Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.14

PERFORMANCE AWARD AGREEMENT

THIS PERFORMANCE AWARD AGREEMENT (this “Agreement”) is made as of the 6th day of March, 2008,
between DYNEGY INC., a Delaware corporation (“Dynegy”), and all of its Affiliates (collectively,
the “Company”), and _____ (“Employee”). A copy of the Dynegy Inc. 2000 Long Term
Incentive Plan (the “Plan”) is annexed to this Agreement and shall be deemed a part of this
Agreement as if fully set forth herein. Unless the context otherwise requires, all terms that are
not defined herein but which are defined in the Plan shall have the same meaning given to them in
the Plan when used herein.

1. The Grant. The Compensation and Human Resources Committee of the Board of
Directors (the “Committee”) granted to Employee on March 6, 2008 (“Effective Date”), a Performance
Award of  _____ performance units, each of which has a designated value of $100 and represents
the right to receive an amount payable in the form of cash or shares of Dynegy’s Class A Common
Stock (a “Share” or “Shares”), as determined in the discretion of the Committee. Employee
acknowledges receipt of a copy of the Plan, and agrees that this Performance Award shall be subject
to all of the terms and provisions of the Plan, including future amendments thereto, if any,
pursuant to the terms thereof, and to all of the terms and conditions of this Agreement. If it is
subsequently determined by the Committee, in its sole discretion, that the terms and conditions of
this Agreement and/or the Plan are not compliant with Code Section 409A, or any Treasury
regulations or Internal Revenue Service guidance promulgated thereunder, this Agreement and/or the
Plan may be amended accordingly.

2. Performance Period and Performance Goals. Subject to the provisions of Section 5
of this Agreement, the performance period for purposes of determining whether the Performance Award
will be paid shall be March 6, 2008 through March 6, 2011 (the “Performance Period”). The
performance goals for purposes of determining whether, and the extent to which, the Performance
Award will be paid are set forth in Exhibit 1 to this Agreement, which Exhibit is made a
part of this Agreement. Notwithstanding the foregoing, the Committee shall have discretion to
adjust the performance goals to reflect actions undertaken in the best interest of the Company and
its shareholders, including, but not limited to, strategic transactions affecting the performance
goals as well as recapitalizations, reorganizations, mergers, consolidations, split-ups,
split-offs, spin-offs, exchanges or other relevant changes in capitalization or structure of the
Company.

3. Payment. Subject to the provisions of Sections 4 and 5 of this Agreement, after
the Performance Period, the Performance Award shall be paid as soon as practicable after the
Committee determines whether and to what extent the performance goals have been achieved for the
Performance Period in accordance with the terms set forth in Exhibit 1 to this Agreement;
provided, however, that any such payment shall be made no later than December 31, 2011.

 

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4. Termination. The Performance Award and the Employee’s right to receive any cash or
Shares hereunder will automatically and without notice terminate and become null and void upon
Employee’s termination of employment with the Company prior to the Performance Award payment date,
except that:

	 	(a)	 	if Employee’s termination of employment is by reason of:

	 	(1)	 	death,

	 
	 	(2)	 	retirement by Employee following (A)
the date on which such Employee has reached sixty (60) years of
age and (B) at least ten (10) years of service as an employee
of the Company, or

	 
	 	(3)	 	Involuntary Termination (as defined in
the Dynegy Inc. Executive Severance Pay Plan, as amended and
restated effective January 1, 2008), or

	 
	 	(4)	 	a Change in Control Termination
occurring in connection with, but in no event earlier than
sixty (60) days prior to, a Change in Control, or

	 	(b)	 	if Employee is determined to be disabled (as defined in the
Company’s long term disability program or the plan in which Employee is a
participant or, if Employee does not participate in any such plan, as defined
in the Dynegy Inc. Long Term Disability Plan, as amended, or the successor plan
thereto),

Employee shall be treated as if he or she had been continuously employed by the Company through the
Performance Award payment date. In such case, Employee or Employee’s legal representative, or the
person, if any, who acquired the Performance Award by bequest or inheritance or by reason of the
death of Employee, shall be entitled to receive any payment with respect to the Performance Award
in accordance with this Agreement; provided, however, that if Employee’s termination of employment
is for the reason described in Sections 4(a)(3) or (4), any such payment shall be prorated by
multiplying the payment by a fraction, the numerator of which shall be the number of calendar days
that elapsed between the date of Employee’s termination and the Effective Date and the denominator
of which shall be 1,080 but in no case shall such fraction be greater than one (1).

