a single Interest
Period shall at all times apply to all Credit-Linked Deposits, (ii) if any Interest Period would
end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day and (iii)
any Interest Period (other than an Interest Period of seven days) that commences on the last
Business Day of a calendar month (or on a day for which there is no numerically corresponding day
in the last calendar month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. Interest shall accrue from and including the first day of
an Interest Period to but excluding the last day of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.

     “Interest Rate/Currency Hedging Agreement” shall mean any agreement of the type
described in clauses (a), (b) or (c) of the definition of “Interest Rate/Currency Hedging
Obligations”.

     “Interest Rate/Currency Hedging Obligations” shall mean, with respect to any specified
Person, the obligations of such Person under (a) interest rate swap agreements (whether from fixed
to floating or from floating to fixed), interest rate cap agreements and interest rate collar
agreements, (b) other agreements or arrangements designed to manage interest rates or interest rate
risk and (c) other agreements or arrangements designed to protect such Person against fluctuations
in currency exchange rates, in each case under clause (a), (b) and (c), entered into by such Person
in the ordinary course of business and not for speculative purposes.

     “Investments” shall mean, with respect to any Person, all direct or indirect
investments by such Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations), advances or capital contributions, purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with
all items that are or would be classified as investments on a balance sheet prepared in accordance
with GAAP. If the Borrower or any Subsidiary sells or otherwise disposes of any Equity Interests
of any direct or indirect Subsidiary such that, after giving effect to any such sale or
disposition, such Person is no longer a Subsidiary, the Borrower will be deemed to have made an
Investment on the date of any such sale or disposition equal to the Fair Market Value of the
Borrower’s Investments in such Subsidiary that were not sold or disposed of. The acquisition by
the Borrower, or by any Subsidiary, of a Person that holds an Investment in a third Person will be
deemed to be an Investment by the Borrower or such Subsidiary in such third Person in an amount
equal to the Fair Market Value of the Investments held by the acquired Person in such third Person.
Except as otherwise provided in this Agreement, the amount of an Investment will be determined at
the time the Investment is made and without giving effect to subsequent changes in value.

     Notwithstanding anything to the contrary herein, in the case of any Investment made by the
Borrower or a Restricted Subsidiary in a Person substantially concurrently with a cash distribution
by such Person to the Borrower or a Restricted Subsidiary (a “Concurrent Cash
Distribution”), then:

     (a) the Concurrent Cash Distribution shall be deemed to be Net Cash Proceeds received in
connection with an Asset Sale and applied as described in Section 2.13; and

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     (b) the amount of such Investment shall be deemed to be the Fair Market Value of the
Investment, less the amount of the Concurrent Cash Distribution.

     “Issuing Bank” shall mean, as the context may require, (a) Deutsche Bank AG, New York
Branch in its capacity as the issuer of Letters of Credit issued by it hereunder, (b) any other
Lender that may become an Issuing Bank pursuant to Section 2.23(i) or 2.23(k), with respect to
Letters of Credit issued by such Lender and (c) in respect of each Existing Letter of Credit, the
issuer thereof. The Issuing Bank may, in its discretion, arrange for one or more Letters of Credit
to be issued by Affiliates of the Issuing Bank or other financial institutions, in which case the
term “Issuing Bank” shall include any such Affiliate or other financial institution with respect to
Letters of Credit issued by such Affiliate or other financial institution.

     “Issuing Bank Fees” shall mean Revolving Issuing Bank Fees and Funded Issuing Bank
Fees.

     “Issuing Subsidiary” shall have the meaning assigned to such term in the definition of
“Additional Non-Recourse Indebtedness”.

     “Itiquira” shall mean Itiquira Energetica S.A.

     “Itiquira Acquisition Sub” shall have the meaning assigned to such term in the
definition of “Itiquira Refinancing”.

     “Itiquira Refinancing” shall mean the transaction or series of related transactions
pursuant to which (a) any or all of the outstanding preferred stock of Itiquira directly or
indirectly held by Eletrobrás is acquired by Itiquira or a subsidiary of Tosli Acquisition BV
(“Itiquira Acquisition Sub”) for aggregate consideration not to exceed $70,000,000, and,
following such acquisition, such preferred stock is redeemed, repaid or otherwise retired or held
as treasury stock or otherwise so treated in accordance with the requirements of Brazilian law, and
(b) pursuant to which Itiquira or the Itiquira Acquisition Sub may incur up to $70,000,000 in
aggregate principal amount of Indebtedness secured by Liens on the assets of Itiquira and the
Itiquira Acquisition Sub (“Permitted Itiquira Indebtedness”), in each case on terms and
conditions (which may include terms and conditions other than those set forth in this definition)
reasonably satisfactory to the Administrative Agent.

     “Joinder Agreement” shall mean an agreement substantially in the form of Exhibit I.

     “KKR Group” shall mean each of KKR Millennium Fund (Energy) L.P. and KKR Partners III,
L.P. (Series I).

     “L/C Commitment” shall mean a Revolving L/C Commitment or a Funded L/C Commitment.

     “L/C Disbursement” shall mean a Revolving L/C Disbursement or a Funded L/C
Disbursement.

     “L/C Exposure” shall mean, at any time, the Revolving L/C Exposure and the Funded L/C
Exposure at such time.

     “L/C Exposure Cap” shall mean $250,000,000.

     “Lender Addendum” shall mean, with respect to any initial Lender, a Lender Addendum in
the form of Exhibit G, or such other form as may be supplied by the Administrative Agent, to be
executed and delivered by such Lender on the Closing Date.

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     “Lenders” shall mean (a) the Persons that deliver a Lender Addendum (other than any
such Person that has ceased to be a party hereto pursuant to an Assignment and Acceptance), (b) any
Person that has become a party hereto pursuant to an Assignment and Acceptance and (c) any Person
that executes the Amendment Agreement as a New Funded L/C Lender. Unless the context otherwise
requires, the term “Lenders” shall include the Swingline Lender and, for the avoidance of doubt,
each New Funded L/C Lender.

     “Letter of Credit” shall mean a Revolving Letter of Credit, a Funded Letter of Credit
or an Existing Letter of Credit.

     “LIBO Rate” shall mean, with respect to any Eurodollar Borrowing or Credit-Linked
Deposit for any Interest Period, the rate per annum determined by the Administrative Agent at
approximately 11:00 a.m., London time, on the date that is two Business Days prior to the
commencement of such Interest Period by reference to the British Bankers’ Association Interest
Settlement Rates for deposits in dollars (as set forth by the Bloomberg Information Service or any
successor thereto or any other service selected by the Administrative Agent which has been
nominated by the British Bankers’ Association as an authorized information vendor for the purpose
of displaying such rates) for a period equal to such Interest Period; provided that, to the
extent that an interest rate is not ascertainable pursuant to the foregoing provisions of this
definition, the “LIBO Rate” shall be the interest rate per annum determined by the Administrative
Agent to be the average of the rates per annum at which deposits in dollars are offered for such
relevant Interest Period to major banks in the London interbank market in London, England by the
Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two Business
Days prior to the beginning of such Interest Period.

     “Lien” shall mean, with respect to any asset (a) any mortgage, deed of trust, deed to
secure debt, lien (statutory or otherwise), pledge, hypothecation, encumbrance, restriction,
collateral assignment, charge or security interest in, on or of such asset; (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of the foregoing)
relating to such asset; and (c) in the case of Equity Interests or debt securities, any purchase
option, call or similar right of a third party with respect to such Equity Interests or debt
securities. For the avoidance of doubt, “Lien” shall not be deemed to include licenses of
intellectual property.

     “Loan Documents” shall mean this Agreement, any promissory note delivered pursuant to
Section 2.04(e), the Security Documents and the Affiliate Subordination Agreement.

     “Loan Parties” shall mean the Borrower and each Subsidiary Guarantor.

     “Loans” shall mean the Revolving Loans, the Term Loans, the Swingline Loans, the New
Revolving Credit Loans and the New Term Loans.

     “Majority Revolving Credit Lenders” shall mean, at any time, Revolving Credit Lenders
having Revolving Loans (excluding Swingline Loans), Revolving L/C Exposure, Swingline Exposure,
unused Revolving Credit Commitments and, if applicable, unused New Revolving Credit Commitments
representing at least a majority of the sum of all Revolving Loans outstanding (excluding Swingline
Loans), Revolving L/C Exposure, Swingline Exposure, unused Revolving Credit Commitments and, if
applicable, unused New Revolving Credit Commitments at such time.

     “Mandatory Convertible Preferred Stock” shall mean the 2,000,000 shares of 5.750%
mandatory convertible preferred stock, liquidation value $250 per share, of the Borrower issued on
the Closing Date to fund a portion of the Acquisition Consideration.

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     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Mark-to-Market Adjustments” means: (a) any non-cash loss attributable to the
mark-to-market movement in the valuation of Hedging Obligations (to the extent the cash impact
resulting from such loss has not been realized) or other derivative instruments pursuant to
Financial Accounting Standards Board Statement No. 133, “Accounting for Derivative Instruments and
Hedging Activities;” plus (b) any loss relating to amounts paid in cash prior to the stated
settlement date of any Hedging Obligation that has been reflected in Consolidated Net Income in the
current period; plus (c) any gain relating to Hedging Obligations associated with
transactions recorded in the current period that has been reflected in Consolidated Net Income in
prior periods and excluded from Consolidated EBITDA pursuant to clauses (e) and (f) below;
minus (d) any non-cash gain attributable to the mark-to-market movement in the valuation of
Hedging Obligations (to the extent the cash impact resulting from such gain has not been realized)
or other derivative instruments pursuant to Financial Accounting Standards Board Statement No. 133,
“Accounting for Derivative Instruments and Hedging Activities;” minus (e) any gain relating
to amounts received in cash prior to the stated settlement date of any Hedging Obligation that has
been reflected in Consolidated Net Income in the current period; minus (f) any loss
relating to Hedging Obligations associated with transactions recorded in the current period that
has been reflected in Consolidated Net Income in prior periods and excluded from Consolidated
EBITDA pursuant to clauses (b) and (c) above.

     “Material Adverse Effect” shall mean a material adverse change in or material adverse
effect on (a) the condition (financial or otherwise), results of operations, assets or liabilities
of the Borrower and the Subsidiaries, taken as a whole, or (b) the validity or enforceability of
any Loan Document, which if such Loan Document is a Security Document, relates to Collateral having
an aggregate Fair Market Value of $50,000,000 or more in the aggregate, or the material rights and
remedies of the Arrangers, the Administrative Agent, the Collateral Agent, the NRG Collateral
Trustee, the Texas Genco Collateral Trustee or the Secured Parties thereunder.

     “Material Indebtedness” shall mean Indebtedness for money borrowed (other than the
Loans and Letters of Credit) and Hedging Obligations of any one or more of the Borrower or any of
the Subsidiaries in an aggregate principal amount or mark-to-market adjustment value exceeding
$75,000,000.

     “Maximum Rate” shall have the meaning assigned to such term in Section 9.09.

     “Minority Investment” shall mean any Person (other than a Subsidiary) in which the
Borrower or any Restricted Subsidiary owns Capital Stock.

     “Modification” shall have the meaning assigned to such term in Section 9.19(a).

     “Modification Endorsement” shall have the meaning assigned to such term in Section
9.19(c).

     “Moody’s” shall mean Moody’s Investors Service, Inc. or any successor entity.

     “Mortgaged Properties” shall mean on the Restatement Date, each parcel of real
property and the improvements located thereon and appurtenants thereto owned or leased by a Loan
Party and specified on Schedule 1.01(f), and shall include each other parcel of real property and
improvements located thereon with respect to which a Mortgage is granted pursuant to Section 5.09
or 5.10; provided, however, that any Mortgaged Property that becomes an Excluded
Asset, or the rights in which are held by any Person that ceases to be a Subsidiary Guarantor
pursuant to Section 6.11 hereof or as otherwise provided in the Loan Documents, shall cease to be a
Mortgaged Property for all purposes under the Loan Documents and the Collateral Agent and the
applicable Collateral Trustee shall take such actions as are reasonably requested

35

 

by any Loan Party at such Loan Party’s expense to terminate the Liens and security interests
created by the Loan Documents in such Mortgaged Property.

     “Mortgages” shall mean the mortgages, deeds of trust, leasehold mortgages, assignments
of leases and rents, modifications, amendments and restatements of the foregoing and other security
documents granting a Lien on any Mortgaged Property to secure the Guaranteed Obligations, each in
the form of Exhibit H with such changes as are reasonably satisfactory to the Borrower (which shall
be evidenced by the signature thereof by the applicable Loan Party), the Collateral Agent and the
applicable Collateral Trustee, in each case, as the same may be amended, restated, supplemented or
otherwise modified from time to time in accordance with the terms thereof.

     “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)
of ERISA.

     “Necessary CapEx Debt” shall mean Indebtedness of the Borrower or its Restricted
Subsidiaries incurred for the purpose of financing Necessary Capital Expenditures.

     “Necessary Capital Expenditures” shall mean capital expenditures (other than
Environmental Capital Expenditures) that are required by Applicable Law or are undertaken for
health and safety reasons. The term “Necessary Capital Expenditures” does not include any capital
expenditure undertaken primarily to increase the efficiency of, expand or re-power any power
generation facility.

     “Net Asset Sale Proceeds” shall have the meaning assigned to such term in the
definition of “Net Cash Proceeds”.

     “Net Cash Proceeds” shall mean

     (a) with respect to any Asset Sale or Recovery Event, the proceeds thereof in the form
of cash as and when received (including any such cash proceeds subsequently received (as and
when received) in respect of noncash consideration initially received), net of (i) all
expenses related to such Asset Sale or Recovery Event (including legal, accounting and
investment banking fees, broker’s fees and sales commissions, relocation fees and expenses
paid or reasonably estimated by the Borrower to be payable, and taxes paid or payable by the
Borrower and the Restricted Subsidiaries in connection therewith, and the Borrower’s good
faith estimate of any other taxes to be paid or payable in connection with such Asset Sale
or Recovery Event, after taking into account any available tax credits or deductions and any
tax sharing arrangements, and any out-of-pocket costs of remediation, repair or closure
required to be incurred by the Borrower and the Restricted Subsidiaries by the applicable
Governmental Authority in connection with such Recovery Event), (ii) amounts remitted in an
escrow or provided as a reserve, in accordance with GAAP or the corresponding transaction
agreements or otherwise reasonably estimated to be payable to third parties and attributable
to such Asset Sale, against any liabilities under any indemnification obligations or
purchase price adjustment or otherwise associated with such asset or Asset Sale, including
pension and post-employment benefit liabilities and liabilities related to Environmental
Laws or against any other indemnification obligations related to such transaction
(provided that, to the extent and at the time any such amounts are released from
such reserve or escrow to the benefit of the Borrower or any Restricted Subsidiary, such
amounts shall constitute Net Cash Proceeds if otherwise described as such in this
definition) and (iii) the principal amount, premium or penalty, if any, interest and other
amounts on any Indebtedness (other than any such Indebtedness hereunder or assumed by the
purchaser of such asset or any Affiliate thereof) which is secured by the asset transferred,
taken or sold in such Asset Sale or Recovery Event and which

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is required to be repaid with such proceeds (such proceeds with respect to any Asset
Sale, “Net Asset Sale Proceeds”);

     provided, however, that if the asset transferred, taken or sold in such
Asset Sale or Recovery Event did not constitute Core Collateral, (1) up to $300,000,000 in
the aggregate of Net Asset Sale Proceeds received from one or more Asset Sales of Equity
Interests in, or property or assets of, any Foreign Subsidiary or any Foreign Subsidiary
Holding Company (any proceeds with respect to any such Asset Sale, “Foreign Net Asset
Sale Proceeds”) and (2) up to $50,000,000 of Net Asset Sale Proceeds (other than any
Foreign Net Asset Sale Proceeds) received in each fiscal year of the Borrower, in each case
shall not be deemed Net Cash Proceeds that are subject to mandatory prepayment pursuant to
Section 2.13(b) or otherwise, even if the terms of the following proviso are not complied
with in respect of any such Net Asset Sale Proceeds;

     provided, further, that if (v) the asset transferred, taken or sold in
such Asset Sale or Recovery Event did not constitute Core Collateral, (w) the Borrower or
any Restricted Subsidiary reinvests an amount equal to such proceeds in an acquisition of a
Person or line of business in accordance with the terms of this Agreement or productive
assets of a kind then used or usable in the business of the Borrower and the Restricted
Subsidiaries within 365 days of receipt of such proceeds (such period, the “Reinvestment
Period”) (provided that (i) in the event approval of any Governmental Authority
is required to be procured in connection with the reinvestment of such proceeds, the
Reinvestment Period shall be extended for an additional period not to exceed 180 days as
necessary to obtain such approval and (ii) in the event the Borrower or any Restricted
Subsidiary enters into a legally binding commitment to reinvest such proceeds within such
365-day period, the Reinvestment Period shall be extended for an additional period not to
exceed 365 days), (x) no Event of Default has occurred and is continuing at the time of the
application of such proceeds (both immediately before and immediately after giving effect to
such application), (y) such proceeds (1) resulting from the sale of the Equity Interests in
any Person that is incorporated, formed or organized under the laws of the United Sates of
America, any State thereof or the District of Columbia (other than a Foreign Subsidiary
Holding Company) (a “U.S. Person”) or any other assets located in the United States
are only used to make an acquisition of a Person that will, following the consummation of
such acquisition, be a Domestic Subsidiary or an acquisition of other assets that are
located in the United States or (2) resulting from the sale of the Equity Interests in any
Person other than a U.S. Person are only used to make an acquisition of a Person that is
incorporated, formed or organized under the laws of a Designated Country or an acquisition
of other assets that are located in a Designated Country and (z) such proceeds resulting
from the sale of any Equity Interests in any Subsidiary Guarantor or any other assets that
constitute Collateral are only used to make an acquisition of a Person that will, following
the consummation of such acquisition, be a Subsidiary Guarantor or an acquisition of other
assets that will constitute Collateral, then such proceeds shall not be deemed Net Cash
Proceeds that are subject to the mandatory prepayment provisions of Section 2.13(b) except
to the extent not so used at the end of the Reinvestment Period, at which time such proceeds
shall be deemed Net Cash Proceeds that are subject to the mandatory prepayment provisions of
Section 2.13(b);

     provided further, however, that if (A) the asset transferred,
taken or sold in such Asset Sale or Recovery Event did not constitute Core Collateral, (B)
such proceeds result from an Asset Sale or Recovery Event to the extent involving assets,
rights or other property of a Restricted Subsidiary that is not a Loan Party, (C) the terms
of any Indebtedness of such Restricted Subsidiary require that an amount equal to the amount
of such proceeds be applied to repay such Indebtedness, (D) the Borrower uses an amount
equal to the amount of such proceeds to repay such Indebtedness of such Restricted
Subsidiary solely to the extent required thereby and, if such

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repaid Indebtedness is revolving credit Indebtedness, to correspondingly reduce
commitments with respect thereto, within 365 days of receipt of such proceeds and (E) no
Event of Default has occurred and is continuing at the time of the application of an amount
equal to such proceeds, then such amount of proceeds shall not be deemed Net Cash Proceeds
that are subject to the mandatory prepayment provisions of Section 2.13(b) except to the
extent not so used at the end of such 365-day period, at which time an amount equal to such
proceeds shall be deemed Net Cash Proceeds that are subject to the mandatory prepayment
provisions of Section 2.13(b). In addition, notwithstanding the foregoing, if the assets
transferred, taken or sold in any such Asset Sale did not constitute Core Collateral and
such Net Asset Sale Proceeds result from one or more Asset Sales of Equity Interests of an
Excluded Project Subsidiary that does not own (directly or indirectly through its ownership
interest in any other Excluded Project Subsidiary) a Facility (other than the Facility that
is being developed, constructed or acquired with such Net Asset Sale Proceeds), then such
Net Asset Sale Proceeds shall be deemed not to be Net Cash Proceeds that are subject to the
mandatory prepayment provisions of Section 2.13(b) to the extent that such Net Asset Sale
Proceeds are used to finance the development, repowering, construction or acquisition of
such Excluded Project Subsidiary’s Facility; and

     (b) with respect to any issuance or incurrence of Indebtedness, the cash proceeds
thereof, net of any and all taxes and fees, commissions, costs and other expenses incurred
by the Borrower and the Restricted Subsidiaries in connection therewith; provided
that, in the case of the issuance or incurrence of Indebtedness under Section 6.01(m), the
cash proceeds thereof shall only constitute “Net Cash Proceeds” to the extent distributed by
the applicable Excluded Project Subsidiary to the Borrower or any other Subsidiary;
provided further, that if (x) such Indebtedness is Non-Recourse
Indebtedness, the Net Cash Proceeds of which are distributed by the applicable Excluded
Project Subsidiary to the Borrower or any other Subsidiary that is a Loan Party, (y) the
Borrower or such Subsidiary reinvests such distribution in an acquisition of a Person or
line of business in accordance with the terms of this Agreement or productive assets of a
kind then used or usable in the business of the Borrower and the Restricted Subsidiaries
within the Reinvestment Period (provided that in the event approval of any
Governmental Authority is required to be procured in connection with the reinvestment of
such distribution, the Reinvestment Period shall be extended for an additional period (not
to exceed 180 days) as necessary to obtain such approval), (z) no Event of Default has
occurred and is continuing at the time of the application of such distribution (both before
and after giving effect to such application), then such distribution shall not be deemed Net
Cash Proceeds that are subject to the mandatory prepayment provisions of Section 2.13(c)
except to the extent not so used at the end of the Reinvestment Period, at which time such
distribution shall be deemed Net Cash Proceeds that are subject to the mandatory prepayment
provisions of Section 2.13(c).

     “Net Income” shall mean, with respect to any specified Person, the net income (loss)
of such Person, determined in accordance with GAAP and before any reduction in respect of preferred
stock dividends or accretion, excluding, however, (a) any gain or loss, together with any related
provision for taxes on such gain or loss, realized in connection with (i) any Asset Sale (without
giving effect to the threshold provided for in the definition thereof) or (ii) the disposition of
any securities by such Person or any of its Restricted Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Restricted Subsidiaries; and (b) any extraordinary gain
(but not loss), together with any related provision for taxes on such extraordinary gain (but not
loss).

     “New Funded L/C Lender” shall mean each Lender funding a Credit-Linked Deposit on the
Restatement Date.

     “New Loan Commitments” shall have the meaning assigned to such term in Section
2.25(a).

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     “New Revolving Credit Commitments” shall have the meaning assigned to such term in
Section 2.25(a).

     “New Revolving Credit Lender” shall have the meaning assigned to such term in Section
2.25(b).

     “New Revolving Credit Loans” shall have the meaning assigned to such term in Section
2.25(b).

     “New Term Loan Commitments” shall have the meaning assigned to such term in Section
2.25(a).

     “New Term Loan Lender” shall have the meaning assigned to such term in Section
2.25(c).

     “New Term Loans” shall have the meaning assigned to such term in Section 2.25(c).

     “New Term Loan Maturity Date” shall mean the date on which a New Term Loan matures.

     “Non-Consenting Lender” shall have the meaning assigned to such term in Section
9.08(c).

     “Non-Recourse Indebtedness” shall mean (a) Existing Non-Recourse Indebtedness of any
Subsidiary existing as of the Closing Date and (b) Additional Non-Recourse Indebtedness of any
Subsidiary that is not a Loan Party.

     “NRG Collateral Trust Agreement” shall mean the Collateral Trust Agreement in the form
of Exhibit E-1, executed and delivered by the Borrower and each Subsidiary Guarantor, as the same
may be amended, restated, supplemented or otherwise modified from time to time in accordance with
the terms thereof.

     “NRG Collateral Trustee” shall mean Deutsche Bank Trust Company Americas, acting as
collateral trustee under the NRG Collateral Trust Agreement, or its successors appointed in
accordance with the terms thereof.

     “NRG Power Marketing” shall mean NRG Power Marketing Inc., a Delaware corporation that
is a wholly owned Subsidiary.

     “NYPSC” shall have the meaning assigned to such term in Section 3.23(f).

     “NYPSC Subject Company” shall have the meaning assigned to such term in Section
3.23(f).

     “Obligations” shall have the meaning assigned to such term in the Collateral Trust
Agreement.

     “Original Funded L/C Lender” shall mean each Lender that funded a Credit-Linked
Deposit on the Closing Date.

     “Other Taxes” shall mean any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies (including interest, fines, penalties
and additions to tax) arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

     “Parity Debt Representative” shall have the meaning assigned to such term in the NRG
Collateral Trust Agreement.

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     “Parity Lien Debt” shall mean (a) the Existing Commodity Hedging Agreements; (b) any
other Indebtedness consisting of Commodity Hedging Obligations that is permitted to be incurred
under Section 6.01 and secured by a second priority Lien permitted under Section 6.02; and (c) any
secured Indebtedness that is permitted to be incurred under Section 6.01(p) and secured by a second
priority Lien permitted under Section 6.02; provided, in the case of Indebtedness referred
to in clauses (b) and (c), that (i) such Indebtedness is governed by an agreement that includes a
Sharing Confirmation and (ii) all requirements set forth in the Collateral Trust Agreement as to
the confirmation, grant or perfection of the Liens granted to the Collateral Trustee, for the
benefit of the applicable secured parties, to secure such Indebtedness or Obligations in respect
thereof are satisfied (and the satisfaction of such requirements and the other provisions of this
clause (ii) shall be conclusively established, for purposes of entitling the holders of such
Indebtedness to share Equally and Ratably with the other holders of Parity Lien Debt in the
benefits and proceeds of the Collateral Trustee’s Liens on the Collateral, if the Borrower delivers
to the Collateral Trustee an officers’ certificate stating that such requirements and other
provisions have been satisfied and that such Indebtedness is Parity Lien Debt and/or Second Lien
Debt, as applicable).

     “Parity Lien Obligations” shall mean Parity Lien Debt and all other Obligations in
respect thereof.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA and any successor entity performing similar functions.

     “Perfection Certificate” shall mean the Pre-Closing UCC Diligence Certificate
substantially in the form of Exhibit J or any other form reasonably approved by the Collateral
Agent.

     “Permitted Acquisition” shall mean any acquisition, by merger or otherwise, by the
Borrower or any of the Restricted Subsidiaries of assets or Capital Stock after the Closing Date,
so long as, (a) such acquisition and all transactions related thereto shall be consummated in
accordance with all Applicable Laws; (b) such acquisition shall result in the issuer of such
Capital Stock becoming a Restricted Subsidiary that is not an Excluded Subsidiary and, to the
extent required by Section 5.09, a Subsidiary Guarantor; (c) such acquisition shall result in the
applicable Collateral Trustee, for the benefit of the Secured Parties, being granted a security
interest in any Capital Stock and/or any assets so acquired to the extent required by Sections 5.09
and/or 5.10; (d) after giving effect to such acquisition, no Default or Event of Default shall have
occurred and be continuing; and (e) the Borrower shall be in compliance, on a pro forma basis after
giving effect to such acquisition (including any Indebtedness assumed or permitted to exist or
incurred pursuant to Sections 6.01(q) and 6.01(r), respectively), with the covenants set forth in
Sections 6.13 and 6.14, as such covenants are recomputed as at the last day of the most recently
ended fiscal quarter for which financial statements are required to be delivered pursuant to
Section 5.04(a) or 5.04(b) under such Sections 6.13 and 6.14 as if such acquisition had occurred on
the first day of the applicable Test Period.

     “Permitted Asset Swap” shall mean any transfer of Equity Interests or properties or
other assets (other than any such Equity Interests, properties or other assets constituting Core
Collateral) by the Borrower or any of the Restricted Subsidiaries in which at least 75% of the
consideration received by the transferor consists of Equity Interests or properties or other assets
(other than cash or Cash Equivalents) useful in the Permitted Business; provided that the
aggregate Fair Market Value of the Equity Interests or property or other assets being transferred
by the Borrower or such Restricted Subsidiary is not greater than the aggregate Fair Market Value
of the Equity Interests or properties or other assets received by the Borrower or such Restricted
Subsidiary in such transfer.

     “Permitted Business” shall mean the business of acquiring, constructing, managing,
developing, improving, maintaining, leasing, owning and operating Facilities, together with any
related assets or

40

 

facilities, and any other business conducted by the Borrower and its Restricted Subsidiaries
on the Closing Date, as well as any other activities reasonably related, ancillary, incidental or
complementary to any of the foregoing activities (including acquiring and holding reserves),
including investing in Facilities.

     “Permitted Cure Security” shall mean an equity security of the Borrower having no
mandatory redemption, repurchase or similar requirements prior to 91 days after the latest maturity
date for any of the Loans, and upon which all dividends or distributions (if any) shall be payable
solely in additional shares of such equity security.

     “Permitted Itiquira Indebtedness” shall have the meaning assigned to such term in the
definition of “Itiquira Refinancing”.

     “Permitted Liens” shall mean

     (a) Liens held by the applicable Collateral Trustee on assets of the Borrower or any
Subsidiary Guarantor securing (i) Guaranteed Obligations of the Borrower or such Subsidiary
Guarantor relating to Indebtedness and Letters of Credit under this Agreement or relating to
obligations under any Specified Hedging Agreements and (ii) secured obligations of the Borrower or
such Subsidiary Guarantor relating to Revolver Refinancing Indebtedness permitted by Section
6.01(a);

     (b) second priority Liens held by the applicable Collateral Trustee Equally and Ratably
securing Parity Lien Debt and other Parity Lien Obligations;

     (c) Liens on Equity Interests or assets of Excluded Subsidiaries securing (i) Indebtedness of
Excluded Subsidiaries that was permitted by the terms of this Agreement to be incurred, (ii)
obligations in respect of power purchase, tolling (or similar) agreements or fuel purchase
agreements or (iii) obligations in respect of development fees, management fees, success fees,
royalties or other similar obligations owed to a seller or developer (or any affiliate thereof) of
a Facility in connection with the construction or acquisition of such Facility (or of a Subsidiary
holding such Facility or development rights to such Facility) or of the development rights in such
Facility that is not prohibited by this Agreement;

     (d) Liens (i) in favor of the Borrower or any of the Subsidiary Guarantors, (ii)
incurred by Excluded Project Subsidiaries in favor of any other Excluded Project Subsidiary and
(iii) incurred by Excluded Foreign Subsidiaries in favor of any other Excluded Foreign Subsidiary;

     (e) Liens to secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the ordinary course of
business;

     (f) Liens to secure Indebtedness (including Capital Lease Obligations) permitted by Section
6.01(d) hereof covering only the assets acquired with or financed by such Indebtedness;

     (g) Liens existing on the Closing Date and set forth on Schedule 6.02;

     (h) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent
or that are being contested in good faith by appropriate proceedings promptly instituted and
diligently concluded; provided that any reserve or other provision as is required in
conformity with GAAP has been made therefor;

     (i) Liens imposed by law (other than those described in clause (h) above), such as carriers’,
warehousemen’s, landlords’ and mechanics’ Liens;

41

 

     (j) survey exceptions, easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or
zoning or other restrictions as to the use of real property that were not incurred in connection
with Indebtedness and that do not in the aggregate materially adversely affect the value of said
properties or materially impair their use in the operation of the business of such Person;

     (k) Liens to secure any Permitted Refinancing Indebtedness permitted to be incurred under this
Agreement; provided, however, that such Lien shall be limited to all or part of the
same property and assets that secured or, under the written agreements pursuant to which the
original Lien arose, could secure the original Lien (plus improvements and accessions to
such property or proceeds or distributions thereof);

     (l) Liens incurred or deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security;

     (m) Liens encumbering deposits made to secure obligations arising from statutory, regulatory,
contractual or warranty requirements of the Borrower or any of its Restricted Subsidiaries,
including rights of offset and set-off;

     (n) leases or subleases granted to others that do not materially interfere with the ordinary
course of business of the Borrower and its Restricted Subsidiaries, taken as a whole;

     (o) inchoate statutory Liens arising under ERISA incurred in the ordinary course of business;

     (p) Liens existing on the assets of any Person that becomes a Restricted Subsidiary, or
existing on assets acquired, pursuant to a Permitted Acquisition to the extent the Liens on such
assets secure Indebtedness permitted by Section 6.01(q); provided that such Liens attach at
all times only to the same assets that such Liens attached to, and secure only the same
Indebtedness that such Liens secured, immediately prior to such Permitted Acquisition;

     (q)(i) Liens placed upon the Capital Stock of any Restricted Subsidiary acquired pursuant to a
Permitted Acquisition to secure Indebtedness of the Borrower or any other Restricted Subsidiary
incurred pursuant to Section 6.01(r) in connection with such Permitted Acquisition and (ii) Liens
placed upon the assets of such Restricted Subsidiary to secure a guarantee by such Restricted
Subsidiary of any such Indebtedness of the Borrower or any other Restricted Subsidiary;

     (r) Liens on cash and Cash Equivalents (i) deposited by the Borrower or any of the Restricted
Subsidiaries in margin accounts with or on behalf of futures contract brokers or paid over to other
counterparties or (ii) pledged or deposited as collateral to a contract counterparty or issuer of
surety bonds or issuer of letters of credit by the Borrower or any of the Restricted Subsidiaries,
in each case to secure obligations with respect to (A) contracts for commercial and trading
activities in the ordinary course of business and contracts (including physical delivery, option
(whether cash or financial), exchange, swap and futures contracts) for the purchase, transmission,
transportation, distribution, sale, lease or hedge of any fuel-related or power-related commodity
or service or (B) Commodity Hedging Agreements;

     (s) Liens arising from UCC financing statements filed on a precautionary basis in respect of
operating leases intended by the parties to be true leases (other than any such leases entered into
in violation of this Agreement);

     (t) Liens on assets and Equity Interests of a Subsidiary that is an Excluded Subsidiary as of
the Closing Date;

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     (u) Liens granted in favor of Xcel Energy, Inc. pursuant to the Xcel Indemnification
Agreements as in effect on the Closing Date on the Borrower’s interest in all revenues received by
the Borrower pursuant to the Facility Instruments;

     (v) first priority Liens held by the applicable Collateral Trustee (and subject to the terms
of the applicable Collateral Trust Agreement) to secure Indebtedness incurred pursuant to Section
6.01(p) that, together with (i) any New Loan Commitments incurred under Section 2.25 and (ii) any
Parity Lien Debt incurred under Section 6.01(p) and secured by a Lien permitted under clause (b) of
this definition, does not exceed at any one time outstanding the greater of (1) $600,000,000 and
(2) an amount equal to the Consolidated EBITDA of the Borrower for the period of four consecutive
fiscal quarters most recently ended on or prior to the date on which such Indebtedness is incurred
multiplied by 25%;

     (w) Liens on cash deposits and other funds maintained with a depositary institution, in each
case arising in the ordinary course of business by virtue of any statutory or common law provision
relating to banker’s liens, including Section 4-210 of the UCC;

     (x) any restrictions on any Equity Interest or Project Interest of a Person providing for a
breach, termination or default under any owners, participation, shared facility, joint venture,
stockholder, membership, limited liability company or partnership agreement between such Person and
one or more other holders of Equity Interests or Project Interests of such Person, if a security
interest or other Lien is created on such Equity Interest or Project Interest as a result thereof
and other similar Liens and restrictions described in Section 6.07(b)(ix) and 6.07(c)(I);

     (y) any Liens on Excluded Assets described in clause (xiii) of the definition thereof;

     (z) Liens to secure Environmental CapEx Debt or Necessary CapEx Debt permitted by Section
6.01(v) that encumber only the assets purchased, installed or otherwise acquired with the proceeds
of such Environmental CapEx Debt or Necessary CapEx Debt;

     (aa) Liens on assets or securities deemed to arise in connection with and solely as a result
of the execution, delivery or performance of contracts to sell such assets or securities if such
sale is otherwise permitted hereunder;

     (bb) Liens on assets of the Borrower or any Restricted Subsidiary with respect to obligations
(other than in respect of Indebtedness) that do not exceed $50,000,000 at any one time outstanding;

     (cc) Liens securing the obligations under the Existing Texas Genco Credit Agreement;
provided that such Liens are released and UCC-3 financing statements and such other
appropriate termination statements are filed in the appropriate offices on or prior to the fifth
day following the Closing Date;

     (dd) Liens and options to acquire the “Switchyard Area” of the Webster Plant owned by Texas
Genco;

     (ee) Liens in favor of any Securitization Vehicle or its assignee or agent (including any
lenders to such Securitization Vehicle) on South Central Securitization Assets transferred or
purported to be transferred to such Securitization Vehicle in connection with a South Central
Securitization permitted by Section 6.04; and

     (ff) those Liens or other exceptions to title, in either case on or in respect of any facility
of the Borrower or any Subsidiary, arising as a result of any shared facility agreement entered
into with respect to such facility, except to the extent that any such Liens or exceptions,
individually or in the aggregate,

43

 

materially adversely affect the value of the relevant property or materially impair the use of
the relevant property in the operation of the business of the Borrower or such Subsidiary.

     “Permitted Refinancing Indebtedness” shall mean any Indebtedness of the Borrower or
any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to
refund, refinance, replace, defease or discharge, other Indebtedness of the Borrower or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); provided that (a) the
principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does
not exceed the principal amount (or accreted value, if applicable) of the Indebtedness extended,
refinanced, renewed, replaced, defeased or refunded (plus all accrued and unpaid interest
on such Indebtedness and the amount of all expenses and premiums incurred in connection therewith);
(b) such Permitted Refinancing Indebtedness has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded (provided that amortization payments of up to 1%
per annum shall be excluded for purposes of calculating the Weighted Average Life to Maturity of
any such Permitted Refinancing Indebtedness); (c) if the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded is subordinated in right of payment to the Guaranteed
Obligations hereunder, such Permitted Refinancing Indebtedness is subordinated in right of payment
to the Guaranteed Obligations hereunder on terms at least as favorable to the Lenders as those
contained in the documentation governing the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; (d) such Indebtedness is incurred either by the Borrower (and may
be guaranteed by any Subsidiary Guarantor to the extent permitted by Section 6.01(i)) or by the
Restricted Subsidiary who is the obligor on the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded; and (e)(i) if the Stated Maturity of the Indebtedness being
refinanced is earlier than the Term Loan Maturity Date, the Permitted Refinancing Indebtedness has
a Stated Maturity no earlier than the Stated Maturity of the Indebtedness being refinanced or (ii)
if the Stated Maturity of the Indebtedness being refinanced is later than the Term Loan Maturity
Date, the Permitted Refinancing Indebtedness has a Stated Maturity at least 91 days later than the
Term Loan Maturity Date.

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

     “Pledged Equity Interests” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Pledged Securities” shall have the meaning assigned to such term in the Guarantee and
Collateral Agreement.

     “Preferred Stock” shall mean (i) the 4% Convertible Perpetual Preferred Stock, par
value $0.01 per share, of the Borrower, (ii) the 3.625% Convertible Perpetual Preferred Stock, par
value $0.01 per share, of the Borrower and (iii) the Mandatory Convertible Preferred Stock, in each
case issued on or prior to the Closing Date.

     “Prime Rate” shall mean the rate of interest per annum publicly announced from time to
time by The Wall Street Journal as the “base rate on corporate loans posted by at least 75%
of the nation’s 30 largest banks” (or, if The Wall Street Journal ceases quoting a base
rate of the type described, the highest per annum rate of interest published by the Federal Reserve
Board in Federal Reserve statistical release H.15 (519) entitled “Selected Interest Rates” as the
Bank prime loan rate or its equivalent); each change in the Prime Rate shall be effective as of the
opening of business on the date such change is publicly announced as being effective. The Prime
Rate is a reference rate and does not necessarily represent the lowest or best rate actually
available.

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     “Project Interest” shall mean any undivided interest in a Facility.

     “Pro Rata Percentage” of (a) any Revolving Credit Lender at any time shall mean the
percentage of the Total Revolving Credit Commitment represented by such Lender’s Revolving Credit
Commitment and (b) any Funded L/C Lender at any time shall mean the percentage of the Total
Credit-Linked Deposit represented by such Lender’s Credit-Linked Deposit. In the event the
Revolving Credit Commitments shall have expired or been terminated, the Pro Rata Percentages of any
Revolving Credit Lender shall be determined on the basis of the Revolving Credit Commitments most
recently in effect prior thereto. In the event the Credit-Linked Deposits shall have been applied
in full to reimburse Funded L/C Disbursements or shall be returned, the Pro Rata Percentage of any
Funded L/C Lender shall be determined on the basis of the Credit-Linked Deposits most recently in
effect prior thereto.

     “PUCT” shall mean the Public Utility Commission of Texas.

     “PUHCA” shall mean the Public Utility Holding Company Act of 2005 and the rules and
regulations promulgated thereunder, effective February 8, 2006.

     “Purchase Agreement” shall mean the acquisition agreement dated as of September 30,
2005, among the Target, the Borrower and the direct and indirect owners of the Target party
thereto.

     “PURPA” shall mean the Public Utility Regulatory Policies Act of 1978 and the rules
and regulations promulgated thereunder, as amended from time to time.

     “QF” shall mean a “qualifying facility” under PURPA.

     “Qualified Counterparty” shall mean, (a) with regard to any Specified Hedging
Agreement in existence on the Closing Date, any counterparty thereto that, as of the Closing Date,
was a Lender, an Agent, CGMI or an Arranger or an Affiliate of a Lender, an Agent, CGMI or an
Arranger and (b) with respect to any Specified Hedging Agreement entered into on or after the
Closing Date, any counterparty thereto that, at the time such Specified Hedging Agreement was
entered into, was a Lender, an Agent, CGMI, the Syndication Agent or an Arranger or an Affiliate of
a Lender, an Agent, CGMI, the Syndication Agent or an Arranger.

     “Rate” shall have the meaning set forth in the definition of Type.

     “Reaffirmation Agreements” shall mean, collectively, (a) the NRG Reaffirmation
Agreement, dated as of the Restatement Date, executed and delivered by the Borrower and each
Subsidiary Guarantor, in form and substance reasonably acceptable to the Arrangers and (b) the
Texas Genco Reaffirmation Agreement, dated as of the Restatement Date, executed and delivered by
each Texas Genco Party, in form and substance reasonably acceptable to the Arrangers.

     “Recovery Event” shall mean the receipt of cash proceeds with respect to any
settlement of or payment in respect of (a) any property or casualty insurance claim or (b) any
taking under power of eminent domain or by condemnation or similar proceeding of or relating to any
property or asset of the Borrower or any Restricted Subsidiary; provided that any such
recovery event or series of related recovery events having a value not in excess of $50,000,000
shall not be deemed to be a “Recovery Event” for purposes of Section 2.13(b).

     “Reference Date” shall have the meaning set forth in the definition of Available
Amount.

     “Register” shall have the meaning assigned to such term in Section 9.04(d).

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     “Regulation T” shall mean Regulation T of the Board as from time to time in
effect and all official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Reinvestment Period” shall have the meaning assigned to such term in the definition
of “Net Cash Proceeds”.

     “Related Fund” shall mean, with respect to any Lender that is a fund that invests in
bank loans, any other fund that invests in bank loans and is advised or managed by such Lender, an
Affiliate of such Lender, the same investment advisor as such Lender or by an Affiliate of such
investment advisor.

     “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, trustees, employees, agents and advisors of such
Person and such Person’s Affiliates.

     “Release” shall mean any release, spill, emission, leaking, pumping, injection,
pouring, emptying, deposit, disposal, discharge, dispersal, dumping, escaping, leaching or
migration into or through the environment or within or upon any building, structure, facility or
fixture.

     “Repayment Date” shall have the meaning assigned to such term in Section 2.11.

     “Requested Prepayment Amount” shall have the meaning assigned to such term in Section
2.13(f).

     “Requested Term Loan Prepayment Amount” shall have the meaning assigned to such term
in Section 2.13(e).