For purposes of this Agreement, the term “Cause” shall mean, and hence arise where, as
determined by the Committee in its sole discretion, Employee (i) has been convicted of a
misdemeanor involving moral turpitude or a felony; (ii) has failed to substantially perform the
duties of such Employee to the Company (other than such failure resulting from Employee’s
incapacity due to physical or mental condition) which results in a materially adverse effect upon
the Company, financial or otherwise; (iii) has refused without proper legal reason to perform
Employee’s duties and responsibilities to the Company; or (iv) has breached any material corporate
policy maintained and established by the Company that is applicable to Employee, provided such
breach results in a materially adverse effect upon the Company, financial or otherwise. In
addition, the term “Change in Control Termination” shall mean Employee’s employment is terminated
by the Company (or a successor thereto) without Cause, or by Employee following: (A) a significant
diminution in Employee’s responsibilities, authority or
duties; (B) a material reduction in Employee’s base salary; or (C) relocation of Employee’s
principal place of employment by 50 miles or more, all as determined by the Committee in its sole
discretion.

 

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5. Change In Control. In the event a “Change in Control” (as defined below) occurs
during the Performance Period, provided the ending Share price, as determined in accordance with
this Section 5, would entitle Employee to receive a Performance Award based upon the performance
goals set forth in Exhibit 1 to this Agreement, Employee shall receive a payment with
respect to the Performance Award, which shall be determined by using either, as applicable (a) the
agreed price per Share received by the shareholders of Dynegy as a result of the Change in Control
transaction, or if there is no agreed price per Share, then (b) the average closing Share price for
the twenty (20) consecutive trading days immediately preceding the effective date of the Change in
Control, as the ending Share price for the Performance Period. Such payment, if any, shall be made
regardless of whether Employee’s employment with the Company is terminated (other than For Cause)
on or after the effective date of such Change in Control, and shall be made in the form of cash to
Employee as soon as administratively feasible but no later than the later of December 31 of the
calendar year in which the Change in Control occurs or the 15th day of the third month
following the effective date of the Change in Control. The Performance Period shall end as of the
effective date of a Change in Control, and any Performance Award payments hereunder shall only be
made in accordance with this Section 5.

For purposes of this Agreement, “Change in Control” shall mean the occurrence of any of the
following events: (1) a merger of Dynegy with another entity, a consolidation involving Dynegy, or
the sale of all or substantially all of the assets or equity interests of Dynegy to another entity
if, in any such case, (A) the holders of equity securities of Dynegy immediately prior to such
event do not beneficially own immediately after such event equity securities of the resulting
entity entitled to fifty-one percent (51%) or more of the votes then eligible to be cast in the
election of directors (or comparable governing body) of the resulting entity in substantially the
same proportions that they owned the equity securities of Dynegy immediately prior to such event or
(B) the persons who were members of the Board immediately prior to such event do not constitute at
least a majority of the board of directors of the resulting entity immediately after such event;
(2) the dissolution or liquidation of Dynegy, but excluding a reorganization pursuant to chapter 11
of Title 11, U.S. Code, as amended; (3) a circumstance where any person or entity, including a
“group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or
control (including, without limitation, power to vote) of fifty percent (50%) or more of the
combined voting power of the outstanding securities of, (A) if Dynegy has not engaged in a merger
or consolidation, Dynegy, or (B) if Dynegy has engaged in a merger or consolidation, the resulting
entity; (4) circumstances where, as a result of or in connection with, a contested election of
directors, the persons who were members of the Board immediately before such election shall cease
to constitute a majority of the Board; or (5) the Board (or the Committee) adopts a resolution
declaring that a Change in Control has occurred. For purposes of the “Change in Control”
definition, (A) “resulting entity” in the context of an event that is a merger, consolidation or
sale of all or substantially all of the subject assets or equity interests shall mean the surviving
entity (or acquiring entity in the case of an asset or equity interest sale), unless the surviving
entity (or acquiring entity in the case of an asset sale) is a subsidiary of another entity and the
holders of common stock of Dynegy receive capital stock of such other
entity in such transaction or event, in which event the resulting entity shall be such other
entity, and (B) subsequent to the consummation of a merger or consolidation that does not
constitute a Change in Control, the term “Dynegy” shall refer to the resulting entity and the term
“Board” shall refer to the board of directors (or comparable governing body) of the resulting
entity.