     “Required Lenders” shall mean, at any time, Lenders having Loans (excluding Swingline
Loans), Revolving L/C Exposure, Funded L/C Exposure, Swingline Exposure, unused Revolving Credit
Commitments, unused Term Loan Commitments, Excess Credit-Linked Deposits, and, if applicable,
unused New Revolving Credit Commitments and unused New Term Loan Commitments, representing at least
a majority of the sum of all Loans outstanding (excluding Swingline Loans), Revolving L/C Exposure,
Funded L/C Exposure, Swingline Exposure, unused Revolving Credit Commitments, unused Term Loan
Commitments, Excess Credit-Linked Deposits, and, if applicable, unused New Revolving Credit
Commitments and unused New Term Loan Commitments at such time.

     “Required Prepayment Percentage” shall mean (a) in the case of any Asset Sale or
Recovery Event, 100%; (b) in the case of any issuance or other incurrence of Indebtedness (except
for Indebtedness permitted to be issued or incurred pursuant to Section 6.01 (other than pursuant
to Section 6.01(m) and 6.01(s))), 100%, and, with respect to any issuance or other incurrence of
Indebtedness pursuant to Section 6.01(s), 100% or if on the date of the applicable prepayment the
Consolidated Leverage Ratio (determined on a pro forma basis taking into account the incurrence of
such Indebtedness and any related prepayment of Indebtedness with the proceeds thereof) is less
than or equal to 4.25 to 1.00, 75%; and (c) in the case of any Excess Cash Flow, 75% or, if on the
date of the applicable prepayment, the Consolidated Leverage Ratio is less than or equal to 4.25 to
1.00 but greater than 3.00 to 1.00, 50%, or, if on the date of the applicable prepayment, the
Consolidated Leverage Ratio is less than or equal to 3.00 to

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1.00 but greater than 2.50 to 1.00, 25%, or, if on the date of the applicable prepayment, the
Consolidated Leverage Ratio is less than or equal to 2.50 to 1.00, 0%.

     “Restatement Confidential Information Memorandum” shall mean the Confidential
Information Memorandum of the Borrower dated November 2006.

     “Restatement Date” shall mean the date this Agreement becomes effective pursuant to
the Amendment Agreement.

     “Restatement Fee Letter” shall mean that certain amended and restated fee letter,
dated as of November 3, 2006, among the Borrower, Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Merrill Lynch Capital Corporation, Morgan Stanley Senior Funding, Inc. and Morgan
Stanley & Co. Inc., as the same may be amended, restated, supplemented or otherwise modified from
time to time in accordance with the terms thereof.

     “Restricted Subsidiary” of a specified Person shall mean, with respect to such Person,
any subsidiary of that Person that is not an Unrestricted Subsidiary. Unless otherwise indicated,
any reference to a “Restricted Subsidiary” shall be deemed to be a reference to a Restricted
Subsidiary of the Borrower. On the Closing Date, all the Subsidiaries of the Borrower are
Restricted Subsidiaries of the Borrower.

     “Retained Prepayment Amount” shall mean, on any date, an amount equal at such time to
(a) the sum of (1) on and after the Borrower shall have provided its calculation of the Excess Cash
Flow for the fiscal year ending December 31, 2006 pursuant to Section 5.04(c), an amount equal to
such Excess Cash Flow for such fiscal year multiplied by 75% and (2) without duplication of
the amount described in clause (1), all amounts that are offered to Lenders and retained by the
Borrower after all mandatory prepayments, returns, reductions and cash collateralizations are made
pursuant to Section 2.13(e) and 2.13(f) after the Closing Date and on or prior to such date (other
than any amounts that are offered to Lenders and retained by the Borrower in connection with any
required prepayment offer made under Section 2.13(d) with respect to any fiscal period that does
not end on the last day of any fiscal year) minus (b) the sum of (i) the aggregate amount
of any Investments made by the Borrower or any Restricted Subsidiary pursuant to Section 6.05(h)
after the Closing Date and on or prior to such date, (ii) the aggregate amount of any Dividends
made by the Borrower or any Restricted Subsidiary pursuant to Section 6.06(d)(iii) after the
Closing Date and on or prior to such date, (iii) the aggregate amount of any prepayments,
repurchases and redemptions made by the Borrower or any Restricted Subsidiary pursuant to Section
6.07(a)(vii) after the Closing Date and on or prior such date and (iv) the aggregate amount of any
Capital Expenditures made by the Borrower or any Restricted Subsidiary (other than any Excluded
Subsidiaries) pursuant to clause (b) of the proviso to Section 6.12 after the Closing Date and on
or prior such date.

     “Revolver Refinancing Indebtedness” shall mean Indebtedness issued or incurred under a
new revolving credit facility (a “New Revolver”) that refinances, refunds, extends, renews
or replaces the Revolving Credit Commitments hereunder; provided that (a) the available
commitments under such New Revolver shall not exceed $1,000,000,000, (b) the Borrower shall be the
only borrower under such New Revolver and the Subsidiary Guarantors shall be the only guarantors,
if any, with respect thereto, (c) unless such New Revolver shall be incurred within six months of
the Revolving Credit Maturity Date, such New Revolver contains covenants and events of default
which, taken as a whole, are determined in good faith by a Financial Officer of the Borrower to be
the same in all material respects as (or less restrictive than) the covenants and events of default
contained herein, (d) the Indebtedness under such New Revolver, if secured, is secured only by
Liens on the Collateral granted in favor of the Collateral Trustee that are subject to the terms of
the Collateral Trust Agreement, (e) if such New Revolver is secured, the administrative agent in
respect of such New Revolver executes and delivers a Collateral Trust

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Joinder as required by the Collateral Trust Agreement and (f) if such New Revolver is secured,
the secured parties with respect to such New Revolver agree in writing for the enforceable benefit
of all Secured Parties hereunder that such secured parties are bound by the provisions set forth in
the Collateral Trust Agreement relating to the order of application of proceeds from the
enforcement of Liens upon the Collateral to the same extent that the Secured Parties are bound by
such provisions as of the Closing Date.

     “Revolving Credit Borrowing” shall mean a Borrowing comprised of Revolving Loans.

     “Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment,
if any, of such Lender to make Revolving Loans (and to acquire participations in Revolving Letters
of Credit and Swingline Loans) hereunder as set forth on the Lender Addendum delivered by such
Lender, or in the Assignment and Acceptance pursuant to which such Lender assumed its Revolving
Credit Commitment, as applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such
Lender in accordance with Section 9.04.

     “Revolving Credit Exposure” shall mean, with respect to any Lender at any time, the
aggregate principal amount at such time of all outstanding Revolving Loans of such Lender,
plus the aggregate amount at such time of such Lender’s Revolving L/C Exposure,
plus the aggregate amount at such time of such Lender’s Swingline Exposure.

     “Revolving Credit Lender” shall mean a Lender with a Revolving Credit Commitment or an
outstanding Revolving Loan.

     “Revolving Credit Maturity Date” shall mean February 2, 2011.

     “Revolving Issuing Bank Fees” shall have the meaning assigned to such term in Section
2.05(c).

     “Revolving L/C Commitment” shall mean the commitment of the Issuing Bank to issue
Revolving Letters of Credit pursuant to Section 2.23.

     “Revolving L/C Disbursement” shall mean a payment or disbursement made by the Issuing
Bank pursuant to a Revolving Letter of Credit.

     “Revolving L/C Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn
amount of all Revolving Letters of Credit at such time and (b) the aggregate amount of all
Revolving L/C Disbursements that have not been reimbursed at such time. The Revolving L/C Exposure
of any Revolving Credit Lender at any time shall equal its Pro Rata Percentage of the aggregate
Revolving L/C Exposure at such time.

     “Revolving L/C Fee Payment Date” shall have the meaning assigned to such term in
Section 2.05(c).

     “Revolving L/C Participation Fee” shall have the meaning assigned to such term in
Section 2.05(c).

     “Revolving Letter of Credit” shall mean, at any time, any Letter of Credit that has
been designated by the Borrower (or deemed designated) as a Revolving Letter of Credit in
accordance with the provisions of Section 2.23.

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     “Revolving Loans” shall mean (i) the revolving loans made by the Lenders to the
Borrower pursuant to clause (b) of Section 2.01 and (ii) any New Revolving Credit Loans.

     “S&P” shall mean Standard & Poor’s Ratings Group, Inc. or any successor entity.

     “Sale of Collateral” shall mean any Asset Sale involving a sale or other disposition
of Collateral.

     “Sale of Core Collateral” shall mean any Asset Sale involving a sale or other
disposition of Core Collateral.

     “Scheduled Investment Termination Date” shall mean, when referring to the
Credit-Linked Deposits on deposit in the Credit-Linked Deposit Account, the date agreed to by the
Borrower and the Deposit Bank from time to time, provided that if no such agreement shall
be reached, the Scheduled Investment Termination Date shall be the last day of the then current
Interest Period applicable to the Credit-Linked Deposits.

     “Second Lien Debt” shall have the meaning assigned to such term in the Texas Genco
Collateral Trust Agreement.

     “Second Lien Representative” shall have the meaning assigned to such term in the Texas
Genco Collateral Trust Agreement.

     “Secured Parties” shall mean the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Lenders, the Issuing Bank, the Deposit Bank and, with respect to any
Specified Hedging Agreement, any Qualified Counterparty that has agreed to be bound by the
provisions of Article VIII hereof and Section 7.2 of the Guarantee and Collateral Agreement as if
it were a party hereto or thereto; provided that no Qualified Counterparty shall have any
rights in connection with the management or release of any Collateral or the obligations of any
Subsidiary Guarantor under the Guarantee and Collateral Agreement, the Texas Genco Security
Agreement or the applicable Collateral Trust Agreement.

     “Securities Account” shall have the meaning assigned to such term in the UCC.

     “Securitization Vehicle” shall mean a Person that is a direct wholly owned Subsidiary
of the Borrower or of any Restricted Subsidiary (a) formed for the purpose of effecting a South
Central Securitization, (b) to which the Borrower and/or any Restricted Subsidiary transfers South
Central Securitization Assets and (c) which, in connection therewith, issues Third Party
Securities; provided that (i) such Securitization Vehicle shall engage in no business other
than the purchase of South Central Securitization Assets pursuant to the South Central
Securitization permitted by Section 6.04, the issuance of Third Party Securities or other funding
of such South Central Securitization and any activities reasonably related thereto and (ii) such
Securitization Vehicle shall be an Unrestricted Subsidiary under this Agreement and an
“Unrestricted Subsidiary” under each Senior Note Document.

     “Security Documents” shall mean the Guarantee and Collateral Agreement, the Texas
Genco Security Agreement, the Mortgages, the Control Agreements, the Intellectual Property Security
Agreements, the NRG Collateral Trust Agreement, the Texas Genco Collateral Trust Agreement, the
Reaffirmation Agreements and each of the other security agreements, pledges, mortgages, assignments
(collateral or otherwise), consents and other instruments and documents executed and delivered
pursuant to any of the foregoing or pursuant to Section 5.09 or 5.10.

     “Sellers’ Retained Interests” means the debt and/or equity interests (including any
intercompany notes) held by the Borrower or any Restricted Subsidiary in a Securitization Vehicle
to which South

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Central Securitization Assets have been transferred in a South Central Securitization
permitted by Section 6.04, including any such debt or equity received as consideration for, or as a
portion of, the purchase price for the South Central Securitization Assets transferred, and any
other instrument through which the Borrower or any Restricted Subsidiary has rights to or receives
distributions in respect of any residual or excess interest in the South Central Securitization
Assets.

     “Sellers” shall have the meaning assigned to such term in the recitals.

     “Senior Debt” shall mean all Total Debt that is not subordinated in right of payment
to the obligations under this Agreement.

     “Senior Note Documents” shall mean the indenture under which the Senior Notes are
issued and all other instruments, agreements and other documents evidencing or governing the Senior
Notes or providing for any Guarantee or other right in respect thereof, in each case as the same
may be amended or supplemented from time to time in accordance with the terms hereof and thereof.

     “Senior Notes” shall mean each of (i) the Borrower’s 7.375% Senior Notes due 2016,
(ii) the Borrower’s 7.250% Senior Notes due 2014 and (iii) the Borrower’s 7.375% Senior Notes due
2017, in each case including any notes issued by the Borrower in full exchange for, and as
contemplated by, such Senior Notes with substantially identical terms as such Senior Notes in an
aggregate amount not to exceed as of the Closing Date and until the Restatement Date,
$3,600,000,000 and as of the Restatement Date and thereafter, $4,700,000,000.

     “Series” shall have the meaning provided in Section 2.25(a).

     “Sharing Confirmation” shall mean, as applicable, (i) a “Sharing Confirmation” as
defined in the NRG Collateral Trust Agreement and/or (ii) a “Lien Sharing and Priority
Confirmation” as defined in the Texas Genco Collateral Trust Agreement.

     “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 Closing Date and shall in any event include
the Core Collateral Subsidiaries.

     “South Central Securitization” shall mean any transaction or series of transactions
entered into by the Borrower or any Restricted Subsidiary pursuant to which the Borrower or such
Restricted Subsidiary, as the case may be, sells, conveys, assigns, grants an interest in or
otherwise transfers, from time to time, to one or more Securitization Vehicles the South Central
Securitization Assets (and/or grants a security interest in such South Central Securitization
Assets transferred or purported to be transferred to such Securitization Vehicle), and which
Securitization Vehicle finances the acquisition of such South Central Securitization Assets (i)
with proceeds from the issuance of Third Party Securities, (ii) with the issuance to the Borrower
or such Restricted Subsidiary of Sellers’ Retained Interests or an increase in such Seller’s
Retained Interests or (iii) with proceeds from the sale or collection of South Central
Securitization Assets.

     “South Central Securitization Assets” shall mean any accounts receivable originated or
expected to be originated by (and owed to) the Borrower or any Restricted Subsidiary (in each case
whether now existing or arising or acquired in the future) arising from the installation of
pollution control equipment for the removal or reduction of mercury, SO2,
NOx  and/or other pollutants in the Borrower’s Big Cajun facilities in
Louisiana and any ancillary assets (including contract rights) which are of the type customarily
conveyed with, or in respect of which security interests are customarily granted in connection
with, such accounts receivable in a securitization transaction and which are sold, transferred or
otherwise conveyed by the Borrower or a Restricted Subsidiary to a Securitization Vehicle.

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     “SPC” shall have the meaning assigned to such term in Section 9.04(i).

     “Specified Facility” means each of the following Facilities: (a) the Facilities held
on the Closing Date by Vienna Power LLC, Meriden Gas Turbine LLC, Norwalk Power LLC, Connecticut
Jet Power LLC (excluding the assets located at the Cos Cob site), Devon Power LLC, Montville Power
LLC (including the Capital Stock of the entities owning such Facilities provided that such entities
do not hold material assets other than the Facilities held on the Closing Date); (b) the following
Facilities: P.H. Robinson, H.O. Clarke, Webster, Unit 3 at Cedar Bayou, Unit 2 at T.H. Wharton; and
(c) the Capital Stock of the following Subsidiaries of the Borrower if such Subsidiary holds no
assets other than the Capital Stock of a Foreign Subsidiary of Borrower: NRG Latin America, Inc.,
NRG International LLC, NRG Insurance Ltd. (Cayman Islands), NRG Asia Pacific, Ltd., NRG
International II Inc. and NRG International III Inc.

     “Specified Hedging Agreement” shall mean any Interest Rate/Currency Hedging Agreement
entered into by the Borrower or any Subsidiary Guarantor and any Qualified Counterparty.

     “Sponsor” means, collectively, the Blackstone Group, the H&F Group, the KKR Group, the
TPG Group and the Affiliates of each of the foregoing.

     “Sponsor Preferred Stock” shall mean the shares of the Borrower’s preferred stock
issued pursuant to the terms of the Purchase Agreement.

     “Stated Maturity” shall mean, with respect to any installment of interest or principal
on any series of Indebtedness, the date on which the payment of interest or principal was scheduled
to be paid in the documentation governing such Indebtedness as of the Closing Date, and will not
include any contingent obligations to repay, redeem or repurchase any such interest or principal
prior to the date originally scheduled for the payment thereof.

     “Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate
of the maximum reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Board and any other banking authority, domestic
or foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate or
other fronting office making or holding a Loan) is subject for eurocurrency funding (currently
referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Eurodollar Loans shall be
deemed to constitute eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available from time to time
to any Lender under such Regulation D or any comparable regulation. Statutory Reserves shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.

     “subsidiary” shall mean, with respect to any Person (herein referred to as the
“parent”), any corporation, partnership, limited liability company, association or other
entity of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or more than 50% of the general partnership interests
are, at the time any determination is being made, owned, controlled or held by the parent or one or
more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” shall mean any subsidiary of the Borrower.

     “Subsidiary Guarantor” shall mean on the Restatement Date, each Restricted Subsidiary
specified on Schedule 1.01(g) and, at any time thereafter, shall include (a) all Core Collateral
Subsidiaries and

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(b) each other Restricted Subsidiary that is not an Excluded Subsidiary; provided that if
at any time any Subsidiary Guarantor is designated as an Unrestricted Subsidiary or Excluded
Subsidiary pursuant to and in accordance with Section 6.11, thereafter, such Person shall not be
deemed a Subsidiary Guarantor.

     “Supermajority Lenders” shall mean, at any time, Lenders having Loans (excluding
Swingline Loans), Revolving L/C Exposure, Funded L/C Exposure, Swingline Exposure, unused Revolving
Credit Commitments, unused Term Loan Commitments, Excess Credit-Linked Deposits, and if applicable,
unused New Revolving Credit Commitments and unused New Term Loan Commitments, representing at least
two-thirds of the sum of all Loans outstanding (excluding Swingline Loans), Revolving L/C Exposure,
Funded L/C Exposure, Swingline Exposure, unused Revolving Credit Commitments, unused Term Loan
Commitments, Excess Credit-Linked Deposits, unused New Revolving Credit Commitments and unused New
Term Loan Commitments at such time.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make loans
pursuant to Section 2.22, as the same may be reduced from time to time pursuant to Section 2.09.

     “Swingline Exposure” shall mean, at any time, the aggregate principal amount at such
time of all outstanding Swingline Loans. The Swingline Exposure of any Revolving Credit Lender at
any time shall equal its Pro Rata Percentage of the aggregate Swingline Exposure at such time.

     “Swingline Lender” shall mean Morgan Stanley Senior Funding, Inc. in its capacity as
lender of Swingline Loans hereunder.

     “Swingline Loan” shall mean any loan made by the Swingline Lender pursuant to Section
2.22.

     “Syndication Agent” shall have the meaning assigned to such term in the preamble.

     “Synthetic Lease Obligations” shall mean all monetary obligations of a Person under
(a) a so-called synthetic, off-balance sheet or tax retention lease or (b) an agreement for the use
or possession of any property (whether real, personal or mixed) creating obligations which do not
appear on the balance sheet of such Person, but which, upon the insolvency or bankruptcy of such
Person, would be characterized as Indebtedness of such Person (without regard to accounting
treatment).

     “Target” shall have the meaning assigned to such term in the recitals.

     “Tax Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Taxes” shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges, liabilities or withholdings (including interest, fines, penalties or additions
to tax) imposed by any Governmental Authority.

     “Term Borrowing” shall mean a Borrowing comprised of Term Loans.

     “Term Lender” shall mean a Lender with a Term Loan Commitment or New Term Loan
Commitment or an outstanding Term Loan (including any Term Loan extended pursuant to Section
2.02(f) or resulting from a conversion pursuant to Section 2.09(d)).

     “Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if
any, of such Lender to make Term Loans hereunder as set forth on the Lender Addendum delivered by
such Lender, or in the Assignment and Acceptance pursuant to which such Lender assumed its Term
Loan Commitment, as applicable, as the same may be (a) reduced from time to time pursuant to
Section 2.09

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and (b) reduced or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04. The initial aggregate amount of all Term Loan Commitments on the Closing
Date was $3,575,000,000.

     “Term Loan Maturity Date” shall mean February 1, 2013.

     “Term Loans” shall mean (a) the term loans made by the Lenders to the Borrower
pursuant to Section 2.01(a), the term loans extended pursuant to the second paragraph of Section
2.02(f), the term loans resulting from a conversion pursuant to Section 2.09(d) and (b) any New
Term Loans.

     “Test Period” shall mean, for any determination under this Agreement, the four
consecutive fiscal quarters of the Borrower then last ended.

     “Texas Genco” shall have the meaning assigned to such term in the recitals.

     “Texas Genco Collateral Trust Agreement” shall mean the Collateral Trust Agreement in
the form of Exhibit E-2, as the same may be amended, restated, supplemented, replaced or otherwise
modified from time to time in accordance with the terms thereof.

     “Texas Genco Collateral Trustee” shall mean Wachovia Bank, National Association,
acting as collateral trustee under the Texas Genco Collateral Trust Agreement, or its successors
appointed in accordance with the terms thereof.

     “Texas Genco Parties” shall have the meaning assigned to such term in the Guarantee
and Collateral Agreement.

     “Texas Genco Pledged Notes” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Texas Genco Refinancing Escrow Account” shall mean the escrow account or escrow
accounts established by the Borrower and held by Law Debenture Trust Company of New York, in which
funds sufficient to repay the loans and other obligations then due and payable under the Existing
Texas Genco Credit Agreement are deposited on the Closing Date.

     “Texas Genco Security Agreement” shall mean the Security Agreement in the form of
Exhibit F-2, as the same may be amended, restated, supplemented, replaced or otherwise modified
from time to time in accordance with the terms thereof.

     “Third Party Securities” shall mean, with respect to any South Central Securitization,
notes, bonds or other debt instruments, beneficial interests in a trust, undivided ownership
interests in receivables or other securities issued for cash consideration by the relevant
Securitization Vehicle to banks, financing conduits, investors or other financing sources (other
than the Borrower or any Subsidiary except in respect of the Seller’s Retained Interest) the
proceeds of which are used to finance, in whole or in part, the purchase by such Securitization
Vehicle of South Central Securitization Assets in a South Central Securitization. The amount of
any Third Party Securities shall be deemed to equal the aggregate principal, stated or invested
amount of such Third Party Securities which are outstanding at such time.

     “Total Credit-Linked Deposit” shall mean, at any time, the sum of all Credit-Linked
Deposits at such time, as the same may be reduced from time to time pursuant to Section 2.02(f),
2.09(b) or 2.09(d). The amount of the Total Credit-Linked Deposit on the Closing Date was
$1,000,000,000. The amount of the Total Credit-Linked Deposit on the Restatement Date is
$1,500,000,000.

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     “Total Debt” shall mean, at any time, the aggregate amount of Indebtedness of the
Borrower and the Restricted Subsidiaries outstanding at such time, in the amount that would be
reflected on a balance sheet prepared at such time on a consolidated basis in accordance with GAAP;
provided, however, that (i) Total Debt will exclude all Indebtedness of Excluded
Subsidiaries (but, for the avoidance of doubt, not Guarantees of such Indebtedness by the Loan
Parties), (ii) with respect to Hedging Obligations of the Borrower or any Restricted Subsidiary,
Total Debt will include only the amount of payments that any such Person is required to make, on
the date Total Debt is being determined, as a result of an early termination or similar event in
respect of outstanding Hedging Obligations of such Person and (iii) for the avoidance of doubt, the
undrawn amount of all outstanding letters of credit (including Funded Letters of Credit and
Revolving Letters of Credit) shall not be included in Total Debt.

     “Total Revolving Credit Commitment” shall mean, at any time, the aggregate amount of
the Revolving Credit Commitments, as in effect at such time. The Total Revolving Credit Commitment
on the Closing Date was, and on the Restatement Date is, $1,000,000,000.

     “TPG Group” shall mean each of TPG Genco IV, L.P., TPG Partners IV — AIV 2, L.P., TPG
Genco III, L.P., TPG III — AIV 2, L.P. and TPG III — AIV 3, L.P.

     “Transactions” shall mean (a) as of the Closing Date, collectively, (i) the execution,
delivery and performance by the Loan Parties of the Loan Documents and the Senior Note Documents to
which they are a party, (ii) the borrowings hereunder, the issuance of the Senior Notes and the
Equity Securities, the issuance of Letters of Credit and the use of proceeds of each of the
foregoing, (iii) the granting of Liens pursuant to the Security Documents, (iv) the Acquisition and
the other Acquisition Transactions and (v) any other transactions related to or entered into in
connection with any of the foregoing and (b) as of the Restatement Date, collectively (i) the
execution, delivery and performance by the Loan Parties of this Agreement, the Amendment Agreement,
the Reaffirmation Agreements and Mortgages covering each of the Mortgaged Properties, (ii) the
funding of the Additional Credit-Linked Deposit by the New Funded L/C Lenders, (iii) the issuance
of the Senior Notes referred to in clauses (iii) and (iv) of the definition thereof on the
Restatement Date and the use of proceeds of the foregoing, (iv) the replacing and/or other
repricing of certain Commodity Hedging Agreements by entering into new Commodity Hedging Agreements
and (v) any other transaction related to or entered into in connection with any of the foregoing.

     “Type”, when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such Borrowing is determined.
For purposes hereof, the term “Rate” shall include the Adjusted LIBO Rate and the Alternate
Base Rate.

     “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York or
any other applicable jurisdiction.

     “Uniform Customs” shall have the meaning assigned to such term in Section 9.07.

     “Unrestricted Subsidiary” shall mean any Subsidiary (other than any Subsidiary that
constitutes or owns Core Collateral) that is designated by the Board of Directors of the Borrower
as an Unrestricted Subsidiary pursuant to a board resolution, but only to the extent that such
Subsidiary (a) has no Indebtedness other than Non-Recourse Indebtedness (it being understood that
for purposes of this definition, Indebtedness permitted under Section 6.01(x) shall not disqualify
Indebtedness of a Securitization Vehicle from being “Non-Recourse Indebtedness”); (b) except as
permitted by Section 6.08 hereof, is not party to any agreement, contract, arrangement or
understanding with the Borrower or any Restricted Subsidiary unless the terms of any such
agreement, contract, arrangement or understanding are no less favorable to the Borrower or such
Restricted Subsidiary than those that might be obtained at the

54

 

time from Persons who are not Affiliates of the Borrower; (c) is a Person with respect to
which neither the Borrower nor any of its Restricted Subsidiaries has any direct or indirect
obligation (i) to subscribe for additional Equity Interests or (ii) to maintain or preserve such
Person’s financial condition or to cause such Person to achieve any specified levels of operating
results except as otherwise permitted by this Agreement; and (d) has not guaranteed or otherwise
directly or indirectly provided credit support for any Indebtedness of the Borrower or any of its
Restricted Subsidiaries except as otherwise permitted by this Agreement. Any designation of a
Subsidiary as an Unrestricted Subsidiary will be evidenced to the Administrative Agent by filing
with the Administrative Agent a certified copy of the board resolution giving effect to such
designation and an officers’ certificate certifying that such designation complied with the
conditions set forth in Section 6.11 and was permitted by Section 6.05. If, at any time, any
Unrestricted Subsidiary fails to meet the requirements as an Unrestricted Subsidiary, it will
thereafter cease to be an Unrestricted Subsidiary for purposes of this Agreement and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted Subsidiary as of such
date and, if such Indebtedness is not permitted to be incurred as of such date by Section 6.01, the
Borrower will be in default of such covenant. The Board of Directors of the Borrower may at any
time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that
such designation will be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of
any outstanding Indebtedness of such Unrestricted Subsidiary and such designation will only be
permitted if (A) such Indebtedness is permitted by Section 6.01, calculated on a pro forma basis as
if such designation had occurred at the beginning of the four-quarter reference period; and (B) no
Default or Event of Default would be in existence following such designation.

     “U.S. Person” shall have the meaning assigned to such term in the definition of “Net
Cash Proceeds”.

     “Voting Stock” of any Person as of any date shall mean the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of Directors of such
Person.

     “Weighted Average Life to Maturity” shall mean, when applied to any Indebtedness at
any date, the number of years obtained by dividing (a) the sum of the products obtained by
multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or
other required payments of principal, including payment at final maturity, in respect of the
Indebtedness, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse
between such date and the making of such payment; by (b) the then outstanding principal amount of
such Indebtedness.

     “wholly owned subsidiary” of any specified Person shall mean a subsidiary of such
Person of which securities (except for directors’ qualifying shares or securities held by foreign
nationals as required by applicable law) or other ownership interests representing 100% of the
Equity Interests are, at the time any determination is being made, owned, controlled or held by
such Person or one or more wholly owned subsidiaries of such Person or by such Person and one or
more wholly owned subsidiaries of such Person; a “wholly owned Subsidiary” shall mean any
wholly owned subsidiary of the Borrower.

     “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

     “Xcel Indemnification Agreements” shall mean the Indemnification Agreements each dated
as of December 5, 2003, by and among Xcel Energy Inc., Northern States Power Company and the
Borrower, which was approved by the U.S. Bankruptcy Court for the Southern District of New York on
November 24, 2003.

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     SECTION
1.02. Terms Generally. The definitions in Section 1.01 shall apply equally to both 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”, and words of similar import, shall not be limiting and 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”. The words “asset” and “property” shall be construed as having the
same meaning and effect and to refer to any and all rights and interests in tangible and intangible
assets and properties of any kind whatsoever, whether real, personal or mixed, including cash,
securities, Equity Interests, accounts and contract rights. The word “control”, when used in
connection with the applicable Collateral Trustee’s rights with respect to, or security interest
in, any Collateral, shall have the meaning specified in the UCC with respect to that type of
Collateral. 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 of this
Agreement unless the context shall otherwise require. All references herein to Articles, Sections,
Exhibits and Schedules shall be deemed references to Articles and Sections of, and Exhibits and
Schedules to, this Agreement unless the context shall otherwise require. Except as otherwise
expressly provided herein, (a) any definition of, or reference to, any Loan Document or any other
agreement, instrument or document in this Agreement shall mean such Loan Document or other
agreement, instrument or document as amended, restated, supplemented or otherwise modified from
time to time (subject to any restrictions on such amendments, restatements, supplements or
modifications set forth herein) and (b) all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided,
however, that if the Borrower notifies the Administrative Agent that the Borrower wishes to
amend any covenant in Article VI or any related definition to eliminate the effect of any change in
GAAP occurring after the Closing Date on the operation of such covenant (or if the Administrative
Agent notifies the Borrower that the Required Lenders wish to amend Article VI or any related
definition for such purpose), then the Borrower’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP became effective,
until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the
Borrower and the Required Lenders.

     SECTION
1.03. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be classified and referred to by Class (e.g., a
“Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar
Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving
Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar
Revolving Borrowing”).

     SECTION
1.04. Pro Forma Calculations. All pro forma calculations permitted or required to be made by the Borrower or any
Subsidiary pursuant to this Agreement shall (a) include only (i) those adjustments that would be
permitted or required by Regulation S-X under the Securities Act of 1933, as amended, or (ii)
reductions in costs and related adjustments that have been actually realized or are projected by
the Borrower’s Chief Financial Officer in good faith to result from reasonably identifiable and
factually supportable actions or events, but only if such reductions in costs and related
adjustments are so projected by the Borrower to be realized during the consecutive four-quarter
period commencing after the transaction giving rise to such calculation and (b) be certified to by
a Financial Officer of the Borrower as having been prepared in good faith based upon assumptions
believed by the Borrower to be reasonable at the time made in light of circumstances at the time
made.

     SECTION
1.05. Exchange Rates. For purposes of determining compliance under Article VI with respect to any amount in a
foreign currency, the U.S. dollar-equivalent amount thereof will be calculated based on the
relevant currency exchange rate in effect at the time of such incurrence. The maximum amount of
Indebtedness, Liens, Investments and other basket amounts that the Borrower and its Subsidiaries
may incur under Article VI shall not be deemed to be exceeded, with respect to any

56

 

outstanding Indebtedness, Liens, Investments and other basket amounts, solely as a result of fluctuations in
the exchange rate of currencies, if as of the initial date of calculation the Borrower determined
that each such maximum amount had not been exceeded. When calculating capacity for the incurrence
of additional Indebtedness, Liens, Investments and other basket amounts by the Borrower and its
Subsidiaries under Article VI the exchange rate of currencies shall be measured as of the date of
calculation.

ARTICLE II.

The Credits

     SECTION
2.01. Commitments. Subject to the terms and conditions hereof and relying upon the representations and
warranties set forth herein, (a) each Term Lender, severally and not jointly, re-evidenced and/or
funded a Term Loan to the Borrower on the Closing Date in a principal amount not exceeding its Term
Loan Commitment, and all Term Loans under the 2005 Credit Agreement and outstanding on the Closing
Date were re-evidenced as Term Loans hereunder, (b) each Revolving Credit Lender agrees, severally
and not jointly, to re-evidence and/or fund Revolving Loans to the Borrower, at any time and from
time to time after the Closing Date and until the earlier of the Revolving Credit Maturity Date and
the termination of the Revolving Credit Commitment of such Revolving Credit Lender in accordance
with the terms hereof, in an aggregate principal amount at any time outstanding that will not
result in such Revolving Credit Lender’s Revolving Credit Exposure exceeding such Revolving Credit
Lender’s Revolving Credit Commitment, and all Revolving Loans and Revolving Credit Commitments
under the 2005 Credit Agreement outstanding on the Closing Date were re-evidenced on the Closing
Date as Revolving Loans and Revolving Credit Commitments hereunder; provided that
notwithstanding the foregoing, and only with respect to Revolving Loans funded on the Closing Date,
the Borrower was permitted to request Revolving Loans on the Closing Date to the extent the
Borrower had, after giving effect to such Borrowing, unrestricted domestic cash and unfunded
Revolving Credit Commitments of more than $1,000,000,000 on the Closing Date, (c) each Original
Funded L/C Lender, severally and not jointly, re-evidenced and/or funded its Credit-Linked Deposit
with the Deposit Bank on the Closing Date in accordance with Section 2.24, and all Credit-Linked
Deposits under the 2005 Credit Agreement outstanding on the Closing Date were re-evidenced as
Credit-Linked Deposits hereunder, and (d) each New Funded L/C Lender agrees, severally and not
jointly, to fund its Credit-Linked Deposit with the Deposit Bank on the Restatement Date in
accordance with Section 2.24. Within the limits set forth in clause (b) of the preceding sentence
and subject to the terms, conditions and limitations set forth herein, the Borrower may borrow, pay
or prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of Term Loans may not
be reborrowed.

     SECTION 2.02. Loans. (a) Each Loan (other than Swingline Loans) shall be made as part of a Borrowing
consisting of Loans of the same Class and Type made by the Lenders ratably in accordance with their
respective Commitments of the applicable Class; provided, however, that the failure
of any Lender to make any Loan required to be made by it shall not in itself relieve any other
Lender of its obligation to lend hereunder (it being understood, however, that no Lender shall be responsible for the
failure of any other Lender to make any Loan required to be made by such other Lender). Except for
Loans deemed made pursuant to Section 2.02(f) and subject to Section 2.22 relating to Swingline
Loans, the Loans comprising any Borrowing shall be in an aggregate principal amount that is (i) an
integral multiple of $1,000,000 and not less than $5,000,000 or (ii) equal to the remaining
available balance of the applicable Commitments.

     (b) Subject to Sections 2.08 and 2.15, each Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower may request pursuant to Section 2.03; provided that no
Borrowings may be converted into or continued as a Eurodollar Borrowing having an Interest Period
in

57

 

excess of one month prior to the date which is 30 days after the Closing Date. Each Lender may
at its option make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of
such Lender to make such Loan; provided that any exercise of such option shall (i) not
affect the obligation of the Borrower to repay such Loan in accordance with the terms of this
Agreement, (ii) not result in increased costs for the Borrower pursuant to Sections 2.14, 2.15,
2.16 or 2.20 and (iii) take into account the obligations of each Lender to mitigate increased costs
pursuant to Section 2.21 hereof. Borrowings of more than one Type may be outstanding at the same
time; provided, however, that the Borrower shall not be entitled to request any
Borrowing that, if made, would result in more than 16 Eurodollar Borrowings outstanding hereunder
at any time. For purposes of the foregoing, Borrowings having different Interest Periods,
regardless of whether they commence on the same date, shall be considered separate Borrowings.

     (c) Except with respect to Loans made pursuant to Section 2.02(f) or Section 2.09(d) and
subject to Section 2.22 relating to Swingline Loans, each Lender shall make each Loan to be made by
it hereunder on the proposed date thereof by wire transfer of immediately available funds to such
account in New York City as the Administrative Agent may designate not later than 11:00 a.m., New
York City time, and the Administrative Agent shall promptly credit the amounts so received to an
account designated by the Borrower in the applicable Borrowing Request or, if a Borrowing shall not
occur on such date because any condition precedent herein specified shall not have been met, return
the amounts so received to the respective Lenders.

     (d) Unless the Administrative Agent shall have received notice from a Lender prior to the date
of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s
portion of such Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in accordance with
paragraph (c) of this Section and the Administrative Agent may, in reliance upon such assumption,
make available to the Borrower on such date a corresponding amount. If the Administrative Agent
shall have so made funds available then, to the extent that such Lender shall not have made such
portion available to the Administrative Agent, such Lender and the Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to the Borrower to but
excluding the date such amount is repaid to the Administrative Agent at (i) in the case of the
Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing (in lieu
of interest which would otherwise become due to such Lender pursuant to Section 2.06) or (ii) in
the case of such Lender, a rate determined by the Administrative Agent to represent its cost of
overnight or short-term funds (which determination shall be conclusive absent clearly demonstrable
error). If such Lender shall repay to the Administrative Agent such corresponding amount, such
amount shall constitute such Lender’s Loan as part of such Borrowing for purposes of this
Agreement.

     (e) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request any Revolving Credit Borrowing which is a Eurodollar Borrowing if the Interest Period
requested with respect thereto would end after the Revolving Credit Maturity Date.

     (f) If the Issuing Bank shall not have received from the Borrower the payment required to be
made by Section 2.23(e) with respect to a Revolving Letter of Credit within the time specified in
such Section, the Issuing Bank will promptly notify the Administrative Agent of the Revolving L/C
Disbursement and the Administrative Agent will promptly notify each Revolving Credit Lender of such
Revolving L/C Disbursement and its Pro Rata Percentage thereof. Each Revolving Credit Lender shall
pay by wire transfer of immediately available funds to the Administrative Agent not later than 5:00
p.m., New York City time, on such date (or, if such Revolving Credit Lender shall have received
such notice later than 3:00 p.m., New York City time, on any day, not later than 10:00 a.m., New
York City time, on the immediately following Business Day), an amount equal to such Lender’s Pro
Rata Percentage of such

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Revolving L/C Disbursement (it being understood that such amount shall be
deemed to constitute an ABR Revolving Loan of such Lender and such payment shall be deemed to have
reduced the Revolving L/C Exposure), and the Administrative Agent will promptly pay to the Issuing
Bank amounts so received by it from the Revolving Credit Lenders. The Administrative Agent will
promptly pay to the Issuing Bank any amounts received by it from the Borrower pursuant to Section
2.23(e) prior to the time that any Revolving Credit Lender makes any payment pursuant to this
paragraph; any such amounts received by the Administrative Agent thereafter will be promptly
remitted by the Administrative Agent to the Revolving Credit Lenders that shall have made such
payments and to the Issuing Bank, as their interests may appear. If any Revolving Credit Lender
shall not have made its Pro Rata Percentage of such Revolving L/C Disbursement available to the
Administrative Agent as provided above, such Lender and the Borrower severally agree to pay
interest on such amount, for each day from and including the date such amount is required to be
paid in accordance with this paragraph to but excluding the date such amount is paid, to the
Administrative Agent for the account of the Issuing Bank at (i) in the case of the Borrower, a rate
per annum equal to the interest rate applicable to Revolving Loans pursuant to Section 2.06(a) (in
lieu of interest which would otherwise become due to such Lender pursuant to Section 2.06), and
(ii) in the case of such Lender, for the first such day, the Federal Funds Effective Rate, and for
each day thereafter, the Alternate Base Rate.

     If the Issuing Bank shall not have received from the Borrower the payment that it may make
pursuant to Section 2.23(e) with respect to a Funded Letter of Credit within the time specified in
such Section, the Issuing Bank will promptly notify the Deposit Bank and the Administrative Agent
of the Funded L/C Disbursement and the Administrative Agent will promptly notify each Funded L/C
Lender of such Funded L/C Disbursement and its Pro Rata Percentage thereof, and the Deposit Bank
shall promptly pay to the Issuing Bank such Funded L/C Disbursement from such Funded L/C Lender’s
Credit-Linked Deposit (such amount to be applied to each Funded L/C Lender’s Credit-Linked Deposit
in accordance with its Pro Rata Percentage). Upon the payment made from the Credit-Linked Deposit
Account pursuant to this paragraph to reimburse the Issuing Bank for any Funded L/C Disbursement,
the Borrower shall be deemed to have reimbursed the Issuing Bank as of such date and the Funded L/C
Lenders shall be deemed to have extended, and the Borrower shall be deemed to have accepted, a Term
Loan, which shall initially be an ABR Loan, in the aggregate principal amount of such payment
without further action on the part of any party, and the Total Credit-Linked Deposit shall be
permanently reduced by such amount; any amount so paid pursuant to this paragraph shall, on and
after the payment date thereof, be deemed to be Term Loans for all purposes hereunder.

     SECTION
2.03. Borrowing Procedure. In order to request a Borrowing (other than a Swingline Loan or a deemed Borrowing pursuant
to Section 2.02(f), as to which this Section 2.03 shall not apply), the Borrower shall notify the
Administrative Agent by telephone (promptly confirmed by fax) or shall hand deliver or fax to the
Administrative Agent a duly completed Borrowing Request (a) in the case of a Eurodollar Borrowing,
not later than 12:00 (noon), New York City time, three Business Days before a proposed Borrowing
and (b) in the case of an ABR Borrowing, not later than 12:00 (noon), New York City time, one
Business Day before a proposed Borrowing. Each Borrowing Request shall be irrevocable, shall be signed by
or on behalf of the Borrower and shall specify the following information: (i) whether the Borrowing
then being requested is to be a Term Borrowing or a Revolving Credit Borrowing, and whether such
Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing; (ii) the date of such Borrowing
(which shall be a Business Day); (iii) the number and location of the account to which funds are to
be disbursed; (iv) the amount of such Borrowing; and (v) if such Borrowing is to be a Eurodollar
Borrowing, the initial Interest Period with respect thereto; provided, however,
that, notwithstanding any contrary specification in any Borrowing Request, each requested Borrowing
shall comply with the requirements set forth in Section 2.02. If no election as to the Type of
Borrowing is specified in any such notice, then the requested Borrowing shall be an ABR Borrowing.
If no Interest Period with respect to any Eurodollar Borrowing is specified in any such notice,
then the Borrower shall

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be deemed to have selected an Interest Period of one month’s duration. The
Administrative Agent shall promptly advise the applicable Lenders of any notice given in accordance
with this Section 2.03 (and the contents thereof), and of each Lender’s portion of the requested
Borrowing.

     SECTION
2.04. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay to the Administrative Agent
for the account of each Lender (i) the principal amount of each Term Loan of such Lender made to
the Borrower as provided in Section 2.11 and (ii) the then unpaid principal amount of each
Revolving Loan of such Lender made to the Borrower on the Revolving Credit Maturity Date. The
Borrower hereby unconditionally promises to pay to the Swingline Lender the then unpaid principal
amount of each Swingline Loan on the earlier of the Revolving Credit Maturity Date and the first
date after such Swingline Loan is made that is the 15th day or the last day of a calendar month and
is at least three Business Days after such Swingline Loan is made.

     (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender to the Borrower from time to time, including the amounts of principal and interest payable
and paid to such Lender from time to time under this Agreement, and shall provide copies of such
accounts to the Borrower upon its reasonable request (at the Borrower’s sole cost and expense).

     (c) The Administrative Agent shall maintain accounts in which it will record (i) the amount of
each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrower or any Subsidiary Guarantor and each Lender’s share thereof, and
shall provide copies of such accounts to the Borrower upon its reasonable request (at the
Borrower’s sole cost and expense).

     (d) The entries made in the accounts maintained pursuant to paragraphs (b) and (c) of this
Section shall be conclusive evidence of the existence and amounts of the obligations therein
recorded absent clearly demonstrable error; provided, however, that the failure of
any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in
any manner affect the obligations of the Borrower to repay the Loans in accordance with the terms
of this Agreement.

     (e) Any Lender may request that Loans made by it hereunder be evidenced by a promissory note.
In such event, the Borrower shall execute and deliver to such Lender a promissory note payable to
such Lender and its registered assigns (i) in the form of Exhibit K, if such promissory note
relates to Revolving Credit Borrowings or (ii) in the form of Exhibit L, if such promissory note
relates to Term Borrowings, or, in any such case, any other form reasonably acceptable to the
Administrative Agent. Notwithstanding any other provision of this Agreement, in the event any Lender shall request
and receive such a promissory note, the interests represented by such note shall at all times
(including after any assignment of all or part of such interests pursuant to Section 9.04) be
represented by one or more promissory notes payable to the payee named therein or its registered
assigns.

     SECTION 2.05. Fees. (a) The Borrower agrees to pay to each Lender, through the Administrative Agent, on
the last Business Day of March, June, September and December in each year (beginning with March 31,
2006) and on each date on which any Commitment of such Lender shall expire or be terminated as
provided herein, a commitment fee (a “Commitment Fee”) equal to the applicable Commitment
Fee Rate in effect from time to time on the average daily unused amount of the Commitments of such
Lender (other than the Swingline Commitment) during the preceding quarter (or shorter or longer
period commencing with the Closing Date or ending with the Revolving Credit Maturity Date or the
date on which the Commitments of such Lender shall expire or be terminated). All

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Commitment Fees shall be computed on the basis of the actual number of days elapsed in a year of 360 days. The
Commitment Fee due to each Lender shall commence to accrue on the Closing Date and shall cease to
accrue on the date on which the Commitment of such Lender shall expire or be terminated as provided
herein. For purposes of calculating Commitment Fees with respect to Revolving Credit Commitments
only, no portion of the Revolving Credit Commitments shall be deemed utilized under Section 2.22 as
a result of outstanding Swingline Loans.

     (b) The Borrower agrees to pay to the Administrative Agent, for its own account, the fees in
the amounts and at the times from time to time agreed to in writing by the Borrower and the
Administrative Agent, including pursuant to the Fee Letter (the “Administrative Agent
Fees”).

     (c) The Borrower agrees to pay (i) to each Revolving Credit Lender, through the Administrative
Agent, on the last Business Day of March, June, September and December of each year (beginning with
March 31, 2006) and on the date on which the Revolving Credit Commitment of such Lender shall be
terminated as provided herein (each, a “Revolving L/C Fee Payment Date”) a fee (a
“Revolving L/C Participation Fee”) calculated on such Lender’s Pro Rata Percentage of the
daily aggregate Revolving L/C Exposure (excluding the portion thereof attributable to unreimbursed
Revolving L/C Disbursements which are earning interim interest pursuant to Section 2.23(h)) during
the preceding quarter (or shorter or longer period commencing with the Closing Date or ending with
the Revolving Credit Maturity Date or the date on which all Revolving Letters of Credit have been
canceled or have expired and the Revolving Credit Commitments of all Lenders shall have been
terminated) at a rate per annum equal to the Applicable Margin used to determine the interest rate
on Revolving Credit Borrowings comprised of Eurodollar Loans pursuant to Section 2.06, and (ii) to
the Issuing Bank with respect to each outstanding Revolving Letter of Credit (including each
Existing Letter of Credit designated as such) issued at the request of the Borrower a fronting fee,
which shall accrue at such rate as shall be separately agreed upon between the Borrower and the
Issuing Bank, on the drawable amount of such Revolving Letter of Credit, payable quarterly in
arrears on each Revolving L/C Fee Payment Date after the issuance date of such Revolving Letter of
Credit, as well as the Issuing Bank’s customary documentary and processing charges with respect to
the issuance, amendment, renewal or extension of any Revolving Letter of Credit issued at the
request of the Borrower or processing of drawings thereunder (the fees in this clause (ii),
collectively, the “Revolving Issuing Bank Fees”). All Revolving L/C Participation Fees and
Revolving Issuing Bank Fees shall be computed on the basis of the actual number of days elapsed in
a year of 360 days.

     (d) Subject to the provisions of Section 2.07, the Borrower agrees to pay (i) to each Funded
L/C Lender, through the Administrative Agent, on the last Business Day of March, June, September
and December of each year (beginning with March 31, 2006) and on the date on which the
Credit-Linked Deposits are returned to the Funded L/C Lenders (each, a “Funded L/C Fee Payment
Date”) a fee (a “Funded L/C Participation Fee”) calculated on such Lender’s Pro Rata
Percentage of the daily amount of the Total Credit-Linked Deposit (excluding the portion thereof
attributable to unreimbursed Funded L/C Disbursements which are earning interim interest pursuant
to Section 2.23(h)) during the preceding quarter (or shorter or longer period commencing on the
date any Credit-Linked Deposit is funded and ending with the Funded Letter of Credit Maturity Date
or the date on which the entire amount of such Lender’s Credit-Linked Deposit is returned to it) at
a rate per annum equal to the Applicable Margin used to determine the interest rate on Term
Borrowings comprised of Eurodollar Loans pursuant to Section 2.06, (ii) to each Funded L/C Lender,
through the Administrative Agent, the fees referred to in the last sentence of Section 2.24(b) and
(iii) to the Issuing Bank with respect to each outstanding Funded Letter of Credit (including each
Existing Letter of Credit designated as such) issued for the account of (or at the request of) the
Borrower a fronting fee, which shall accrue at such rate as shall be separately agreed upon between
the Borrower and the Issuing Bank, on the drawable amount of such Funded Letter of Credit, payable
quarterly in arrears on each Funded L/C Fee Payment Date after the issuance date of such Funded

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Letter of Credit, as well as the Issuing Bank’s customary documentary and processing charges with
respect to the issuance, amendment, renewal or extension of any Funded Letter of Credit issued for
the account of (or at the request of) the Borrower or processing of drawings thereunder (the fees
in this clause (ii), collectively, the “Funded Issuing Bank Fees”). All Funded L/C
Participation Fees and Funded Issuing Bank Fees shall be computed on the basis of the actual number
of days elapsed in a year of 360 days.

     (e) All Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the Lenders, except that the
Issuing Bank Fees shall be paid directly to the Issuing Bank. Once paid, none of the Fees actually
owed and due shall be refundable under any circumstances.

     SECTION 2.06. Interest on Loans. (a) Subject to the provisions of Section 2.07, the outstanding Loans comprising each
ABR Borrowing, including each Swingline Loan, shall bear interest (computed on the basis of the
actual number of days elapsed over a year of 365 or 366 days, as the case may be, when the
Alternate Base Rate is determined by reference to the Prime Rate and over a year of 360 days at all
other times) at a rate per annum equal to the Alternate Base Rate plus the Applicable
Margin.

     (b) Subject to the provisions of Section 2.07, the Loans comprising each Eurodollar Borrowing
shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Margin.

     (c) Interest on each Loan shall be payable on the Interest Payment Dates applicable to such
Loan except as otherwise provided in this Agreement. Subject to Section 2.08, the applicable
Alternate Base Rate or Adjusted LIBO Rate for each Interest Period, as the case may be, shall be
determined by the Administrative Agent, and such determination shall, absent clearly demonstrable
error, be final and conclusive and binding on all parties hereto.

     SECTION
2.07. Default Interest. If the Borrower shall default in the payment of the principal of or interest on any Loan or
any other amount becoming due and payable hereunder or under any other Loan Document, by
acceleration or otherwise, the Borrower shall on demand from time to time pay interest, to the
extent permitted by law, on such defaulted amount to but excluding the date of actual payment (after as well as before
judgment) (a) in the case of overdue principal, at the rate otherwise applicable to such Loan
pursuant to Section 2.06 plus 2.00% per annum and (b) in all other cases, at a rate per
annum (computed on the basis of the actual number of days elapsed over a year of 365 or 366 days,
as the case may be, when determined by reference to the Prime Rate and over a year of 360 days at
all other times) equal to the rate that would be applicable to an ABR Term Loan plus 2.00%.

     SECTION
2.08. Alternate Rate of Interest. In the event, and on each occasion, that prior to the commencement of any Interest Period
for a Eurodollar Borrowing or the determination of the Benchmark LIBO Rate on any day (a) the
Administrative Agent or the Deposit Bank, as applicable, shall have determined that adequate and
reasonable means do not exist for determining the Adjusted LIBO Rate for such Interest Period or
the Benchmark LIBO Rate for such day or (b) the Administrative Agent or the Deposit Bank, as
applicable, is advised by the Required Lenders reasonably and in good faith that the Adjusted LIBO
Rate for such Interest Period or the Benchmark LIBO Rate for such day will not adequately and
fairly reflect the cost to such Lenders of making or maintaining their Loans included in such
Borrowing or such Credit-Linked Deposit, as applicable, for such Interest Period, then the
Administrative Agent or the Deposit Bank, as applicable, shall, as soon as practicable thereafter,
give written or fax notice of such determination to the Borrower and the Lenders. In the event of
any such

62

 

notice, until the Administrative Agent or the Deposit Bank, as applicable, shall have
advised the Borrower and the Lenders that the circumstances giving rise to such written or fax
notice no longer exist, (i) any request by the Borrower for a Eurodollar Borrowing pursuant to
Section 2.03 or 2.10 shall be deemed to be a request for an ABR Borrowing, (ii) any Interest Period
election that requests the conversion of any Borrowing to, or continuation of any Borrowing as, a
Eurodollar Borrowing shall be ineffective and (iii) the Credit-Linked Deposits shall be invested so
as to earn a return equal to the greater of the Federal Funds Effective Rate or a rate determined
by the Deposit Bank in accordance with banking industry rules on interbank compensation. Each
determination by the Administrative Agent or the Deposit Bank, as applicable, under this Section
2.08 shall, absent clearly demonstrable error, be final and conclusive and binding on all parties
hereto.

     SECTION 2.09. Termination and Reduction of Commitments; Return, Reduction and Conversion
of Credit-Linked Deposits. (a) Unless previously terminated in accordance with the terms hereof, (i) the Term
Loan Commitments automatically terminated at 5:00 p.m., New York City time, on the Closing Date and
(ii) the Revolving Credit Commitments, the Swingline Commitment and the Revolving L/C Commitment
shall automatically terminate on the Revolving Credit Maturity Date. If any Funded Letter of
Credit remains outstanding on the Funded Letter of Credit Maturity Date, the Borrower shall deposit
with the Administrative Agent an amount in cash equal to 103% of the aggregate undrawn amount of
such Letter of Credit to secure the full obligations with respect to any drawings that may occur
thereunder, which amount shall be promptly returned to the Borrower upon each such Letter of Credit
being terminated or cancelled. Subject only to the Borrower’s compliance with its obligations
under the immediately preceding sentence, any amount of the Credit-Linked Deposits held in the
Credit-Linked Deposit Account will be paid to the Administrative Agent for return to the Funded L/C
Lenders on the Funded Letter of Credit Maturity Date pursuant to Section 2.11(c).

     (b) Upon at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent, the Borrower may at any time in whole permanently terminate, or from time to
time in part permanently reduce, in each case without premium or penalty, the Revolving Credit
Commitments or the Swingline Commitment; provided, however, that (i) each partial
reduction of the Revolving Credit Commitments or the Swingline Commitment shall be in an
integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and (ii) the Total
Revolving Credit Commitment shall not be reduced to an amount that is less than the Aggregate
Revolving Credit Exposure then in effect; provided further that a notice of
termination may state that such termination is conditioned upon the effectiveness of other credit
facilities or any other event, in which case such notice may be revoked by the Borrower (by notice
to the Administrative Agent on or prior to the specified termination date) if such condition is not
satisfied. Upon at least three Business Days’ prior irrevocable written or fax notice to the
Deposit Bank and the Administrative Agent, the Borrower may at any time in whole permanently
terminate, or from time to time permanently reduce, the Total Credit-Linked Deposit;
provided, however, that (i) each partial reduction of the Total Credit-Linked
Deposit shall be in an integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and
(ii) the Total Credit-Linked Deposit shall not be reduced to an amount that would result in the
aggregate Funded L/C Exposure exceeding the Total Credit-Linked Deposit (as so reduced);
provided further that a notice of termination may state that such termination is
conditioned upon the effectiveness of other credit facilities or any other event, in which case
such notice may be revoked by the Borrower (by notice to the Deposit Bank, if such termination
relates to the Total Credit-Linked Deposit, and the Administrative Agent on or prior to the
specified termination date) if such condition is not satisfied. In the event the Credit-Linked
Deposits shall be reduced as provided in the immediately preceding sentence, the Deposit Bank shall
pay to the Administrative Agent for return all amounts in the Credit-Linked Deposit Account in
excess of the reduced Total Credit-Linked Deposit to the Funded L/C Lenders ratably in accordance
with their Pro Rata Percentages of the Total Credit-Linked Deposit.

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     (c) Each reduction in the Revolving Credit Commitments or Swingline Commitment, or
reduction of the Total Credit-Linked Deposit, hereunder shall be made ratably among the applicable
Lenders in accordance with their Pro Rata Percentages. The Borrower shall pay to the
Administrative Agent for the account of the applicable Lenders, on the date of each termination or
reduction, the Commitment Fees on the amount of the Commitments so terminated or reduced accrued to
but excluding the date of such termination or reduction.

     (d) In addition to the foregoing and subject to the terms hereof, so long as no Default or
Event of Default shall have occurred and be continuing, upon at least three Business Days’ prior
irrevocable written or fax notice to the Deposit Bank and the Administrative Agent, the Borrower
may, at any time and from time to time, request that any unused portion of the Total Credit-Linked
Deposit in an amount not greater than the excess of the Total Credit-Linked Deposit over the
aggregate Funded L/C Exposure be permanently converted into Term Loans, in whole or in part,
without premium or penalty; provided, however, that (i) each partial conversion
shall be an integral multiple of $1,000,000 and in a minimum amount of $5,000,000 and (ii) the
Total Credit-Linked Deposit shall not be reduced to an amount that would result in the aggregate
Funded L/C Exposure exceeding the Total Credit-Linked Deposit (as so reduced). Any such notice of
conversion shall include the date and amount of such conversion. If any such notice of conversion
is properly given, the Deposit Bank shall irrevocably and permanently fund the requested amount in
the Credit-Linked Deposit Account to the Administrative Agent for payment to the Borrower as
proceeds of Term Loans made on such date by the Funded L/C Lenders ratably in accordance with their
Pro Rata Percentages of the Total Credit-Linked Deposit, and the amount so funded shall permanently
reduce the Total Credit-Linked Deposit; any amount so funded pursuant to this paragraph shall, on
and after the funding date thereof, be deemed to be Term Loans for all purposes hereunder.

     SECTION 2.10. Conversion and Continuation of Borrowings. The Borrower shall have the right at any
time upon prior irrevocable notice to the Administrative Agent (a) not later than 12:00 (noon), New
York City time, one Business Day prior to conversion, to convert any Eurodollar Borrowing of the
Borrower into an ABR Borrowing, (b) not later than 12:00 (noon), New York City time, three Business
Days prior to conversion or continuation, to convert any ABR Borrowing of the Borrower into a
Eurodollar Borrowing or to continue any Eurodollar Borrowing of the Borrower as a Eurodollar
Borrowing for an additional Interest Period and (c) not later than 12:00 (noon), New York City
time, three Business Days prior to conversion, to convert the Interest Period with respect to any
Eurodollar Borrowing of the Borrower to another permissible Interest Period, subject in each case
to the following:

     (i) each conversion or continuation shall be made pro rata among the Lenders in
accordance with the respective principal amounts of the Loans comprising the converted or
continued Borrowing;

     (ii) if less than all the outstanding principal amount of any Borrowing shall be
converted or continued, then each resulting Borrowing shall satisfy the limitations
specified in Sections 2.02(a) and 2.02(b) regarding the principal amount and maximum number
of Borrowings of the relevant Type;

     (iii) each conversion shall be effected by each Lender and the Administrative Agent by
recording for the account of such Lender the new Loan of such Lender resulting from such
conversion and reducing the Loan (or portion thereof) of such Lender being converted by an
equivalent principal amount; accrued and unpaid interest on any Eurodollar Loan (or portion
thereof) being converted shall be paid by the Borrower at the time of conversion;

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     (iv) if any Eurodollar Borrowing is converted at a time other than the end of the
Interest Period applicable thereto, the Borrower shall pay, upon demand, any amounts due to
the Lenders pursuant to Section 2.16;

     (v) any portion of a Borrowing maturing or required to be repaid in less than one month
may not be converted into or continued as a Eurodollar Borrowing;

     (vi) any portion of a Eurodollar Borrowing that cannot be converted into or continued
as a Eurodollar Borrowing by reason of the immediately preceding clause shall be
automatically converted at the end of the Interest Period in effect for such Borrowing into
an ABR Borrowing;

     (vii) no Interest Period may be selected for any Eurodollar Term Borrowing that would
end later than a Repayment Date occurring on or after the first day of such Interest Period
if, after giving effect to such selection, the aggregate outstanding amount of the sum of
(A) the Eurodollar Term Borrowings with Interest Periods ending on or prior to such
Repayment Date and (B) the ABR Term Borrowings would not be at least equal to the principal
amount of Term Borrowings to be paid on such Repayment Date; and

     (viii) after the occurrence and during the continuance of an Event of Default, no
outstanding Loan may be converted into, or continued as, a Eurodollar Loan.

     Each notice pursuant to this Section 2.10 shall be irrevocable and shall refer to this
Agreement and specify (i) the identity and amount of the Borrowing that the Borrower requests be
converted or continued, (ii) whether such Borrowing is to be converted to or continued as a
Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a conversion, the date of
such conversion (which shall be a Business Day) and (iv) if such Borrowing is to be converted to or
continued as a Eurodollar Borrowing, the Interest Period with respect thereto. If no Interest
Period is specified in any such notice with respect to any conversion to or continuation as a
Eurodollar Borrowing, the Borrower shall be deemed to have selected an Interest Period of one
month’s duration. The Administrative Agent shall advise the Lenders of any notice given pursuant
to this Section 2.10 and of each Lender’s portion of any converted or continued Borrowing. If the
Borrower shall not have given notice in accordance with this Section 2.10 to continue any Borrowing
into a subsequent Interest Period (and shall not otherwise have given notice in accordance with
this Section 2.10 to convert such Borrowing), such Borrowing shall, at the end of the Interest
Period applicable thereto (unless repaid pursuant to the terms hereof), automatically be converted
or continued into an ABR Borrowing.

     SECTION 2.11. Repayment of Term Borrowings. (a) On the dates set forth below, or if any such
date is not a Business Day, on the next preceding Business Day (each such date being called a
“Repayment Date”), the Borrower shall pay to the Administrative Agent, for the account of
the Term Lenders, a principal amount of the Term Loans (as adjusted from time to time pursuant to
Sections 2.11(b), 2.12 and 2.13(e)) in an aggregate amount equal to the sum of the principal amount
of Term Loans made on the Closing Date and, if applicable, the principal amount of Term Loans
resulting from any conversion pursuant to Section 2.09(d), multiplied, in each case, by the
percentage set forth below for such date, together in each case with accrued and unpaid interest
and Fees on the amount to be paid to but excluding the date of such payment:

	 	 	 
	Repayment Date	 	Percentage
	June 30, 2006
	 	0.25%
	September 30, 2006
	 	0.25%
	December 31, 2006
	 	0.25%
	March 31, 2007
	 	0.25%

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	Repayment Date	 	Percentage
	June 30, 2007
	 	0.25%
	September 30, 2007
	 	0.25%
	December 31, 2007
	 	0.25%
	March 31, 2008
	 	0.25%
	June 30, 2008
	 	0.25%
	September 30, 2008
	 	0.25%
	December 31, 2008
	 	0.25%
	March 31, 2009
	 	0.25%
	June 30, 2009
	 	0.25%
	September 30, 2009
	 	0.25%
	December 31, 2009
	 	0.25%
	March 31, 2010
	 	0.25%
	June 30, 2010
	 	0.25%
	September 30, 2010
	 	0.25%
	December 31, 2010
	 	0.25%
	March 31, 2011
	 	0.25%
	June 30, 2011
	 	0.25%
	September 30, 2011
	 	0.25%
	December 31, 2011
	 	0.25%
	March 31, 2012
	 	0.25%
	June 30, 2012
	 	0.25%
	September 30, 2012
	 	0.25%
	December 31, 2012
	 	0.25%
	Term Loan Maturity Date
	 	93.25% or Remainder

     (b) In the event and on each occasion that any Term Loan Commitments shall be reduced or shall
expire or terminate other than as a result of the making of a Term Loan, the installments payable
on each Repayment Date shall be reduced pro rata by an aggregate amount equal to the amount of such
reduction, expiration or termination.

     (c) To the extent not previously paid, all Term Loans shall be due and payable on the Term
Loan Maturity Date, together with accrued and unpaid interest on the principal amount to be paid to
but excluding the date of payment. Subject to the cash collateralization by the Borrower of any
Funded Letter of Credit outstanding on the Funded Letter of Credit Maturity Date and to the extent
not previously returned, all Credit-Linked Deposits shall be returned to the Funded L/C Lenders on
the Funded Letter of Credit Maturity Date, together with accrued and unpaid fees and other amounts
due hereunder.

     (d) All repayments pursuant to this Section 2.11 shall be subject to Section 2.16, but shall
otherwise be without premium or penalty.

     SECTION 2.12. Prepayment. (a) The Borrower shall have the right at any time and from time to
time to prepay any Borrowing, in whole or in part, upon at least three Business Days’ prior written
or fax notice (or telephone notice promptly confirmed by written or fax notice) in the case of
Eurodollar Loans, or written or fax notice (or telephone notice promptly confirmed by written or
fax notice) at least one Business Day prior to the date of prepayment in the case of ABR Loans, to
the Administrative Agent before 11:00 a.m., New York City time; provided, however,
that each partial prepayment shall be in an amount that is an integral multiple of $1,000,000 and
not less than $5,000,000.

     (b) Optional prepayments of Term Loans shall be applied against the remaining scheduled
installments of principal due in respect of the Term Loans as directed by the Borrower.

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     (c) Each notice of prepayment shall specify the prepayment date and the principal amount of
each Borrowing (or portion thereof) to be prepaid, shall be irrevocable and shall commit the
Borrower to prepay such Borrowing by the amount stated therein on the date stated therein;
provided that a notice of prepayment may state that such prepayment is conditioned upon the
effectiveness of other credit facilities or any other event, in which case such notice may be
revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified
prepayment date) if such condition is not satisfied. All prepayments and failures to prepay under
this Section 2.12 shall be subject to Section 2.16. All prepayments under this Section 2.12 shall
be accompanied by accrued and unpaid interest on the principal amount to be prepaid to but
excluding the date of payment.

     SECTION 2.13. Mandatory Prepayments. (a) In the event of any termination in full of all the
Revolving Credit Commitments, the Borrower shall, on the date of such termination, repay or prepay
all its outstanding Revolving Credit Borrowings and all its outstanding Swingline Loans and replace
all its outstanding Revolving Letters of Credit and/or deposit an amount equal to the Revolving L/C
Exposure in cash in a cash collateral account established with the Collateral Agent for the benefit
of the Revolving Credit Lenders. If as a result of any partial reduction of the Revolving Credit
Commitments the Aggregate Revolving Credit Exposure would exceed the Total Revolving Credit
Commitment after giving effect thereto, then the Borrower shall, on the date of such reduction,
repay or prepay Revolving Credit Borrowings or Swingline Loans (or a combination thereof) and/or
cash collateralize Revolving Letters of Credit in an amount sufficient to eliminate such excess.
If at any time the Funded L/C Exposure shall exceed the Total Credit-Linked Deposit, the Borrower
shall deposit cash in a cash collateral account established with the Administrative Agent pursuant
to Section 2.23(j) in an amount equal to such excess.

     (b) (i) Not later than the tenth Business Day following receipt of Net Cash Proceeds from (A)
the completion of any Asset Sale that is not (1) a Sale of Core Collateral, (2) a sale of the
Equity Interests of Rocky Road Power LLC or Termo Santander (Alpha) Holding, LLC owned by the
Borrower, (3) a sale of the assets comprising the Audrain Generating Station by the Borrower or
(4) a sale, at any time and from time to time, of South Central Securitization Assets in connection
with a South Central Securitization (and/or the receipt at any time of any servicing fee related to
a South Central Securitization), or (B) the occurrence of any Recovery Event (other than in respect
of Core Collateral), the Borrower shall offer to prepay outstanding Term Loans in an amount equal
to the Required Prepayment Percentage multiplied by the amount of such Net Cash Proceeds that is
received, such prepayment to be made in accordance with Section 2.13(e). Notwithstanding the
foregoing, if the amount of Net Cash Proceeds from the completion of any such Asset Sale or the
occurrence of any such Recovery Event required to be used to offer to prepay outstanding Term Loans
pursuant to this clause (b)(i) is less than $10,000,000, such application of such Net Cash Proceeds
may be deferred until such time as the amount of such Net Cash Proceeds plus the aggregate
amount of all Net Cash Proceeds received thereafter from the completion of any such Asset Sale or
the occurrence of any such Recovery Event required to be so applied under this clause (b)(i)
aggregates at least $10,000,000, at which time the Borrower shall apply the aggregate amount of all
such deferred Net Cash Proceeds to prepay outstanding Term Loans, such offer to prepay to be made
in accordance with Section 2.13(e).

          (ii) Not later than the tenth Business Day following receipt of Net Cash Proceeds from the
completion of any Sale of Core Collateral or the occurrence of any Recovery Event in respect of
Core Collateral, the Borrower shall apply an amount equal to 100% of the Net Cash Proceeds received
with respect thereto to offer to prepay outstanding Loans, to permanently reduce the Total
Credit-Linked Deposit, to permanently reduce Revolving Credit Commitments and to cash collateralize outstanding
Letters of Credit, such offer of prepayment, reduction and cash collateralization to be made in
accordance with Section 2.13(f). Promptly upon the receipt of any such Net Cash Proceeds, the
Borrower shall, pending such application of such proceeds, hold such proceeds in a segregated
account under the

67

 

exclusive dominion and control of the NRG Collateral Trustee or, in the case of a
Sale of Core Collateral representing assets of Texas Genco or its subsidiaries, the Texas Genco
Collateral Trustee, for the benefit of the Secured Parties, which is free from any other Liens,
other than non-consensual Permitted Liens.

     (c) In the event that the Borrower or any Restricted Subsidiary shall receive Net Cash
Proceeds from the issuance or other incurrence of Indebtedness of the Borrower or any Restricted
Subsidiary (other than Indebtedness permitted pursuant to Section 6.01 (other than pursuant to
Section 6.01(m) and 6.01(s))), the Borrower shall, substantially simultaneously with (and in any
event not later than the tenth Business Day next following) the receipt of such Net Cash Proceeds
by the Borrower or any Restricted Subsidiary, offer to prepay outstanding Term Loans in an amount
equal to the Required Prepayment Percentage multiplied by the amount of such Net Cash Proceeds that
is received, such offer to prepay to be made in accordance with Section 2.13(e).

     (d) No later than ten days following the earlier of (i) 90 days after the end of each fiscal
year of the Borrower, commencing with the fiscal year ending on December 31, 2007, and (ii) the
date on which the financial statements with respect to such period are delivered pursuant to
Section 5.04(a), the Borrower shall offer to prepay (and prepay) outstanding Term Loans, such offer
to prepay (and prepayment) to be made in accordance with Section 2.13(e), in an aggregate principal
amount equal to (x) the Required Prepayment Percentage of Excess Cash Flow for the fiscal year then
ended minus (y) the aggregate amount of any voluntary prepayments of Term Loans made
pursuant to Section 2.12 during such fiscal year (such amount determined by such subtraction, the
“Annual Calculated ECF Sweep Amount”). Notwithstanding the foregoing, the Borrower shall
have the option to calculate Excess Cash Flow for one or more fiscal quarters of any fiscal year
(with respect to such fiscal quarter or any other immediately preceding fiscal quarter or fiscal
quarters during such fiscal year for which Excess Cash Flow had not previously been so calculated
and the prepayment offer in accordance with Section 2.13(d) and Section 2.13(e) below had not
previously been made); provided that in the event that the Borrower shall exercise such
option, (i) no later than ten days following the earlier of (A) 45 days after the end of the
applicable fiscal quarter and (B) the date on which financial statements with respect to such
applicable fiscal quarter are delivered pursuant Section 5.04(b), the Borrower shall offer to
prepay outstanding Term Loans, such offer of prepayment to be made in accordance with Section
2.13(e), in an aggregate principal amount equal to (x) the Required Prepayment Percentage of Excess
Cash Flow for the applicable fiscal period then ended minus (y) the aggregate amount of any
voluntary prepayments of Term Loans made pursuant to Section 2.12 during such applicable fiscal
period and (ii) the Borrower shall continue to be required to make the offer to prepay (and
prepayment) described in the first sentence of this paragraph (d) following the end of the
applicable fiscal year in accordance with the provisions described above (provided that the
amount of Term Loans that the Borrower shall be required to prepay and offer to prepay with respect
to the Excess Cash Flow in respect of such fiscal year shall be governed by the proviso in the
first sentence of Section 2.13(e)). The Borrower shall provide the Administrative Agent with
written notice of any election described in the immediately preceding sentence to calculate Excess
Cash Flow (and make the required prepayment and prepayment offer) as of the end of any fiscal
quarter of any fiscal year no later than the earlier of (i) 45 days after the end of the applicable
fiscal quarter and (ii) the date on which financial statements with respect to such applicable
fiscal period are delivered pursuant to Section 5.04(b). For purposes of this Section 2.13(d), the
term “fiscal period” shall mean a period of one or more consecutive fiscal quarters.

     (e) Notwithstanding any provision in this Agreement to the contrary, but subject to the right
of each Term Lender to elect to decline all or any portion of any prepayment pursuant to Section 2.13(b)(i) or 2.13(c) or a portion of any prepayment pursuant to Section 2.13(d) as described
below, the amount to be prepaid on any date pursuant to Section 2.13(b)(i), 2.13(c) or 2.13(d)
shall be applied to the prepayment (to the extent required to be so applied) of all Term Loans
outstanding on such date; provided that, notwithstanding anything in this Agreement to the
contrary, in the case of any prepayment pursuant

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to Section 2.13(d) in respect of a fiscal year (as opposed to any other fiscal period), on the date of any prepayment offer that is required to be
made pursuant to such Section in respect of a fiscal year ended, (a) the Borrower shall be required
to prepay outstanding Term Loans by an amount equal to, if positive, (i) 50% of the Annual
Calculated ECF Sweep Amount for such fiscal year minus (ii) any amount that had been
offered to, accepted by and prepaid to the Term Lenders at any time during such fiscal year
pursuant to clause (i) of the second sentence of Section 2.13(d) (such amount set forth in the
preceding clause (ii) in respect of such fiscal year, the “Early Paid Amount”), and the
Term Lenders shall have no right to decline all or any portion of such required prepayment amount
determined by such subtraction and (b) the Borrower shall be required to offer to the Term Lenders,
and the Term Lenders shall have the right to decline all or any portion of such offered amount, an
amount equal to (x) 50% of the Annual Calculated ECF Sweep Amount for such fiscal year
minus (y) if the Early Paid Amount for such fiscal year was more than 50% of the Annual
Calculated ECF Sweep Amount for such fiscal year, the amount by which such Early Paid Amount
exceeded the amount set forth in the immediately preceding clause (x). No later than 5:00 p.m.,
New York City time, within the earlier of three Business Days (A) prior to the applicable
prepayment date or (B) after the Borrower has offered prepayment of the Term Loans hereunder, each
Term Lender may provide written notice to the Administrative Agent either (i) setting forth the
maximum amount of the aggregate amount of its Term Loans that it wishes to have prepaid on such
date pursuant to this Section (the “Requested Term Loan Prepayment Amount”) or (ii)
declining in its entirety any prepayment on such date pursuant to this Section. In the event that
any Term Lender shall fail to provide such written notice to the Administrative Agent within the
time period specified above, such Term Lender shall be deemed to have elected a Requested Term Loan
Prepayment Amount equal to its ratable share of such mandatory prepayment (determined based on the
percentage of the aggregate amount of all Term Loans represented by such Term Lender’s Term Loans
as determined immediately prior to such prepayment and without taking into account any Requested
Term Loan Prepayment Amount of any other Lender). In the event that the amount of any mandatory
prepayment to be made pursuant to this Section shall be equal to or exceed the aggregate amount of
all Requested Term Loan Prepayment Amounts of all Term Lenders electing (or deemed to be electing)
such a prepayment, each Term Lender electing (or deemed to be electing) such a prepayment shall
have an amount of its Term Loans prepaid that is equal to such Term Lender’s Requested Term Loan
Prepayment Amount. In the event that the amount of any mandatory prepayment to be made pursuant to
this Section shall be less than the aggregate amount of all Requested Term Loan Prepayment Amounts
of all Term Lenders electing (or deemed to be electing) such a prepayment, each Term Lender
electing (or deemed to be electing) such a prepayment shall have its Term Loans prepaid in an
amount equal to the product of (A) the amount of such mandatory prepayment and (B) the percentage
of the aggregate Requested Term Loan Prepayment Amounts of all Term Lenders electing (or deemed to
be electing) such a prepayment represented by such Term Lender’s Requested Term Loan Prepayment
Amount. Any residual amounts after any mandatory prepayments are made pursuant to this Section
2.13(e) shall be retained by the Borrower. Mandatory prepayments of outstanding Term Loans under
this Agreement shall be applied against the remaining scheduled installments due in respect of the
Term Loans under Section 2.11 as directed by the Borrower.

     (f) Notwithstanding any provision in this Agreement to the contrary, but subject to the right
of each Term Lender, each Funded L/C Lender and each Revolving Credit Lender to elect to decline
all or any portion of any prepayment or return pursuant to Section 2.13(b)(ii) as described below,
the amount to be prepaid, returned or deposited as cash collateral on any date pursuant to Section
2.13(b)(ii) shall, subject to paragraph (g) below, be applied first to the prepayment (to the
extent required to be so applied) of all Term Loans outstanding on such date, second (to the extent
of any residual) to the permanent return of Credit-Linked Deposits outstanding on such date (and/or
to be deposited in an account with the Administrative Agent if required under the circumstances described in paragraph (g) below) and
thereafter (to the extent of any residual) to the permanent reduction of Revolving Credit
Commitments and concurrent repayment of Revolving Credit Borrowings, Swingline Loans and/or cash
collateralization of Revolving Letters of Credit outstanding on such date. No later than 5:00
p.m., New York City time,

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three Business Days prior to the applicable prepayment, return, reduction
or cash collateralization date, each Term Lender, each Funded L/C Lender and each Revolving Credit
Lender may provide written notice to the Administrative Agent (and to the Deposit Bank, in the case
of Funded L/C Lenders) either (i) setting forth the maximum amount of the aggregate amount of its
Term Loans, Credit-Linked Deposits and/or Revolving Credit Commitments that it wishes to have
prepaid or reduced on such date pursuant to this Section 2.12(f) (the “Requested Prepayment
Amount”) or (ii) declining in its entirety any prepayment, return, reduction or cash
collateralization on such date pursuant to this Section. In the event that any Term Lender, Funded
L/C Lender or Revolving Credit Lender shall fail to provide such written notice to the
Administrative Agent within the time period specified above, (i) such Term Lender shall be deemed
to have elected a Requested Prepayment Amount equal to its ratable share of such mandatory
prepayment (determined based on the percentage of the aggregate amount of all Term Loans
represented by such Term Lender’s Term Loans as determined immediately prior to such prepayment and
without taking into account any Requested Prepayment Amount of any other Lender), (ii) such Funded
L/C Lender shall be deemed to have elected a Requested Prepayment Amount equal to its ratable share
of such mandatory return (determined based on the percentage of the aggregate amount of the Total
Credit-Linked Deposit represented by such Funded L/C Lender’s Credit-Linked Deposits as determined
immediately prior to such return and without taking into account any Requested Prepayment Amount of
any other Lender) and (iii) such Revolving Credit Lender shall be deemed to have elected a
Requested Prepayment Amount and corresponding reduction of its Revolving Credit Commitment equal to
its ratable share of such mandatory reduction (determined based on the percentage of the aggregate
amount of the Total Revolving Credit Commitment represented by such Revolving Credit Lender’s
Revolving Credit Commitment as determined immediately prior to such return and without taking into
account any Requested Prepayment Amount of any other Lender). In the event that the amount of any
mandatory prepayment to be made pursuant to this Section shall be less than the aggregate amount of
all Requested Prepayment Amounts of all Term Lenders electing (or deemed to be electing) such a
prepayment, (i) each Term Lender electing (or deemed to be electing) such a prepayment shall have
its Term Loans prepaid in an amount equal to the product of (A) the amount of such mandatory
prepayment and (B) the percentage of the aggregate Requested Prepayment Amounts of all Term Lenders
electing (or deemed to be electing) such a prepayment represented by such Term Lender’s Requested
Prepayment Amount and (ii) no amount shall be returned in respect of the Credit-Linked Deposits or
applied to permanently reduce the Revolving Credit Commitments. In the event that the amount of
any mandatory prepayment, return, reduction or cash collateralization to be made pursuant to this
Section shall be equal to or exceed the aggregate amount of all Requested Prepayment Amounts of all
Term Lenders electing (or deemed to be electing) such a prepayment, each Term Lender electing (or
deemed to be electing) such a prepayment shall have an amount of its Term Loans prepaid that is
equal to such Term Lender’s Requested Prepayment Amount, and any residual amount of any mandatory
prepayment, return, reduction or cash collateralization remaining after such application shall be
applied to the return of the Credit-Linked Deposits of the Funded L/C Lenders as follows: (i) in
the event that any such residual amount shall be equal to or exceed the aggregate amount of all
Requested Prepayment Amounts of all Funded L/C Lenders electing (or deemed to be electing) such a
return, each Funded L/C Lender electing (or deemed to be electing) such a return shall have an
amount of its Credit-Linked Deposits returned that is equal to such Funded L/C Lender’s Requested
Prepayment Amount and any residual amount shall be applied to the permanent reduction of Revolving
Credit Commitments as set forth in the next succeeding sentence or (ii) in the event that any such
residual amount shall be less than the aggregate amount of all Requested Prepayment Amounts of all
Funded L/C Lenders electing (or deemed to be electing) such a return, each Funded L/C Lender
electing (or deemed to be electing) such a return shall have its Credit-Linked Deposits returned in
an amount equal to the product of (A) the amount of such residual and (B) the percentage of the
aggregate Requested Prepayment Amounts of all Funded L/C Lenders electing (or deemed to be electing)
such a return represented by such Funded L/C Lender’s Requested Prepayment Amount. In the event
that the amount of any mandatory prepayment, return, reduction or cash collateralization to be made
pursuant to this Section shall exceed the aggregate amount of all Requested Prepayment Amounts of
all Term

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Lenders and Funded L/C Lenders electing (or deemed to be electing) such a prepayment or
return, any residual amount of any mandatory prepayment, return, reduction or cash
collateralization remaining after such application shall be applied to the permanent reduction of
Revolving Credit Commitments as follows: (i) in the event that any such residual amount shall be
equal to or exceed the aggregate amount of all Requested Prepayment Amounts of all Revolving Credit
Lenders electing (or deemed to be electing) such a reduction, each Revolving Credit Lender electing
(or deemed to be electing) such a reduction shall have a portion of its Revolving Credit Commitment
reduced that is equal to such Revolving Credit Lender’s Requested Prepayment Amount or (ii) in the
event that any such residual amount shall be less than the aggregate amount of all Requested
Prepayment Amounts of all Revolving Credit Lenders electing (or deemed to be electing) such a
reduction, each Revolving Credit Lender electing (or deemed to be electing) such a reduction shall
have its Revolving Credit Commitment reduced in an amount equal to the product of (A) the amount of
such residual and (B) the percentage of the aggregate Requested Prepayment Amounts of all Revolving
Credit Lenders electing (or deemed to be electing) such a return represented by such Revolving
Credit Lender’s Requested Prepayment Amount. Any residual amounts after any mandatory prepayments,
returns, reductions or cash collateralizations are made pursuant to this Section 2.13(f) shall be
retained by the Borrower.

     (g) Notwithstanding any provision in this Agreement to the contrary, in the event that any
permanent reduction of the Total Credit-Linked Deposit pursuant to this Section 2.13 would result
in the Funded L/C Exposure exceeding the Total Credit-Linked Deposit, the Borrower shall deposit
cash in a cash collateral account established with the Administrative Agent pursuant to Section
2.23(j) in an amount equal to such excess and Credit-Linked Deposits in an amount equal to such
excess shall not be returned to the Funded L/C Lenders until the 91st day following the
date of such deposit by the Borrower.

     (h) The Borrower shall deliver to the Administrative Agent and the Deposit Bank, at the time
of each prepayment, return, reduction or cash collateralization required under this Section 2.13,
(i) a certificate signed by a Financial Officer of the Borrower setting forth in reasonable detail
the calculation of the amount of such prepayment, return, reduction or cash collateralization and
(ii) to the extent practicable, at least ten days prior written notice of such prepayment, return,
reduction or cash collateralization (and the Administrative Agent shall promptly provide the same
to each Term Lender, Funded L/C Lender and Revolving Credit Lender). Each notice of prepayment,
return, reduction or cash collateralization shall specify the prepayment, return, reduction or cash
collateralization date, the Type of each Loan being prepaid and the principal amount of each Loan
(or portion thereof) to be prepaid, the amount of any reduction of the Total Credit-Linked Deposit
and the amount of any reduction of Revolving Credit Commitments. All prepayments of Borrowings or
reductions of the Total Credit-Linked Deposit or Revolving Credit Commitments pursuant to this
Section 2.13 shall be accompanied by accrued and unpaid interest on the principal amount to be paid
to but excluding the date of payment and shall be subject to Section 2.16, but shall otherwise be
without premium or penalty.

     SECTION 2.14. Reserve Requirements; Change in Circumstances. (a) Notwithstanding any other
provision of this Agreement, if any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender, the Administrative Agent, the Deposit Bank or the Issuing Bank, or

     (ii) impose on any Lender, the Administrative Agent, the Deposit Bank or the Issuing
Bank or the London interbank market any other condition affecting this Agreement or
Eurodollar Loans made by such Lender or any Letter of Credit or participation therein or any
Credit-Linked Deposit (except, in each case, any such reserve requirement which is reflected
in the Adjusted LIBO Rate),

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and the result of any of the foregoing shall be to increase the cost to such Lender or the Issuing
Bank of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any
such Loan) or to increase the cost to any Lender, the Administrative Agent, the Deposit Bank or the
Issuing Bank of issuing or maintaining any Letter of Credit or any Credit-Linked Deposit or
purchasing or maintaining a participation therein or to reduce the amount of any sum received or
receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or
otherwise) by an amount reasonably deemed by such Lender, the Administrative Agent, the Deposit
Bank or the Issuing Bank to be material, then the Borrower will pay to such Lender, the
Administrative Agent, the Deposit Bank or the Issuing Bank, as the case may be, promptly upon
demand such additional amount or amounts as will compensate such Lender or the Issuing Bank, as the
case may be, for such additional costs incurred or reduction suffered.

     (b) If any Lender, the Administrative Agent or the Issuing Bank shall have determined that any
Change in Law regarding capital adequacy has or would have the effect of reducing the rate of
return on such Lender’s, the Administrative Agent’s or the Issuing Bank’s capital or on the capital
of such Lender’s, the Administrative Agent’s or the Issuing Bank’s holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in Letters of Credit or
Swingline Loans purchased by, such Lender or the Letters of Credit issued by the Issuing Bank to a
level below that which such Lender, the Administrative Agent or the Issuing Bank or such Lender’s,
the Administrative Agent’s or the Issuing Bank’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s, the Administrative Agent’s or the Issuing
Bank’s policies and the policies of such Lender’s, the Administrative Agent’s or the Issuing Bank’s
holding company with respect to capital adequacy) by an amount reasonably deemed by such Lender,
the Administrative Agent or the Issuing Bank to be material, then from time to time the Borrower
shall pay to such Lender, the Administrative Agent or the Issuing Bank, as the case may be, such
additional amount or amounts as will compensate such Lender, the Administrative Agent or the
Issuing Bank or such Lender’s, the Administrative Agent’s or the Issuing Bank’s holding company for
any such reduction suffered.