 

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6. Status of Stock. Employee agrees that any Shares distributed pursuant to this
Agreement will not be sold or otherwise disposed of in any manner which would constitute a
violation of any applicable federal or state securities laws. Employee also agrees that (a) the
certificates representing the Shares may bear such legend or legends as the Committee in its sole
discretion deems appropriate in order to assure compliance with applicable securities laws and (b)
the Company may refuse to register the transfer of the Shares on the stock transfer records of the
Company, and may give related instructions to its transfer agent, if any, to stop registration of
such transfer, if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law.

7. Employment Relationship. For purposes of this Agreement, Employee shall be
considered to be in the employment of the Company as long as Employee remains an employee of the
Company or an Affiliate (as such term is defined in the Plan). Nothing in the adoption of the Plan
or the grant of the Performance Award thereunder pursuant to this Agreement shall confer upon
Employee the right to continued employment by the Company or affect in any way the right of the
Company to terminate such employment at any time. Unless otherwise provided in a written
employment agreement or by applicable law, Employee’s employment by the Company shall be on an
at-will basis, and the employment relationship may be terminated at any time by either Employee or
the Company for any reason whatsoever, with or without cause. Any question as to whether and when
there has been a termination of such employment, and the cause of such termination, shall be
determined by the Committee in its sole discretion, and its determination shall be final and
binding on all parties.

8. Withholding of Tax. To the extent that payment of the Performance Award results in
compensation income to Employee for federal or state income tax purposes, the Company is authorized
to withhold from any cash or Shares distributable to the Employee under this Agreement) then or
thereafter payable to Employee any tax required to be withheld by reason of such resulting
compensation income.

9. Miscellaneous.

(a) This grant is subject to all the terms, conditions, limitations and restrictions
contained in the Plan. In the event of any conflict or inconsistency between the terms
hereof and the terms of the Plan, the terms of the Plan shall be controlling. In the event
of any conflict or inconsistency between the terms hereof and the terms of the Dynegy Inc.
Executive Severance Pay Plan, including any amendments or supplements thereto, or the Dynegy
Inc. Severance Pay Plan, including any amendments or supplements thereto, the terms hereof
shall be controlling.

 

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(b) Any notices or other communications provided for in this Agreement shall be
sufficient if in writing. In the case of Employee, such notices or communications shall be
effectively delivered when hand delivered to Employee at his or her principal place of
employment or when sent by registered or certified mail to Employee at the last address
Employee has filed with the Company. In the case of the Company, such notices or
communications shall be effectively delivered when sent by registered or certified mail to
the Company at its principal executive offices.

(c) Employee shall be presumed to have agreed to and accepted the terms of this
Agreement unless he or she submits a written objection to the Committee or the undersigned
officer within 30 days after the Effective Date.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer
thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	DYNEGY INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ J. Kevin Blodgett	 	 
	 

	 	 	 	 

	 	 
	 

	 	
	 	Name: J. Kevin Blodgett	 	 
	 

	 	
	 	Title: General Counsel & EVP, Administration	 	 

 

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Performance Unit Award Summary

For 2008 Long Term Incentive grants made to those at the Managing Director and above level, the
Compensation and Human Resources Committee chose to base the performance unit portion of the awards
on long-term stock price performance. The Committee believes this metric provides a simple,
transparent and meaningful measure of Dynegy’s performance relative to its long-term goal of
creating value for stockholders. The material terms of the performance units are summarized below:

	 	•	 	Denominated in $100 units, which are payable in the form of cash or stock, at the
Compensation and Human Resources Committee’s discretion;

	 
	 	•	 	Payment (if any) to be made in accordance with Section 3 of the Agreement based on
Dynegy’s three-year stock price performance;

	 
	 	•	 	Starting share price is the average closing price of Dynegy’s Class A common stock for
the month February 2008 ($7.70); the Compensation and Human Resources Committee determined
the starting share price after reviewing and taking into account various factors,
including: (1) Dynegy’s share price and the total shareholder return of similarly sized
general industry companies over a three year period from December 2004 through December
2007; (2) the underlying value of Dynegy’s power generation portfolio based on various
valuation methodologies; and (3) potential growth opportunities that may be available to
Dynegy;

	 
	 	•	 	Ending share price will be the average closing price of Dynegy’s Class A common stock
during the month of February 2011;

	 
	 	•	 	Awards are payable at threshold, target, stretch and maximum levels as illustrated in
the table below; and

Performance Goals for Performance Period

(March 6, 2008 — March 6, 2011)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Threshold	 	 	Target	 	 	Maximum	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Goals
	 	Dynegy Inc.
 Achieved Share Price*	 	$	10.00	 	 	$	12.00	 	 	$	14.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payment Levels**
	 	% of each $100
Performance Unit	 	 	0	%	 	 	100	%	 	 	200	%

	 	 	 
	*	 	Achieved Share Price shall be the ending Share price equal to the average closing Share price for
the month of February 2011 or, if applicable, the ending Share price determined in accordance with
Section 5 of the Agreement in the event of a Change in Control.

	 
	**	 	Payment levels will be based upon the actual Achieved Share Price and will be interpolated
between Achieved Share Price goals.

 

6Filed by Bowne Pure Compliance

 

Exhibit 10.15

TWELFTH AMENDMENT TO THE

DYNEGY INC. 401(k) SAVINGS PLAN

WHEREAS,
Dynegy Inc., a Delaware corporation (“Dynegy”), maintains the Dynegy Inc. 401(k)
Savings Plan (the “Plan”) for the benefit of the eligible employees of certain participating
companies; and

WHEREAS, Dynegy desires to amend the Plan to (i) add certain provisions of the Pension
Protection Act of 2006 relating to Roth 401(k) contributions, nonspouse beneficiary rollovers and
Roth IRA rollovers; and (ii) add certain provisions relating to
a new class action settlement
account.

NOW, THEREFORE, BE IT RESOLVED that the Plan shall be, and hereby is, amended as follows,
effective as provided below:

I.

Effective January 1, 2007 and effective January 1, 2008 with respect to the addition of the
Roth Account, Section 1.1 (l) of the Plan is amended in its entirety to provide as follows:

“(1)
Account(s): A Member’s After-Tax Account, Before-Tax Account, Dow ESOP
Account, Dow Transfer Account, Employer Contribution Account, Rollover Contribution Account,
Catch-Up Contribution Account, Class Settlement Account I, Class Settlement Account II,
and/or Roth Account, including the amounts credited thereto and any subaccounts thereof.”

II.

Effective January 1, 2008, Section 1.1(23) of the Plan is amended by adding a sentence at the
end thereof to provide as follows:

“Notwithstanding the previous sentence, Distributee shall also include a nonspouse
beneficiary, but only with regard to the interest of such individual under the Plan.”

III.

Effective January 1, 2008, Section 1,1(28) of the Plan is amended in its entirety to
provide as follows:

“(28)
Eligible Retirement Plan: Any of (A) an individual retirement account
described in section 408(a) of the Code, (B) an individual retirement annuity described in
section 408(b) of the Code, (C) an annuity plan described in section 403(a) of the Code,
(D) a qualified plan described in section 401(a) of the Code, which under its provisions
does, and under applicable law may, accept a Distributee’s Eligible Rollover Distribution,
(e) an annuity contract described in section 403(b) of the Code, (F) an eligible plan under
section 457(b) of the Code which is maintained by a state, political subdivision of a state,
or agency or instrumentality of a state or political subdivision of a state and which agrees
to separately account for the amounts transferred into such plan from the Plan, and (g) a
Roth IRA described in section 408A(b) of the Code. The definition of Eligible
Retirement Plan shall also apply in the case of a distribution to a surviving spouse or to a
spouse or former spouse who is an alternate payee under a qualified domestic relations
order, as defined in section 414(p) of the Code.

 

 

 

Notwithstanding the foregoing, in the case of an Eligible Rollover Distribution to a
beneficiary who is a designated beneficiary as defined in section 401(a)(9)(E) of the
Code and is not a surviving spouse, an Eligible Retirement Plan is an individual retirement
account or individual retirement annuity that is treated as an inherited account under
section 402(c)(11) of the Code.”

IV.

Effective
January 1, 2008, Section 1.1 of the Plan is hereby amended by inserting new
subsections (53) and (54) and renumbering the current subsections (53) and (54), and subsequent
subsections, accordingly to provide as follows:

“(53) Roth Account: An individual account for each Member that is credited with
Roth Contributions, if any, made by the Employer on such Member’s behalf. Such Account shall
also be adjusted to reflect changes in value as provided in Section
4.3.

“(54) Roth Contributions: Contributions made by a Member pursuant to Section
3.12.”

V.

Effective January 1, 2007, current Section 1.1(54) of the Plan, as subsequently renumbered
pursuant to IV next above, is hereby amended in its entirety to provide as follows:

“(55) Service. The period of an individual’s employment with the Employer or a
Controlled Entity; provided, however, that each individual who was employed by Sithe
Energies, Inc. or Sithe Energies Power Services, Inc. (collectively referred to as ‘Sithe’)
on the date of the closing of the Sithe Transaction shall be credited with Service for the
period preceding such closing date in an amount equal to the Years of Vesting Service, if
any, credited to such individual under the Sithe Energies Group
Retirement 401(k) Plan
immediately prior to such closing date. For purposes of this provision, ‘Sithe Transaction’
shall mean the transaction contemplated by that certain Stock Purchase Agreement dated as of
November 1, 2004, by and among Exelon SHC, Inc., Exelon New England Power Marketing,
L.P., ExRes SHC, Inc. and Dynegy New York Holdings Inc. Further provided, that each
individual who was employed by LS Power Generation, LLC, LS Power Development, LLC or LS
Power Company, LLC (an ‘LS Power Entity’) immediately prior to the ‘Effective Time’ (as
defined below) and who subsequently becomes employed by an Employer after the Effective Time
on or before December 31, 2007, shall be credited with Service based upon his original date
of hire with an LS Power Entity. Further provided, each individual who was employed by Wood
Group Power Operations, Inc., Worley Parsons Group, Inc., North American Energy Services
Co., Prime South, Inc. or General Electric International, Inc. (each a “Prior
Company”), who terminates employment with a Prior Company after the Effective Time and on or
before December 31, 2007, and who becomes employed by an Employer on or before
December 31, 2007, shall be credited with Service based upon his original date of
hire with such applicable Prior Company.

 