     (c) A certificate of a Lender, the Administrative Agent, the Deposit Bank or the Issuing Bank
setting forth the amount or amounts reasonably determined by such Person to be necessary to
compensate such Lender, the Administrative Agent, the Deposit Bank or the Issuing Bank or its
holding company, as applicable, as specified in paragraph (a) or (b) of this Section, the
calculations and criteria applied to determine such amount or amounts, and other documentation or
information reasonably supporting the conclusions in such certificate, shall be delivered to the
Borrower and shall, absent clearly demonstrable error, be final and conclusive and binding. The
Borrower shall pay such Lender, the Administrative Agent, the Deposit Bank or the Issuing Bank, as
the case may be, the amount or amounts shown as due on any such certificate delivered by it within
10 days after its receipt of the same.

     (d) Failure or delay on the part of any Lender, the Administrative Agent, the Deposit Bank or
the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of
such Lender’s, the Administrative Agent’s, the Deposit Bank’s or the Issuing Bank’s right to demand
such compensation; provided that the Borrower shall not be under any obligation to
compensate any Lender, the Administrative Agent, the Deposit Bank or the Issuing Bank under
paragraph (a) or (b) above for increased costs or reductions with respect to any period prior to
the date that is 270 days prior to such request; provided further that the
foregoing limitation shall not apply to any increased costs or reductions arising out of the
retroactive application of any Change in Law within such 270-day period. The protection of this Section shall be available to each Lender, the Administrative Agent, the
Deposit Bank and the Issuing Bank regardless of any possible contention of the invalidity or
inapplicability of the Change in Law that shall have occurred or been imposed.

     SECTION 2.15. Change in Legality. (a) Notwithstanding any other provision of this Agreement,
if any Change in Law shall make it unlawful for any Lender to make or maintain any

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Eurodollar Loan or to give effect to its obligations as contemplated hereby with respect to any Eurodollar Loan,
then, by written notice to the Borrower (which notice shall include documentation or information in
reasonable detail supporting the conclusions in such notice) and to the Administrative Agent:

     (i) such Lender may declare that Eurodollar Loans will not thereafter (for the duration
of such unlawfulness) be made by such Lender hereunder (or be continued for additional
Interest Periods and ABR Loans will not thereafter (for such duration) be converted into
Eurodollar Loans), whereupon any request for a Eurodollar Borrowing (or to convert an ABR
Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for an additional
Interest Period) shall, as to such Lender only, be deemed a request for an ABR Loan (or a
request to continue an ABR Loan as such for an additional Interest Period or to convert a
Eurodollar Loan into an ABR Loan, as the case may be), unless such declaration shall be
subsequently withdrawn; and

     (ii) such Lender may require that all outstanding Eurodollar Loans made by it be
converted to ABR Loans, in which event all such Eurodollar Loans shall be automatically
converted to ABR Loans as of the effective date of such notice as provided in paragraph (b)
below.

In the event any Lender shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the Eurodollar Loans that
would have been made by such Lender or the converted Eurodollar Loans of such Lender shall instead
be applied to repay the ABR Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans. Any such conversion of a Eurodollar Loan under (i) above shall be
subject to Section 2.16.

     (b) For purposes of this Section 2.15, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the last day of the
Interest Period then applicable to such Eurodollar Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

     SECTION 2.16. Indemnity. The Borrower shall indemnify each Lender and the Deposit Bank against any
loss or expense that such Lender or the Deposit Bank may sustain or incur as a consequence of (a)
any event, other than a default by such Lender or the Deposit Bank in the performance of its
obligations hereunder, which results in (i) such Lender receiving or being deemed to receive any
amount on account of the principal of any Eurodollar Loan prior to the end of the Interest Period
in effect therefor, (ii) the conversion of any Eurodollar Loan to an ABR Loan, or the conversion of
the Interest Period with respect to any Eurodollar Loan, in each case other than on the last day of
the Interest Period in effect therefor, (iii) any Eurodollar Loan to be made by such Lender
(including any Eurodollar Loan to be made pursuant to a conversion or continuation under Section
2.10) not being made after notice of such Loan shall have been given by the Borrower hereunder,
(iv) the default by the Borrower in making any reduction or conversion of any Credit-Linked
Deposits after notice thereof shall have been given by the Borrower hereunder or (v) the reduction or conversion of any Credit-Linked Deposits on a day which is not the last day of
the Interest Period with respect thereto or the Scheduled Investment Termination Date with respect
thereto (any of the events referred to in this clause (a) being called a “Breakage Event”)
or (b) any default in the making of any payment or prepayment required to be made hereunder. In
the case of any Breakage Event, such loss shall include, in the case of a Lender, an amount equal
to the excess, as reasonably determined by such Lender, of (i) its cost of obtaining funds for the
Eurodollar Loan or Credit-Linked Deposit that is the subject of such Breakage Event for the period
from the date of such Breakage Event to the last day of the Interest Period in effect (or that
would have been in effect) for such Loan or Credit-Linked Deposit, as the case may be, over (ii)
the amount of interest likely to be realized by such Lender in redeploying the funds released or
not utilized by reason of such Breakage Event for such

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period. A certificate of any Lender or the Deposit Bank, as the case may be, setting forth any amount or amounts which such Lender or the
Deposit Bank believes it is entitled to receive pursuant to this Section 2.16, including the
calculations and criteria applied to determine such amount or amounts, and other documentation or
information reasonably supporting the conclusions in such certificate, shall be delivered to the
Borrower and shall, absent clearly demonstrable error, be final and conclusive and binding.

     SECTION 2.17. Pro Rata Treatment. Except as provided below in this Section 2.17 with respect to
Swingline Loans and as required under Section 2.13, 2.14, 2.15 or 2.20, each Borrowing, each
payment or prepayment of principal of any Borrowing, each payment of reimbursement obligations,
each payment of interest on the Loans, each payment of the Commitment Fees, each reduction of the
Term Loan Commitments, the Total Credit-Linked Deposit or the Revolving Credit Commitments and each
conversion of any Borrowing to or continuation of any Borrowing as a Borrowing of any Type shall be
allocated pro rata among the Lenders in accordance with their respective applicable Commitments
(or, if such Commitments shall have expired or been terminated, in accordance with the respective
principal amounts of their outstanding Loans and/or Credit-Linked Deposits). For purposes of
determining the available Revolving Credit Commitments of the Lenders at any time, each outstanding
Swingline Loan shall be deemed to have utilized the Revolving Credit Commitments of the Lenders
(including those Lenders which shall not have made Swingline Loans) pro rata in accordance with
such respective Revolving Credit Commitments. Each Lender agrees that in computing such Lender’s
portion of any Borrowing to be made hereunder, the Administrative Agent may, in its discretion,
round each Lender’s percentage of such Borrowing to the next higher or lower whole dollar amount.

     SECTION 2.18. Sharing of Setoffs. Each Lender agrees that if it shall, through the exercise of a
right of banker’s lien, setoff or counterclaim against the Borrower or any other Loan Party, or
pursuant to a secured claim under Section 506 of Title 11 of the United States Code or other
security or interest arising from, or in lieu of, such secured claim, received by such Lender under
any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means,
obtain payment (voluntary or involuntary) in respect of any Loan or Loans or L/C Disbursement as a
result of which the unpaid principal portion of its Loans and participations in L/C Disbursements
shall be proportionately less than the unpaid principal portion of the Loans and participations in
L/C Disbursements of any other Lender, it shall be deemed simultaneously to have purchased from
such other Lender at face value, and shall promptly pay to such other Lender the purchase price
for, a participation in the Loans and L/C Exposure of such other Lender, so that the aggregate
unpaid principal amount of the Loans and L/C Exposure and participations in Loans and L/C Exposure
held by each Lender shall be in the same proportion to the aggregate unpaid principal amount of all
Loans and L/C Exposure then outstanding as the principal amount of its Loans and L/C Exposure prior
to such exercise of banker’s lien, setoff or counterclaim or other event was to the principal
amount of all Loans and L/C Exposure outstanding prior to such exercise of banker’s lien, setoff or
counterclaim or other event; provided, however, that if any such purchase or purchases or adjustments
shall be made pursuant to this Section 2.18 and the payment giving rise thereto shall thereafter be
recovered, such purchase or purchases or adjustments shall be rescinded to the extent of such
recovery and the purchase price or prices or adjustment restored without interest. The Borrower
expressly consents to the foregoing arrangements and agrees that any Lender holding a participation
in a Loan or L/C Disbursement deemed to have been so purchased may exercise any and all rights of
banker’s lien, setoff or counterclaim with respect to any and all moneys owing by the Borrower to
such Lender by reason thereof as fully as if such Lender had made a Loan directly to the Borrower
in the amount of such participation.

     SECTION 2.19. Payments. (a) The Borrower shall make each payment (including principal of or
interest on any Borrowing or any L/C Disbursement or any Fees or other amounts) hereunder and under
any other Loan Document not later than 12:00 (noon) (or such other time as otherwise required by

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Section 2.23(e)), New York City time, on the date when due in immediately available dollars,
without setoff, defense or counterclaim. Each such payment (other than (i) Issuing Bank Fees,
which shall be paid directly to the Issuing Bank, (ii) principal of and interest on Swingline
Loans, which shall be paid directly to the Swingline Lender except as otherwise provided in Section
2.22(e) and (iii) payments pursuant to Sections 2.14, 2.16 or 2.20, which at the election of the
Borrower may be made directly to the Lender claiming the benefit of any such Sections) shall be
made to the Administrative Agent at its offices at 1585 Broadway, New York, NY 10036 by wire
transfer of immediately available funds (or as otherwise agreed by the Borrower and the
Administrative Agent). The Administrative Agent shall pay to each Lender any payment received on
such Lender’s behalf promptly after the Administrative Agent’s receipt of such payment. All
payments hereunder and under each other Loan Document shall be made in dollars.

     (b) Except as otherwise expressly provided herein, whenever any payment (including principal
of or interest on any Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of interest or Fees, if applicable.

     SECTION 2.20. Taxes. (a) Except as otherwise provided herein, any and all payments by or on
account of any obligation of the Borrower or any other Loan Party hereunder or under any other Loan
Document shall be made free and clear of and without deduction or withholding for any Indemnified
Taxes or Other Taxes; provided that if the Borrower or any other Loan Party shall be
required to deduct or withhold any Indemnified Taxes or Other Taxes from such payments, then (i)
the sum payable shall be increased as necessary so that after making all required deductions and
withholdings (including deductions and withholdings applicable to additional sums payable under
this Section) the Administrative Agent or such Lender (as the case may be) receives an amount equal
to the sum it would have received had no such deductions and withholdings been made, (ii) the
Borrower or such other Loan Party shall make (or cause to be made) such deductions and withholdings
and (iii) the Borrower or such other Loan Party shall pay (or cause to be paid) the full amount
deducted or withheld to the relevant Governmental Authority in accordance with applicable law. In
addition, the Borrower or any other Loan Party hereunder shall pay (or cause to be paid) any Other
Taxes imposed other than by deduction or withholding to the relevant Governmental Authority in
accordance with applicable law.

     (b) Any and all payments by or on account of any obligation of the Administrative Agent or the
Deposit Bank pursuant to Section 2.24(b) hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the Administrative
Agent or the Deposit Bank shall be required to deduct or withhold any Indemnified Taxes or Other Taxes from
such payments, then (i) the Administrative Agent or the Deposit Bank, as the case may be, shall so
notify the Borrower and advise it of the additional amount required to be paid so that the sum
payable by the Administrative Agent or the Deposit Bank pursuant to Section 2.24(b) after making
all required deductions and withholdings (including deductions and withholdings applicable to
additional sums payable under this Section) to the Funded L/C Lenders is an amount from the
Administrative Agent or the Deposit Bank equal to the sum they would have received from the
Administrative Agent or the Deposit Bank had no deductions and withholdings been made, (ii) the
Borrower shall pay such additional amount to the Administrative Agent and the Deposit Bank, (iii)
the Administrative Agent and the Deposit Bank shall make all required deductions and withholdings,
(iv) the Administrative Agent and the Deposit Bank shall pay the full amount deducted or withheld
to the relevant Governmental Authority in accordance with applicable law and (v) the Borrower shall
indemnify, within 10 days after written demand therefor, the Administrative Agent and the Deposit
Bank with respect to any payments made on account of any obligation of the Administrative Agent and
the Deposit Bank pursuant to Section 2.24(b).

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     (c) The Borrower shall indemnify the Administrative Agent, the Deposit Bank and each Lender,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, the Deposit Bank or such Lender, as the case may be, or any
of their respective Affiliates, on or with respect to any payment by or on account of any
obligation of the Borrower or any Loan Party hereunder or under any other Loan Document (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) and any penalties, interest and reasonable expenses arising therefrom or with respect
thereto whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Government Authority. A certificate as to the amount of such payment or
liability shall be delivered to the Borrower by the Deposit Bank or a Lender, or by the
Administrative Agent on its behalf or on behalf of the Deposit Bank or a Lender, promptly upon such
party’s determination of an indemnifiable event and such certificate shall be conclusive absent
clearly demonstrable error; provided that the failure to deliver such certificate shall not
affect the obligations of the Borrower under this Section 2.20(c) except to the extent the Borrower
is actually prejudiced thereby. Payment under this Section 2.20(c) shall be made within 15 days
from the date of delivery of such certificate; provided that no Borrower shall be obligated
to make any such payment to the Administrative Agent, the Deposit Bank or the Lender (as the case
may be) in respect of penalties, interest and other liabilities attributable to any Indemnified
Taxes or Other Taxes if and to the extent that such penalties, interest and other liabilities are
attributable to the gross negligence or willful misconduct of the Administrative Agent, the Deposit
Bank or such Lender or to the failure of the Administrative Agent, the Deposit Bank or a Lender to
deliver a timely certificate as to the amount of an indemnifiable liability.

     (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower or any other Loan Party to a Governmental Authority, and in any event within 60 days of
such payment being due, the Borrower shall deliver to the Administrative Agent or the Deposit Bank,
if applicable, the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to the Administrative Agent or the Deposit Bank, if applicable.

     (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the reasonable written request of the
Borrower, such properly completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate; provided that
such Lender is legally entitled to complete, execute and deliver such documentation and in such Lender’s judgment such completion, execution or
delivery would not materially prejudice the legal position of such Lender.

     In addition, each Foreign Lender shall (i) furnish on or before it becomes a party to this
Agreement either (a) two accurate and complete originally executed U.S. Internal Revenue Service
Form W-8BEN and/or Form W-8IMY, as applicable (or successor form) or (b) an accurate and complete
U.S. Internal Revenue Service Form W-8ECI (or successor form), certifying, in either case, to such
Foreign Lender’s legal entitlement to an exemption or reduction from U.S. federal withholding tax
with respect to all interest payments hereunder, and (ii) provide a new Form W-8BEN and/or Form
W-8IMY, as applicable (or successor form) or Form W-8ECI (or successor form) upon the expiration or
obsolescence of any previously delivered form to reconfirm any complete exemption from, or any
entitlement to a reduction in, U.S. federal withholding tax with respect to any interest payment
hereunder; provided that any Foreign Lender that is not a “bank” within the meaning of Section
881(c)(3)(A) of the Code and is relying on the so-called “portfolio interest exemption” shall also
furnish a “Non-Bank Certificate” in the form of Exhibit I together with a Form W-8BEN (or successor
form). Notwithstanding any other

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provision of this paragraph, a Foreign Lender shall not be required to deliver any form pursuant to this paragraph that such Foreign Lender is not legally
able to deliver.

     (f) Any Lender that is a United States person, as defined in Section 7701(a)(30) of the
Internal Revenue Code, and is not an exempt recipient within the meaning of Treasury Regulations
Section 1.6049-4(c) shall deliver to the Borrower (with a copy to the Administrative Agent) two
accurate and complete original signed copies of Internal Revenue Service Form W-9, or any successor
form that such person is entitled to provide at such time in order to comply with United States
back-up withholding requirements.

     (g) For purposes of this Section 2.20, in the case of any Lender that is treated as a
partnership for U.S. federal income tax purposes, any Taxes required to be deducted and withheld by
such Lender with respect to payments made by the Borrower under any Loan Document shall be treated
as Taxes required to be deducted by the Borrower, but only to the extent such Taxes would have been
required to be deducted and withheld by the Lender if it were treated as a corporation for U.S.
federal income tax purposes making such payments under the Loan Documents on behalf of the Borrower
and Excluded Taxes were defined by reference to the partner (treating the partner as a Foreign
Lender) to whom payments are made.

     (h) Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in this Section 2.20 shall survive the payment
in full of all amounts due hereunder.

     SECTION 2.21. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate. (a) In
the event (i) any Lender or the Issuing Bank delivers a certificate requesting compensation
pursuant to Section 2.14, (ii) any Lender or the Issuing Bank delivers a notice described in
Section 2.15 or (iii) the Borrower is required to pay any additional amount to any Lender or the
Issuing Bank or any Governmental Authority on account of any Lender or the Issuing Bank pursuant to
Section 2.20, the Borrower may, at its sole expense and effort (including with respect to the
processing and recordation fee referred to in Section 9.04(b)), upon notice to such Lender or the
Issuing Bank and the Administrative Agent, require such Lender or the Issuing Bank to transfer and
assign, without recourse (in accordance with and subject to the restrictions contained in Section
9.04), all of its interests, rights and obligations under this Agreement to an assignee that shall
assume such assigned obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (x) such assignment shall not conflict with any law, rule or
regulation or order of any court or other Governmental Authority having jurisdiction, (y) the Borrower shall have received the prior written consent of the
Administrative Agent (and, if a Revolving Credit Commitment is being assigned, of the Issuing Bank
and the Swingline Lender), which consent shall not unreasonably be withheld or delayed, and (z) the
Borrower or such assignee shall have paid to the affected Lender or the Issuing Bank in immediately
available funds an amount equal to the sum of the principal of and interest accrued to the date of
such payment on the outstanding Loans or L/C Disbursements of such Lender or the Issuing Bank,
respectively, plus all Fees and other amounts accrued for the account of such Lender or the
Issuing Bank hereunder (including any amounts under Section 2.14 and Section 2.16);
provided further that, if prior to any such transfer and assignment the
circumstances or event that resulted in such Lender’s or the Issuing Bank’s claim for compensation
under Section 2.14 or notice under Section 2.15 or the amounts paid pursuant to Section 2.20, as
the case may be, cease to cause such Lender or the Issuing Bank to suffer increased costs or
reductions in amounts received or receivable or reduction in return on capital, or cease to have
the consequences specified in Section 2.15, or cease to result in amounts being payable under
Section 2.20, as the case may be (including as a result of any action taken by such Lender or the
Issuing Bank pursuant to paragraph (b) below), or if such Lender or the Issuing Bank shall waive
its right to claim further compensation under Section 2.14 in respect of such circumstances or
event or shall withdraw its notice

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under Section 2.15 or shall waive its right to further payments under Section 2.20 in respect of such circumstances or event, as the case may be, then such Lender
or the Issuing Bank shall not thereafter be required to make any such transfer and assignment
hereunder.

     (b) If (i) any Lender, the Deposit Bank or the Issuing Bank shall request compensation under
Section 2.14, (ii) any Lender, the Deposit Bank or the Issuing Bank delivers a notice described in
Section 2.15 or (iii) the Borrower is required to pay any additional amount to any Lender, the
Deposit Bank or the Issuing Bank or any Governmental Authority on account of any Lender, the
Deposit Bank or the Issuing Bank, pursuant to Section 2.20, then such Lender, the Deposit Bank or
the Issuing Bank shall use reasonable efforts (which shall not require such Lender, the Deposit
Bank or the Issuing Bank to incur an unreimbursed loss or unreimbursed cost or expense or otherwise
take any action inconsistent with its internal policies or legal or regulatory restrictions or
suffer any disadvantage or burden reasonably deemed by it to be significant) (x) to file any
certificate or document reasonably requested in writing by the Borrower or (y) to assign its rights
and delegate and transfer its obligations hereunder to another of its offices, branches or
affiliates, if such filing or assignment would reduce or eliminate its claims for compensation
under Section 2.14 or enable it to withdraw its notice pursuant to Section 2.15 or would reduce or
eliminate amounts payable pursuant to Section 2.20, as the case may be, in the future. The
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender, the Deposit
Bank or the Issuing Bank in connection with any such filing or assignment, delegation and transfer.

     SECTION 2.22. Swingline Loans. (a) Swingline Commitment. Subject to the terms and
conditions hereof and relying upon the representations and warranties set forth herein, the
Swingline Lender agrees to make loans to the Borrower, at any time and from time to time after the
Closing Date, and until the earlier of the Revolving Credit Maturity Date and the termination of
the Revolving Credit Commitments in accordance with the terms hereof, in an aggregate principal
amount at any time outstanding that will not result in (i) the aggregate principal amount of all
Swingline Loans exceeding $50,000,000 in the aggregate or (ii) the Aggregate Revolving Credit
Exposure, after giving effect to any Swingline Loan, exceeding the Total Revolving Credit
Commitment. Each Swingline Loan shall be in a principal amount that is an integral multiple of
$500,000. The Swingline Commitment may be terminated or reduced from time to time as provided
herein. Within the foregoing limits, the Borrower may borrow, pay or prepay, without premium or
penalty, and reborrow Swingline Loans hereunder, subject to the terms, conditions and limitations
set forth herein.

     (b) Swingline Loans. The Borrower shall notify the Administrative Agent by fax, or by
telephone (confirmed by fax), not later than 10:00 a.m., New York City time, on the day of a
proposed Swingline Loan to be made to it. Such notice shall be delivered on a Business Day, shall
be irrevocable and shall refer to this Agreement and shall specify the requested date (which shall
be a Business Day) and amount of such Swingline Loan. The Administrative Agent will promptly
advise the Swingline Lender of any notice received from the Borrower pursuant to this paragraph
(b). The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a
credit to the general deposit account of the Borrower with the Swingline Lender by no later than
3:00 p.m. on the date such Swingline Loan is so requested.

     (c) Prepayment. The Borrower shall have the right at any time and from time to time
to prepay any Swingline Loan, in whole or in part, upon giving written or fax notice (or telephone
notice promptly confirmed by written or fax notice) to the Swingline Lender and to the
Administrative Agent before 12:00 (noon), New York City time, on the date of prepayment at the
Swingline Lender’s address for notices specified in the Lender Addendum delivered by the Swingline
Lender. All principal payments of Swingline Loans shall be accompanied by accrued interest on the
principal amount being repaid to the date of payment.

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     (d) Interest. Each Swingline Loan shall be an ABR Loan and, subject to the provisions
of Section 2.07, shall bear interest as provided in Section 2.06(a).

     (e) Participations. The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on any Business Day require the
Revolving Credit Lenders to acquire participations on such Business Day in all or a portion of the
Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in
which Revolving Credit Lenders will participate. The Administrative Agent will, promptly upon
receipt of such notice, give notice to each Revolving Credit Lender, specifying in such notice such
Lender’s Pro Rata Percentage of such Swingline Loan or Loans. In furtherance of the foregoing,
each Revolving Credit Lender hereby absolutely and unconditionally agrees, upon receipt of notice
as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender,
such Revolving Credit Lender’s Pro Rata Percentage of such Swingline Loan or Loans. Each Revolving
Credit Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or an Event of
Default, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Revolving Credit Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as provided in
Section 2.02(c) with respect to Loans made by such Lender (and Section 2.02(c) shall apply,
mutatis mutandis, to the payment obligations of the Lenders under this Section) and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the Lenders. The Administrative Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph and thereafter payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any
amounts received by the Swingline Lender from the Borrower (or other party on behalf of the
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a
sale of participations therein shall be promptly remitted to the Administrative Agent; any such
amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent
to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline
Lender, as their interests may appear. The purchase of participations in a Swingline Loan pursuant
to this paragraph shall not relieve the Borrower (or other party liable for obligations of the
Borrower) of any default in the payment thereof.

     SECTION 2.23. Letters of Credit. (a) General. On the Closing Date, the Existing Letters of Credit were
automatically, without any action on the part of any Person, deemed to be Funded Letters of Credit
or Revolving Letters of Credit, as indicated on Schedule 1.01(d), issued hereunder for the account
of the Borrower and its Subsidiaries for all purposes of this Agreement and the other Loan
Documents. Subject to the terms and conditions hereof, (i) the Issuing Bank agrees to issue, upon
the Borrower’s request, a Revolving Letter of Credit in such form as may be reasonably approved
from time to time by the Issuing Bank at any time and from time to time while the Revolving Credit
Commitments remain in effect, and (ii) the Issuing Bank agrees to issue, upon the Borrower’s
request, a Funded Letter of Credit in such form as may be reasonably approved from time to time by
the Issuing Bank at any time and from time to time during the Funded Letter of Credit Availability
Period, in the case of each of clauses (i) and (ii), for the Borrower’s account or for the account
of any of the Subsidiary Guarantors or for the account of any other Subsidiary; provided
that the L/C Exposure with respect to all such Letters of Credit for the account of Subsidiaries
that are not Subsidiary Guarantors shall not exceed the L/C Exposure Cap (and, if for the account
of a Subsidiary Guarantor or other Subsidiary, the Borrower and such Subsidiary Guarantor or such
other Subsidiary, as the case may be, shall be co-applicants with respect to such Letter of
Credit). This Section shall not be construed to impose an obligation upon the Issuing Bank to
issue any Letter of Credit that is inconsistent with the terms and conditions of this Agreement.

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Notwithstanding the foregoing, the Issuing Bank is under no obligation to issue any Letter of
Credit if at the time of such issuance:

     (i) any order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms enjoin or restrain such Issuing Bank from issuing such Letter of Credit or any
requirement of law applicable to such Issuing Bank or any request or directive (whether or
not having the force of law) from any Governmental Authority with jurisdiction over such
Issuing Bank shall prohibit, or request that such Issuing Bank refrain from, the issuance of
letters of credit generally or such Letter of Credit in particular or shall impose upon such
Issuing Bank with respect to such Letter of Credit any restriction or reserve or capital
requirement (for which such Issuing Bank is not otherwise compensated hereunder) not in
effect with respect to such Issuing Bank on the Closing Date, or any unreimbursed loss, cost
or expense which was not applicable or in effect with respect to such Issuing Bank as of the
Closing Date and which such Issuing Bank reasonably and in good faith deems material to it;
or

     (ii) such Issuing Bank shall have received from the Borrower or the Administrative
Agent prior to the issuance of such Letter of Credit notice that the issuance of such Letter
of Credit is not permitted under this Agreement.

     (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. In order
to request the issuance of a Letter of Credit (or to amend, renew or extend an existing Letter of
Credit), the Borrower shall hand deliver or fax to the Issuing Bank and the Administrative Agent
(no less than three Business Days (or such shorter period of time acceptable to the Issuing Bank)
in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting
the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or
extended, whether such Letter of Credit shall be a Funded Letter of Credit or a Revolving Letter of
Credit, the date of issuance, amendment, renewal or extension, the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) below), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other information as shall be
reasonably necessary to prepare such Letter of Credit. The Issuing Bank shall promptly (i) notify
the Administrative Agent in writing of the amount and expiry date of each Letter of Credit issued
by it and (ii) provide a copy of such Letter of Credit (and any amendments, renewals or extensions
thereof) to the Administrative Agent. A Funded Letter of Credit shall be issued, amended, renewed
or extended only if, and upon issuance, amendment, renewal or extension of each such Funded Letter of Credit the Borrower shall be deemed to represent and warrant that, after
giving effect to such issuance, amendment, renewal or extension the Funded L/C Exposure shall not
exceed the Total Credit-Linked Deposit and that the other conditions expressly set forth herein are
satisfied in respect thereto. A Revolving Letter of Credit shall be issued, amended, renewed or
extended only if, and upon issuance, amendment, renewal or extension of each such Revolving Letter
of Credit the Borrower shall be deemed to represent and warrant that, after giving effect to such
issuance, amendment, renewal or extension, the Aggregate Revolving Credit Exposure shall not exceed
the Total Revolving Credit Commitment and that the other conditions expressly set forth herein are
satisfied in respect thereto. It is understood and agreed that the Revolving Letter of Credit
Exposure in respect of Revolving Letters of Credit issued by Deutsche Bank AG, New York Branch
pursuant to this Agreement shall not exceed $300,000,000 at any time outstanding without the prior
written consent of Deutsche Bank AG, New York Branch, and Deutsche Bank AG, New York Branch shall
have no obligation to issue a Revolving Letter of Credit if the foregoing limitation would be
exceeded. If the Borrower shall fail to specify whether any requested Letter of Credit is to be a
Funded Letter of Credit or a Revolving Letter of Credit, then the requested Letter of Credit shall
be deemed to be a Funded Letter of Credit unless the issuance thereof would result in the Funded
L/C Exposure exceeding the Total Credit-Linked Deposit at such time, in which case it shall be
deemed to be a Revolving Letter of Credit, but only if the issuance of a Revolving Letter of Credit
is permissible at such time as described above. Notwithstanding the foregoing, the

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issuance of Funded Letters of Credit shall also be subject to the limitations set forth in Section 2.23(e)
below.

     (c) Expiration Date. Each Letter of Credit shall expire at the close of business on
the earlier of (i) the date one year after the date of the issuance of such Letter of Credit and
(ii)(A) in the case of any Revolving Letter of Credit, the date that is five Business Days prior to
the Revolving Credit Maturity Date and (B) in the case of any Funded Letter of Credit, the date
that is five Business Days prior to the Funded Letter of Credit Maturity Date, unless such Letter
of Credit expires by its terms on an earlier date; provided, however, that a Letter
of Credit may, upon the request of the Borrower, include a provision whereby such Letter of Credit
shall be renewed automatically for additional consecutive periods of 12 months or less (but not
beyond the date that is five Business Days prior to, in the case of any Revolving Letter of Credit,
the Revolving Credit Maturity Date or, in the case of any Funded Letter of Credit, the Funded
Letter of Credit Maturity Date) unless the Issuing Bank notifies the beneficiary thereof at least
30 days (or within such longer period as specified in such Letter of Credit) prior to the
then-applicable expiration date that such Letter of Credit will not be renewed.

     (d) Participations. By the issuance of a Revolving Letter of Credit and without any
further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to
each Revolving Credit Lender, and each such Lender hereby acquires from the Issuing Bank, a
participation in such Letter of Credit equal to such Lender’s Pro Rata Percentage of the aggregate
amount available to be drawn under such Letter of Credit, effective upon the issuance of such
Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving Credit
Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the
account of the Issuing Bank, such Lender’s Pro Rata Percentage of each Revolving L/C Disbursement
made by the Issuing Bank and not reimbursed by the Borrower (or, if applicable, another party
pursuant to its obligations under any other Loan Document) forthwith on the date due as provided in
Section 2.02(f). Each Revolving Credit Lender acknowledges and agrees that its obligation to
acquire participations pursuant to this paragraph in respect of Revolving Letters of Credit is
absolute and unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or an Event of Default, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.

     On the Closing Date, without any further action on the part of the Issuing Bank or the
Lenders, the Issuing Bank granted to each Original Funded L/C Lender, and each such Lender acquired
from the Issuing Bank, a participation in each Funded Letter of Credit (including each Existing Letter
of Credit) equal to such Lender’s Pro Rata Percentage of the aggregate amount available to be drawn
under such Letter of Credit. The aggregate purchase price for the participations of each Original
Funded L/C Lender in Funded Letters of Credit was equal to the amount of the Credit-Linked Deposit
of such Lender. Each Original Funded L/C Lender paid to the Administrative Agent for payment to
the Deposit Bank its Credit-Linked Deposit in full on the Closing Date. On the Restatement Date,
without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby
grants to each New Funded L/C Lender, and each such Lender hereby acquires from the Issuing Bank, a
participation in each Funded Letter of Credit (including each Existing Letter of Credit) equal to
such Lender’s Pro Rata Percentage of the aggregate amount available to be drawn under such Letter
of Credit. The aggregate purchase price for the participations of each New Funded L/C Lender in
Funded Letters of Credit shall equal the amount of the Credit-Linked Deposit of such Lender. Each
New Funded L/C Lender shall pay to the Administrative Agent for payment to the Deposit Bank its
Credit-Linked Deposit in full on the Restatement Date. Each Funded L/C Lender hereby absolutely
and unconditionally agrees that if the Issuing Bank makes a Funded L/C Disbursement which is not
reimbursed by the Borrower pursuant to Section 2.23(e), the Deposit Bank shall reimburse the
Issuing Bank for the amount of such Funded L/C Disbursement, ratably as among the Funded L/C
Lenders in accordance with their Pro Rata Percentages of the Total Credit-Linked Deposit, from such
Funded L/C Lender’s Credit-Linked Deposit on deposit in the Credit-Linked

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Deposit Account. Each Funded L/C Lender acknowledges and agrees that its obligation to acquire and fund participations in
respect of Funded Letters of Credit pursuant to this paragraph is unconditional and irrevocable and
shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a
Default or an Event of Default or the return of the Credit-Linked Deposits, and that such payment
shall be made without any offset, abatement, withholding or reduction whatsoever. Without limiting
the foregoing, each Funded L/C Lender irrevocably authorizes the Deposit Bank to apply amounts of
its Credit-Linked Deposit as provided in this paragraph.

     Notwithstanding the intention of the parties that each Funded L/C Lender shall have purchased
its participation in Funded Letters of Credit on the Closing Date or on the Restatement Date, as
applicable, in further consideration for the agreements of the Issuing Bank and the Deposit Bank
hereunder, each Funded L/C Lender hereby grants to the Deposit Bank for the benefit of the Issuing
Bank a security interest and right of offset with respect to its Credit-Linked Deposit and all
investments thereof and all proceeds of any of the foregoing to secure such Funded L/C Lender’s
obligation to acquire and fund participations in respect of Funded Letters of Credit pursuant to
this Section 2.23(d) and each Funded L/C Lender irrevocably authorizes the Deposit Bank to apply
amounts of its Credit-Linked Deposit in accordance with this Section 2.23(d). Each Funded L/C
Lender further acknowledges and agrees that each Credit-Linked Deposit will be established in the
name of the Deposit Bank and will be subject to the sole dominion and control of the Deposit Bank.

     (e) Reimbursement. If the Issuing Bank shall make any Revolving L/C Disbursement in
respect of a Revolving Letter of Credit, the Borrower shall pay or cause to be paid to the
Administrative Agent an amount equal to such Revolving L/C Disbursement not later than two hours
after the Borrower shall have received notice from the Issuing Bank that payment of such draft will
be made, or, if the Borrower shall have received such notice later than 1:00 p.m., New York City
time, on any Business Day, not later than 12:00 (noon), New York City time, on the immediately
following Business Day.

     If the Issuing Bank shall make any Funded L/C Disbursement in respect of a Funded Letter of
Credit, the Borrower shall have the right (but not the obligation) to pay or cause to be paid to
the Administrative Agent an amount equal to the entire amount of such Funded L/C Disbursement not
later than two hours after the Borrower shall have received notice from the Issuing Bank that
payment of such draft will be made or, if the Borrower shall have received such notice later than
1:00 p.m., New York City time, on any Business Day, not later than 12:00 (noon), New York City
time, on the immediately following Business Day; provided that the Borrower may not elect to make such
reimbursement at any time after the 91st day immediately preceding the Funded Letter of
Credit Maturity Date. If the Borrower does not so elect to reimburse the Issuing Bank for such
Funded L/C Disbursement, reimbursement of the Issuing Bank shall be made in accordance with the
provisions of Section 2.02(f). In the event that the Borrower elects to reimburse the Issuing Bank
for any Funded L/C Disbursement, for a period of 91 days following such reimbursement payment by
the Borrower, the Funded L/C Exposure shall be deemed to include for all purposes hereunder
(including for purposes of the issuance of any new Funded Letter of Credit during such period) the
amount of such reimbursement payment until the end of such 91-day period.

     (f) Obligations Absolute. The Borrower’s obligations to reimburse L/C Disbursements
as provided in paragraph (e) above shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement, under any and all circumstances
whatsoever, and irrespective of:

     (i) any lack of validity or enforceability of any Letter of Credit or any Loan
Document, or any term or provision therein;

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     (ii) any amendment or waiver of, or any consent to departure from, all or any of
the provisions of any Letter of Credit or any Loan Document;

     (iii) the existence of any claim, setoff, defense or other right that the Borrower, any
other party guaranteeing, or otherwise obligated with, the Borrower, any subsidiary or other
Affiliate thereof or any other Person may at any time have against the beneficiary under any
Letter of Credit, the Issuing Bank, the Administrative Agent or any Lender or any other
Person, whether in connection with this Agreement, any other Loan Document or any other
related or unrelated agreement or transaction;

     (iv) any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

     (v) payment by the Issuing Bank under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such Letter of Credit; and

     (vi) any other act or omission to act or delay of any kind of the Issuing Bank, any
Lender, the Administrative Agent or any other Person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of the Borrower’s
obligations hereunder.

     Without limiting the generality of the foregoing, it is expressly understood and agreed that
the absolute and unconditional obligation of the Borrower hereunder to reimburse L/C Disbursements
will not be excused by the gross negligence or willful misconduct of the Issuing Bank. However,
the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to
the extent of any direct damages (as opposed to consequential damages, claims in respect of which
are hereby waived by the Borrower to the extent permitted by applicable law) suffered by the
Borrower that are caused by the Issuing Bank’s gross negligence or willful misconduct in
determining whether drafts and other documents presented under a Letter of Credit comply with the
terms thereof; it is understood that the Issuing Bank may accept documents that appear on their
face to be in order, without responsibility for further investigation, regardless of any notice or
information to the contrary and, in making any payment under any Letter of Credit (i) the Issuing
Bank’s exclusive reliance on the documents presented to it under such Letter of Credit as to any
and all matters set forth therein, including reliance on the amount of any draft presented under
such Letter of Credit, whether or not the amount due to the beneficiary thereunder equals the
amount of such draft and whether or not any document presented pursuant to such Letter of Credit
proves to be insufficient in any respect, if such document on its face appears to be in order, and
whether or not any other statement or any other document presented pursuant to such Letter of
Credit proves to be forged or invalid or any statement therein proves to be inaccurate or untrue in
any respect whatsoever and (ii) any noncompliance in any immaterial respect of the documents
presented under such Letter of Credit with the terms thereof shall, in each case, be deemed not to
constitute willful misconduct or gross negligence of the Issuing Bank.

     (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall as promptly as possible give telephonic notification, confirmed by
fax, to the Administrative Agent and the Borrower of such demand for payment and whether the
Issuing Bank has made or will make an L/C Disbursement thereunder; provided that any
failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to
reimburse the Issuing Bank and the applicable Lenders with respect to any such L/C Disbursement.
The Administrative Agent shall promptly give each Revolving Credit Lender or each Funded L/C
Lender, as the case may be, notice thereof.

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     (h) Interim Interest. If the Issuing Bank shall make any L/C Disbursement in respect
of a Letter of Credit, then, (i) in the case of any Revolving L/C Disbursement, unless the Borrower
shall reimburse such Revolving L/C Disbursement in full on such date or (ii) in the case of any
Funded L/C Disbursement, unless either the Borrower shall reimburse such Funded L/C Disbursement in
full within the time period specified in Section 2.23(e) or the Deposit Bank shall pay an amount
equal to such Funded L/C Disbursement to the Issuing Bank with funds held in the Credit-Linked
Deposit Account in full on such date, in each case the unpaid amount thereof shall bear interest
for the account of the Issuing Bank, for each day from and including the date of such L/C
Disbursement to but excluding the earlier of the date of payment by the Borrower or the date on
which interest shall commence to accrue thereon as provided in Section 2.02(f), at (A) in the case
of a Revolving L/C Disbursement, the rate per annum that would apply to such amount if such amount
were an ABR Revolving Loan and (B) in the case of a Funded L/C Disbursement, the rate per annum
that would apply to such amount if such amount were an ABR Term Loan.

     (i) Resignation or Removal of the Issuing Bank. The Issuing Bank may resign at any
time by giving 30 days’ prior written notice to the Administrative Agent, the Lenders and the
Borrower, and may be removed at any time by the Borrower by notice to the Issuing Bank, the
Administrative Agent and the Lenders. Upon the acceptance of any appointment as the Issuing Bank
hereunder by a Lender that shall agree to serve as successor Issuing Bank, such successor shall
succeed to and become vested with all the interests, rights and obligations of the retiring Issuing
Bank and the retiring Issuing Bank shall be discharged from its obligations to issue additional
Letters of Credit hereunder without affecting its rights and obligations with respect to Letters of
Credit previously issued by it. At the time such removal or resignation shall become effective,
the Borrower shall pay all accrued and unpaid fees pursuant to Section 2.05(c)(ii). The acceptance
of any appointment as the Issuing Bank hereunder by a successor Lender shall be evidenced by an
agreement entered into by such successor, in a form reasonably satisfactory to the Borrower and the
Administrative Agent, and, from and after the effective date of such agreement, (i) such successor
Lender shall have all the rights and obligations of the previous Issuing Bank under this Agreement
and the other Loan Documents and (ii) references herein and in the other Loan Documents to the term
“Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to
such successor and all previous Issuing Banks, as the context shall require. After the resignation
or removal of the Issuing Bank hereunder, the retiring Issuing Bank shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuing Bank set forth in this
Agreement and the other Loan Documents with respect to Letters of Credit issued by it prior to such
resignation or removal, but shall not be required to issue additional Letters of Credit.

     (j) Cash Collateralization. If any Event of Default pursuant to clauses (b), (c), (g)
or (h) of Article VII shall occur and be continuing, or the maturity of the Loans has been
accelerated and/or the Commitments have been terminated, the Borrower shall, on the Business Day it
receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the
Loans has been accelerated, Revolving Credit Lenders and Funded L/C Lenders with L/C Exposure
representing greater than 50% of the total L/C Exposure) thereof and of the amount to be deposited,
deposit in an account with the Administrative Agent, for the ratable benefit of the Lenders with
L/C Exposure, an amount in cash equal to the L/C Exposure as of such date. Such deposit shall be
held, upon the occurrence of any such Event of Default, and for so long as such Event of Default is
continuing, by the Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower with respect to Letters of Credit under this Agreement. The
Administrative Agent shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment of such deposits
in Cash Equivalents, which investments shall be made by the Administrative Agent in accordance with
its internal policies applied to transactions of the size and nature provided for in the Loan
Documents, such deposits shall not bear interest. Interest or profits, if any, on such investments
shall accumulate in such account. Upon the occurrence and during the continuance of an Event of
Default

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pursuant to clauses (b), (c), (g) or (h) of Article VII, or acceleration of the maturity of
the Loans and/or termination of the Commitments, moneys in such account shall (i) automatically be
applied by the Administrative Agent to reimburse the Issuing Bank for L/C Disbursements for which
it has not been reimbursed, (ii) be held for the satisfaction of the reimbursement obligations of
the Borrower for the L/C Exposure at such time and (iii) if the maturity of the Loans has been
accelerated (but subject to the consent of Revolving Credit Lenders and Funded L/C Lenders with L/C
Exposure representing greater than 50% of the total L/C Exposure), be applied to satisfy the
Guaranteed Obligations hereunder. If the Borrower is required to provide an amount of cash
collateral hereunder as a result of the occurrence and during the continuance of an Event of
Default pursuant to clauses (b), (c), (g) or (h) of Article VII, or acceleration of the maturity of
the Loans and/or termination of the Commitments, such amount (to the extent not applied as
aforesaid) shall be returned to the Borrower within three Business Days after all such Events of
Default have been cured or waived.