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For purposes of this Section 1.1(55) of the Plan, ‘Effective Time’ shall mean the Effective
Time specified in that certain Plan of Merger, Contribution and Sale Agreement by and among
Dynegy Illinois, LSP GEN Investors, L.P., LS Power Partners, L.P., LS Power Equity Partners
PIE I, L.P., LS Power Equity Partners, L.P., LS Power Associates, L.P., Falcon Merger Sub
Co., and Dynegy Acquisition, Inc., executed September 14, 2006. In addition, the Committee
may, in its discretion, credit individuals with Service for employment with any other
entity, but only if and when such individual becomes an Eligible Employee and only if (i)
such service would not otherwise be credited as Service and (ii) such crediting of Service
(A) has a legitimate business reason, (B) does not by design or operation discriminate
significantly in favor of Highly Compensated Employees, and (C) is applied to all
similarly-situated Eligible Employees. In addition, the Committee, in its discretion, may
credit individuals with Service based on imputed service for periods after such individual
has commenced participation in the Plan while such individual is not performing service for
the Employer or while such individual is an Employee with a reduced work schedule, but only
if (i) such service would not otherwise be credited as Service, (ii) such crediting of
Service (A) has a legitimate business reason, (B) does not by design or operation
discriminate significantly in favor of Highly Compensated Employees, and (C) is applied to
all similarly situated employees, and (iii) the individual has not permanently ceased to
perform service as an Employee, provided that the preceding clause (iii) of this sentence
shall not apply if (x) the individual is not performing service for the Employer because of
a disability, (y) the individual is performing service for another employer under an
arrangement that provides some ongoing business benefit to the Employer, or (z) for purposes
of vesting, the individual is performing service for another employer that is being treated
under the Plan as actual service with the Employer. Notwithstanding the foregoing, each
Member shall be credited with Service, as of December 31, 1997, in accordance with the
provisions of the Plan in effect at such time.”

VI.

Effective January 1, 2007, Section 1.1(68) is hereby amended in its entirety to provide as
follows:

“(68)
Class Settlement Account I: A separate account established for each person who is an
Allocation Participant (as defined below) that is credited by the Trustee with the
respective restorative payment awarded to such individual pursuant to the Allocation Order,
as adjusted to reflect such Account’s changes in value in
accordance with Section 4.3 of
the Plan, The Trustee shall cause such Account to be established for each Allocation
Participant. For purposes of this Section 1.1(68), the term “Allocation Order” shall mean
the Order Approving Plan of Allocation entered on December 10, 2004 by the United States
District Court for the Southern District of Texas, Houston Division, in the matter of In re
Dynegy Inc. ERISA Litigation, Civil Action NO. H-02-3076. For purposes of this Section
1.1(68), the term “Allocation Participant” shall mean each Member and former Member and each
beneficiary (or alternate payee) of a Member or former
Member who is within the Settlement Class as defined in the Allocation Order and for whom
a Class Member Share is distributed as defined in the Plan of Allocation and who shall be deemed
to be a Member or beneficiary (or alternate payee) under the Plan to the extent necessary or
appropriate, including, but not limited to, with respect to the unclaimed benefit provisions under
Article X of the Plan.

 

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The amounts credited to a Class Settlement Account I shall be fully vested.
If the Trustee receives settlement proceeds which are to be allocated to the Class Settlement
Account I of each Allocation Participant, during the period prior to such allocation, such
settlement proceeds shall be invested in the Vanguard Prime Money Market Fund. Notwithstanding the
provisions of Section 5.2(a) of the Plan, the Class Settlement Account I of each Allocation
Participant shall be invested on April 1, 2005 in accordance with paragraph (A) or (B) below, as
applicable, until the Allocation Participant directs to change such investment pursuant to Section
5.2(c):

(A) If
an Allocation Participant is an Eligible Employee with an existing
Account balance in the Plan and is either currently contributing to the Plan or previously
contributed to the Plan, such Allocation Participant’s Class Settlement Account I shall be
invested on April 1, 2005 in accordance with such Allocation Participant’s most recent investment
direction for contributions to the Plan; or

(B) If an Allocation Participant is not described in paragraph (A) above, the
Class Settlement Account I of such Allocation Participant shall
be invested on April 1, 2005 in the appropriate Investment Fund set forth below as determined on the basis of the
age of the Allocation Participant on April 1, 2005, unless such Allocation Participant is
the beneficiary (or alternate payee) of a Member or former Member in which case the
attained age, on April 1, 2005, of such Member or former Member, whether or not
deceased, shall be used instead of the age of the Allocation Participant:

	 	 	 
	 	 	Age of Member or Former Member
	Fund Name	 	on April 1, 2005
	 
	 	 
	Vanguard Target Retirement Income Fund

	 	Ages 65 or older
	 
	 	 
	Vanguard Target Retirement 2005 Fund

	 	Ages 60 to 64
	 
	 	 
	Vanguard Target Retirement 2015 Fund

	 	Ages 50 to 59
	 
	 	 
	Vanguard Target Retirement 2025 Fund

	 	Ages 40 to 49
	 
	 	 
	Vanguard Target Retirement 2035 Fund

	 	Ages 30 to 39
	 
	 	 
	Vanguard Target Retirement 2045 Fund

	 	Up to Age 29

 

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VII.