     (k) Additional Issuing Banks. The Borrower may, at any time and from time to time
with the consent of the Administrative Agent (which consent shall not be unreasonably withheld) and
such Lender, designate one or more additional Lenders to act as an issuing bank under the terms of
the Agreement. Any Lender designated as an issuing bank pursuant to this paragraph shall be deemed
to be an “Issuing Bank” (in addition to being a Lender) in respect of Letters of Credit issued or
to be issued by such Lender, and, with respect to such Letters of Credit, such term shall
thereafter apply to the other Issuing Bank and such Lender.

     SECTION 2.24. Credit-Linked Deposit Account. (a) The Credit-Linked Deposits shall be held by the Deposit Bank in the Credit-Linked
Deposit Account, and no party other than the Deposit Bank shall have a right of withdrawal from the
Credit-Linked Deposit Account or any other right or power with respect to the Credit-Linked
Deposits, except as expressly set forth in the second paragraph of Section 2.02(f), the second
sentence of 2.09(b) or Section 2.09(d). Notwithstanding any provision in this Agreement to the
contrary, the funding obligation of each Original Funded L/C Lender in respect of its participation
in Funded Letters of Credit was satisfied in full upon the funding of its Credit-Linked Deposit on
the Closing Date and the funding obligation of each New Funded L/C Lender in respect of its
participation in New Funded Letters of Credit shall be satisfied in full upon the funding of its
Credit-Linked Deposit on the Restatement Date.

     (b) Each of the Borrower, the Deposit Bank, the Administrative Agent, the Issuing Bank and
each Funded L/C Lender hereby acknowledges and agrees that each Funded L/C Lender has funded or is
funding (as applicable) its Credit-Linked Deposit to the Deposit Bank for application in the manner
contemplated by the second paragraph of Section 2.02(f) and that the Deposit Bank has agreed to
invest the Credit-Linked Deposits so as to earn a return (subject to Section 2.08) for the Funded
L/C Lenders equal to (i) the LIBO Rate for the Interest Period in effect for the Credit-Linked
Deposits at such time (the “Benchmark LIBO Rate”) minus (ii) 0.10% per annum. The
Borrower shall not be liable under any circumstance for the payment of the return described in the
immediately preceding sentence. Such interest will be paid by the Deposit Bank to the
Administrative Agent who shall pay the same to the Funded L/C Lenders quarterly in arrears when
Letter of Credit fees are payable pursuant to Section 2.05(d). In addition to the foregoing
payments by the Deposit Bank, the Borrower agrees to make payments to the Administrative Agent for
payment to the Funded L/C Lenders quarterly in arrears when Letter of Credit fees are payable
pursuant to Section 2.05(d) (and together with the payment of such fees) in an amount equal to
0.10% per annum on the average daily amount of the Credit-Linked Deposit during the applicable
Interest Period.

     (c) Subject to Section 2.09(d), the Borrower shall have no right, title or interest in or to
the Credit-Linked Deposits and no obligations with respect thereto (including with respect to
payment of the
Benchmark LIBO Rate), it being acknowledged and agreed by the parties hereto that the making
of the

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Credit-Linked Deposits by the Funded L/C Lenders, the provisions of this Section 2.24 and
the application of the Credit-Linked Deposits in the manner contemplated by Section 2.02(f)
constitute agreements among the Deposit Bank, the Administrative Agent, the Issuing Bank and each
Funded L/C Lender with respect to the funding obligations of each Funded L/C Lender in respect of
its participation in Funded Letters of Credit and do not constitute any loan or extension of credit
to the Borrower, subject to the provisions of Section 2.02(f).

     (d) Subject to the Borrower’s compliance with the cash-collateralization requirements set
forth in Section 2.09(a), the Deposit Bank shall return any remaining Credit-Linked Deposits to the
Administrative Agent for payment to the Funded L/C Lenders on a pro rata basis following the
occurrence of the Funded Letter of Credit Maturity Date.

     (e) Resignation or Removal of the Deposit Bank. The Deposit Bank may resign at any
time by giving 30 days’ prior written notice to the Administrative Agent, the Lenders, the Borrower
and any Issuing Bank (other than the entity serving as the Deposit Bank) if such resignation is in
connection with a concurrent resignation by it as an Issuing Bank. The Deposit Bank may be removed
at any time that the Deposit Bank shall not act as an Issuing Bank with respect to Funded Letters
of Credit, or shall have been removed as an Issuing Bank with respect to Funded Letters of Credit,
by the Borrower by notice to the Deposit Bank, the Administrative Agent, the Lenders and any
Issuing Bank (other than the entity serving as the Deposit Bank). Upon the acceptance of any
appointment as the Deposit Bank hereunder by an entity that shall agree to serve as successor
Deposit Bank and that (i) shall be a Lender, (ii) shall have an office in New York, New York, (iii)
shall have a combined capital surplus of at least $250,000,000, (iv) shall otherwise be reasonably
acceptable to the Borrower, the Administrative Agent and each Issuing Bank (other than the entity
that will serve as successor Deposit Bank) and (v) shall agree to also serve as an Issuing Bank,
such successor shall succeed to and become vested with all the interests, rights and obligations of
the retiring Deposit Bank. The acceptance of any appointment as the Deposit Bank hereunder by a
successor Lender shall be evidenced by an agreement entered into by such successor, in a form
reasonably satisfactory to the Borrower, the Administrative Agent and such Lender, and, from and
after the effective date of such agreement, (i) such successor Lender shall have all the rights and
obligations of the previous Deposit Bank under this Agreement and the other Loan Documents and (ii)
references herein and in the other Loan Documents to the term “Deposit Bank” shall be deemed to
refer to such successor or to any previous Deposit Bank, as the context shall require.

     SECTION 2.25. Incremental Facilities. (a) The Borrower may, by written notice to the Administrative Agent, elect to request (x) the
establishment of one or more new term loan commitments (the “New Term Loan Commitments”)
and/or (y) prior to the Revolving Credit Maturity Date, an increase to the existing Revolving
Credit Commitments (any such increase, the “New Revolving Credit Commitments” and, together
with the New Term Loan Commitments, the “New Loan Commitments”), in each case to effect the
incurrence of secured Indebtedness permitted to be incurred pursuant to Section 6.01(p) in an
amount not in excess of (and not in duplication of) the amount of secured Indebtedness permitted to
be incurred pursuant to Section 6.01(p) in the aggregate and not less than $50,000,000 individually
(or such lesser amount which shall be approved by the Administrative Agent or such lesser amount
that shall constitute the difference between the amount of secured Indebtedness permitted to be
incurred pursuant to Section 6.01(p) and all such New Loan Commitments obtained prior to such
date), and integral multiples of $5,000,000 in excess of that amount (it being understood that any
Indebtedness incurred pursuant to this Section 2.25 shall correspondingly reduce the amount of
Indebtedness permitted to be incurred pursuant to Section 6.01(p), and vice versa). Each such
notice shall specify the date (each, an “Increased Amount Date”) on which the Borrower
proposes that the New Loan Commitments shall be effective, which shall be a date not less than
10 Business Days after the date on which such notice is delivered to the Administrative Agent;
provided that the Borrower shall first offer the Lenders, on a pro rata basis, the
opportunity to provide all of the New Loan Commitments prior to offering such

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opportunity to any
other Person that is an eligible assignee pursuant to Section 9.04(b); provided,
further, that any Lender offered or approached to provide all or a portion of the New Loan
Commitments may elect or decline, in its sole discretion, to provide a New Loan Commitment. Such
New Loan Commitments shall become effective, as of such Increased Amount Date; provided
that (i) no Default or Event of Default shall exist on such Increased Amount Date before or after
giving effect to such New Loan Commitments, as applicable; (ii) both before and after giving effect
to the making of any Series of New Term Loans or New Revolving Credit Loans, each of the conditions
set forth in Section 4.01 shall be satisfied; (iii) the Borrower and its Subsidiaries shall be in
pro forma compliance with each of the covenants set forth in Sections 6.13 and 6.14 as of the last
day of the most recently ended fiscal quarter for which financial statements are required to be
delivered pursuant to Section 5.04(a) and 5.04(b) after giving effect to such New Loan Commitments
and any Investment to be consummated in connection therewith; (iv) the New Loan Commitments shall
be effected pursuant to one or more Joinder Agreements executed and delivered by the Borrower and
the Administrative Agent, and each of which shall be recorded in the Register; (v) the Borrower
shall make any payments required pursuant to Section 2.16 in connection with the New Loan
Commitments, as applicable; (vi) the Borrower shall deliver or cause to be delivered any legal
opinions or other documents reasonably requested by the Administrative Agent in connection with any
such transaction; and (vii) the requirements set forth in Section 9.19 shall have been satisfied.
Any New Term Loans made on an Increased Amount Date shall be designated as a separate series (a
“Series”) of New Term Loans for all purposes of this Agreement and the other Credit
Documents.

          (b) On any Increased Amount Date on which New Revolving Credit Commitments are effected,
subject to the satisfaction of the foregoing terms and conditions, (i) each of the Lenders with
Revolving Credit Commitments shall assign to each Lender with a New Revolving Credit Commitment
(each, a “New Revolving Credit Lender”) and each of the New Revolving Credit Lenders shall
purchase from each of the Lenders with Revolving Credit Commitments, at the principal amount
thereof (together with accrued interest), such interests in the Revolving Credit Loans outstanding
on such Increased Amount Date as shall be necessary in order that, after giving effect to all such
assignments and purchases, such Revolving Credit Loans will be held by existing Lenders with
Revolving Credit Loans and New Revolving Credit Lenders ratably in accordance with their Revolving
Credit Commitments after giving effect to the addition of such New Revolving Credit Commitments to
the Revolving Credit Commitments, (ii) each New Revolving Credit Commitment shall be deemed for all
purposes a Revolving Credit Commitment and each loan made thereunder (a “New Revolving Credit
Loan”) shall be deemed, for all purposes, a Revolving Credit Loan and (iii) each New Revolving
Credit Lender shall become a Lender with respect to its New Revolving Credit Commitment and all
matters relating thereto.

          (c) On any Increased Amount Date on which any New Term Loan Commitments of any Series are
effective, subject to the satisfaction of the foregoing terms and conditions, (i) each Lender with
a New Term Loan Commitment (each, a “New Term Loan Lender”) of any Series shall make a loan
to the Borrower (a “New Term Loan”) in an amount equal to its New Term Loan Commitment of
such Series, and (ii) each New Term Loan Lender of any Series shall become a Lender hereunder with
respect to its New Term Loan Commitment of such Series and the New Term Loans of such Series made
by such Lender pursuant thereto.

          (d) The Administrative Agent shall notify the Lenders promptly upon receipt of the Borrower’s
notice of each Increased Amount Date and in respect thereof (i) the Series of New Term Loan
Commitments and New Term Loan Lenders of such Series or the New Revolving Credit Commitments and
New Revolving Credit Lenders, as applicable, and (ii) in the case of each notice to any Lender with
Revolving Credit Loans, the respective interests in such Lender’s Revolving Credit Loans
subject to the assignments contemplated by clause (b) of this Section 2.25.

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          (e) The terms and provisions of the New Term Loans and New Term Loan Commitments of any Series
shall be, except as otherwise set forth herein or in the Joinder Agreement, identical to the Term
Loans; provided, however, that (i) the New Term Loan Maturity Date for any Series
shall be determined by the Borrower and the applicable New Term Loan Lenders and shall be set forth
in the applicable Joinder Agreement; provided that (x) the Weighted Average Life to
Maturity of all New Term Loans of any Series shall be no shorter than the Weighted Average Life to
Maturity of the Term Loans and (y) the applicable New Term Loan Maturity Date of each Series shall
be no shorter than the final maturity of the Term Loans and (ii) the rate of interest applicable to
the New Term Loans of each Series shall be determined by the Borrower and the applicable New Term
Loan Lenders and shall be set forth in the applicable Joinder Agreement. The terms and provisions
of the New Revolving Credit Loans and New Revolving Credit Commitments shall be identical to the
Revolving Credit Loans and the Revolving Credit Commitments.

          (f) Each Joinder Agreement may, without the consent of any other Lenders, effect such
amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in
the opinion of the Administrative Agent, to effect the provisions of this Section 2.25.

ARTICLE III.

Representations and Warranties

     The Borrower represents and warrants to the Arrangers, the Administrative Agent, the
Collateral Agent, the Issuing Bank and each of the Lenders that:

     SECTION 3.01. Organization; Powers. The Borrower and each of the Subsidiaries (a) is duly organized or formed, validly existing
and in good standing under the laws of the jurisdiction of its organization or formation, (b) has
all requisite power and authority, and the legal right, to own and operate its property and assets,
to lease the property it operates as lessee and to carry on its business as now conducted and,
except to the extent the failure to do so could not reasonably be expected to result in a Material
Adverse Effect, as proposed to be conducted, (c) is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required, except where the failure so
to qualify, individually or in the aggregate, could not reasonably be expected to result in a
Material Adverse Effect and (d) has the power and authority, and the legal right, to execute,
deliver and perform its obligations under this Agreement, each of the other Loan Documents, the
Senior Note Documents, the Acquisition Documentation and each other agreement or instrument
contemplated hereby or thereby to which it is or will be a party, including, in the case of the
Borrower, to borrow hereunder and to issue the Senior Notes under the Senior Note Documents, in the
case of each Loan Party, to grant the Liens contemplated to be granted by it under the Security
Documents and, in the case of each Subsidiary Guarantor, to Guarantee the Guaranteed Obligations
hereunder as contemplated by the Guarantee and Collateral Agreement.

     SECTION 3.02. Authorization; No Conflicts. The Transactions (a) have been duly authorized by all requisite corporate, partnership or
limited liability company and, if required, stockholder, partner or member action and (b) will not
(i) violate (A) any applicable provision of any material law, statute, rule or regulation, or of
the certificate or articles of incorporation or other constitutive documents or by-laws of the
Borrower or any Subsidiary, (B) any
order of any Governmental Authority or arbitrator or (C) any provision of any indenture or any
material agreement or other material instrument to which the Borrower or any Subsidiary is a party
or by which any of them or any of their property is or may be bound, (ii) be in conflict with,
result in a breach of or constitute (alone or with notice or lapse of time or both) a default
under, or give rise to any right to accelerate or to require the prepayment, repurchase or
redemption of any obligation under any such indenture or material agreement or other material
instrument or (iii) result in the creation or imposition of any Lien upon or with respect to any
property or assets now owned or

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hereafter acquired by the Borrower or any other Loan Party (other
than Liens created under the Security Documents).

     SECTION 3.03. Enforceability. This Agreement has been duly executed and delivered by the Borrower and constitutes, and
each other Loan Document when executed and delivered by each Loan Party party thereto will
constitute, a legal, valid and binding obligation of such Loan Party enforceable against such Loan
Party in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent transfer or other laws now or hereafter in effect relating to creditors’
rights generally and (including with respect to specific performance) subject to general principles
of equity, regardless of whether considered in a proceeding in equity or at law, and to the
discretion of the court before which any proceeding therefor may be brought.

     SECTION 3.04. Governmental Approvals. No action, consent or approval of, registration or filing with, notice to, or any other
action by, any Governmental Authority is or will be required in connection with the Transactions,
except for (a) the filing of UCC financing statements and filings with the United States Patent and
Trademark Office and the United States Copyright Office, (b) recordation of the Mortgages, (c) such
other actions specifically described in Section 3.19, (d) any immaterial actions, consents,
approvals, registrations or filings or (e) such as have been made or obtained and are in full force
and effect.

     SECTION 3.05. Financial Statements. (a) The Borrower has, on or prior to the Closing Date, furnished to the Lenders (i)
its consolidated balance sheets and statements of income and stockholder’s equity (A)(1) as of and
for the fiscal year ended December 31, 2004, audited by and accompanied by the opinion of KPMG LLP,
independent public accountants, and (2) as of and for the fiscal years ended December 31, 2003 and
December 31, 2002, audited by and accompanied by the opinion of PricewaterhouseCoopers LLP,
independent public accountants, and (B) as of and for the fiscal quarter and the portion of the
fiscal year ended September 30, 2005, certified by a Financial Officer of the Borrower and reviewed
by KPMG LLP, independent public accountants, as provided in Statement on Auditing Standards No. 100
and (ii) the Target’s consolidated balance sheets and statements of income and stockholder’s equity
(A) as of and for the fiscal years ended December 31, 2004, December 31, 2003 and December 31,
2002, audited by and accompanied by the opinion of Deloitte & Touche LLP, independent public
accountants, and (B) as of and for the fiscal quarter and the portion of the fiscal year ended
September 30, 2005, certified by a Financial Officer of the Target and reviewed by Deloitte &
Touche LLP, independent public accountants, as provided in Statement on Auditing Standards No. 100.
Such financial statements present fairly in all material respects the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries or the Target and its
consolidated Subsidiaries, as applicable, as of such dates and for such periods, subject to normal
year-end audit adjustments and the absence of footnotes in the case of the financial statements
referred to in clauses (i)(B) and (ii)(B) above. Such balance sheets and the notes thereto
disclose all material liabilities, direct or contingent, of the Borrower and its consolidated
Subsidiaries or the Target and its consolidated Subsidiaries, as applicable, as of the dates
thereof. Such
financial statements were prepared in accordance with GAAP applied on a consistent basis
(except, with respect to such financial statements referred to in clauses (i)(B) and (ii)(B) above,
for normal year-end adjustments and the absence of footnotes).

     (b) The Borrower has heretofore delivered to the Lenders its unaudited pro forma consolidated
balance sheet and statements of income, stockholder’s equity and cash flows as of September 30,
2005, prepared giving effect to the Transactions as if they had occurred, with respect to such
balance sheet, on such date and, with respect to such other financial statements, on the first day
of each of the 9-month period and 12-month period ending on such date. Such pro forma financial
statements (i) have been prepared in good faith by the Borrower, based on the assumptions used to
prepare the pro forma financial information contained in the Confidential Information Memorandum

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(which assumptions are believed by the Borrower on the Closing Date to be reasonable in all
material respects) and (ii) present fairly in all material respects on a pro forma basis the
estimated consolidated financial position of the Borrower and its consolidated Subsidiaries as of
such date and for such period, assuming that the Transactions had actually occurred at such date or
at the beginning of such period, as the case may be (it being understood that estimates (including
pro forma financial statements), by their nature, are inherently uncertain and that no assurances
are being given that such results will be achieved).

     SECTION 3.06. No Material Adverse Change. At any time after the Closing Date, no event, change or condition has occurred that has
had, or could reasonably be expected to have, a Material Adverse Effect, since the Closing Date.

     SECTION 3.07. Title to Properties; Possession Under Leases. (a) The Borrower and the other Loan Parties have good and marketable title to, valid
leasehold interests in, or a license or other right to use, all their respective material
properties and material assets that are included in the Collateral (including all Mortgaged
Property) and including valid rights, title and interests in or rights to control or occupy
easements or rights of way used in connection with such properties and assets
(“Easements”), free and clear of all Liens or other exceptions to title other than
Permitted Liens and minor defects in title that, in the aggregate, are not substantial in amount
and do not materially detract from the value of the property subject thereto or interfere with its
ability to conduct its business as currently conducted or to utilize such properties and assets for
their intended purposes.

     (b) Except as set forth in Schedule 3.07 or where the failure to do so could not reasonably be
expected to result in a Material Adverse Effect, (i) each of the Loan Parties has complied with all
material obligations under all material leases to which it is a party and all such material leases
are in full force and effect and (ii) each of the Loan Parties enjoys peaceful and undisturbed
possession under all such material leases.

     (c) Except as set forth in Schedule 3.07, none of the Borrower or any of the other Loan
Parties has received any notice of, nor has any knowledge of, any pending or contemplated
condemnation proceeding affecting the Mortgaged Properties or any sale or disposition thereof in
lieu of condemnation (i) as of the Restatement Date or (ii) at any time thereafter, which in the
case of clause (ii) has had, or could reasonably be expected to have, a Material Adverse Effect.

     (d) Except as set forth on Schedule 3.07, as of the Restatement Date, none of the Borrower or
any of the Subsidiaries is obligated under any right of first refusal, option or other contractual
right to sell, assign or otherwise dispose of any Mortgaged Property or any interest therein.

     SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth as of the Restatement Date a list of all Subsidiaries, including
each Subsidiary’s exact legal name (as reflected in such Subsidiary’s certificate or articles of
incorporation or other constitutive documents) and jurisdiction of incorporation or formation and
the percentage ownership interest of the Borrower (direct or indirect) therein, and identifies each
Subsidiary that is a Loan Party. As of the Restatement Date, the shares of capital stock or other
Equity Interests so indicated on Schedule 3.08 are owned by the Borrower, directly or indirectly,
free and clear of all Liens (other than Liens created under the Security Documents and, in the case
of Equity Interests (other than Pledged Securities), Permitted Liens) and all such shares of
capital stock are fully paid, and to the extent issued by a corporation, non-assessable.

     SECTION 3.09. Litigation; Compliance with Laws. (a) Except as set forth on Schedule 3.09, there are no actions, suits or proceedings
at law or in equity or by or before any arbitrator or Governmental Authority now pending or, to the
knowledge of the Borrower, threatened against the Borrower or any Subsidiary or any business,
property or material rights of the Borrower or any Subsidiary

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(i) that, as of the Restatement Date,
involve any Loan Document or the Transactions or, at any time thereafter, involve any Loan Document
or the Transactions and which could reasonably be expected to be material and adverse to the
interests of the Borrower and its Subsidiaries, taken as a whole, or the Lenders, or (ii) as to
which there is a reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to result in a Material
Adverse Effect.

     (b) Except as set forth on Schedule 3.09, none of the Borrower or any of the Subsidiaries or
any of their respective material properties or assets is in violation of any law, rule or
regulation (including any zoning, building, ordinance, code or approval or any building permits,
but not including any Environmental Law which is the subject of Section 3.17 or any energy
regulation matter which is the subject of Section 3.23) or any restrictions of record or agreements
affecting the Mortgaged Property, or is in default with respect to any judgment, writ, injunction,
decree or order of any Governmental Authority, where such violation or default, individually or in
the aggregate, could reasonably be expected to result in a Material Adverse Effect.

     (c) Permits are in effect for each Mortgaged Property as currently constructed.

     SECTION 3.10. Agreements. None of the Borrower or any of the Subsidiaries is in default under any provision of any
indenture or other agreement or instrument evidencing Indebtedness, or any other material agreement
or instrument to which it is a party or by which it or any of its properties or assets are or may
be bound, where such default, individually or in the aggregate, could reasonably be expected to
result in a Material Adverse Effect.

     SECTION 3.11. Federal Reserve Regulations. (a) None of the Borrower or any of the Subsidiaries is engaged principally, or as one
of its material activities, in the business of extending credit for the purpose of buying or
carrying Margin Stock.

     (b) No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, for purchasing or carrying
Margin Stock or for the purpose of purchasing, carrying or trading in any securities under such
circumstances as to involve the Borrower in a violation of Regulation X or to involve any broker or
dealer in a violation of
Regulation T. No Indebtedness being reduced or retired out of the proceeds of any Loans or
Letters of Credit was or will be incurred for the purpose of purchasing or carrying any Margin
Stock. Following the application of the proceeds of the Loans and the Letters of Credit, Margin
Stock will not constitute more than 25% of the value of the assets of the Borrower and the
Subsidiaries. None of the transactions contemplated by this Agreement will violate or result in
the violation of any of the provisions of the Regulations of the Board, including Regulation T, U
or X. If requested by any Lender or the Administrative Agent, the Borrower will furnish to the
Administrative Agent and each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1 referred to in Regulation U.

     SECTION 3.12. Investment Company Act. None of the Borrower or any of the Subsidiaries is an “investment company” as defined in,
and subject to registration under, the Investment Company Act of 1940, as amended from time to
time.

     SECTION 3.13. Use of Proceeds. After the Closing Date, the Borrower will use the proceeds of the Revolving Loans and the
Swingline Loans for the ongoing working capital requirements, the payment of fees and expenses
related to the Transaction and general corporate purposes of the Borrower and the Subsidiaries.
The Borrower will request the issuance of Letters of Credit solely for the working capital
requirements and general corporate purposes of (i) the Borrower and the Subsidiary Guarantors or
(ii) any

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other Subsidiary, including to support Commodity Hedging Obligations; provided
that the L/C Exposure pursuant to this Agreement with respect to such other Subsidiaries shall not
exceed the L/C Exposure Cap. The Borrower will use the proceeds of the Term Loans that may be
made, or deemed to be made, from the requested conversion of Credit-Linked Deposits into Term Loans
solely for the working capital requirements and general corporate purposes of the Borrower.

     SECTION 3.14. Tax Returns. The Borrower and each of the Subsidiaries has timely filed or timely caused to be filed all
material Federal, state, local and foreign tax returns or materials required to have been filed by
it and all such tax returns are correct and complete in all material respects. The Borrower and
each of the Subsidiaries has timely paid or caused to be timely paid all material Taxes due and
payable by it and all assessments received by it, except Taxes that are being contested in good
faith by appropriate proceedings and for which the Borrower or such Subsidiary, as applicable,
shall have set aside on its books adequate reserves in accordance with GAAP or except where the
failure to do so could not reasonably be expected to result in a Material Adverse Effect. The
Borrower has made adequate provision in accordance with GAAP for all Taxes accrued and not yet due
and payable. Except as permitted in clause (bb) of the definition of “Permitted Liens”, no Lien
for Taxes has been filed (except for Taxes not yet delinquent that are being contested in good
faith by appropriate proceedings), and to the knowledge of the Borrower and each of the
Subsidiaries, based on the receipt of written notice, no claim is being asserted, with respect to
any Tax. Neither the Borrower nor any of the Subsidiaries (a) intends to treat the Loans or any of
the transactions contemplated by any Loan Document or the Acquisition as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4) or (b) is aware of any
facts or events that would result in such treatment.

     SECTION 3.15. No Material Misstatements. None of (a) the Confidential Information Memorandum or the Restatement Confidential
Information Memorandum or (b) any other written information, report, financial statement, exhibit
or schedule furnished by or on behalf of the Borrower or any Subsidiary to the Arrangers, the
Administrative Agent or any Lender for use in connection with the transactions contemplated by the
Loan Documents or in connection with the negotiation of any Loan Document or included therein or
delivered pursuant thereto contained, contains or will contain (as of the date of its delivery to
the Arrangers, the Administrative Agent or any Lender or, as modified or supplemented, as of the
Closing Date or the Restatement Date) any material misstatement of fact or omitted, omits or will
omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were, are or will be made, not misleading; provided that to
the extent any such written information, report, financial statement, exhibit or schedule was based
upon or constitutes a forecast or projection (including pro forma financial statements), the
Borrower represents only that it acted in good faith and upon assumptions believed to be reasonable
at the time, it being understood that projections are subject to significant uncertainties and
contingencies, many of which are beyond the control of the Borrower and the Subsidiaries, and that
no assurance can be given that such projections will be realized.

     SECTION 3.16. Employee Benefit Plans. Except as could not reasonably be expected to result in a Material Adverse Effect, the
Borrower and each ERISA Affiliate is in compliance with the applicable provisions of ERISA and, in
respect of the Benefit Plans and Multiemployer Plans, the Tax Code and the regulations and
published interpretations thereunder. No ERISA Event has occurred or is reasonably expected to
occur that, when taken together with all other such ERISA Events, could reasonably be expected to
result in a Material Adverse Effect.

     SECTION 3.17. Environmental Matters. (a) Except as set forth in Schedule 3.17 or except with respect to any matters that,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, none of the Borrower or any of the Subsidiaries:

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     (i) has failed to comply with any Environmental Law or to take all actions necessary to
obtain, maintain, renew and comply with any permit, license, registration or other approval
required under Environmental Law;

     (ii) has become a party to any administrative or judicial proceeding, or possesses
knowledge of any such proceeding that has been threatened, that could result in the
termination, revocation or modification of any permit, license, registration or other
approval required under Environmental Law;

     (iii) possesses knowledge that the Borrower or any of the Subsidiaries has become
subject to any Environmental Liability or any Mortgaged Property (A) is subject to any Lien
imposed pursuant to Environmental Law or (B) contains Hazardous Materials of a form or type
or in a quantity or location that could reasonably be expected to result in any
Environmental Liability;

     (iv) has received written notice of any claim or threatened claim, with respect to any
Environmental Liability other than those which have been fully and finally resolved and for
which no obligations remain outstanding; or

     (v) possesses knowledge of any facts or circumstances that could reasonably be expected
to result in any Environmental Liability or could reasonably be expected to materially
interfere with or prevent continued material compliance with Environmental Laws in effect as
of the Restatement Date and the date of each Credit Event by the Borrower or the
Subsidiaries.

     (b) Since the Closing Date, there has been no change in the status of the matters disclosed on
Schedule 3.17 that, individually or in the aggregate, has resulted in, or could reasonably be
expected to result in, a Material Adverse Effect.

     The representations and warranties in this Section 3.17 are the sole representations and
warranties in any Loan Document with respect to environmental matters, including without
limitation, those relating to Environmental Law or Hazardous Materials.

     SECTION 3.18. Insurance. Schedule 3.18 sets forth a true, complete and correct description of all material insurance
coverage maintained by or on behalf of the Borrower and the Subsidiaries as of the Restatement
Date. As of the Restatement Date, such insurance is in full force and effect and all premiums that
are due and owed have been duly paid. The Borrower and the Subsidiaries are insured by financially
sound insurers and such insurance is in such amounts and covering such risks and liabilities (and
with such deductibles, retentions and exclusions) as are maintained by companies of a similar size
operating in the same or similar businesses.

     SECTION 3.19. Security Documents. (a) The Guarantee and Collateral Agreement and the Texas Genco Security Agreement are
effective to create in favor of the applicable Collateral Trustee, for the ratable benefit of the
Secured Parties, a legal, valid, binding and enforceable security interest in the Collateral
described therein and proceeds thereof, subject to applicable insolvency, bankruptcy,
reorganization, moratorium, fraudulent transfer and other laws now or hereafter in effect generally
affecting rights of creditors and (including with respect to specific performance) principles of
equity, whether considered in a proceeding in equity or in law and to the discretion of the court
before which any proceeding therefor may be brought, and (i) in the case of the Pledged Securities,
upon the earlier of (A) when such Pledged Securities are delivered to the applicable Collateral
Trustee and (B) when financing statements in appropriate form are filed in the offices specified on
Schedule 3.19(a), (ii) in the case of Deposit Accounts not constituting Excluded Perfection Assets,
by the execution and delivery of

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control agreements providing for “control” as described in Section
9-104 of the UCC, (iii) in the case of Securities Accounts not constituting Excluded Perfection
Assets, upon the earlier of (A) the filing of financing statements in the offices specified on
Schedule 3.19(a) and (B) the execution and delivery of control agreements providing for “control”
as described in Section 9-106 of the UCC and (iv) in the case of all other Collateral described
therein (other than Excluded Perfection Assets, Intellectual Property Collateral, money not
credited to a Deposit Account or letter of credit rights not constituting supporting obligations),
when financing statements in appropriate form are filed in the offices specified on Schedule
3.19(a), the Guarantee and Collateral Agreement and the Texas Genco Security Agreement shall
constitute a fully perfected Lien on, all right, title and interest of the Secured Parties in such
Collateral and proceeds thereof, as security for the Guaranteed Obligations hereunder, in each case
prior and superior to the rights of any other Person (except, in the case of all Collateral other
than Pledged Securities, with respect to Permitted Liens).

     (b) Each Intellectual Property Security Agreement is effective to create in favor of the
applicable Collateral Trustee, for the ratable benefit of the Secured Parties, a legal, valid,
binding and enforceable security interest in the Intellectual Property Collateral described therein
and proceeds thereof, subject to applicable insolvency, bankruptcy, reorganization, moratorium,
fraudulent transfer and other laws now or hereafter in effect generally affecting rights of
creditors and (including with respect to specific performance) principles of equity, whether
considered in a proceeding in equity or in law and to the discretion of the court before which any
proceeding therefor may be brought. When each Intellectual Property Security Agreement is filed in
the United States Patent and Trademark Office and the United
States Copyright Office, respectively, together with financing statements in appropriate form
filed in the offices specified in Schedule 3.19(a), in each case within the time period prescribed
by applicable law, such Intellectual Property Security Agreement shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the grantors thereunder in the
Intellectual Property Collateral, as security for the Guaranteed Obligations hereunder, in each
case prior and superior in right to any other Person (except with respect to Permitted Liens) (it
being understood that subsequent recordings in the United States Patent and Trademark Office and
the United States Copyright Office may be necessary to perfect a Lien on registered trademarks,
trademark applications, patents, patent applications and copyrights acquired by the grantors after
the Closing Date).

     (c) Each of the Mortgages is effective to create in favor of the applicable Collateral
Trustee, for the ratable benefit of the Secured Parties, a legal, valid, binding, subsisting and
enforceable Lien on, and security interest in, all of the Loan Parties’ right, title and interest
in and to the Mortgaged Property thereunder and proceeds thereof, subject to applicable insolvency,
bankruptcy, reorganization, moratorium, fraudulent transfer and other laws now or hereafter in
effect generally affecting rights of creditors and (including with respect to specific performance)
principles of equity, whether considered in a proceeding in equity or in law, and to the discretion
of the court before which any proceeding therefor may be brought, and when the Mortgages are filed
in the offices specified on Schedule 3.19(c), each such Mortgage shall constitute a fully perfected
Lien on, and security interest in, all right, title and interest of the grantors thereof in such
Mortgaged Property and proceeds thereof, as security for the Guaranteed Obligations hereunder, in
each case prior and superior in right to any other Person (except Liens expressly permitted by
clauses (f), (h), (i), (j), (k) (solely to the extent that such Lien relating to such Permitted
Refinancing Indebtedness was permitted prior to such refinancing by clause (f), (h), (i), (j), (n)
or (p)), (n), (p), (q)(ii), (dd) and (ff) of the definition of “Permitted Liens”).

     SECTION 3.20. Location of Real Property. Schedule 3.20 lists completely and correctly as of the Restatement Date all real property
owned or leased by the Borrower and the other Loan Parties and all real property to which the
Borrower and the other Loan Parties have an interest via easement, license or permit and, in each
case, the addresses thereof, indicating for each parcel whether it is owned or leased.

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As of the Restatement Date, the Borrower and the other Loan Parties own in fee or have valid leasehold or
easement interests in, as the case may be, all the real property set forth on Schedule 3.20.

     SECTION 3.21. Labor Matters. As of the Restatement Date, there are no strikes, lockouts or slowdowns against the
Borrower or any Subsidiary pending or, to the knowledge of the Borrower, threatened. The hours
worked by and payments made to employees of the Borrower and the Subsidiaries have not been in
violation of the Fair Labor Standards Act or any other applicable Federal, state, material local or
material foreign law applicable to such matters in any material respect. All payments due from the
Borrower or any Subsidiary, or for which any claim may be made against the Borrower or any
Subsidiary, on account of wages and employee health and welfare insurance and other benefits, have
been paid or accrued as a liability on the books of the Borrower or such Subsidiary, except as
could not reasonably be expected to have a Material Adverse Effect. The consummation of the
Transactions will not give rise to any right of termination or right of renegotiation on the part
of any union under any collective bargaining agreement to which the Borrower or any Subsidiary is
bound.

     SECTION 3.22. Intellectual Property. Except as could not reasonably be expected to result in a Material Adverse Effect, the
Borrower and each of the Subsidiaries owns, or is licensed or otherwise has the right to use, all
trademarks, tradenames, copyrights, patents and other intellectual property material to its
business, and the use thereof by the Borrower and the Subsidiaries does not infringe upon the
rights of any other Person.

     SECTION 3.23. Energy Regulation. (a) The Borrower and any Subsidiary Guarantor that is a holding company as such term
is defined in PUHCA is exempt in accordance with 18 CFR § 366.3 from the accounting,
record-retention and reporting requirements of PUHCA.

     (b) The Borrower is not subject to regulation as a “public utility” as such term is defined in
the FPA. Each Subsidiary Guarantor that is subject to regulation as a “public utility” as such
term is defined in the FPA and that makes sales of energy or capacity that are not pursuant to a
state regulatory authority’s implementation of PURPA has an order from the FERC, which order is not
subject to any pending challenge, investigation, complaint, or other proceeding, except as could
not reasonably be expected to result in a Material Adverse Effect and other than generic
proceedings generally applicable in the industry, (x) authorizing such Subsidiary Guarantor to
engage in wholesale sales of electricity and, to the extent permitted under its market-based rate
tariff, other transactions at market-based rates and (y) granting such waivers and blanket
authorizations as are customarily granted to entities with market-based rate authority, including
blanket authorizations to issue securities and to assume liabilities pursuant to Section 204 of the
FPA. With respect to each Subsidiary Guarantor described in the preceding sentence, except as
could not reasonably be expected to result in a Material Adverse Effect, the FERC has not imposed
any rate caps, mitigation measures, or other limits on market-based sales of power by that
Subsidiary Guarantor, other than (i) rate caps and mitigation measures generally applicable to
similarly situated marketers or generators selling electricity, ancillary services or other
services at wholesale at market-based rates in the geographic market where such Subsidiary
Guarantor conducts its business, and (ii) the restrictions imposed on Cabrillo Power I LLC,
Cabrillo Power II LLC, Devon Power LLC, Middletown Power LLC, Montville Power LLC, Norwalk Power
LLC, and Connecticut Jet Power LLC pursuant to those entities’ “reliability must run” agreements
and/or other agreements/arrangements with the independent system operators, or other similar
arrangements.

     (c) Each Subsidiary Guarantor of the Borrower participating in the wholesale power market in
ERCOT has registered with the PUCT to sell electricity at wholesale at market-based rates, and,
except as could not reasonably be expected to result in a Material Adverse Effect, the PUCT has not
imposed any specific rate cap or mitigation measure (other than generic proceedings generally
applicable in the

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industry). To its knowledge, as of the Restatement Date, the rates charged by
each such Subsidiary Guarantor are not subject to any pending challenge or investigation.

     (d) Except as could not reasonably be expected to result in a Material Adverse Effect, there
are no complaint proceedings pending with the FERC or the PUCT seeking abrogation or modification,
or otherwise investigating the terms, of a contract for the sale of power by Borrower or its
Subsidiary Guarantors.

     (e) Except as could not reasonably be expected to result in a Material Adverse Effect, each of
the Borrower and each of the Subsidiary Guarantors, as applicable, has filed or caused to be filed
with the applicable state or local utility commission or regulatory bodies, ERCOT and the FERC all
forms, applications, notices, statements, reports and documents (including all exhibits and
amendments thereto) required to be filed by it under all Applicable Laws, including PUHCA, the FPA
and state utility laws and the respective rules thereunder, all of which complied with the
applicable requirements of the appropriate act and rules, regulations and orders thereunder in
effect on the date each was filed.

     (f) None of the Borrower or any of the Subsidiary Guarantors is subject to any material state
laws or material regulations respecting rates or the financial or organizational regulation of
utilities, other than (i) with respect to those Subsidiary Guarantors that are QFs, such state
regulations contemplated by 18 C.F.R. Section 292.602(c), (ii) “lightened regulation” by the New
York State Public Service Commission (the “NYPSC”) of the type described in the NYPSC’s
order issued on September 23, 2004 in Case 04-E-0884 and (iii) the assertion of jurisdiction by the
State of California over maintenance and operating standards of all generating facilities pursuant
to SB 39XX. No approval is required to be obtained in connection with the Transactions by Borrower
or its Subsidiary Guarantors from the PUCT, the FERC, or any other state or federal Governmental
Authority with jurisdiction over the energy sales or financing arrangements of the Borrower and its
Subsidiary Guarantors.

     (g) As of the Restatement Date, each Facility identified as a “QF” in Schedule 3.23(g) is a QF
under PURPA and the current rules and regulations promulgated thereunder. As of the Restatement
Date, each person identified as an “EWG” in Schedule 3.23(g) is an “exempt wholesale generator”
within the meaning of PUHCA and the Energy Policy Act of 2005, as amended. As of the Restatement
Date, each person identified as a FUCO in Schedule 3.23(g) is a “foreign utility company” within
the meaning of PUHCA.

     SECTION 3.24. Solvency. Immediately after the consummation of the Transactions that occurred on the Closing Date
and the Transactions to occur on the Restatement Date and immediately following the making of each
Loan (or other extension of credit hereunder) and after giving effect to the application of the
proceeds of each Loan (or other extension of credit hereunder), (a) the fair value of the assets of
the Loan Parties, taken as a whole, at a fair valuation, taking into account the effect of any
indemnities, contribution or subrogation rights, will exceed their debts and liabilities,
subordinated, contingent or otherwise; (b) the present fair saleable value of the property of the
Loan Parties, taken as a whole, taking into account the effect of any indemnities, contribution or
subrogation rights, will be greater than the amount that will be required to pay the probable
liability of their debts and other liabilities, subordinated, contingent or otherwise, as such
debts and other liabilities become absolute and matured; (c) the Loan Parties, taken as a whole,
will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as such
debts and liabilities become absolute and matured; and (d) the Loan Parties, taken as a whole, will
not have unreasonably small capital with which to conduct the business in which they are engaged as
such business is now conducted and is proposed to be conducted following the Closing Date and the
Restatement Date.

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     SECTION 3.25. Acquisition Documentation. The Borrower delivered the Acquisition Documentation to the Administrative Agent on or
prior to the Closing Date. As of the Closing Date, none of the Acquisition Documentation was
waived, amended, modified or supplemented without the prior written consent of Morgan Stanley
Senior Funding, Inc. and Citigroup Global Markets Inc. in a manner that was material and adverse to
the Lenders, and all related material agreements, instruments and undertakings were in full force
and effect.

ARTICLE IV.

Conditions of Lending

     The obligations of the Lenders to make Loans, the obligations of the Issuing Bank to issue
Letters of Credit and the obligations of the Funded L/C Lenders to fund their Credit-Linked
Deposits hereunder are subject to the satisfaction (or waiver in accordance with Section 9.08) of
the following conditions:

     SECTION 4.01. All Credit Events. On the date of each Borrowing on or after the Closing Date and including the Restatement
Date, including each Borrowing of a Swingline Loan, and on the date of each issuance, amendment,
extension or renewal of a Letter of Credit on or after the Closing Date (each such event being
called a “Credit Event”):

     (a) The Administrative Agent shall have received a notice of such Borrowing as required
by Section 2.03 (or such notice shall have been deemed given in accordance with Section
2.03) or, in the case of the issuance, amendment, extension or renewal of a Letter of
Credit, the Issuing Bank and the Administrative Agent shall have received a notice
requesting the issuance, amendment, extension or renewal of such Letter of Credit as
required by Section 2.23(b) or, in the case of the Borrowing of a Swingline Loan, the
Swingline Lender and the Administrative Agent shall have received a notice requesting such
Swingline Loan as required by Section 2.22(b).

     (b) The representations and warranties set forth in each Loan Document shall be true
and correct in all material respects on and as of the date of such Credit Event with the
same effect as though made on and as of such date, except to the extent such representations
and warranties expressly relate to an earlier date, in which case such representations and
warranties shall be true and correct in all material respects on and as of such earlier
date; provided that, with respect to any Credit Event occurring on the Closing Date
only, any breach of any such representation or warranty shall not constitute a failure of
this condition unless it constitutes a breach of (i) a representation or warranty made in
the Purchase Agreement by the Target that is material to the interests of the Lenders but
only to the extent that the Borrower has the right to terminate its obligations under the
Purchase Agreement as a result of a breach of such representation or warranty in the
Purchase Agreement and (ii) a representation or warranty of the Borrower set forth in any of
Sections 3.01, 3.02, 3.03, 3.05 (solely with respect to financial statements of the Borrower
and its consolidated Subsidiaries), 3.11, 3.12, 3.15 and 3.25 hereof.

     (c) The Borrower and each other Loan Party shall be in compliance with all the terms
and provisions set forth in each Loan Document on its part to be observed or performed, and,
at the time of and immediately after such Credit Event, no Event of Default or Default shall
have occurred and be continuing; provided that, with respect to any Credit Event
occurring on the Closing Date only, any Default or Event of Default arising from the breach
of any representation or warranty set forth in the Loan Documents shall not constitute a
failure of this condition unless it constitutes a breach of (i) a representation or warranty
made in the Purchase Agreement by the Target that is material to the interests of the
Lenders but only to the extent that the Borrower has

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the right to terminate its obligations
under the Purchase Agreement as a result of a breach of such representation or warranty in
the Purchase Agreement and (ii) a representation or warranty of the Borrower set forth in
any of Sections 3.01, 3.02, 3.03, 3.05 (solely with respect to financial statements of the
Borrower and its consolidated Subsidiaries), 3.11, 3.12, 3.15 and 3.25 hereof.

     (d) After giving effect to such Credit Event, the Aggregate Revolving Credit Exposure
shall not exceed the Total Revolving Credit Commitment.

     (e) After giving effect to such Credit Event, the Funded L/C Exposure shall not exceed
the Total Credit-Linked Deposit.

     Each Credit Event shall be deemed to constitute a representation and warranty by the Borrower
on the date of such Credit Event as to the matters specified in paragraphs (b), (c), (d) and (e) of
this Section 4.01.

     SECTION 4.02. Conditions Precedent to Restatement Date. On the Restatement Date:

     (a) Each Arranger shall have received, on behalf of itself, the Lenders and the Issuing
Bank, a favorable written opinion of (i) Kirkland & Ellis LLP, counsel for the Borrower and
the Subsidiaries, in form and substance reasonably satisfactory to the Arrangers, and (ii)
each local counsel to the Borrower and the Subsidiaries as the Arrangers may reasonably
request, in each case (A) dated the Restatement Date, (B) addressed to the Arrangers, the
Administrative Agent, the Collateral Agent, the Deposit Bank, the Issuing Bank and the
Lenders and (C) covering such corporate, security interest and related matters relating to
the Loan Documents and the Transactions as the Arrangers shall reasonably request and which
are customary for transactions of the type contemplated herein.

     (b) The Arrangers shall have received (i) a copy of the certificate or articles of
incorporation or other formation documents, including all amendments thereto, of each Loan
Party, certified as of a recent date by the Secretary of State of the state of its
organization, and a certificate as to the good standing of each Loan Party as of a recent
date, from such Secretary of State; (ii) a certificate of the Secretary or Assistant
Secretary of each Loan Party dated the Restatement Date and certifying (A) that attached
thereto is a true and complete copy of the by-laws of such Loan Party as in effect on the
Restatement Date and at all times since a date prior to the date of the resolutions
described in clause (B) below, (B) that attached thereto is a true and complete copy of
resolutions duly adopted by the Board of Directors of such Loan Party authorizing the
execution, delivery and performance of the Loan Documents to which such Person is a party,
and in the case of the Borrower, the borrowings hereunder, and that such resolutions have
not been modified, rescinded or amended and are in full force and effect, (C) that the
certificate or articles of incorporation or other formation documents of such Loan Party
have not been amended since the date of the last amendment thereto shown on the certificate
of good standing furnished pursuant to clause (i) above and (D) as to the incumbency and
specimen signature of each officer executing any Loan Document or any other document
delivered in connection herewith on behalf of such Loan Party; (iii) a certificate of
another officer as to the incumbency and specimen signature of the Secretary or Assistant
Secretary executing the certificate pursuant to clause (ii) above; and (iv) if requested,
documentation and other information required by bank regulatory authorities under applicable
“know your customer” and anti-money laundering rules and regulations, including the USA
Patriot Act (title III of Pub. L. 107-56 (signed into law October 26, 2001)).

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     (c) The Arrangers shall have received a certificate, dated the Restatement Date and
signed by a Financial Officer of the Borrower, confirming compliance with the conditions
precedent set forth in paragraphs (b), (c) and (d) of Section 4.01.

     (d) The Arrangers shall have received (i) this Agreement, executed and delivered by a
duly authorized officer of the Borrower, (ii) the Reaffirmation Agreements, executed and
delivered by a duly authorized officer of the Borrower and each Subsidiary Guarantor, (iii)
a Mortgage covering each of the Mortgaged Properties, executed and delivered by a duly
authorized officer of each Loan Party thereto, (iv) the amendment to the NRG Collateral
Trust Agreement and the amendment to the Texas Genco Collateral Trust Agreement, each dated
as of
the Restatement Date and executed and delivered by a duly authorized officer of each
Loan Party party thereto, and (v) the Amendment Agreement, executed and delivered by a duly
authorized officer of the Borrower and each Subsidiary Guarantor party thereto in form and
substance reasonably satisfactory to the Arrangers.

     (e) The Borrower shall have paid all fees and reasonable, documented out-of-pocket
costs and expenses (including reasonable legal fees and expenses of Latham & Watkins LLP,
counsel to the Arrangers, and one local counsel to the Arrangers per relevant jurisdiction
and their technical and other non-financial advisors, title premiums, survey charges and
recording taxes and fees) and other compensation accrued and payable as of such date to the
Arrangers as separately agreed by the Borrower and the Arrangers.

     (f) The Collateral Agent and the Arrangers shall have received a duly executed
Perfection Certificate dated on or prior to the Restatement Date. The Arrangers shall have
received the results of a recent Lien and judgment search in each relevant jurisdiction with
respect to the Borrower and the Subsidiary Guarantors or Subsidiaries that shall otherwise
have material assets that are included in the Collateral, and such search shall reveal no
Liens on any of the assets of the Borrower or any of such Subsidiaries except for Permitted
Liens.

     (g) The Arrangers shall have received a solvency certificate from a Financial Officer
of the Borrower, in form and substance reasonably satisfactory to each Arranger, supporting
the conclusions that after giving effect to the Transactions, the Borrower will not be
insolvent or be rendered insolvent by the Indebtedness incurred in connection therewith, or
be left with unreasonably small capital with which to engage in its businesses, or have
incurred debts beyond its ability to pay such debts as they mature.

ARTICLE V.

Affirmative Covenants

     The Borrower covenants and agrees with each Lender that so long as this Agreement shall remain
in effect and until the Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan Document (other than
indemnification and other contingent obligations in each case not then due and payable) shall have
been paid in full and all Letters of Credit have been canceled or have expired and all amounts
drawn thereunder have been reimbursed in full or reimbursement thereof shall have been
cash-collateralized in an amount equal to 103% of the L/C Exposure as of such time and all
Credit-Linked Deposits have been returned to the Funded L/C Lenders (or used to reimburse Funded
L/C Disbursements or converted to Term Loans), the Borrower will, and will cause each of the
Subsidiaries to:

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     SECTION 5.01. Corporate Existence. Subject to Section 6.04 hereof, and only with respect to the Borrower and its Restricted
Subsidiaries, do or cause to be done all things necessary to preserve and keep in full force and
effect (a) its corporate existence, and the corporate, partnership or other existence of each of
its subsidiaries, in accordance with the respective organizational documents (as the same may be
amended from time to time) of the Borrower or any such subsidiary; and (b) the rights (charter and
statutory), licenses and franchises of the Borrower and its subsidiaries, except where the failure
to so preserve and keep could not reasonably be expected to result in a Material Adverse Effect;
provided, however, that neither the Borrower nor any Restricted Subsidiary shall be
required to preserve any such right, license or franchise, or the corporate, partnership or other
existence of any of its subsidiaries, if the Borrower or such Restricted Subsidiary shall determine
that the preservation thereof is no longer desirable in the conduct of the business of the Borrower
and its subsidiaries, taken as a whole, and that the loss thereof could not reasonably be expected
to result in a Material Adverse Effect.

     SECTION 5.02. Insurance. Except to the extent any such insurance is not generally available in the marketplace
from commercial insurers, keep its properties that are of an insurable character adequately insured
in accordance with industry standards at all times by financially sound insurers (provided,
however, that there shall be no breach of this Section 5.02 if any such insurer becomes
financially unsound and such Loan Party obtains reasonably promptly insurance coverage from a
different financially sound insurer), which, in the case of any insurance on any Mortgaged
Property, are licensed to do business in the States where the applicable Mortgaged Property is
located; maintain such other insurance, to such extent and against such risks (and with such
deductibles, retentions and exclusions), in each case as is customary with companies of a similar
size operating in the same or similar businesses; maintain such other insurance as may be required
by law; and maintain such other insurance as otherwise required by the Security Documents.

     SECTION 5.03. Taxes. Pay, and cause each of its Subsidiaries to pay, prior to delinquency, all material Taxes,
assessments, and governmental levies except such as are contested in good faith and by appropriate
proceedings and where the Borrower shall have set aside on its books adequate reserves with respect
thereto in accordance with GAAP and such contest operates to suspend collection of the contested
obligation, tax, assessment or charge and enforcement of a Lien.

     SECTION 5.04. Financial Statements, Reports, etc. In the case of the Borrower, furnish to the Administrative Agent for distribution to each
Lender:

     (a) within 90 days after the end of each fiscal year, its consolidated balance sheet
and related statements of income, stockholders’ equity and cash flows showing the financial
condition as of the close of such fiscal year of the Borrower and its consolidated
Subsidiaries at such time and the results of its operations and the operations of such
Subsidiaries during such year, together with comparative figures for the immediately
preceding fiscal year (or, in the case of the fiscal year ending December 31, 2005, the
comparable period of more than twelve months ending December 31, 2004), all audited by KPMG
LLP or other independent public accountants of recognized national standing and accompanied
by an opinion of such accountants reasonably satisfactory to the Administrative Agent (which
shall not be qualified in any material respect, except for qualifications relating to
accounting changes (with which such independent public accountants shall concur) in response to FASB releases or other authoritative
pronouncements) to the effect that such consolidated financial statements fairly present the
financial condition and results of operations of the Borrower and its consolidated
Subsidiaries on a consolidated basis in accordance with GAAP consistently applied;

     (b) within 45 days after the end of each of the first three fiscal quarters of each
fiscal year, its unaudited consolidated balance sheet and related statements of income,
stockholders’

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equity and cash flows showing the financial condition as of the close of such
fiscal quarter of the Borrower and its consolidated Subsidiaries at such time and the
results of its operations and the operations of such Subsidiaries during such fiscal quarter
and the then elapsed portion of the fiscal year, and comparative figures for the same
periods in the immediately preceding fiscal year, all certified by one of its Financial
Officers to the effect that such financial statements, while not examined by independent
public accountants, reflect in the opinion of the Borrower all adjustments necessary to
present fairly in all material respects the financial condition and results of operations of
the Borrower and its consolidated Subsidiaries on a consolidated basis as of the end of and
for such periods in accordance with GAAP consistently applied, subject to normal year-end
audit adjustments and the absence of footnotes;

     (c) (i) concurrently with any delivery of financial statements under paragraph (a)
above for the year ended December 31, 2006 and each year thereafter, a letter from the
accounting firm rendering the opinion on such statements (which letter may be limited to
accounting matters and disclaim responsibility for legal interpretations) stating whether,
in connection with their audit examination, anything has come to their attention which would
cause them to believe that any Default or Event of Default existed on the date of such
financial statements and if such a condition or event has come to their attention and (ii)
concurrently with any delivery of financial statements under paragraph (a) or (b) above for
the quarter ended June 30, 2006 and each quarter and/or year thereafter, a certificate of a
Financial Officer of the Borrower (A) certifying that no Event of Default or Default has
occurred or, if such an Event of Default or Default has occurred, specifying the nature and
extent thereof and any corrective action taken or proposed to be taken with respect thereto,
(B) setting forth computations in reasonable detail as is reasonably satisfactory to the
Administrative Agent demonstrating compliance with the covenants contained in Sections 6.13
and 6.14 and setting forth the Borrower’s calculation of Excess Cash Flow, Consolidated
EBITDA and Capital Expenditures made by the Borrower and the Restricted Subsidiaries (other
than any Excluded Subsidiaries) (1) in the case of the fiscal year ending December 31, 2006
(and together with the certificate required by paragraph (a) above), for the fiscal year
then ended and the Available Amount as at the end of such fiscal year and (2) in the case of
each ECF Period ending thereafter (and together with the certificate required by paragraph
(a) above if the applicable ECF Period is a fiscal year, or together with the certificate
required by paragraph (b) in all other cases), for the applicable ECF Period and the
Available Amount as at the end of the applicable ECF Period (and in any event for each
applicable fiscal year ending thereafter and the Available Amount as at the end of such
fiscal year) and (C) disclosing any Asset Sale or Recovery Event (other than any Asset Sale
or Recovery Event not subject to the mandatory prepayment provisions set forth in Section
2.13(b)(i) pursuant to the first proviso of the definition of Net Cash Proceeds) that was
consummated in the preceding fiscal quarter and specifying the nature thereof and the use of
proceeds with respect thereto;

     (d) within 30 days following the commencement of each fiscal year of the Borrower, a
detailed consolidated budget for such fiscal year (including a projected consolidated
balance sheet and related statements of projected operations and cash flows as of the end of
and for such fiscal year and setting forth the assumptions used for purposes of preparing such
budget) and, promptly when available, any significant revisions of such budget;

     (e) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by the Borrower or any Subsidiary with
the Securities and Exchange Commission, or any Governmental Authority succeeding to any or
all of the functions of said Commission, or with any domestic national securities exchange,
or distributed to its shareholders generally, as the case may be;

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     (f) promptly after the receipt thereof by the Borrower or any of the Subsidiaries, a
copy of any “management letter” received by any such Person from its certified public
accountants and the management’s response thereto; and

     (g) promptly, from time to time, such other information regarding the operations,
business affairs and financial condition of the Borrower or any Subsidiary, or compliance
with the terms of any Loan Document, as the Administrative Agent or any Lender (acting
through the Administrative Agent) may reasonably request.

     SECTION 5.05. Litigation and Other Notices. Furnish to the Administrative Agent written notice of the following promptly after the
Borrower obtains knowledge thereof:

     (a) any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

     (b) the filing or commencement of any action, suit or proceeding, whether at law or in
equity or by or before any arbitrator or Governmental Authority, against the Borrower or any
Subsidiary that could reasonably be expected to result in a Material Adverse Effect;

     (c) the occurrence of any ERISA Event that could reasonably be expected to result in a
Material Adverse Effect; and

     (d) any development that has resulted in, or could reasonably be expected to result in,
a Material Adverse Effect.

     SECTION 5.06. Information Regarding Collateral. (a) Furnish, and will cause each Loan Party to furnish, to each of the Administrative
Agent, the Collateral Agent and the applicable Collateral Trustee prompt written notice of (i) any
change (A) in any Loan Party’s corporate name as set forth in its certificate of incorporation,
certificate of formation or other relevant organizational documents, (B) any office or facility at
which material portions of Collateral owned by it is located (including the establishment of any
such new office or facility), (C) in any Loan Party’s corporate structure or (D) in any Loan
Party’s Federal Taxpayer Identification Number; (ii) any formation or acquisition after the Closing
Date of any Subsidiary that is not an Excluded Subsidiary; (iii) any sale, transfer, lease,
issuance or other disposition (by way of merger, consolidation, operation of law or otherwise)
after the Closing Date of any Equity Interests of any Subsidiary that is not an Excluded Subsidiary
to any Person other than the Borrower or another Subsidiary; and (iv) any Subsidiary that is an
Excluded Subsidiary as of the Closing Date or at any time thereafter ceasing to be an Excluded
Subsidiary. The Borrower agrees not to effect or permit any change referred to in the preceding
sentence unless a reasonable period has been provided (such period to be at least 3 Business Days)
for making all filings under the UCC or otherwise and taking all other actions, in each case that
are required in order for the applicable Collateral Trustee to continue at all times following such
change to have a valid, legal and perfected (subject to the limitations set forth in Section 3.19)
security interest in all the Collateral (other than any Excluded Perfection Assets). The Borrower
also agrees promptly to notify each of the Administrative Agent, the Collateral Agent and the
applicable Collateral Trustee if any material portion of the Collateral is damaged or destroyed.

     (b) In the case of the Borrower, each year, at the time of delivery of the annual financial
statements with respect to the preceding fiscal year pursuant to Section 5.04(a), deliver to the
Administrative Agent a certificate of a Financial Officer of the Borrower setting forth (i) the
information required pursuant to Section I of the Perfection Certificate or confirming that there
has been no change in such information since the date of the Perfection Certificate delivered on
the Restatement Date or the date

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of the most recent certificate delivered pursuant to this Section
and (ii) any liquidation or dissolution during such preceding fiscal year of any Subsidiary other
than an Excluded Subsidiary.

     SECTION 5.07. Maintaining Records; Access to Properties and Inspections; Environmental
Assessments. (a) Keep, and cause each Subsidiary to keep, proper books of record and account in
which full, true and correct entries in conformity with GAAP and all applicable requirements of law
are made of all financial operations. No more than once in any fiscal year (except if an Event of
Default has occurred and is continuing) the Borrower will, and will cause each of its subsidiaries
to, permit, if requested by the Administrative Agent, any representatives designated by the
Administrative Agent or any Lender to visit and inspect the financial records and the properties of
the Borrower or any of its Subsidiaries at reasonable times and as reasonably requested and to make
extracts from and copies of such financial records, and permit any representatives designated by
the Administrative Agent or any Lender to discuss the affairs, finances and condition of the
Borrower or any of its Subsidiaries with the officers thereof and independent accountants therefor.

     (b) At its election, the Administrative Agent may retain, or require the Borrower to retain,
an independent engineer or environmental consultant to conduct an environmental assessment of any
Mortgaged Property or facility of the Borrower or any Subsidiary. Any such environmental
assessments conducted pursuant to this paragraph (b) shall be at the Borrower’s sole cost and
expense only if conducted following the occurrence of (i) an Event of Default or (ii) any event,
circumstance or condition that could reasonably be expected to result in an Event of Default, in
the case of each of clause (i) and (ii) that concerns or relates to any Environmental Liabilities
of the Borrower or any Subsidiary; provided that the Borrower shall only be responsible for
such costs and expenses to the extent that such environmental assessment is limited to that which
is reasonably necessary to assess the subject matter of such Event of Default or such event,
circumstance or condition that could reasonably be expected to result in an Event of Default. In
addition, environmental assessments conducted pursuant to this paragraph (b) shall not be conducted
more than once every twelve months with respect to any parcel of Mortgaged Property or any single
facility of the Borrower or any Subsidiary unless such environmental assessments are conducted
following the occurrence of (i) an Event of Default or (ii) any event, circumstance or condition
that could reasonably be expected to result in an Event of Default, in the case of each of clause
(i) and (ii) that concerns or relates to any Environmental Liabilities of the Borrower or any
Subsidiary. The Borrower shall, and shall cause each of the Subsidiaries to, reasonably cooperate
in the performance of any such environmental assessment and permit any such engineer or consultant
designated by the Administrative Agent to have reasonable access to each property or facility at
reasonable times and after reasonable notice to the Borrower of the plans to conduct such an
environmental assessment. Environmental assessments conducted under this paragraph (b) shall be
limited to visual inspections of the Mortgaged Property or facility, interviews with representatives of the Borrower or facility personnel,
and review of applicable records and documents pertaining to the property or facility.

     (c) In the event that the Administrative Agent reasonably believes that Hazardous Materials
have been Released or are threatened to be Released on any Mortgaged Property or other facility of
the Borrower or any Subsidiary or that any such property or facility is not being operated in
compliance with applicable Environmental Law, in each case where the Release, threatened Release or
failure to comply has resulted in, or could reasonably be expected to result in, a material
Environmental Liability of the Borrower any of the Subsidiaries, the Administrative Agent may, at
its election and after reasonable notice to the Borrower, retain, or require the Borrower to
retain, an independent engineer or other qualified environmental consultant to reasonably assess
the subject matter of such Release, threatened Release or failure to comply with applicable
Environmental Law. Such environmental assessments may include detailed visual inspections of the
Mortgaged Property or facility, including any and all storage areas, storage tanks, drains, dry
wells and leaching areas, and the taking of soil samples, surface water samples and groundwater
samples as well as such other reasonable investigations or analyses in each case

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as are reasonable
and necessary to assess the subject matter of the Release, threatened Release or failure to comply.
The Borrower shall, and shall cause each of the Subsidiaries to, reasonably cooperate in the
performance of any such environmental assessment and permit any such engineer or consultant
designated by the Administrative Agent to have reasonable access to each property or facility at
reasonable times and after reasonable notice to the Borrower of the plans to conduct such an
environmental assessment. All environmental assessments conducted pursuant to this paragraph (c)
shall be at the Borrower’s sole cost and expense.

     SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans and request the issuance of Letters of Credit only for the
purposes set forth in Section 3.13.

     SECTION
5.09. Additional Collateral, etc. (a) With respect to any Collateral acquired after the Closing Date or with respect to
any property or asset which becomes Collateral pursuant to the definition thereof after the Closing
Date or, in the case of inventory or equipment that is part of the Collateral, any material
Collateral moved after the Closing Date by the Borrower or any other Loan Party (other than any
Collateral described in paragraphs (b), (c) or (d) of this Section) as to which the applicable
Collateral Trustee, for the benefit of the Secured Parties, does not have a perfected security
interest, promptly (and, in any event, within 20 Business Days following the date of such
acquisition or designation) (i) execute and deliver to the Administrative Agent, the Collateral
Agent and the applicable Collateral Trustee such amendments to the Guarantee and Collateral
Agreement, the Texas Genco Security Agreement or such other Security Documents as the Collateral
Agent or the applicable Collateral Trustee, as the case may be, deems necessary or reasonably
advisable to grant to such Collateral Trustee, for the benefit of the Secured Parties, a security
interest in such Collateral and (ii) take all actions necessary or reasonably requested by the
Administrative Agent to grant to the applicable Collateral Trustee, for the benefit of the Secured
Parties, a perfected (subject to the limitations set forth in Section 3.19) first priority security
interest in such Collateral (other than any Excluded Perfection Assets and, except with respect to
Pledged Securities, subject to Permitted Liens), including the filing of UCC financing statements
in such jurisdictions as may be required by the Guarantee and Collateral Agreement, the Texas Genco
Security Agreement or by law or as may be reasonably requested by the Administrative Agent, the
Collateral Agent or the applicable Collateral Trustee. For the avoidance of doubt, any Collateral
acquired by Texas Genco or its Subsidiaries shall be governed by the Texas Genco Security Agreement
and the Texas Genco Collateral Trust Agreement unless and until the Texas Genco Collateral Trust Agreement is terminated in
compliance with Article 10 of the NRG Collateral Trust Agreement.

     (b) With respect to any fee interest in any Collateral consisting of real property or any
lease of Collateral consisting of real property acquired or leased after the Closing Date by the
Borrower or any other Loan Party or which becomes Collateral pursuant to the definition thereof
(other than any Excluded Perfection Assets), promptly (and, in any event, within 60 days following
the date of such acquisition) (i) execute and deliver a first priority Mortgage in favor of the
applicable Collateral Trustee, for the benefit of the Secured Parties, covering such real property
and complying with the provisions herein and in the Security Documents, (ii) provide the Secured
Parties with (A) title and extended coverage insurance covering such real property in an amount at
least equal to the purchase price of such real property (or such other amount as shall be
reasonably specified by the Administrative Agent, the Collateral Agent or the applicable Collateral
Trustee, which may be the value of the generation assets, if applicable, situated thereon),
together with such endorsements as are reasonably required by the Administrative Agent, the
Collateral Agent or the applicable Collateral Trustee and are obtainable in the State in which such
Mortgaged Property is located, as well as a current ALTA survey thereof complying with the
requirements set forth in Schedule 5.09(b) and all of the other provisions herein and in the
Security Documents, together with a surveyor’s certificate and (B) any consents or estoppels
reasonably deemed necessary or advisable by the Administrative Agent, the Collateral Agent or the
applicable Collateral Trustee in connection with such Mortgage, each of the foregoing in form and
substance reasonably

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satisfactory to the Administrative Agent, the Collateral Agent and the
applicable Collateral Trustee, (iii) if reasonably requested by the Administrative Agent, deliver
to the Administrative Agent, the Collateral Agent and the applicable Collateral Trustee legal
opinions relating to the matters described above, which opinions shall be in form and substance,
and from counsel, reasonably satisfactory to the Administrative Agent, the Collateral Agent and the
applicable Collateral Trustee and (iv) deliver to the Administrative Agent a notice identifying the
consultant’s reports, environmental site assessments or other documents relied upon by the Borrower
or any other Loan Party to determine that any such real property included in such Collateral does
not contain Hazardous Materials of a form or type or in a quantity or location that could, or to
determine that the operations on any such real property included in such Collateral is in
compliance with Environmental Law except to the extent any non-compliance could not, reasonably be
expected to result in a material Environmental Liability.

     (c) With respect to any new Subsidiary (other than an Unrestricted Subsidiary or an Excluded
Subsidiary, except for an Excluded Project Subsidiary the pledge of whose Equity Interests pursuant
to the Security Documents would not cause a default under the applicable Non-Recourse Indebtedness
in respect of which it is an obligor) created or acquired after the Closing Date (which, for the
purposes of this paragraph, shall include any existing Subsidiary that ceases to be an Unrestricted
Subsidiary, an Excluded Foreign Subsidiary or an Excluded Project Subsidiary and any Equity
Interests in an Excluded Project Subsidiary the pledge of which would no longer cause a default
under the applicable Non-Recourse Indebtedness in respect of which it is an obligor) by the
Borrower or any of the Subsidiaries, promptly (and, in any event, within 20 days following such
creation or the date of such acquisition), (i) execute and deliver to the Administrative Agent, the
Collateral Agent and the applicable Collateral Trustee such amendments to the Guarantee and
Collateral Agreement or the Texas Genco Security Agreement as the Administrative Agent, the
Collateral Agent or the applicable Collateral Trustee deems necessary or reasonably advisable to
grant to the applicable Collateral Trustee, for the benefit of the Secured Parties, a valid,
perfected first priority security interest in the Equity Interests in such new Subsidiary that are
owned by the Borrower or any of the Subsidiaries, (ii) deliver to the applicable Collateral Trustee
the certificates, if any, representing such Equity Interests, together with undated instruments of
transfer or stock powers, in blank, executed and delivered by a duly authorized officer of the
Borrower or such Subsidiary, as the case may be, (iii) cause such new Subsidiary that is not an
Excluded Subsidiary or an Unrestricted Subsidiary (A) to become a party to the Guarantee and
Collateral Agreement to, among other things, provide Guarantees of the Guaranteed Obligations hereunder,
the applicable Collateral Trust Agreement and the Intellectual Property Security Agreements and (B)
to take such actions necessary or reasonably requested by the Administrative Agent to grant to the
applicable Collateral Trustee, for the benefit of the Secured Parties, a perfected (subject to the
limitations set forth in Section 3.19) first priority security interest (except with respect to
Pledged Securities, subject to Permitted Liens) in the Collateral described in the Guarantee and
Collateral Agreement, the Texas Genco Security Agreement and the Intellectual Property Security
Agreement with respect to such new Subsidiary that is not an Excluded Subsidiary, including the
recording of instruments in the United States Patent and Trademark Office and the United States
Copyright Office, the execution and delivery by all necessary Persons of Control Agreements and the
filing of UCC financing statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement, the Texas Genco Security Agreement, the Intellectual Property Security
Agreement or by law or as may be reasonably requested by the Administrative Agent, the Collateral
Agent or the applicable Collateral Trustee and (iv) deliver to the Administrative Agent, the
Collateral Agent and the applicable Collateral Trustee, if reasonably requested, legal opinions
relating to the matters described above, which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent, the Collateral Agent and the
applicable Collateral Trustee.

     (d) With respect to any new Excluded Foreign Subsidiary created or acquired after the Closing
Date by the Borrower or any of its Subsidiaries, promptly (and, in any event, within 25 days

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following such creation or the date of such acquisition) (i) execute and deliver to the
Administrative Agent, the Collateral Agent and the applicable Collateral Trustee such amendments to
the Guarantee and Collateral Agreement or the Texas Genco Security Agreement as the Administrative
Agent, the Collateral Agent or the applicable Collateral Trustee deems necessary or advisable in
order to grant to the Collateral Trustee, for the benefit of the Secured Parties, a perfected first
priority security interest in the Equity Interests in such new Excluded Foreign Subsidiary that is
directly owned by the Borrower or any of its Domestic Subsidiaries (provided that in no
event shall more than 66% of the total outstanding voting first-tier Equity Interests in any such
new Excluded Foreign Subsidiary be required to be so pledged), (ii) deliver to the applicable
Collateral Trustee the certificates representing such Equity Interests, together with undated
instruments of transfer or stock powers, in blank, executed and delivered by a duly authorized
officer of the Borrower or such Domestic Subsidiary, as the case may be, and take such other action
as may be necessary or, in the reasonable opinion of the Administrative Agent, the Collateral Agent
or the applicable Collateral Trustee, desirable to perfect the security interest of such Collateral
Trustee thereon and (iii) deliver to the Administrative Agent, the Collateral Agent and such
Collateral Trustee, if reasonably requested, legal opinions (which may be delivered by in-house
counsel if admitted in the relevant jurisdiction) relating to the matters described above, which
opinions shall be in form and substance, and from counsel, reasonably satisfactory to the
Administrative Agent, the Collateral Agent and such Collateral Trustee.

     SECTION 5.10. Further Assurances. (a) From time to time duly authorize, execute and deliver, or cause to be duly
authorized, executed and delivered, such additional instruments, certificates, financing
statements, agreements or documents, and take all such actions (including filing UCC and other
financing statements), as the Administrative Agent, the Collateral Agent or the applicable
Collateral Trustee may reasonably request, for the purposes of implementing or effectuating the
provisions of this Agreement and the other Loan Documents, or perfecting or renewing the rights of
the Administrative Agent, the Collateral Agent, such Collateral Trustee and the Secured Parties
with respect to the Collateral (or with respect to any additions thereto or replacements or
proceeds or products thereof or with respect to any other property or assets hereafter acquired by
the Borrower or any Subsidiary which assets or property may be deemed to be part of the Collateral)
pursuant hereto or thereto. Upon the exercise by the Administrative Agent, the Collateral Agent, the applicable Collateral Trustee or any Lender of
any power, right, privilege or remedy pursuant to this Agreement or the other Loan Documents which
requires any consent, approval, recording, qualification or authorization of any Governmental
Authority, the Borrower will execute and deliver, or will cause the execution and delivery of, all
applications, certifications, instruments and other documents and papers that the Administrative
Agent, the Collateral Agent, such Collateral Trustee or such Lender may be required to obtain from
the Borrower or any of the Subsidiaries for such governmental consent, approval, recording,
qualification or authorization.

     (b) On or prior to the 45th day after the date any additional Deposit Account,
Securities Account or Commodities Account is opened after the Closing Date (except to the extent
any such account is an Excluded Asset or an Excluded Perfection Asset), at its sole expense, with
respect to any such Deposit Account, Securities Account or Commodities Account, each applicable
Subsidiary Guarantor shall take any actions required for the Collateral Trustee to obtain “control”
(within the meaning of the applicable Uniform Commercial Code) with respect thereto, including
executing and delivering and causing the relevant depositary bank or securities intermediary to
execute and deliver a Control Agreement in form and substance reasonably satisfactory to the
Collateral Trustee.

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ARTICLE VI.

Negative Covenants

     The Borrower covenants and agrees with each Lender that, so long as this Agreement shall
remain in effect and until the Commitments have been terminated and the principal of and interest
on each Loan, all Fees and all other expenses or amounts payable under any Loan Document (other
than indemnification and other contingent obligations in each case not then due and payable) shall
have been paid in full and all Letters of Credit have been cancelled or have expired and all
amounts drawn thereunder have been reimbursed in full or reimbursement thereof shall have been
cash-collateralized in an amount equal to 103% of the L/C Exposure as of such time and all
Credit-Linked Deposits have been returned to the Funded L/C Lenders (or used to reimburse Funded
L/C Disbursements or converted to Term Loans), the Borrower will not, nor will it cause or permit
any of its Restricted Subsidiaries to:

     SECTION 6.01. Indebtedness and Preferred Stock. Directly or indirectly, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable, contingently or otherwise, with respect to (collectively,
“incur”) any Indebtedness, and the Borrower will not issue any Disqualified Stock and will
not permit any of its Restricted Subsidiaries to issue any shares of preferred stock except for:

     (a) the incurrence by the Borrower (and the Guarantee thereof by the Subsidiary Guarantors) of
the Indebtedness created (and the reimbursement obligations with respect to Letters of Credit
issued) under the Loan Documents and any Revolver Refinancing Indebtedness;

     (b) the incurrence by the Borrower and its Restricted Subsidiaries of the Existing
Indebtedness;

     (c) the incurrence by the Borrower and the Subsidiary Guarantors of Indebtedness represented
by the Senior Notes issued on or prior to the Restatement Date and the related Guarantees of the
Subsidiary Guarantors thereof;

     (d) the incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness
represented by Attributable Debt, Capital Lease Obligations, mortgage financings or purchase money obligations, in each case, incurred for the purpose of financing all or any part of the
purchase price or cost of design, construction, installation or improvement or lease of property
(real or personal), plant or equipment used in the business of the Borrower or any of its
Restricted Subsidiaries or incurred within 270 days after any of the foregoing, in an aggregate
principal amount, including all Permitted Refinancing Indebtedness incurred to refund, refinance,
replace, defease or discharge any Indebtedness incurred pursuant to this clause (d), not to exceed
$400,000,000 at any time outstanding;

     (e) the incurrence by the Borrower or any of its Restricted Subsidiaries of Permitted
Refinancing Indebtedness in exchange for, or the net proceeds of which are used to refund,
refinance, replace, defease or discharge Indebtedness (other than intercompany Indebtedness) that
was permitted by this Agreement to be incurred under clauses (b), (c), (d), (e), (k), (m), clause
(B) of clause (p), (q), (r) or (s) of this Section 6.01;

     (f) the incurrence by the Borrower and the Restricted Subsidiaries of unsecured intercompany
Indebtedness; provided, however, that (A) if the Borrower or any Subsidiary
Guarantor is the obligor on such Indebtedness and the payee is not the Borrower or a Subsidiary
that is a Subsidiary Guarantor, such Indebtedness must be expressly subordinated to the prior
payment in full in cash of all Guaranteed Obligations hereunder (which subordination may be
pursuant to an Affiliate Subordination Agreement or any other agreement containing terms with
respect to the subordination of the obligations

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thereunder that are substantially the same as the
Affiliate Subordination Agreement or are otherwise reasonably acceptable to the Administrative
Agent, in each case, executed and delivered by both the applicable borrower and lender); and (B)(x)
any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being
held by a Person other than the Borrower or a Restricted Subsidiary and (y) any sale or other
transfer of any such Indebtedness to a Person that is not either the Borrower or a Restricted
Subsidiary will be deemed, in each case, to constitute an incurrence of such Indebtedness by the
Borrower or such Restricted Subsidiary, as the case may be, that was not permitted by this clause
(f);

     (g) the issuance by any of the Borrower’s Restricted Subsidiaries to the Borrower or to any of
its other Restricted Subsidiaries of shares of preferred stock; provided, however,
that (i) any subsequent issuance or transfer of Equity Interests that results in any such preferred
stock being held by a Person other than the Borrower or a Restricted Subsidiary and (ii) any sale
or other transfer of any such preferred stock to a Person that is not either the Borrower or a
Restricted Subsidiary will be deemed, in each case, to constitute an issuance of such preferred
stock by such Restricted Subsidiary that was not permitted by this clause (g);

     (h) the incurrence by the Borrower or any of its Restricted Subsidiaries of Commodity Hedging
Obligations and Interest Rate/Currency Hedging Obligations;

     (i) the Guarantee by (i) the Borrower or any of the Subsidiary Guarantors of Indebtedness of
the Borrower or a Restricted Subsidiary that was permitted to be incurred by another provision of
this Section 6.01 (other than clause (m) and (w)); (ii) any of the Excluded Project Subsidiaries of
Indebtedness of any other Excluded Project Subsidiary; (iii) any of the Excluded Foreign
Subsidiaries of Indebtedness of any other Excluded Foreign Subsidiary and (iv) the Borrower of
Permitted Itiquira Indebtedness; provided that such Guarantee of Permitted Itiquira
Indebtedness matures or otherwise terminates within one year of the incurrence thereof;
provided that, in each such case, if the Indebtedness being guaranteed is subordinated to
the Guaranteed Obligations hereunder, then the Guarantee shall be subordinated to the same extent
as the Indebtedness guaranteed;

     (j) the incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar
instrument (except in the case of daylight overdrafts) inadvertently drawn against insufficient funds, so
long as such Indebtedness is covered within five Business Days;

     (k) [Reserved];

     (l) the incurrence by the Borrower or any of its Restricted Subsidiaries of Indebtedness in
respect of workers’ compensation claims, self-insurance obligations, bankers’ acceptance and
performance and surety bonds provided by the Borrower or a Restricted Subsidiary in the ordinary
course of business;

     (m) the incurrence of Additional Non-Recourse Indebtedness by any Excluded Project Subsidiary;

     (n) the incurrence of Indebtedness that may be deemed to arise as a result of agreements of
the Borrower or any Restricted Subsidiary providing for indemnification, adjustment of purchase
price or any similar obligations, in each case, incurred in connection with the acquisition or
disposition of any business, assets or Equity Interests of any Subsidiary or any business, assets
or Equity Interests acquired by the Borrower or any Restricted Subsidiary; provided that in
the case of any such disposition the

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aggregate maximum liability associated with such provisions
may not exceed the gross proceeds (including non-cash proceeds) of such disposition;

     (o) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness represented by
letters of credit, guarantees of Indebtedness or other similar instruments to the extent (A) such
instruments, including instruments supporting Commodity Hedging Obligations or Interest
Rate/Currency Hedging Obligations, are cash collateralized and (B) the Borrower or such Restricted
Subsidiary would not have been prohibited from expending the funds used to cash collateralize such
instrument directly under the terms of this Agreement;

     (p) the incurrence by the Borrower and/or any of its Restricted Subsidiaries of (A) additional
Indebtedness if (1) such Indebtedness does not mature, and is not subject to mandatory repurchase,
redemption or amortization (other than pursuant to customary asset sale or change of control
provisions requiring redemption or repurchase only if and to the extent permitted by this Agreement
and other than amortization payments of up to 1% of the initial principal amount per annum) prior
to the date that is six months after the Term Loan Maturity Date, provided,
however, that the restrictions in this Section 6.01(p)(A)(1) shall not apply to any
Indebtedness in the form of Letters of Credit, any other letters of credit and any Indebtedness
that is secured by any assets of the Borrower or any Restricted Subsidiary, (2) no Default or Event
of Default exists immediately prior to, or would exist immediately after giving effect to, the
incurrence of such Indebtedness, (3) the Consolidated Leverage Ratio for the Borrower’s most
recently ended Test Period for which financial statements are publicly available immediately
preceding the date on which such additional Indebtedness is incurred would have been no more than
5.25 to 1.00 (or, at any time after December 31, 2007, 5.00 to 1.00), determined on a pro forma
basis (including a pro forma application of the net proceeds therefrom), as if such additional
Indebtedness (and any other Indebtedness incurred during such Test Period or from the end of such
Test Period through the date on which such calculation is made) had been incurred at the beginning
of the applicable Test Period and was outstanding on such calculation date and (4) the Consolidated
Interest Coverage Ratio for the Borrower’s most recently ended Test Period for which financial
statements are publicly available immediately preceding the date on which such additional
Indebtedness is incurred would have been at least 2.0 to 1.0, determined on a pro forma basis
(including a pro forma application of the net proceeds therefrom), as if such additional
Indebtedness (and any other Indebtedness incurred during such Test Period or from the end of such
Test Period through the date on which such calculation is made) had been incurred at the beginning
of the applicable Test Period and (B) additional Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time outstanding, including all Permitted
Refinancing Indebtedness incurred to refund, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (p)(B), not to exceed $250,000,000; provided
that in the case of any incurrence of any Indebtedness pursuant to this clause (p), (x) the
Borrower shall be in compliance as of the date of such incurrence, on a pro forma basis after
giving effect to the incurrence of such Indebtedness, with the covenants set forth in Sections 6.13
and 6.14, as if such Indebtedness (and any other Indebtedness incurred during such Test Period or
from the end of such Test Period through the date such calculation is made) had been incurred on
the first day of the applicable Test Period; and (y) no more than the greater of (1) $600,000,000
and (2) an amount equal to the Consolidated EBITDA of the Borrower for the period of four
consecutive fiscal quarters most recently ended on or prior to the date on which such Indebtedness
is incurred multiplied by 25% (less, in the case of each of clause (1) and clause (2), the
aggregate principal amount of any New Loan Commitments obtained pursuant to Section 2.25) in
aggregate principal amount of Indebtedness incurred pursuant to this clause (p) may be secured by
first priority and/or second priority Liens on the Collateral, and any such Liens must be granted
in favor of the Collateral Trustee in the manner set forth in, and be otherwise subject to (and in
compliance with), the Collateral Trust Agreement; and provided, further that in
connection with the incurrence of Indebtedness secured by first priority Liens pursuant to this
clause (p), the requirements of Section 9.19 shall have been satisfied to the extent applicable;

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     (q) the incurrence of Indebtedness of a Person or Indebtedness attaching to assets of a Person
that, in either case, becomes a Restricted Subsidiary or Indebtedness attaching to assets that are
acquired by the Borrower or any Restricted Subsidiary, in each case after the Closing Date as the
result of a Permitted Acquisition; provided that (i) such Indebtedness existed at the time
such Person became a Restricted Subsidiary or at the time such assets were acquired and, in each
case, was not created in anticipation thereof, (ii) such Indebtedness is not guaranteed in any
respect by the Borrower or any Restricted Subsidiary (other than any such Person that so becomes a
Restricted Subsidiary) except to the extent that such Guarantee is permitted to be incurred (and is
so incurred) pursuant to clause (p) of this Section 6.01 and (iii)(A) the Equity Interests of such
Person are pledged to the Administrative Agent to the extent required under Section 5.09 and (B)
such Person executes a supplement to each of the Security Documents (or alternative guarantee and
security arrangements in relation to the Obligations) to the extent required under Section 5.09;

     (r) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness to finance a
Permitted Acquisition; provided that (i) such Indebtedness is not guaranteed in any respect
by any Restricted Subsidiary (other than any Person acquired (the “acquired Person”) as a
result of such Permitted Acquisition) or by the Borrower except to the extent that such Guarantee
is permitted to be incurred (and is so incurred) pursuant to clause (p) of this Section 6.01, and
(ii)(A) the Borrower pledges the Equity Interests of such acquired Person to the Administrative
Agent to the extent required under Section 5.09 and (B) such acquired Person executes a supplement
to the Security Documents (or alternative guarantee and security arrangements in relation to the
Obligations) to the extent required under Section 5.09;

     (s) the incurrence by the Borrower and/or any of its Restricted Subsidiaries of unsecured
Indebtedness, in each case, (i) that does not mature, and is not subject to mandatory repurchase,
redemption or amortization (other than pursuant to customary asset sale or change of control
provisions requiring redemption or repurchase only if and to the extent permitted by this
Agreement) prior to the date that is six months after the Term Loan Maturity Date, (ii) that is not
exchangeable or convertible into Indebtedness of the Borrower (other than other Indebtedness
permitted by this clause (s)) or any Restricted Subsidiary or any preferred stock or other Equity
Interest and (iii) solely to the extent the Net Cash Proceeds thereof are used to prepay Term Loans
pursuant to and to the extent required by Section 2.13(c);

     (t) the incurrence by the Borrower or any Restricted Subsidiary of Indebtedness consisting of
(i) obligations to pay insurance premiums or (ii) take-or-pay obligations contained in supply
agreements, in each case arising in the ordinary course of business and not in connection with the
borrowing of money or Hedging Agreements;

     (u) the issuance by any of the Excluded Subsidiaries of shares of preferred stock the proceeds
of which are used solely to finance the development, construction or acquisition by such Subsidiary
of fixed or capital assets useful in the conduct of the Permitted Business;

     (v) the incurrence by the Borrower or any Restricted Subsidiary of Environmental CapEx Debt or
Necessary CapEx Debt, in an aggregate principal amount not to exceed $200,000,000 at any time
outstanding; provided that, prior to the incurrence of any such Environmental CapEx Debt or
Necessary CapEx Debt, the Borrower shall deliver to the Administrative Agent an officers’
certificate designating such Indebtedness as Environmental CapEx Debt or Necessary CapEx Debt, as
applicable;

     (w) the incurrence of Permitted Itiquira Indebtedness; and

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     (x) Indebtedness consisting of representations, warranties, covenants and indemnities made by,
and repurchase, payment and other obligations of, the Borrower or any Restricted Subsidiary in
connection with a South Central Securitization permitted by Section 6.04; provided that
such representations, warranties, covenants, indemnities and repurchase, payment and other
obligations are of the type customarily included in securitizations of accounts receivable intended
to constitute true sales of such accounts receivable to a securitization vehicle.