Effective
January 1, 2007, a new Section 1.1(68B) is added to the Plan to provide as
follows:

“(68B) Class Settlement Account II: A separate account established for each person
who is an Allocation Participant (as defined below) that is credited by the Trustee with the
respective restorative payment awarded to such Allocation Participant pursuant to the
Stipulation and Agreement of Settlement approved by the United States District Court for the
Southern District of Texas, Houston Division, in the matter of  In re Dynegy Inc. Securities
Litigation, Civil Action No. H-02-1571. For purposes of this
Section 1.1(68B), the term
“Allocation Participant” shall mean each Member and former Member and each beneficiary (or
alternate payee) of a Member or former Member who is within the Settlement Class as defined
in the Stipulation and Agreement of Settlement and who shall be deemed to be a Member or
beneficiary (or alternate payee) under the Plan to the extent necessary or appropriate,
including, but not limited to, with respect to the unclaimed benefit provisions under
Article X of the plan. The amounts credited to a Class Settlement Account II shall be fully
vested. If the Trustee receives settlement proceeds in the form of Company Stock to be
allocated to the Class Settlement Account II of each Allocation Participant, such Company
Stock shall be invested in the Company Stock Fund until the Allocation Participant directs
to change such investment pursuant to Section 5.3(c). If the Trustee receives cash
settlement proceeds to be allocated to the Class Settlement Account II of each Allocation
Participant, during the period prior to such allocation, such settlement proceeds shall be
invested in the Vanguard Prime Money Market Fund. Notwithstanding the provisions of Section
5.2(a) of the Plan, cash settlement proceeds in the Class Settlement Account II of each
Allocation Participant shall be invested in accordance with paragraph
(A) or (B) below, as applicable, until the Allocation Participant directs to change such investment pursuant
to Section 5.2(c):

(A) If an Allocation Participant is an Eligible Employee with an existing
Account balance in the Plan and is either currently contributing to the Plan or
previously
contributed to the Plan, such Allocation Participant’s cash settlement proceeds in the
Class Settlement Account II shall be invested in accordance with such Allocation
Participant’s most recent investment direction for contributions to the Plan; or

 

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(B) If an Allocation Participant is not described in paragraph (A) above, the
cash settlement proceeds in the Class Settlement Account II of such Allocation
Participant shall be invested in the appropriate Investment Fund set forth below as
determined on the basis of the age of the Allocation Participant, unless such
Allocation
Participant is the beneficiary (or alternate payee) of a Member or former Member, in
which case the attained age of such Member or former Member, whether or not
deceased, shall be used instead of the age of the Allocation Participant:

	 	 	 
	Fund Name	 	Age of Member or Former Member
	 
	 	 
	Vanguard Target Retirement Income Fund

	 	Ages 65 or older
	 
	 	 
	Vanguard Target Retirement 2005 Fund

	 	Ages 60 to 64
	 
	 	 
	Vanguard Target Retirement 2015 Fund

	 	Ages 50 to 59
	 
	 	 
	Vanguard Target Retirement 2025 Fund

	 	Ages 40 to 49
	 
	 	 
	Vanguard Target Retirement 2035 Fund

	 	Ages 30 to 39
	 
	 	 
	Vanguard Target Retirement 2045 Fund

	 	Up to Age 29

VIII.

Effective January 1, 2008, Section 3.3 of the Plan is hereby amended by adding a new
subsection (d) to provide as follows:

“(d) Notwithstanding the preceding provisions of this Section 3.3, Roth Contributions
shall be eligible for Employer Matching Contributions in the same manner and amount as
Before-Tax Contributions.”

IX.