     SECTION 6.02. Liens. Directly or indirectly, create, incur, assume or suffer to exist any Lien of any kind on
any asset now owned or hereafter acquired, except Permitted Liens.

     SECTION 6.03. Limitation on Sale and Leaseback Transactions. Enter into any sale and leaseback transaction; provided that the Borrower or
any Restricted Subsidiary may enter into a sale and leaseback transaction if (a) the Borrower or
that Restricted Subsidiary, as applicable, could have (i) incurred Indebtedness in an amount equal
to the Attributable Debt relating to such sale and leaseback transaction under Section 6.01(d)
hereof and (ii) incurred a Lien to secure such Indebtedness pursuant to the provisions of Section
6.02 hereof; (b) the gross cash proceeds of that sale and leaseback transaction are at least equal
to the Fair Market Value of the property that is subject of that sale and leaseback transaction;
and (c) if such sale and leaseback transaction constitutes an Asset Sale, the transfer of assets in
that sale and leaseback transaction is permitted by Section 6.04, and the Borrower applies the
proceeds of such transaction in compliance with Section 2.13(b), if and to the extent required
thereby.

     SECTION 6.04. Mergers, Consolidations and Sales of Assets. (a)(x) Merge into or consolidate with any other Person, or permit any other Person to
merge into or consolidate with it, or liquidate or dissolve, or (y) sell, transfer, lease, issue or
otherwise dispose of (in one transaction or in a series of transactions) all or substantially all
of the assets (whether now owned or hereafter acquired) of the Borrower, except that if at the time
thereof and immediately after giving effect thereto no Event of Default or Default shall have
occurred and be continuing (i) any Restricted Subsidiary may merge into the Borrower in a
transaction in which the Borrower is the surviving corporation, (ii) any Restricted Subsidiary may
merge into or consolidate with any other Restricted Subsidiary in a transaction in which the surviving entity is a Restricted
Subsidiary and no Person other than the Borrower or a Restricted Subsidiary receives any
consideration (provided that if any party to any such transaction is (A) a Loan Party, the
surviving entity of such transaction shall be a Loan Party, (B) a Domestic Subsidiary, the
surviving entity of such transaction shall be a Domestic Subsidiary and (C) a Core Collateral
Subsidiary, the surviving entity shall be a Core Collateral Subsidiary), (iii) any merger or
consolidation of a Restricted Subsidiary will be permitted in connection with an Investment
permitted by Section 6.05(g), 6.05(j) or 6.05(l) and (iv) any Restricted Subsidiary (other than a
Core Collateral Subsidiary) may liquidate or dissolve or, solely for purposes of reincorporating in
a different jurisdiction, merge if the Borrower determines in good faith that such liquidation or
dissolution or merger is in the best interests of the Borrower and could not reasonably be expected
to result in a Material Adverse Effect.

     (b) Consummate any Asset Sale (notwithstanding that it may be otherwise permitted under
paragraph (a) above) (including a Sale of Collateral and a Sale of Core Collateral) (other than in
respect of a sale of the South Central Securitization Assets which shall be permitted regardless of
whether the requirements of this Section 6.04(b) are satisfied so long as the requirements of
clause (d) of this Section 6.04 shall be satisfied) unless (i) the Borrower (or the Restricted
Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal
to the Fair Market Value of the assets or Equity Interests issued or sold or otherwise disposed of;
(ii) other than in the case of a Permitted Asset Swap, at least 75% of the consideration received
in the Asset Sale by the Borrower or such Restricted Subsidiary is in the form of cash (for
purposes of this provision, any securities, notes or other obligations received by the Borrower or
any such Restricted Subsidiary from such transferee that are converted by the Borrower or such
Restricted Subsidiary into cash within 180 days of the receipt of such securities, notes or other

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obligations, to the extent of the cash received in that conversion will be deemed to be cash);
(iii) the Borrower shall apply the Net Cash Proceeds received therefrom in accordance with Section
2.13(b); (iv) any consideration in excess of $15,000,000 received by the Borrower or any Subsidiary
Guarantor in connection with such Asset Sale pursuant to this paragraph (c) that is in the form of
Indebtedness shall be pledged to the Collateral Agent pursuant to Section 5.09; (v) with respect to
any such Asset Sale (or series of related Asset Sales) in an aggregate amount in excess of
$50,000,000, the Borrower shall be in compliance, on a pro forma basis after giving effect to such
Asset Sale, with the covenants set forth in Sections 6.13 and 6.14, as if such Asset Sale had
occurred on the first day of the applicable Test Period; and (vi) after giving effect to any such
Asset Sale, no Default or Event of Default shall have occurred and be continuing.

     (c) In the case of the Borrower, at any time own, either directly or indirectly or through one
or more Loan Parties, beneficially and of record, less than all of the Equity Interests in any Core
Collateral Subsidiary.

     (d) The Borrower or any Restricted Subsidiary may sell South Central Securitization Assets to
a Securitization Vehicle in a South Central Securitization; provided that (i) each such
South Central Securitization is effected on market terms, (ii) the aggregate amount of the Sellers’
Retained Interests in such South Central Securitization does not exceed an amount at any time
outstanding that is customary for similar transactions, (iii) the proceeds to each such
Securitization Vehicle from the issuance of Third Party Securities are applied by such
Securitization Vehicle substantially simultaneously with receipt thereof to the purchase from the
Borrower or Restricted Subsidiaries of South Central Securitization Assets, and (iv) Seller’s
Retained Interests in respect of each such Securitization Vehicle shall be pledged in favor of the
Secured Parties pursuant to the Security Documents; provided that no such pledge shall be
required under this clause (iv) to the extent that such pledge is prohibited by the governing
documentation with respect to the applicable South Central Securitization; provided
further that the Borrower or the applicable Restricted Subsidiary shall have used its
commercially reasonable efforts to avoid such prohibition in such governing documentation.

     SECTION 6.05. Limitation on Investments. Make any Investment except for:

     (a) extensions of trade credit, asset purchases (including purchases of inventory, supplies
and materials) and the licensing or contribution of intellectual property pursuant to joint
marketing arrangements with other Persons;

     (b) Cash Equivalents;

     (c) loans and advances to officers, directors and employees of the Borrower or any of its
Restricted Subsidiaries (i) to finance the purchase of Capital Stock of the Borrower
(provided that the amount of such loans and advances used to acquire such Capital Stock
shall be contributed to the Borrower in cash as common equity), (ii) for reasonable and customary
business related travel expenses, moving expenses and similar expenses, and (iii) for additional
purposes not contemplated by subclause (i) or (ii) above in an aggregate principal amount at any
time outstanding with respect to this clause (iii) not exceeding $5,000,000 in any fiscal year
(with unused amounts in any such period being carried-forward to any succeeding fiscal year);

     (d) Investments existing on the Closing Date and any extensions, renewals or reinvestments
thereof, so long as the aggregate amount of all Investments pursuant to this clause (d) is not
increased at any time above the amount of such Investments existing on the Closing Date;

     (e) Investments in Hedging Obligations to the extent not prohibited by Section 6.01;

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     (f) Investments received in connection with the bankruptcy or reorganization of trade
creditors, trade counterparties, suppliers or customers and in settlement of delinquent obligations
of, and other disputes with, customers;

     (g) Investments to the extent that payment for such Investments is made with Capital Stock of
the Borrower;

     (h) Investments in any Restricted Subsidiary, as valued at the Fair Market Value of such
Investment at the time each such Investment is made, in an aggregate amount that, at the time such
Investment is made, would not exceed the Retained Prepayment Amount at such time;

     (i) Investments (including in the form of loans) in the Borrower or any Subsidiary Guarantor;

     (j) Investments constituting Permitted Acquisitions;

     (k) Investments made to repurchase or retire common stock of the Borrower owned by any
employee stock ownership plan or key employee, directors and officers, or other stock ownership
plans of the Borrower;

     (l) (i) additional Investments (including Investments in Excluded Subsidiaries, Minority
Investments and Unrestricted Subsidiaries) and (ii) Investments in joint ventures or similar
entities that do not constitute Restricted Subsidiaries, in each case as valued at the Fair Market
Value of such Investment at the time each such Investment is made, (A) in an aggregate amount that,
at the time such Investment is made, would not exceed the sum of (x) $500,000,000 plus (y)
the Available Amount at such time plus (z) to the extent such amounts do not increase the
Available Amount, an amount equal to any repayments, interest, returns, profits, distributions, income and similar amounts actually received in
cash in respect of any such Investment (which amount shall not exceed the amount of such Investment
valued at the Fair Market Value of such Investment at the time such Investment was made) and an
amount equal to any letters of credit, guarantees and other contingent credit support that
constitute Investments that were made pursuant to this clause (l) to the extent such letters of
credit, guarantees or other contingent credit support are cancelled, expire or are otherwise
terminated without any payment being required thereon, and/or (B) in the case of Investments
described in clause (ii) above only that are made by the Borrower or any Restricted Subsidiary
(other than any Excluded Subsidiary), in an aggregate amount that, at the time such Investment is
made, would be permitted to be expended as a Capital Expenditure under Section 6.12, to the extent
that (x) the applicable joint venture owns an interest in assets the addition of which would have
been a Capital Expenditure if acquired or constructed, and owned, directly by the Borrower or a
Restricted Subsidiary (other than any Excluded Subsidiary) and (y) the ability of the Borrower
and/or one or more Restricted Subsidiaries to receive cash flows attributable to its interest
therein is not restricted by contract, Applicable Law or otherwise; provided,
however, that in determining whether any Investments in joint ventures or similar entities
that do not constitute Restricted Subsidiaries made in cash or Cash Equivalents would be permitted
under Section 6.05(l)(ii), the maximum aggregate amount of such Investments made in cash or Cash
Equivalents to be allocated to clause (ii)(A)(x) above only shall not exceed $300,000,000;

     (m) Investments in any Excluded Subsidiary by another Excluded Subsidiary, other than any such
Investments made with the proceeds of Non-Recourse Indebtedness; provided, however,
that (i) Investments in an Excluded Subsidiary with the proceeds of Non-Recourse Indebtedness by
another Excluded Subsidiary that is a direct or indirect parent of such Excluded Subsidiary shall
be permitted and (ii) Investments in an Excluded Subsidiary with the proceeds of Non-Recourse
Indebtedness by another Excluded Subsidiary that is formed solely for the purposes of incurring
such Non-Recourse Indebtedness,

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that has no other assets other than de minimis assets and that has
the same direct parent as such Excluded Subsidiary shall be permitted;

     (n) the Acquisition Transactions;

     (o) the contribution of any one or more of the Specified Facilities to a Restricted Subsidiary
that is not a Loan Party;

     (p) Investments that are received in consideration of the contribution by the Borrower or a
Restricted Subsidiary of assets (other than cash, Cash Equivalents or Core Collateral), valued at
the Fair Market Value of such Investment at the time such Investment is made, in an aggregate
amount that, at the time such Investment is made, would not exceed the Fair Market Value of the sum
of (i) all Capital Stock of the Borrower paid as consideration in connection with a Permitted
Acquisition (valued at the time of consummation of such Permitted Acquisition) consummated after
the Closing Date and on or prior to the date of such Investment so long as all Equity Interests and
other assets that were acquired by the Borrower or a Restricted Subsidiary through such Permitted
Acquisition have been pledged to the Collateral Agent to the extent required under Section 5.09
(provided that such acquired assets shall not be become Excluded Assets pursuant to clauses
(viii) or (xiii) of the definition thereof) and (ii) all assets that (A) were contributed, without
consideration, by an Excluded Subsidiary to the Borrower or a Subsidiary Guarantor after the
Closing Date (valued at the time of such contribution) or (B) were owned at the time by an Excluded
Subsidiary that became a Subsidiary Guarantor after the Closing Date and that have been pledged to
the Collateral Agent (valued at the time of such guarantee); provided that any amounts
specified to in clauses (i) and (ii) above shall not be used to increase any amounts set forth in
the other clauses of this Section 6.05;

     (q) (i) Investments permitted under Section 6.06 and (ii) Guarantees permitted under Section
6.01;

     (r) Investments consisting of Seller’s Retained Interests in a South Central Securitization
permitted by Section 6.04 and any servicing fees and other similar rights related to the South
Central Securitization permitted by Section 6.04; and

     (s) Investments pursuant to transactions described Section 6.08(b)(xiv).

     SECTION 6.06. Limitation on Dividends. Declare or pay any dividends (other than dividends payable solely in its Capital Stock) or
return any capital to its shareholders or make any other distribution, payment or delivery of
property or cash to its shareholders as such, or redeem, retire, purchase or otherwise acquire,
directly or indirectly, for consideration, any shares of any class of its Capital Stock or the
Capital Stock of any direct or indirect parent of the Borrower now or hereafter outstanding (or any
options or warrants or stock appreciation rights issued with respect to any of its Capital Stock),
or permit any of the Restricted Subsidiaries to purchase or otherwise acquire for consideration
(other than in connection with an Investment permitted by Section 6.05 (except for any such
Investment involving the purchase of Capital Stock of the Borrower from shareholders of the
Borrower) any shares of any class of the Capital Stock of the Borrower, now or hereafter
outstanding (or any options or warrants or stock appreciation rights issued with respect to any of
its Capital Stock) (all of the foregoing “Dividends”); provided that so long as no
Default or Event of Default exists or would exist after giving effect thereto:

     (a) the Borrower may redeem in whole or in part any of its Capital Stock for another class of
Capital Stock or rights to acquire its Capital Stock or with proceeds from substantially concurrent
equity contributions or issuances of new shares of its Capital Stock; provided that such
other class of Capital

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Stock contains terms and provisions at least as advantageous to the Lenders
in all material respects as those contained in the Capital Stock redeemed thereby;

     (b) the Borrower may repurchase shares of its Capital Stock (or any options or warrants or
stock appreciation rights issued with respect to any of its Capital Stock) held by current or
former officers, directors and employees of the Borrower and its Subsidiaries in an aggregate
amount not to exceed (i) $10,000,000 in any fiscal year and (ii) $50,000,000 in the aggregate from
and after the Closing Date, so long as such repurchase is pursuant to, and in accordance with the
terms of, management and/or employee stock plans, stock subscription agreements, employment
agreements or shareholder agreements or termination agreements;

     (c) in addition to clause (d) below, the Borrower or any Restricted Subsidiary may declare and
make distributions on its Capital Stock at any time; provided that the aggregate amount of
such distributions paid by the Borrower and any such Restricted Subsidiary pursuant to this clause
(c) shall not exceed the Available Amount at the time of such Dividend;

     (d) in addition to clause (c) above, the Borrower (i) may declare and make distributions on
its Preferred Stock pursuant to the terms of such Preferred Stock (as in effect on the Closing
Date), (ii) may redeem in whole or in part any of its Preferred Stock with proceeds from
substantially concurrent equity contributions or issuances of new shares of its Capital Stock
(other than Disqualified Stock) and (iii) may redeem in whole or in part any of its Sponsor
Preferred Stock with the Net Cash Proceeds from Asset Sales but only to the extent such Net Cash
Proceeds were first offered to and declined by Term Lenders in accordance with the provisions of
Section 2.13(e) and (f) and not otherwise used for purposes set forth in the definition of
“Retained Prepayment Amount”;

     (e) any Restricted Subsidiary may pay any dividend (or, in the case of any partnership or
limited liability company, any similar distribution) to (i) any Loan Party or (ii) the holders of
its Equity Interests on a pro rata basis;

     (f) the Borrower may make payments to holders of the Borrower’s Capital Stock in lieu of the
issuance of fractional shares of its Capital Stock;

     (g) the Borrower may enter into transactions for the purchase, redemption, acquisition,
cancellation or other retirement for a nominal value per right of any rights granted to all the
holders of Capital Stock of the Borrower pursuant to any shareholders’ rights plan adopted for the
purpose of protecting shareholders from takeover tactics; provided that any such purchase,
redemption, acquisition, cancellation or other retirement of such rights is not for the purpose of
evading the limitations of this covenant (all as determined in good faith by the Board of Directors
of the Borrower); and

     (h) the Borrower and/or any of its Subsidiaries may enter into transactions for the purchase,
redemption, acquisition, cancellation or other retirement of preferred stock of Itiquira to
effectuate the Itiquira Refinancing.

     SECTION 6.07. Limitations on Debt Payments; Restrictive Agreements. (a) Make any distribution, whether in cash, property, securities or a combination
thereof, other than regularly scheduled payments of principal, fees and interest as and when due
(to the extent not prohibited by applicable subordination provisions and whether or not such
regularly scheduled payments may at the obligor’s option be paid in kind or in other securities),
in respect of, or pay, or offer or commit to pay, or directly or indirectly redeem, repurchase,
retire or otherwise acquire for consideration, any Indebtedness (other than intercompany
Indebtedness of the Borrower and the Subsidiaries), except (i) the payment of the Indebtedness
created hereunder, (ii) the incurrence of Indebtedness under Section 6.01 which refinances

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other Indebtedness that was incurred under Section 6.01 and any payments made in connection with the
replacing or repricing of certain Commodity Hedging Agreements described in subclause (iv) of
clause (b) of the definition of “Transactions”, (iii) the payment of secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of, or a Recovery Event with respect to,
the property or assets securing such Indebtedness, (iv) the payment of Non-Recourse Indebtedness or
Indebtedness permitted by Section 6.01(p) of an Excluded Subsidiary with internally generated cash
flow of such Excluded Subsidiary, (v) any such payment or distribution in an aggregate amount not
in excess of the Available Amount at the time of such payment or distribution, (vi) the payment of
Indebtedness in connection with the Acquisition Transactions, (vii) any such payment or
distribution in an aggregate amount not in excess of the Retained Prepayment Amount at the time of
such payment or distribution and (viii) the payment of Non-Recourse Indebtedness of any Restricted
Subsidiary if the Lien on such property or assets of such Restricted Subsidiary securing such
Non-Recourse Indebtedness shall be released and such property or assets shall become Collateral and
shall be pledged to the Collateral Agent.

     (b) Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon the ability of the Borrower or any Restricted Subsidiary
other than an Excluded Subsidiary to create, incur or permit to exist any Lien upon any of its
property or assets in favor of the Secured Parties securing the Guaranteed Obligations (it being
understood that any agreement that contains general prohibitions or restrictions on the existence
of Liens but expressly permits Liens in favor of the Secured Parties securing the Guaranteed
Obligations shall not be prohibited or otherwise limited by the covenant contained in this Section
6.07(b)); provided that the foregoing shall not apply to (i) restrictions and conditions
imposed by law, (ii) customary restrictions and conditions contained in agreements relating to the
sale of a Restricted Subsidiary or asset pending such sale; provided such restrictions and conditions apply only to the Restricted Subsidiary or
asset that is to be sold and such sale is permitted hereunder, (iii) restrictions and conditions
imposed on any Restricted Subsidiary that is not a Loan Party by the terms of any Indebtedness of
such Restricted Subsidiary not prohibited from being incurred hereunder if such restrictions and
conditions apply only to the property and assets of such Restricted Subsidiary and such property or
assets constitute Excluded Assets, (iv) restrictions or conditions existing on the Closing Date,
but shall apply to any extension or renewal of, or any amendment or modification expanding the
scope of, any such restriction or condition in any material respect, (v) restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such
restrictions or conditions apply only to the property or assets securing such Indebtedness and such
property or assets constitute Excluded Assets, (vi) restrictions or conditions imposed by any
agreement relating to any Indebtedness incurred by a Restricted Subsidiary prior to the date on
which such Restricted Subsidiary was acquired by the Borrower or another Restricted Subsidiary if
such conditions or restrictions relate only to the property or assets of such Restricted Subsidiary
and its subsidiaries (provided that such restriction or condition is not created in
contemplation of or in connection with such Person becoming a Restricted Subsidiary), but shall
apply to any extension or renewal thereof, or any amendment or modification thereto only if it does
not expand the scope of any such restriction or condition in any material respect, (viii)
restrictions in connection with sale and leaseback transactions permitted by Section 6.03, but only
with respect to the assets subject to such transactions; (ix) customary provisions in joint
venture, stockholder, membership, limited liability company or partnership agreements or
organizational documents relating to joint ventures or partnerships or owners, participation,
shared facility or other similar agreements relating to Project Interests and (x) customary
provisions in leases and other contracts restricting the assignment thereof (whether for collateral
purposes or otherwise).

     (c) Directly or indirectly, create or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary (other than an Excluded
Subsidiary) to (i) pay dividends or make any other distributions on its Capital Stock to the
Borrower or any of its Restricted Subsidiaries, or with respect to any other interest or
participation in, or measured by, its profits,

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or pay any Indebtedness owed to the Borrower or any of its Restricted Subsidiaries; (ii) make loans or advances to the Borrower or any of its
Restricted Subsidiaries; or (iii) transfer any of its properties or assets to the Borrower or any
of its Restricted Subsidiaries. The restrictions in this Section 6.07(c) will not apply to
encumbrances or restrictions existing under or by reason of:

          (A) agreements governing Existing Indebtedness as in effect on the Closing Date and the Senior
Notes as in effect on the Restatement Date and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of those agreements;
provided that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are no more restrictive, taken as a whole,
with respect to such dividend and other payment restrictions than those contained in those
agreements on the Closing Date;

          (B) any Loan Document and the loan documentation with respect to any Revolver Refinancing
Indebtedness (provided that such restrictions and conditions, when taken as a whole, are
the same in all material respects as (or less restrictive than) those contained herein);

          (C) applicable law, rule, regulation or order;

          (D) customary non-assignment provisions in contracts, agreements, leases, permits and
licenses;

          (E) purchase money obligations for property acquired and Capital Lease Obligations that impose
restrictions on the property purchased or leased of the nature described in clause (iii) of this
Section 6.07(c);

          (F) any agreement for the sale or other disposition of the stock or assets of a Restricted
Subsidiary that restricts distributions by that Restricted Subsidiary pending the sale or other
disposition;

          (G) Permitted Refinancing Indebtedness; provided that the restrictions contained in
the agreements governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness
being refinanced;

          (H) Liens permitted to be incurred under the provisions of Section 6.02 that limit the right
of the debtor to dispose of the assets subject to such Liens;

          (I) provisions limiting the disposition or distribution of assets or property in joint venture
agreements, ownership, participation, shareholders, partnership or limited liability company
agreements relating to Project Interests, asset sale agreements, sale-leaseback agreements, stock
sale agreements, agreements governing Non-Recourse Indebtedness and other similar agreements, which
limitation is applicable only to the assets that are the subject of such agreements;

          (J) restrictions on cash or other deposits or net worth or other similar requirements imposed
by customers under contracts entered into in connection with a Permitted Business;

          (K) restrictions or conditions contained in any trading, netting, operating, construction,
service, supply, purchase, sale or similar agreement to which the Borrower or any Restricted
Subsidiary is a party entered into in connection with a Permitted Business; provided that
such agreement prohibits the encumbrance of solely the property or assets of the Borrower or such
Restricted Subsidiary that are the subject of that agreement, the payment rights arising thereunder
and/or the proceeds thereof and not of any other asset or property of the Borrower or such
Restricted Subsidiary or the assets or property of any other Restricted Subsidiary;

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          (L) any instrument governing Indebtedness or Capital Stock of a Person acquired by the
Borrower or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except
to the extent such Indebtedness or Capital Stock was incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person, or the property or assets
of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness
was permitted by the terms of this Agreement to be incurred;

          (M) Indebtedness of a Restricted Subsidiary existing at the time it became a Restricted
Subsidiary if such restriction was not created in connection with or in anticipation of the
transaction or series of transactions pursuant to which such Restricted Subsidiary became a
Restricted Subsidiary or was acquired by the Borrower;

          (N) with respect to clause (iii) of this Section 6.07(c) only, restrictions encumbering
property at the time such property was acquired by the Borrower or any of its Restricted
Subsidiaries, so long as such restriction relates solely to the property so acquired and was not
created in connection with or in anticipation of such acquisition; and

          (O) any encumbrance or restriction of the type referred to in clauses (i), (ii) or (iii) of
this Section 6.07(c) (except to the extent that any of clauses (A) through (N) of this Section
6.07(c) refers or applies only to certain of such clauses (i), (ii) or (iii), and, in such case,
only to such applicable clause), imposed by any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings of the contracts, instruments or
obligations referred to in clauses (A) through (N) of this Section 6.07(c); provided that
such amendments, modifications, restatements, renewals, increases, supplements, refundings,
replacements or refinancings are, when taken as a whole, in the good faith judgment of the Chief
Financial Officer of the Borrower, no more restrictive with respect to such dividend and other
payment restrictions than those contained in the dividend or other payment restrictions prior to
such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or
refinancing.

     SECTION 6.08. Transactions with Affiliates. (a) Make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties
or assets to, or purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the
benefit of, any Affiliate of the Borrower (each, an “Affiliate Transaction”), unless (i)
the Affiliate Transaction is on terms that are no less favorable to the Borrower (as reasonably
determined by the Borrower) or the relevant Restricted Subsidiary than those that would have been
obtained in a comparable transaction by the Borrower or such Restricted Subsidiary with an
unrelated Person; and (ii) the Borrower delivers to the Administrative Agent (A) with respect to
any Affiliate Transaction or series of related Affiliate Transactions involving aggregate
consideration in excess of $50,000,000, a resolution of the Board of Directors of the Borrower
attached to an officers’ certificate certifying that such Affiliate Transaction complies with
clause (i) of this Section and that such Affiliate Transaction has been approved by a majority of
the disinterested members of such Board of Directors; and (B) with respect to any Affiliate
Transaction or series of related Affiliate Transactions involving aggregate consideration in excess
of $100,000,000, an opinion as to the fairness to the Borrower or such Restricted Subsidiary of
such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or
investment banking firm of national standing.

     (b) The following items will not be deemed to be Affiliate Transactions and, therefore, will
not be subject to the provisions of this Section:

          (i) any employment agreement or director’s engagement agreement, employee benefit plan,
officer and director indemnification agreement or any similar arrangement entered into by the

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Borrower or any of its Restricted Subsidiaries in the ordinary course of business or approved by
the Board of Directors of the Borrower in good faith;

          (ii) transactions between or among the Loan Parties;

          (iii) transactions between or among Excluded Subsidiaries;

          (iv) payment of reasonable fees and other compensation to directors who are not otherwise
Affiliates of the Borrower;

          (v) any issuance of Equity Interests (other than Disqualified Stock) of the Borrower or its
Restricted Subsidiaries to Affiliates of the Borrower;

          (vi) Investments or Dividends that do not violate Section 6.05 or 6.06 hereof;

          (vii) any agreement in effect as of the Closing Date or any amendment thereto or replacement
thereof and any transaction contemplated thereby or permitted thereunder, so long as any such
amendment or replacement agreement taken as a whole is not more disadvantageous to the Lenders than
the original agreement as in effect on the Closing Date;

          (viii) payments or advances to employees or consultants that are incurred in the ordinary
course of business or that are approved by the Board of Directors of the Borrower in good faith;

          (ix) the existence of, or the performance by the Borrower or any of its Restricted
Subsidiaries of its obligations under the terms of, any stockholders agreement (including any
registration rights agreement or purchase agreement related thereto) to which it is a party as of
the Closing Date and any similar agreements which it may enter into thereafter; provided,
however, that the existence of, or the performance by the Borrower or any of its Restricted
Subsidiaries of obligations under, any future amendment to any such existing agreement or under any
similar agreement entered into after the Closing Date shall only be permitted by this clause (ix)
to the extent that the terms of any such amendment or new agreement are not otherwise more
disadvantageous to the Lenders than such existing agreement in any material respect;

          (x) transactions permitted by, and complying with, the provisions of Section 6.04(a);

          (xi) transactions with customers, clients, suppliers, joint venture partners or purchasers or
sellers of goods or services, in each case, in the ordinary course of business (including pursuant
to joint venture agreements) and otherwise in compliance with the terms of this Agreement that are
fair to the Borrower and its Restricted Subsidiaries, in the reasonable determination of the Board
of Directors of the Borrower or the senior management thereof, or are on terms not materially less
favorable taken as a whole as might reasonably have been obtained at such time from an unaffiliated
party;

          (xii) any repurchase, redemption or other retirement of Capital Stock of the Borrower held by
employees of the Borrower or any of its Subsidiaries at a price not in excess of the Fair Market
Value thereof;

          (xiii) the Acquisition Transactions;

          (xiv) back-to-back transactions between NRG Power Marketing and any Restricted Subsidiary
entered into in the ordinary course of business and otherwise in compliance with the terms of

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this
Agreement that are on substantially the same terms as a corresponding transaction between NRG Power
Marketing and an unaffiliated third party;

          (xv) transactions relating to administrative services between the Borrower and its Restricted
Subsidiaries;

          (xvi) the Guarantee of Permitted Itiquira Indebtedness to the extent permitted by Section
6.01(i);

          (xvii) the issuance of Letters of Credit hereunder, or letters of credit pursuant to other
financing facilities, to support the obligations of any Excluded Subsidiary;

          (xviii) any South Central Securitization permitted by Section 6.04; and

          (xix) any agreement to do any of the foregoing.

     SECTION 6.09. Business Activities. Fundamentally and substantively alter the character of the business of the Borrower and its
Subsidiaries, taken as a whole, from the Permitted Business.

     SECTION 6.10. Other Indebtedness and Agreements. Other than any waiver, supplement, modification or amendment of any agreements related to
Material Indebtedness to be entered into on the Restatement Date in connection with the
Transactions, permit any waiver, supplement, modification, amendment, termination or release of any
indenture, instrument or agreement pursuant to which any Material Indebtedness of the Borrower or
any of the Subsidiaries (other than in respect of any Specified Hedging Agreement and Material
Indebtedness between the Borrower and its Subsidiaries or between Subsidiaries) is outstanding if
the effect of such waiver, supplement, modification, amendment, termination or release would
materially increase the obligations of the obligor or confer additional material rights on the
holder of such Indebtedness in a manner materially adverse to the Borrower and the Subsidiaries,
taken as a whole, or the Lenders.

     SECTION 6.11. Designation of Restricted and Unrestricted Subsidiaries and Excluded
Subsidiaries. (a) The Board of Directors of the Borrower may designate any Restricted Subsidiary
(other than any Subsidiary constituting or owning Core Collateral) to be an Unrestricted Subsidiary
if that designation would not cause a Default or Event of Default. If a Restricted Subsidiary
(other than an Excluded Subsidiary that becomes an Excluded Subsidiary after the Closing Date) is
designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding
Investments owned by the Borrower and its Restricted Subsidiaries in the Subsidiary designated as
an Unrestricted Subsidiary will be deemed to be an Investment made as of the time of the
designation and will reduce the amount available for Investments under Sections 6.05(h) (if
applicable), 6.05(l) or 6.05(p). Such designation will only be permitted if the Investment would
be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. The Board of Directors of the Borrower may redesignate any Unrestricted
Subsidiary to be a Restricted Subsidiary if that redesignation would not cause a Default or Event
of Default.

     (b) The Board of Directors of the Borrower may designate any Subsidiary Guarantor (other than
any Subsidiary constituting or owning Core Collateral) to be an Excluded Subsidiary if that
designation would not cause a Default or Event of Default. If a Subsidiary Guarantor is designated
as an Excluded Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by
the Borrower and its Restricted Subsidiaries in the Subsidiary Guarantor designated as an Excluded
Subsidiary will be deemed to be an Investment made as of the time of the designation and, except
with respect to Investments constituting Specified Facilities, will reduce the amount available for
Investments

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under Sections 6.05(l) or 6.05(p). Such designation will only be permitted if the
Investment would be permitted at that time and if the Excluded Subsidiary otherwise meets the
definition of an Excluded Subsidiary.

     SECTION 6.12. Capital Expenditures. Permit the aggregate amount of Capital Expenditures (including any Investments made
pursuant to Section 6.05(l)(ii)(B)) made by the Borrower and the Restricted Subsidiaries (other
than any Excluded Subsidiaries, which shall not be subject to this Section 6.12) in any fiscal year
to exceed $450,000,000 (such amount, the “Permitted Capital Expenditure Amount”);
provided that, notwithstanding the foregoing, additional Capital Expenditures may be made
at any time in an aggregate amount not to exceed the sum of (a) the Available Amount at the time of
such Capital Expenditure and (b) the Retained Prepayment Amount at the time of such Capital
Expenditure. To the extent that Capital Expenditures made by the Borrower and the Restricted
Subsidiaries (other than any Excluded Subsidiaries) during any fiscal year (including any
Investments made pursuant to Section 6.05(l)(ii)(B)) are less than the Permitted Capital
Expenditure Amount for such fiscal year, 100% of such unused amount may be carried forward to the
next immediately succeeding fiscal year and utilized to make Capital Expenditures in such
succeeding fiscal year in the event the Permitted Capital Expenditure Amount set forth above for
such succeeding fiscal year has been used.

     SECTION 6.13. Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage Ratio as of the last day of any Test Period
ending during any period set forth below to be less than the ratio set forth opposite such period
below:

	 	 	 	 	 
	Period	 	Ratio
	Closing Date to December 31, 2006
	 	 	1.500:1.000	 
	January 1, 2007 to December 31, 2007
	 	 	1.625:1.000	 
	Thereafter
	 	 	1.750:1.000	 

     SECTION 6.14. Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of the last day of any Test Period ending during
any period set forth below to be greater than the ratio set forth opposite such period below:

	 	 	 	 	 
	Period	 	Ratio
	Closing Date to December 31, 2006
	 	 	6.50:1.00	 
	January 1, 2007 to December 31, 2007
	 	 	6.25:1.00	 
	Thereafter
	 	 	6.00:1.00	 

     SECTION 6.15. Fiscal Year. With respect to the Borrower, change its fiscal year-end to a date other than December 31.

ARTICLE VII.

Events of Default

     In case of the happening of any of the following events (“Events of Default”):

     (a) any representation or warranty made or deemed made in or in connection with any Loan
Document (other than those specified in clause (l) below) or the Borrowings or issuances of Letters
of Credit hereunder, or any representation, warranty, statement or information contained in any
report, certificate, financial statement or other instrument furnished in connection with or
pursuant to any Loan

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Document by any Loan Party, shall prove to have been false or misleading in
any material respect when so made, deemed made or furnished;

     (b) default shall be made in the payment of any principal of any Loan or the reimbursement
with respect to any L/C Disbursement when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

     (c) default shall be made in the payment of any interest on any Loan or L/C Disbursement or
any Fee or any other amount (other than an amount referred to in (b) above) due under any Loan
Document, when and as the same shall become due and payable, and such default shall continue
unremedied for a period of five Business Days;

     (d) default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in Section 5.01(a), 5.05 or 5.08 or in
Article VI;

     (e) default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in any Loan Document (other than those
specified in clauses (b), (c) or (d) above or clause (l) below) and such default shall continue
unremedied for a period of 45 days after notice thereof from the Administrative Agent, the
Collateral Agent, a Collateral Trustee or any Lender to the Borrower;

     (f) the Borrower or any Restricted Subsidiary shall (i) fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as the same shall
become due and payable, or (ii) any other event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or
without the giving of notice, the lapse of time or both) the holder or holders of any Material
Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to
its scheduled maturity; provided that this clause (ii) shall not apply to (A) secured
Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or
assets securing such Indebtedness, (B) Designated Non-Recourse Indebtedness and (C) any other
Non-Recourse Indebtedness of the Borrower and the Restricted Subsidiaries (except to the extent
that the Borrower or any of the Restricted Subsidiaries that are not parties to such Non-Recourse
Indebtedness becomes directly or indirectly liable, including pursuant to any contingent
obligation, for any Indebtedness for borrowed money thereunder and such liability, individually or
in the aggregate, exceeds $75,000,000);

     (g) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that
(i) is for relief against the Borrower or any of its Restricted Subsidiaries (other than the Exempt
Subsidiaries) that is a Significant Subsidiary or any group of Restricted Subsidiaries (other
than the Exempt Subsidiaries) that, taken together, would constitute a Significant Subsidiary in an
involuntary case; (ii) appoints a custodian of the Borrower or any of its Restricted Subsidiaries
(other than the Exempt Subsidiaries) that is a Significant Subsidiary or any group of Restricted
Subsidiaries (other than the Exempt Subsidiaries) that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the Borrower or any of
its Restricted Subsidiaries (other than the Exempt Subsidiaries) that is a Significant Subsidiary
or any group of Restricted Subsidiaries (other than the Exempt Subsidiaries) that, taken together,
would constitute a Significant Subsidiary; or (iii) orders the liquidation of the Borrower or any
of its Restricted Subsidiaries (other than the Exempt Subsidiaries) that is a Significant
Subsidiary or any group of Restricted Subsidiaries (other than the Exempt Subsidiaries) that, taken
together, would constitute a Significant Subsidiary; and, in each of clauses (i), (ii) or (iii),
the order or decree remains unstayed and in effect for 60 consecutive days;

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     (h) the Borrower or any of its Restricted Subsidiaries (other than the Exempt Subsidiaries)
that is a Significant Subsidiary or any group of Restricted Subsidiaries (other than the Exempt
Subsidiaries) that, taken together, would constitute a Significant Subsidiary, pursuant to or
within the meaning of Bankruptcy Law (i) commences a voluntary case; (ii) consents to the entry of
an order for relief against it in an involuntary case; (iii) consents to the appointment of a
custodian of it or for all or substantially all of its property; (iv) makes a general assignment
for the benefit of its creditors; or (v) generally is not paying its debts as they become due;

     (i) one or more judgments for the payment of money in an aggregate amount in excess of
$75,000,000 (excluding therefrom any amount covered by insurance) shall be rendered against the
Borrower or any Restricted Subsidiary or any combination thereof and the same shall remain
undischarged for a period of 60 consecutive days during which execution shall not be effectively
stayed, or any action shall be legally taken by a judgment creditor to levy upon assets or
properties of the Borrower or any of its Restricted Subsidiaries to enforce any such judgment;

     (j) an ERISA Event shall have occurred that, when taken together with all other such ERISA
Events, could reasonably be expected to result in liability of the Borrower and its ERISA
Affiliates in an aggregate amount exceeding $75,000,000; provided, however, that
the parties acknowledge and agree that that certain Irrevocable Standby Letter of Credit (or any
renewal, extension or replacement thereof that does not increase the face amount thereof) issued by
the Sumitomo Mitsui Banking Corporation in favor of the Benefits Committee of the Texas Genco
Retirement Plan, dated as of June 28, 2005, for an amount not exceeding $54,900,000, shall not be
deemed to be a liability for purposes of determining whether the $75,000,000 threshold set in this
clause (j) of Article VII is exceeded (but that any other letter of credit or other security
provided pursuant to Section 401(a)(29) of the Tax Code that constitutes an ERISA Event shall be
deemed to be a liability for purposes of this Article VII);

     (k) except as permitted by this Agreement or as a result of the discharge of such Subsidiary
Guarantor in accordance with the terms of the Loan Documents, any Guarantee by a Significant
Subsidiary (or group of Subsidiaries that taken as a whole would be deemed a Significant
Subsidiary) under the Guarantee and Collateral Agreement shall be held by a final decision issued
in any judicial proceeding to be unenforceable or invalid or shall cease for any reason to be in
full force and effect or any Subsidiary Guarantor (or any group of Subsidiary Guarantors) that
constitutes a Significant Subsidiary shall deny or disaffirm in writing its or their obligations
under its or their Guarantee(s) under the Guarantee and Collateral Agreement;

     (l) material breach by the Borrower or any of its Restricted Subsidiaries of any material
representation or warranty or covenant, condition or agreement in the Security Documents, the
repudiation by the Borrower or any of its Restricted Subsidiaries of any of its material
obligations under
any of the Security Documents or the unenforceability of any of the Security Documents against
the Borrower or any of its Restricted Subsidiaries for any reason with respect to Collateral having
an aggregate Fair Market Value of $50,000,000 or more in the aggregate; or

     (m) there shall have occurred a Change in Control;

then, and in every such event (other than an event with respect to the Borrower described in
paragraph (g) or (h) above), and at any time thereafter during the continuance of such event either
or both of the following actions may be taken: (i) the Administrative Agent may with the consent of
the Majority Revolving Credit Lenders, and at the request of the Majority Revolving Credit Lenders
shall, by notice to the Borrower, terminate forthwith the Revolving Credit Commitments and the
Swingline Commitment and (ii) the Administrative Agent may with the consent of the Required
Lenders, and at the request of the Required Lenders shall, by notice to the Borrower, declare the
Loans then outstanding to be forthwith due

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and payable in whole or in part, whereupon the principal
of the Loans so declared to be due and payable, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other
Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived by the Borrower, anything
contained herein or in any other Loan Document to the contrary notwithstanding, and the
Administrative Agent and the Collateral Agent shall have the right to take all or any actions and
exercise any remedies available to a secured party under the Security Documents or applicable law
or in equity; and in any event with respect to an event in respect of the Borrower described in
paragraph (g) or (h) above, the Revolving Credit Commitments and the Swingline Commitment shall
automatically terminate and the principal of the Loans then outstanding, together with accrued
interest thereon and any unpaid accrued Fees and all other liabilities of the Borrower accrued
hereunder and under any other Loan Document, shall automatically become due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived by the Borrower, anything contained herein or in any other Loan Document to the contrary
notwithstanding, and the Administrative Agent and the Collateral Agent shall have the right to take
all or any actions and exercise any remedies available to a secured party under the Security
Documents or applicable law or in equity.

     Without limitation of, and after giving effect to, Section 6.7 of the Guarantee and Collateral
Agreement, Section 5.4 of the Texas Genco Security Agreement and Section 3.4 of the applicable
Collateral Trust Agreement, all proceeds received by the Administrative Agent or the Collateral
Agent, as the case may be, either from the applicable Collateral Trustee or any other Person in
respect of any sale of, collection from, or other realization upon all or any part of the
Collateral under any Security Document shall be held by the Administrative Agent or the Collateral
Agent as Collateral for, and applied in full or in part by the Administrative Agent or the
Collateral Agent against, the applicable Guaranteed Obligations hereunder then due and owing in the
following order of priority: first, to the ratable payment of (a) all costs and expenses
of such sale, collection or other realization, including reasonable and documented fees, costs and
expenses of the Agents and their agents and counsel, and all other expenses, liabilities and
advances made or incurred by the Agents in connection therewith, and all amounts in each case for
which such Agents are entitled to payment, reimbursement or indemnification under the Loan
Documents (in their capacity as such), and to the payment of all costs and expenses paid or
incurred by the Agents in connection with the exercise of any right or remedy under the Loan
Documents, all in accordance with the terms of the Loan Documents, (b) any principal and interest
owed to the Administrative Agent in respect of outstanding Revolving Loans advanced on behalf of
any Lender by the Administrative Agent for which the Administrative Agent has not then been
reimbursed by such Lender or the Borrower, (c) any principal and interest owed to the Swingline
Lender in respect of outstanding Swingline Loans that have not been repaid and (d) any amounts owed
to any Issuing Bank under a Letter of Credit issued by it for which it has not then been reimbursed
by any Lender or the Borrower; second, to
the extent of any excess proceeds, to the payment of all other Guaranteed Obligations
hereunder for the ratable benefit of the holders thereof; and third, to the extent of any
excess proceeds, to the payment to or upon the order of the applicable Loan Party or to whosoever
may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct.

     Notwithstanding anything to the contrary contained in this Article VII, in the event that the
Borrower fails to comply with the requirements of Sections 6.13 or 6.14, until the expiration of
the 10th day subsequent to the date the certificate calculating such compliance is
required to be delivered pursuant to Section 5.04(c), the Borrower shall have the right to issue
Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of the
Borrower (collectively, the “Cure Right”), and upon the receipt by the Borrower of such
cash (the “Cure Amount”) pursuant to the exercise by the Borrower of such Cure Right
compliance with Sections 6.13 and 6.14 shall be recalculated giving effect to the following pro
forma adjustments:

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     (i) Consolidated EBITDA shall be increased, solely for the purpose of measuring
compliance with Sections 6.13 and 6.14 and not for any other purpose under this Agreement,
by an amount equal to the Cure Amount; and

     (ii) if, after giving effect to the foregoing recalculations, the Borrower shall then
be in compliance with the requirements of Sections 6.13 and 6.14, the Borrower shall be
deemed to have satisfied the requirements of Sections 6.13 and 6.14 as of the relevant date
of determination with the same effect as though there had been no failure to comply
therewith at such date, and the applicable breach or default of Sections 6.13 and 6.14 that
had occurred shall be deemed cured for the purposes of this Agreement.

     Notwithstanding anything herein to the contrary, (a) in each four-fiscal-quarter period there
shall be at least one fiscal quarter in which the Cure Right is not exercised, (b) in each
eight-fiscal-quarter period, there shall be a period of at least four consecutive fiscal quarters
during which the Cure Right is not exercised and (c) the Cure Amount shall be no greater than the
amount required for purposes of complying with Sections 6.13 and 6.14 as of the relevant date of
determination.

ARTICLE VIII.

The Agents and the Arrangers

     Each of the Lenders and the Issuing Bank hereby irrevocably appoints each of the
Administrative Agent and the Collateral Agent (for purposes of this Article VIII, the
Administrative Agent and the Collateral Agent are referred to collectively as the “Agents”)
its agent and authorizes the Agents to take such actions on its behalf and to exercise such powers
as are delegated to such Agent by the terms of the Loan Documents, together with such actions and
powers as are reasonably incidental thereto. Without limiting the generality of the foregoing, the
Agents are hereby expressly authorized by the Lenders to execute any and all documents (including
releases and the Collateral Trust Agreement) with respect to the Collateral and the rights of the
Secured Parties with respect thereto, and to appoint the NRG Collateral Trustee and the Texas Genco
Collateral Trustee as their agents in respect of the applicable Collateral Trust Agreement and the
other Security Documents, in each case as contemplated by and in accordance with the provisions of
this Agreement and the Security Documents. Each Collateral Trustee is hereby expressly authorized
and directed by the Lenders to execute their respective Collateral Trust Agreement and the other
Security Documents (and any other documents contemplated thereby), in each case, on the Closing
Date and the Restatement Date. Each of the Lenders and the Issuing Bank hereby agrees to be bound
by the priority of the security interests and allocation of the benefits of the Collateral and
proceeds thereof set forth in the Security Documents. In addition, each of the Lenders
acknowledges the Credit

     Agreement Parallel Debt (as defined in the NRG Collateral Trust Agreement) that has been
created in the NRG Collateral Trust Agreement in favor of the NRG Collateral Trustee.

     Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Subsidiary or any Affiliate thereof as if it were not an Agent
hereunder.

     No Agent shall have any duties or obligations except those expressly set forth in the Loan
Documents. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default or an Event of Default has
occurred and is continuing, (b) no Agent shall have any duty to take any discretionary action or
exercise any discretionary powers, except discretionary rights and powers expressly contemplated
hereby that the Administrative Agent or the Collateral Agent is required to exercise as directed in
writing by the Required

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Lenders (or such other number or percentage of the Lenders as shall be
necessary under the circumstances as provided in Section 9.08), and (c) except as expressly
set forth in the Loan Documents, no Agent shall have any duty to disclose, nor shall it be liable
for the failure to disclose, any information relating to the Borrower or any of the Subsidiaries
that is communicated to or obtained by the bank serving as any Agent or any of its Affiliates in
any capacity. The Administrative Agent and the Collateral Agent shall not be liable for any action
taken or not taken by it with the consent or at the request of the Required Lenders (or such other
number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 9.08), in each case, in the absence of its own gross negligence or willful misconduct. No
Agent shall be deemed to have knowledge of any Default or Event of Default unless and until written
notice thereof is given to such Agent by the Borrower or a Lender, and no Agent shall be
responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with any Loan Document, (ii) the contents of any
certificate, report or other document delivered thereunder or in connection therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set
forth in any Loan Document, (iv) the validity, enforceability, effectiveness or genuineness of any
Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt
of items expressly required to be delivered to such Agent.

     Each Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing
believed by it to be genuine and to have been signed or sent by the proper Person. Each Agent may
also rely upon any statement made to it orally or by telephone and believed by it to have been made
by the proper Person, and shall not incur any liability for relying thereon. Each Agent may
consult with legal counsel (who may be counsel for the Borrower), independent accountants and other
experts selected by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

     Each Agent may perform any and all of its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by it. Each Agent and any such sub-agent may perform
any and all of its duties and exercise its rights and powers by or through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent
and to the Related Parties of each Agent and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Agent.

     Subject to the appointment and acceptance of a successor Agent as provided below, each Agent
may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such
resignation of the Administrative Agent or the Collateral Agent, the Required Lenders shall have
the right
to appoint a successor, subject to the Borrower’s approval (not to be unreasonably withheld or
delayed) so long as no Default or Event of Default shall have occurred and be continuing. If no
successor shall have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Agent gives notice of its resignation, then the
retiring Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Agent which
shall be a bank with an office in New York, New York, or an Affiliate of any such bank. Upon the
acceptance of its appointment as Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable by
the Borrower to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After an Agent’s resignation hereunder,
the provisions of this Article and Section 9.05 shall continue in effect for the benefit of such
retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while acting as Agent.

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     Each of the Syndication Agent and each Arranger, in its capacity as such, shall have no duties
or responsibilities, and shall incur no liability, under this Agreement or any other Loan Document.

     Each Lender acknowledges that it has, independently and without reliance upon the Agents, the
Syndication Agent, the Arrangers, or any other Lender and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter into this
Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the
Agents, the Arrangers, the Syndication Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its own decisions in
taking or not taking action under or based upon this Agreement or any other Loan Document, any
related agreement or any document furnished hereunder or thereunder.

     To the extent required by any applicable law, the Administrative Agent may withhold from any
interest payment to any Lender an amount equivalent to any applicable withholding tax. If the
Internal Revenue Service or any other Governmental Authority asserts a claim that the
Administrative Agent did not properly withhold tax from amounts paid to or for the account of any
Lender because the appropriate form was not delivered or was not properly executed or because such
Lender failed to notify the Administrative Agent of a change in circumstance which rendered the
exemption from, or reduction of, withholding tax ineffective or for any other reason, such Lender
shall indemnify the Administrative Agent fully for all amounts paid, directly or indirectly, by the
Administrative Agent as tax or otherwise, including any penalties or interest and together with all
expenses (including legal expenses, allocated internal costs and out-of-pocket expenses) incurred.

ARTICLE IX.

Miscellaneous

     SECTION 9.01. Notices. Notices and other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or registered mail or sent by
fax, as follows:

     (a) if to the Borrower, to it at NRG Energy, Inc., 211 Carnegie Center, Princeton, NJ
08540, Attention of Treasurer, Chief Financial Officer and General Counsel (Fax No. (609)
524-4501);

     (b) if to the Administrative Agent or the Collateral Agent, to Morgan Stanley Senior
Funding, Inc., One Pierrepont Plaza, 7th Floor, 300 Cadman Plaza West, Brooklyn,
NY 11201, Attention of Lisa Malone (Fax No. (212) 507-3558); and

     (c) if to a Lender, to it at its address (or fax number) set forth in the Lender
Addendum or the Assignment and Acceptance pursuant to which such Lender shall have become a
party hereto.

All notices and other communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed)
to such party as provided in this Section 9.01 or in accordance with the latest unrevoked direction
from such party given in accordance with this Section 9.01.

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     SECTION 9.02. Survival of Agreement. All covenants, agreements, representations and warranties made by the Borrower herein and
in the certificates or other instruments prepared or delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been relied upon by the
Lenders and the Issuing Bank and shall survive the making by the Lenders of the Loans and the
Credit-Linked Deposits and the issuance of Letters of Credit by the Issuing Bank, regardless of any
investigation made by the Lenders or the Issuing Bank or on their behalf, and shall continue in
full force and effect (but such representations and warranties shall be deemed made by the Borrower
only at such times and as of such dates as set forth in Section 4.01(b)) as long as the principal
of or any accrued interest on any Loan or any Fee or any other amount payable (other than
indemnification and other contingent obligations that are not then due and payable) under this
Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit or
Credit-Linked Deposit is outstanding and so long as the Commitments have not been terminated. The
provisions of Sections 2.14, 2.16, 2.20, 2.21 and 9.05 shall remain operative and in full force and
effect regardless of the expiration of the term of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Loans, the expiration of the
Commitments, the expiration of any Letter of Credit, the return, application or conversion of the
Credit-Linked Deposits, the invalidity or unenforceability of any term or provision of this
Agreement or any other Loan Document, or any investigation made by or on behalf of the
Administrative Agent, the Collateral Agent, any Lender, the Deposit Bank or the Issuing Bank.

     SECTION 9.03. Binding Effect. This Agreement shall become effective in accordance with the provisions of the Amendment
Agreement.

     SECTION 9.04. Successors and Assigns. (a) Whenever in this Agreement any of the parties hereto is referred to, such
reference shall be deemed to include the permitted successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of the Borrower, the Administrative Agent, the
Collateral Agent, the Issuing Bank or the Lenders that are contained in this Agreement shall bind
and inure to the benefit of their respective successors and assigns.

     (b) Each Lender may assign to one or more assignees all or a portion of its interests, rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans or
Credit-Linked Deposits at the time owing to it); provided, however, that
(i)(x) except in the case of an assignment of a Term Loan or a Credit-Linked Deposit to a Lender or
an Affiliate or Related Fund of a Lender, the Administrative Agent (and, in the case of any
assignment of a Revolving Credit Commitment, the Issuing Bank, the Swingline Lender and the
Borrower) must give its prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed); provided that the consent of the Borrower shall not be
required to any such assignment (1) during the continuance of any Event of Default, (2) during the
initial syndication of the Loans and the Commitments, (3) during the initial syndication of the
Additional Credit-Linked Deposits or (4) to a Lender or an Affiliate or Related Fund of a Lender)
and (y) except in the case of an assignment to a Lender or an Affiliate or Related Fund of a
Lender, the amount of the Commitment, Loan or Credit-Linked Deposit of the assigning Lender subject
to each such assignment (determined as of the date the Assignment and Acceptance with respect to
such assignment is delivered to the Administrative Agent) shall not be less than (A) $2,500,000 in
the case of any assignment of a Revolving Credit Commitment or (B) $1,000,000 in the case of any
assignment of a Term Loan or a Credit-Linked Deposit (or, in each case, if less, the entire
remaining amount of such Lender’s Commitment, Loans or Credit-Linked Deposits, as the case may be
and Related Funds shall be aggregated for this purpose), (ii) the parties to each such assignment
shall execute and deliver to the Administrative Agent an Assignment and Acceptance (such Assignment
and Acceptance to be (x) electronically executed and delivered to the Administrative Agent via an
electronic settlement system then acceptable to the Administrative Agent, which shall initially be
the settlement system of ClearPar, LLC, or (y) manually executed and delivered) and (iii) the
assignee, if it shall not be a Lender immediately prior to the assignment, shall deliver to the
Administrative Agent an Administrative

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Questionnaire. No Lender is permitted to assign all or any
portion of its interests, rights or obligations under this Agreement (including all or a portion of
its Commitment and the Loans or Credit-Linked Deposits at any time owing to it) except as
specifically set forth in the immediately preceding sentence and any purported assignment not in
conformity therewith shall be null and void. Upon acceptance and recording pursuant to paragraph
(e) of this Section 9.04, from and after the effective date specified in each Assignment and
Acceptance, (A) the assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under this
Agreement and (B) the assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this Agreement (and, in the
case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall
continue to be entitled to the benefits and obligations of Sections 2.14, 2.16, 2.20, 2.21 and
9.05, as well as to any Fees accrued for its account and not yet paid). Without the consent of the
Borrower (which consent shall not be unreasonably withheld) and the Administrative Agent, the
Credit-Linked Deposit of any Funded L/C Lender shall not be released in connection with any
assignment by such Funded L/C Lender, but shall instead be purchased by the relevant assignee and
continue to be held for application (to the extent not already applied) in accordance with Section
2.23(d) to satisfy such assignee’s obligations in respect of Funded L/C Disbursements.
Notwithstanding the foregoing, an assignment by a Lender to one of its Affiliates or Related Funds
will be effective, valid, legal and binding without regard to whether the assignor has delivered an
Assignment and Acceptance or Administrative Questionnaire to the Administrative Agent (and the
acceptance and recordation thereof under paragraph (e) of this Section shall not be required);
provided that the Administrative Agent and the Borrower shall be entitled to deal solely
with the assignor unless and until the date that an Assignment and Acceptance and Administrative
Questionnaire have been delivered to the Administrative Agent with respect to the applicable
assignee.

     (c) By executing and delivering (to the Administrative Agent or the assigning Lender in the
case of an assignment by a Lender to one of its Affiliates or Related Funds pursuant to the last
sentence of paragraph (b) of this Section) an Assignment and Acceptance, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and
the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and
beneficial owner of the interest
being assigned thereby free and clear of any adverse claim and that its Term Loan Commitment
and Revolving Credit Commitment, and the outstanding balances of its Term Loans and Revolving Loans
and Credit-Linked Deposits and participations in Funded Letters of Credit, in each case without
giving effect to assignments thereof which have not become effective, are as set forth in such
Assignment and Acceptance, (ii) except as set forth in (i) above, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties
or representations made in or in connection with this Agreement, or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of this Agreement, any other Loan
Document or any other instrument or document furnished pursuant hereto, or the financial condition
of the Borrower or any Subsidiary or the performance or observance by the Borrower or any
Subsidiary of any of its obligations under this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto; (iii) such assignee represents and warrants that
it is legally authorized to enter into such Assignment and Acceptance; (iv) such assignee confirms
that it has received a copy of this Agreement, together with copies of the most recent financial
statements referred to in Section 3.05(a) or delivered pursuant to Section 5.04 and such other
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into such Assignment and Acceptance; (v) such assignee will independently and without
reliance upon the Administrative Agent, the Collateral Agent, the Syndication Agent, the Arrangers,
such assigning Lender or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement; (vi) such assignee appoints and authorizes the Administrative Agent
and the Collateral Agent to take such action as agent on its behalf and to exercise such powers

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under this Agreement as are delegated to the Administrative Agent and the Collateral Agent,
respectively, by the terms hereof, together with such powers as are reasonably incidental thereto;
and (vii) such assignee agrees that it will perform in accordance with their terms all the
obligations which by the terms of this Agreement are required to be performed by it as a Lender.

     (d) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices in the City of New York a copy of each Assignment and Acceptance
delivered to it and one or more registers for the recordation of the names and addresses of the
Lenders, and the Commitment of, and principal amount of the Loans owing to, each Lender pursuant to
the terms hereof from time to time (the “Register”). The entries in the Register shall be
conclusive absent manifest error and the Borrower, the Administrative Agent, the Issuing Bank, the
Collateral Agent and the Lenders shall treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for inspection by the
Borrower, the Issuing Bank, the Collateral Agent and any Lender, at any reasonable time and from
time to time upon reasonable prior notice. In the case of any assignment made in accordance with
the last sentence of paragraph (b) of this Section that is not reflected in the Register, the
assigning Lender shall maintain a comparable register reflecting such assignment.

     (e) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, an Administrative Questionnaire completed in respect of the assignee
(unless the assignee shall already be a Lender hereunder) and, if required, the written consent of
the Swingline Lender, the Issuing Bank and the Administrative Agent to such assignment, the
Administrative Agent shall (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the Lenders, the Issuing
Bank, the Swingline Lender and the Borrower. No assignment shall be effective unless it has been
recorded in the Register as provided in this paragraph (e). Notwithstanding the foregoing, an
assignment by a Lender to an Affiliate or Related Fund pursuant to the last sentence of paragraph
(b) of this Section shall not be required to be recorded in the Register to be effective;
provided that (i) such assignment is recorded in a comparable register maintained by the
assignor as provided in paragraph (b) of this Section and (ii) the Administrative Agent and the
Borrower shall be entitled to deal solely and directly with the assignor unless and until the
date that an Assignment and Acceptance and Administrative Questionnaire have been delivered to
the Administrative Agent with respect to the applicable assignee.

     (f) Each Lender may without the consent of the Borrower, the Swingline Lender, the Issuing
Bank or the Administrative Agent sell participations to one or more banks or other entities in all
or a portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans and Credit-Linked Deposits and participations in Funded Letters of Credit
owing to it); provided, however, that (i) such Lender’s obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations, (iii) the participating banks or other
entities shall be entitled to the benefit of the cost protection provisions and related obligations
contained in Sections 2.14, 2.16, 2.20 and 2.21 to the same extent as if they were Lenders (but,
with respect to any particular participant, to no greater extent than the Lender that sold the
participation to such participant) and (iv) the Borrower, the Administrative Agent, the Issuing
Bank and the Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement, and such Lender shall retain the sole
right to enforce the obligations of the Borrower relating to the Loans or L/C Disbursements and to
approve any amendment, modification or waiver of any provision of this Agreement (other than
amendments, modifications or waivers decreasing any fees payable hereunder or the amount of
principal of or the rate at which interest is payable on the Loans, extending any scheduled
principal payment date or date fixed for the payment of interest on the Loans or the Credit-Linked
Deposits, increasing or

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extending the Commitments or releasing any Subsidiary Guarantor or all or
substantially all of the Collateral).

     (g) Any Lender or participant may, in connection with any assignment, pledge or participation
or proposed assignment, pledge or participation pursuant to this Section 9.04, disclose to the
assignee or participant or proposed assignee or participant any information relating to the
Borrower furnished to such Lender by or on behalf of the Borrower; provided that, prior to
any such disclosure of information designated by the Borrower as confidential, each such assignee
or participant or proposed assignee or participant shall execute an agreement whereby such assignee
or participant shall agree (subject to customary exceptions) to preserve the confidentiality of
such confidential information on terms no less restrictive than those applicable to the Lenders
pursuant to Section 9.16.

     (h) Any Lender may, without the consent of the Borrower or the Administrative Agent, at any
time assign all or any portion of its rights under this Agreement to secure extensions of credit to
such Lender or in support of obligations owed by such Lender, and, in the case of any Lender that
is a fund that invests in bank loans, such Lender may collaterally assign all or any portion of its
rights under this Agreement to any holder of, trustee for, or other representative of any holders
of, obligations owed or securities issued by such fund as security for such obligations or
securities; provided that no such assignment described in this clause (h) shall release a
Lender from any of its obligations hereunder or substitute any such assignee for such Lender as a
party hereto.

     (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a
Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent,
and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no
SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the Granting
Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall
survive the termination of this Agreement) that, prior to the date that is one year and one day
after the payment in full of all outstanding commercial paper or other senior indebtedness of any
SPC, it will not institute against, or join any other Person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States or any State thereof. In addition, notwithstanding anything to the contrary
contained in this Section 9.04, any SPC may (i) with notice to, but without the prior written
consent of, the Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrower and Administrative Agent) providing liquidity
and/or credit support to or for the account of such SPC to support the funding or maintenance of
Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to
any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or
liquidity enhancement to such SPC.

     (j) No Borrower shall assign or delegate any of its rights or duties hereunder without the
prior written consent of the Administrative Agent, the Issuing Bank and each Lender, and any
attempted assignment without such consent shall be null and void.

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     SECTION 9.05. Expenses; Indemnity. (a) The Borrower agrees to pay all reasonable and documented
out-of-pocket expenses incurred by the Administrative Agent, the Collateral Agent, the Arrangers,
the Syndication Agent, the Issuing Bank, the Deposit Bank and the Swingline Lender, including the
reasonable fees, charges and disbursements of Latham & Watkins LLP, counsel for the Administrative
Agent and the Collateral Agent, in connection with the syndication of the credit facilities
provided for herein and the preparation and administration of this Agreement and the other Loan
Documents or in connection with any amendments, modifications or waivers of the provisions hereof
or thereof (whether or not the transactions hereby or thereby contemplated shall be consummated);
provided that the Borrower shall not be responsible for the reasonable fees, charges and
disbursements of more than one separate law firm (in addition to one local counsel per relevant
jurisdiction or special counsel, including special workout or regulatory counsel) pursuant to its
obligations under this sentence only. The Borrower also agrees to pay all documented out-of-pocket
expenses incurred by the Administrative Agent, the Collateral Agent, the Syndication Agent, the
Arrangers, the Issuing Bank, the Deposit Bank or any Lender in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan Documents or in
connection with the Loans or Credit-Linked Deposits made or Letters of Credit issued hereunder,
including the fees, charges and disbursements of Latham & Watkins LLP, counsel for the
Administrative Agent and the Collateral Agent, and, in connection with any such enforcement or
protection, the fees, charges and disbursements of any other counsel (including special workout
counsel) for the Administrative Agent, the Collateral Agent, the Syndication Agent, the Arrangers,
the Issuing Bank, the Deposit Bank or any Lender.

     (b) The Borrower agrees to indemnify the Administrative Agent, the Collateral Agent, the
Syndication Agent, CGMI, the Arrangers, each Lender, the Issuing Bank, the Deposit Bank and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including reasonable and documented counsel
fees, charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in
any way connected with, or as a result of (i) the execution or delivery of this Agreement or any
other Loan Document or any agreement or instrument contemplated thereby, the performance by the
parties thereto of their respective obligations thereunder or the consummation of the Transactions
and the other transactions contemplated thereby, (ii) the use of the proceeds of the Loans or
Credit-Linked Deposits or issuance of Letters of Credit, (iii) any claim, litigation, investigation
or proceeding relating to any of the foregoing, whether or not any Indemnitee is a party thereto,
or (iv) any actual or alleged presence or Release of Hazardous Materials, or any non-compliance
with Environmental Law, on any property owned or operated by the Borrower or any of the
Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of the
Subsidiaries; provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses are determined by a
court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

     (c) To the extent that the Borrower fails to pay any amount required to be paid by them to the
Administrative Agent, the Collateral Agent, the Syndication Agent, CGMI, the Arrangers, the Issuing
Bank, the Deposit Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each
Lender severally agrees to pay to the Administrative Agent, the Collateral Agent, the Syndication
Agent, CGMI, the Arrangers, the Issuing Bank, the Deposit Bank or the Swingline Lender, as the case
may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, the Collateral Agent, the
Syndication Agent, CGMI, the Arrangers, the Issuing Bank, the Deposit Bank or the Swingline Lender
in its capacity as such. For purposes hereof, a Lender’s

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“pro rata share” shall be determined based upon its share of the sum of the Aggregate
Revolving Credit Exposure, outstanding Term Loans and Credit-Linked Deposits and unused Commitments
at the time.

     (d) To the extent permitted by applicable law, the Borrower shall not assert, and each hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan, Credit-Linked Deposit or Letter of Credit or the use of the
proceeds thereof.

     (e) The provisions of this Section 9.05 shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Loans, the return, application or conversion of
any of the Credit-Linked Deposits, the expiration of the Commitments, the expiration of any Letter
of Credit, the invalidity or unenforceability of any term or provision of this Agreement or any
other Loan Document, or any investigation made by or on behalf of the Administrative Agent, the
Collateral Agent, the Syndication Agent, CGMI, the Arrangers, any Lender, the Deposit Bank or the
Issuing Bank. All amounts due under this Section 9.05 shall be payable promptly upon written
demand therefor.

     SECTION 9.06. Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender is hereby authorized at any time and from time to time, except to the extent prohibited by
law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing by such Lender to or for the
credit or the account of the Borrower against any of and all the obligations of the Borrower now or
hereafter existing under this Agreement and other Loan Documents held by such Lender, irrespective
of whether or not such Lender shall have made any demand under this Agreement or such other Loan
Document and although such obligations may be unmatured. The rights of each Lender under this
Section 9.06 are in addition to other rights and remedies (including other rights of setoff) which
such Lender may have.

     SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF
CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND
SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF
NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST
RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS ISSUED, BY THE
INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO MATTERS NOT GOVERNED
BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 9.08. Waivers; Amendment; Replacement of Non-Consenting Lenders. (a) No failure or
delay of the Administrative Agent, the Collateral Agent, any Lender, the Deposit Bank or the
Issuing Bank in exercising any power or right hereunder or under any other Loan Document shall
operate as a waiver thereof, nor shall any single or partial exercise of any such right or power,
or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other
or further exercise thereof or the exercise of any other right or power. The rights and remedies
of the Administrative Agent, the Collateral Agent, the Issuing Bank, the Deposit Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or
any other Loan Document or consent to any departure by the Borrower or any other Loan Party
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) below, and then such waiver or

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consent shall be effective only in the specific instance and for the
purpose for which given. No notice or demand on the Borrower in any case shall entitle the
Borrower to any other or further notice or demand in similar or other circumstances.

     (b) 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 Borrower and the Required
Lenders; provided, however, that no such agreement shall (i) decrease or forgive
the principal amount of, or extend the maturity of or any scheduled principal payment date or date
for the payment of any interest on any Loan or any date for reimbursement of an L/C Disbursement or
extend the date on which the Credit-Linked Deposits are required to be returned in full, or waive
or excuse any such payment or any part thereof, or decrease the rate of interest on any Loan,
Credit-Linked Deposit or L/C Disbursement, without the prior written consent of each Lender
directly affected thereby, (ii) increase or extend the Commitment or decrease or extend the date
for payment of any Fees of any Lender without the prior written consent of such Lender, (iii) amend
or modify the pro rata requirements of Section 2.17, the provisions of Sections 2.02, 2.09 and 2.18
requiring ratable distribution or sharing or ratable funding, the provisions of Section 9.04(j),
the provisions of this Section or the definition of the term “Required Lenders” or release any
Subsidiary Guarantor, except in connection with a release expressly permitted under the Loan
Documents, without the prior written consent of each Lender, (iv) amend or modify the definition of
the term “Majority Revolving Credit Lenders” without the prior written consent of each Revolving
Credit Lender, (v) except upon payment in full of the Guaranteed Obligations hereunder (except for
contingent obligations or indemnities not yet accrued as of such time), release all or
substantially all of the Collateral, except in connection with a disposition expressly permitted
under the Loan Documents, without the prior written consent of each Lender, (vi) change the
provisions of any Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans or Credit-Linked Deposits of one Class differently
from the rights of Lenders holding Loans or Credit-Linked Deposits of any other Class without the
prior written consent of Lenders holding a majority in interest of the outstanding Loans,
Credit-Linked Deposits and unused Commitments of each adversely affected Class, (vii) modify the
protections afforded to an SPC pursuant to the provisions of Section 9.04(i) without the written
consent of such SPC or (viii) waive, amend or modify the definition of “Net Cash Proceeds” and the
mandatory prepayment requirements of Section 2.13, in each case to the extent such provisions
relate to a Sale of Core Collateral, without the prior written consent of the Supermajority
Lenders; provided further that no such agreement shall amend, modify or otherwise
affect the rights or duties of the Administrative Agent, the Collateral Agent, the Issuing Bank,
the Deposit Bank or the Swingline Lender hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent, the Collateral Agent, the Issuing Bank, the
Deposit Bank or the Swingline Lender, as applicable.

     (c) Each Lender grants (i) to the Administrative Agent the right (with the prior written
consent of the Borrower) to purchase all, or all of any Class, of such Lender’s Commitments and
Loans owing to it and any related promissory notes held by it and all its rights and obligations
hereunder and under the other Loan Documents and (ii) to the Borrower the right to cause an
assignment of all, or all of any Class, of such Lender’s Commitments and Loans owing to it and any
related promissory notes held by it and all its rights and obligations hereunder and under the
other Loan Documents to one or more eligible assignees pursuant to Section 9.04, which right may be
exercised by the Administrative Agent or the Borrower, as the case may be, if such Lender (a
“Non-Consenting Lender”) refuses to execute any amendment, modification, termination,
waiver or consent which requires the written consent of Lenders
other than the Required Lenders and to which the Required Lenders and the Borrower have
otherwise agreed; provided that such Non-Consenting Lender shall receive in connection with
such purchase or assignment, payment equal to the aggregate amount of outstanding Loans owed to
such Lender, together with all accrued and unpaid interest, fees and other amounts (other than
indemnification and other contingent obligations not yet due and payable) owed to such Lender under
the Loan Documents at such

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time; and provided, further, that any such assignee
shall agree to such amendment, modification, termination, waiver or consent. Each Lender agrees
that if the Administrative Agent or the Borrower, as the case may be, exercises its option under
this paragraph it shall promptly execute and deliver all agreements and documentation necessary to
effectuate such assignment as set forth in Section 9.04. The Borrower shall be entitled (but not
obligated) to execute and deliver such agreements and documentation on behalf of such
Non-Consenting Lender and any such agreements or documentation so executed by the Borrower shall be
effective for all purposes of documenting an assignment pursuant to Section 9.04.

     SECTION 9.09. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Loan or Credit-Linked Deposit or participation in any L/C
Disbursement, together with all fees, charges and other amounts which are treated as interest on
such Loan or participation in such L/C Disbursement under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan or
participation in accordance with applicable law, the rate of interest payable in respect of such
Loan or participation hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan or participation but were not payable as a result of the
operation of this Section 9.09 shall be cumulated and the interest and Charges payable to such
Lender in respect of other Loans or participations or periods shall be increased (but not above the
Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal
Funds Effective Rate to the date of repayment, shall have been received by such Lender.

     SECTION 9.10. Entire Agreement. This Agreement, the Restatement Fee Letter, the Fee Letter and the
other Loan Documents constitute the entire contract between the parties relative to the subject
matter hereof. Any other previous agreement among the parties with respect to the subject matter
hereof is superseded by this Agreement and the other Loan Documents. Nothing in this Agreement or
in the other Loan Documents, expressed or implied, is intended to confer upon any Person (other
than the parties hereto and thereto, their respective successors and assigns permitted hereunder
(including any Affiliate of the Issuing Bank that issues any Letter of Credit) and, to the extent
expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the
Collateral Agent, the Syndication Agent, CGMI, the Arrangers, the Issuing Bank and the Lenders) any
rights, remedies, obligations or liabilities under or by reason of this Agreement or the other Loan
Documents.

     SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.11.

     SECTION 9.12. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in
good-faith negotiations to replace the invalid, illegal or

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unenforceable provisions with valid
provisions the economic effect of which comes as close as possible to that of the invalid, illegal
or unenforceable provisions.

     SECTION 9.13. Counterparts. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original but all of
which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9.03. Delivery of an executed signature page to this Agreement or of a Lender
Addendum by facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.

     SECTION 9.14. Headings. Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

     SECTION 9.15. Jurisdiction; Consent to Service of Process. (a) The Borrower hereby irrevocably
and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any
New York State court or Federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to
this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect
of any such action or proceeding may be heard and determined in such New York State or, to the
extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the Administrative Agent, the Collateral Agent, the
Syndication Agent, CGMI, the Arrangers, the Issuing Bank or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or the other Loan Documents against the
Borrower or its properties in the courts of any jurisdiction.

     (b) The Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may
legally and effectively do so, any objection which it may now or hereafter have to the laying of
venue of any suit, action or proceeding arising out of or relating to this Agreement or the other
Loan Documents in any New York State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such
action or proceeding in any such court.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     SECTION 9.16. Confidentiality. Each of the Administrative Agent, the Collateral Agent, the Deposit
Bank, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the Information,
except that Information may be disclosed (a) to its and its Affiliates’ officers, directors,
employees and agents, including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to the extent requested
by any regulatory authority or quasi-regulatory authority (such as the National Association of
Insurance Commissioners), (c) to the extent required by Applicable Laws or by any subpoena or
similar legal process, (d) in connection with the exercise of any remedies hereunder or under the
other Loan Documents or any suit, action or proceeding relating to the enforcement of its rights
hereunder or thereunder, (e) subject to an agreement containing provisions substantially the same
as those of this Section 9.16, to (i) any actual or prospective assignee of or participant in any
of its rights or obligations under this Agreement and the other Loan

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Documents or (ii) any actual
or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the
Borrower or any Subsidiary or any of their respective obligations, (f) with the consent of the
Borrower or (g) to the extent such Information becomes publicly available other than as a result of
a breach of this Section 9.16. For the purposes of this Section, “Information” shall mean
all financial statements, certificates, reports, agreements and other information received from the
Borrower or its Subsidiaries and related to the Borrower or its business, other than any such
financial statements, certificates, reports, agreements and other information that was available to
the Administrative Agent, the Collateral Agent, the Issuing Bank or any Lender on a nonconfidential
basis prior to its disclosure by the Borrower; provided that, in the case of Information
received from the Borrower after the Closing Date, such information is clearly identified at the
time of delivery as confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section 9.16 shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord its own confidential information.
Notwithstanding any other express or implied agreement, arrangement or understanding to the
contrary, each of the parties hereto agrees that each other party hereto (and each of its
employees, representatives or agents) are permitted to disclose to any Persons, without limitation,
the tax treatment and tax structure of the Loans and the other transactions contemplated by the
Loan Documents and all materials of any kind (including opinions and tax analyses) that are
provided to the Loan Parties, the Lenders, the Arrangers or any Agent related to such tax treatment
and tax aspects. To the extent not inconsistent with the immediately preceding sentence, this
authorization does not extend to disclosure of any other information or any other term or detail
not related to the tax treatment or tax aspects of the Loans or the transactions contemplated by
the Loan Documents.

     SECTION 9.17. Delivery of Lender Addenda. Each initial Lender shall become a party to this
Agreement by delivering to the Administrative Agent a Lender Addendum duly executed by such Lender,
the Borrower and the Administrative Agent.

     SECTION 9.18. Lien Sharing and Priority Confirmation. Each of the Administrative Agent, the Collateral Agent, the Deposit Bank, the Issuing Bank
and the Lenders agrees that:

     (a) all First Lien Obligations (as defined in the Texas Genco Collateral Trust Agreement) will
be and are secured equally and ratably by all First Liens (as defined in the Texas Genco Collateral
Trust Agreement) at any time granted by Texas Genco or any other Pledgor (as defined in the Texas
Genco Collateral Trust Agreement) to secure any Obligations (as defined in the Texas Genco
Collateral Trust Agreement) in respect of such Series of First Lien Debt (as defined in the Texas
Genco Collateral Trust Agreement), whether or not upon property otherwise constituting collateral
for such Series of First Lien Debt, and that all such First Liens will be enforceable by the Texas
Genco Collateral Trustee for the benefit of all holders of First Lien Obligations equally and
ratably;

     (b) the holders of Obligations in respect of such Series of First Lien Debt are bound by the
provisions of the Texas Genco Collateral Trust Agreement, including the provisions relating to the
ranking of First Liens and the order of application of proceeds from enforcement of First Liens;
and

     (c) it hereby consents to and directs the Texas Genco Collateral Trustee to perform its
obligations under the Texas Genco Collateral Trust Agreement and the other Security Documents (as
defined in the Texas Genco Collateral Trust Agreement).

     SECTION 9.19. Mortgage Modifications. As a condition precedent to the Borrower’s incurrence of
additional Indebtedness pursuant to Sections 2.25 and to the extent applicable additional
Indebtedness secured by a first priority Lien pursuant to Section 6.01(p) as provided for herein,
the Borrower shall satisfy the following requirements:

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     (a) the Subsidiary Guarantors shall enter into, and deliver to the Administrative Agent and
the applicable Collateral Trustee, at the direction and in the sole discretion of the
Administrative Agent and/or the applicable Collateral Trustee (i) in the case of additional
Indebtedness incurred pursuant to Section 2.25, a mortgage modification or new Mortgage, and (ii)
in the case of additional Indebtedness secured by a first priority Lien incurred pursuant to
Section 6.01(p), a new Mortgage; in each case in proper form for recording in the relevant
jurisdiction and in a form reasonably satisfactory to the Administrative Agent (such Mortgage or
mortgage modification of, the “Modification”);

     (b) the Borrower shall deliver a local counsel opinion in form and substance as set forth in
Section 4.02(a)(ii) of this Agreement;

     (c) the Borrower shall have caused a title company approved by the Administrative Agent to
have delivered to the Administrative Agent and the applicable Collateral Trustee an endorsement to
the title insurance policy delivered pursuant to Section 4.02(i), date down(s) or other evidence
reasonably satisfactory to the Administrative Agent and/or the applicable Collateral Trustee
insuring that (i) the priority of the liens evidenced by insuring the continuing priority of the
Lien of the Mortgage as security for such Indebtedness has not changed and (ii) confirming and/or
insuring that (a) since the immediately prior incurrence of such additional Indebtedness, there has
been no change in the condition of title and (b) there are no intervening liens or encumbrances
which may then or thereafter take priority over the Lien of the Mortgage, other than the Permitted
Liens (without adding any additional exclusions or exceptions to coverage; a “Modification
Endorsement”); and

     (d) the Borrower shall, upon the request of the Administrative Agent and/or the applicable
Collateral Trustee, deliver to the approved title company, the applicable Collateral Trustee, the
Administrative Agent and/or all other relevant third parties all other items reasonably
necessary to maintain the continuing priority of the Lien of the Mortgage as security for such
Indebtedness.

     SECTION 9.20. Certain Undertakings with Respect to Securitization Vehicles. (a) Each Secured
Party, the Administrative Agent and the Collateral Agent agrees, and shall instruct each Collateral
Trustee, that, prior to the date that is one year and one day after the payment in full of all the
obligations of the Securitization Vehicle in connection with and under the South Central
Securitization, (i) the Collateral Agent and the other Secured Parties shall not be entitled,
whether before or after the occurrence of any Event of Default, to (A) institute against, or join
any other Person in instituting against, any Securitization Vehicle any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceeding under the laws of the United States or any State
thereof, (B) transfer and register the capital stock of any Securitization Vehicle or any other
instrument evidencing any Seller’s Retained Interest in the name of the Collateral Agent or a
Secured Party or any designee or nominee thereof, (C) foreclose such security interest regardless
of the bankruptcy or insolvency of the Borrower or any Restricted Subsidiary, (D) exercise any
voting rights granted or appurtenant to such capital stock of any Securitization Vehicle or any
other instrument evidencing any Seller’s Retained Interest or (E) enforce any right that the holder
of any such capital stock of any Securitization Vehicle or any other instrument evidencing any
Seller’s Retained Interest might otherwise have to liquidate, consolidate, combine, collapse or
disregard the entity status of such Securitization Vehicle and (ii) the Collateral Agent and other
Secured Parties hereby waive and release any right to require (A) that any Securitization Vehicle
be in any manner merged, combined, collapsed or consolidated with or into the Borrower or any
Restricted Subsidiary, including by way of substantive consolidation in a bankruptcy case or (B)
that the status of any Securitization Vehicle as a separate entity be in any respect disregarded.
Each Secured Party, the Administrative Agent and the Collateral Agent agree and acknowledge, and
shall instruct each Collateral Trustee, that the agent acting on behalf of the holders of
securitization indebtedness of the Securitization Vehicle is an express third party beneficiary
with respect to this Section 9.20 and such agent shall have

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the right to enforce compliance by the
Secured Parties, the Administrative Agent, the Collateral Agent and each Collateral Trustee with
this Section.

     (b) Upon the transfer or purported transfer by the Borrower or any Restricted Subsidiary of
South Central Securitization Assets to a Securitization Vehicle in a South Central Securitization,
any Liens with respect to such South Central Securitization Assets arising under this Agreement or
any Security Document related to this Agreement shall automatically be released (and each of the
Administrative Agent and the Collateral Agent, as applicable, is hereby authorized, and shall
instruct each Collateral Trustee, to execute and enter into any such releases and other documents
as the Borrower may reasonably request in order to give effect thereto).

     SECTION 9.21. Effect of Amendment and Restatement of the Existing Credit Agreement. (a) On the
Restatement Date, the Existing Credit Agreement shall be amended and restated in its entirety by
this Agreement, and the Existing Credit Agreement shall thereafter be of no further force and
effect and shall be deemed replaced and superseded in all respects by this Agreement, except to
evidence (i) the incurrence by the Borrower of the “Obligations” under and as defined in the
Existing Credit Agreement (whether or not such “Obligations” are contingent as of the Restatement
Date), (ii) the representations and warranties made by the Borrower prior to the Restatement Date
(which representations and warranties made prior to the Restatement Date shall not be superseded or
rendered ineffective by this Agreement as they pertain to the period prior to the Restatement Date)
and (iii) any action or omission performed or required to be performed pursuant to such Existing
Credit Agreement prior to the Restatement Date (including any failure, prior to the Restatement
Date, to comply with the covenants contained in such Existing Credit Agreement). The parties
hereto acknowledge and agree that (a) this Agreement and the other Loan Documents, whether executed and delivered in connection
herewith or otherwise, do not constitute a novation or termination of the “Obligations” under the
Existing Credit Agreement or the other Loan Documents as in effect prior to the Restatement Date
and which remain outstanding as of the Restatement Date, (b) the “Obligations” under the Existing
Credit Agreement and the other Loan Documents are in all respects continuing (as amended and
restated hereby and which are in all respects hereinafter subject to the terms herein) and (c) the
Liens and security interests as granted under the applicable Loan Documents securing payment of
such “Obligations” are in all respects continuing and in full force and effect and are reaffirmed
hereby.

     (b) On and after the Restatement Date, (i) all references to the Existing Credit Agreement in
the Loan Documents (other than this Agreement) shall be deemed to refer to the Existing Credit
Agreement, as amended and restated hereby, (ii) all references to any section (or subsection) of
the Existing Credit Agreement in any Loan Document (but not herein) shall be amended to become,
mutatis mutandis, references to the corresponding provisions of this Agreement and (iii) except as
the context otherwise provides, on or after the Restatement Date, all references to this Agreement
herein (including for purposes of indemnification and reimbursement of fees) shall be deemed to be
reference to the Existing Credit Agreement as amended and restated hereby.

     (c) This amendment and restatement is limited as written and is not a consent to any other
amendment, restatement or waiver or other modification, whether or not similar and, except as
expressly provided herein or in any other Loan Document, all terms and conditions of the Loan
Documents remain in full force and effect unless otherwise specifically amended hereby or by any
other Loan Document.

     (d) Except to the extent specifically amended on the Restatement Date, this amendment and
restatement shall not alter, modify or in any way amend the schedules and exhibits to the Existing
Credit Agreement (and such schedules and exhibits shall continue to be schedules and exhibits
hereto).

139

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	NRG ENERGY, INC.

 	 
	 	By:  	/s/ Clint Freeland
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED, as Joint Book Runner and Joint Lead Arranger,

 	 
	 	By:  	/s/ Rick Stoddard
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MERRILL LYNCH CAPITAL CORPORATION, as Syndication Agent,

 	 
	 	By:  	/s/ Rick Stoddard
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MORGAN STANLEY SENIOR FUNDING, INC., as Joint Book
Runner, Joint Lead Arranger, Administrative Agent
and Swingline Lender,

 	 
	 	By:  	/s/ Stephen B. King
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	MORGAN STANLEY & CO. INCORPORATED, as Collateral Agent

 	 
	 	By:  	/s/ Eugene F. Martin
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK AG, NEW YORK BRANCH, as Issuing Bank and Deposit Bank

 	 
	 	By:  	/s/ Richard Buckwalter
 	 
	 	 	Name:  	 	 
	 	 	Title:

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