Effective January 1, 2008, Section 3.8 of the Plan is hereby amended by adding a new
subsection (f) to provide as follows:

“(f) Notwithstanding the preceding provisions of this Section 3.8, on and after January 1,
2008, Roth Contributions shall be distributed under this Section 3.8 prior to Before-Tax
Contributions, but in the Same manner as would otherwise be applicable to Before-Tax
Contributions.”

 

6

 

X.

Effective
January 1, 2008, Section 3.9 of the Plan is hereby amended by adding a new subsection
(e) to provide as follows:

“(e) The Plan shall accept Roth IRA contributions as Rollover Contributions.”

XI.

Effective January 1, 2008, Section 3.10 of the Plan is hereby amended by adding a
sentence at the end thereof to provide as follows:

“Any Catch-Up Contribution made as a Roth Contribution under Section 3.12 shall be treated
as a Roth Contribution for purposes of allocation, distribution and investment.”

XII.

Effective
January 1, 2008, a new Section 3.12 is hereby added to the Plan to provide as
follows:

“3.12 Roth Contributions. Each Member may elect to have some or all of his or her
Before-Tax Contribution, as a whole percentage of Compensation, and some or all of any
Catch-Up Contribution, contributed to the Plan as a Roth Contribution. A Roth Contribution
means any Before-Tax Contribution that is (1) designated irrevocably by the Member at the
time of execution of the applicable payroll deduction authorization form supplied by the
Employer as a Roth Contribution; (2) treated by the Employer as included in the Member’s
income at the time the Member would have received the amount in cash if the Member had not
made the election with respect to such Roth Contribution so that the Roth Contribution shall
be wages subject to applicable withholding requirements; and (3) maintained by the Plan in a
separate, designated Roth Account. Roth Contributions shall be subject to the same dollar
limits and nondiscrimination testing requirements as Before-Tax Contributions, and shall be
subject to the same Plan provisions as Before-Tax Contributions for purposes of investment
and distribution.”

XIII.

Effective January 1, 2007 and effective January 1, 2008 with respect to the addition of the
Roth Account, Section 8.3(a) of the Plan is hereby amended in its entirety to provide as follows:

“(a) A Member shall have a 100% Vested Interest in his
Before-Tax Account, Dow ESOP
Account, Dow Transfer Account, After-Tax Account, Rollover Contribution Account, Roth
Account, Class Settlement Account I, and Class Settlement
Account II at all times.”

 

7

 

XIV.

Effective
January 1, 2008, Section 10.5 of the Plan is hereby amended by adding new paragraphs
at the end thereof to provide as follows:

“Notwithstanding the preceding paragraph of this Section 10.5, a direct rollover from a
Member’s Roth Account shall only be made to another Roth elective deferral account under an
applicable retirement plan describe in section 402A(e)(1) of the Code or to a Roth
individual retirement account described in section 408A of the Code, and only to the extent
the rollover is permitted under section 402A(c) of the Code.”

XV.

Effective January 1, 2007, Section 11.1(b)of the Plan is hereby amended in its entirety to
provide as follows:

“(b) A Member may withdraw from his Rollover Contribution Account, his Class Settlement
Account I and/or his Class Action Settlement Account II any or all amounts held in such
Accounts.”

XVI.

Effective
January 1, 2007,
the second sentence of Section 12.4(b) of the Plan is hereby amended
in its entirety to provide as follows:

“Any loan shall be considered to come, first, from the Member’s After-Tax Account, second,
from the Member’s Rollover Contribution Account, third, from the Member’s
Class Settlement Account I, fourth, from the Member’s Class Settlement Account II, and
fifth, from the Member’s Vested Interest in the remainder of his Accounts on a pro rata
basis.”

IN WITNESS WHEREOF, the undersigned has caused this Twelfth Amendment to the Plan to be
executed on the date indicated below, to be effective as provided above.

	 	 	 	 	 	 	 
	 	 	DYNEGY INC.,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Julius Cox
 

	 	 
	 

	 	Title:
	 	Chairman, Dynegy Benefit Plans Committee	 	 
	 

	 	Date:
	 	December 4, 2007	 	 

 

8

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