Document:

Exhibit 10.3

Exhibit 10.3

GENON ENERGY, INC.

2010 OMNIBUS INCENTIVE PLAN

2011 NONQUALIFIED STOCK OPTION AWARD AGREEMENT

To: EDWARD MULLER

Congratulations on your selection as a recipient of options (“Options”) under the GenOn Energy,
Inc. 2010 Omnibus Incentive Plan (the “Plan”). The employment agreement between you and the
Company dated April 11, 2010 (the “Employment Agreement”), this Award Agreement (“Agreement”) and
the Plan together govern your rights and set forth all of the conditions and limitations affecting
such rights.

Terms used in this Agreement that are defined in the Plan will have the meanings ascribed to them
in the Plan and terms used that are defined in the Employment Agreement will have the meanings
ascribed to them in the Employment Agreement.

	1.	 	Terms. Pursuant to the terms and conditions of the Plan and this Agreement, you have been
granted Options as outlined below:

	 	 	 
	Grant Date:

	 	 February 23, 2011
	 
	 	 
	Number of Options Granted:

	 	 744,641
	 
	 	 
	Exercise Price Per Share:

	 	 $3.81
	 
	 	 
	Expiration Date:

	 	February 22, 2021

	2.	 	Vesting. Except as provided in Section 3 below, the Options will vest and become
non-forfeitable on the following dates (each such date, a “Vesting Date”):

248,213 Options on February 23, 2012;

248,214 Options on February 23, 2013; and

248,214 Options on February 23, 2014

	3.	 	Impact of Change in Employment Status.

	 	a.	 	Termination Without Cause or for Good Reason, Death, Disability or Retirement.
In the event your employment with the Company is terminated (regardless of whether such
termination is in connection with a Change in Control) (i) by the Company without
Cause, (ii) by you for Good Reason or (iii) as a result of your death, Disability or
Retirement, all Options that have not already vested, as of the date of such
termination, shall vest immediately and become nonforfeitable. Vested Options will
remain exercisable until the Expiration Date.

 

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	 	b.	 	Termination for Cause, Voluntary Resignation Without Good Reason. In the event
of your termination of employment with the Company (i) by the Company for Cause or (ii)
by reason of your resignation from the Company for any reason other than for Good
Reason (or other than due to your death, Disability or Retirement), all Options that
have not already vested as of the date of such termination will be forfeited. Options
will remain exercisable for one year from the date of termination or, if earlier, the
Expiration Date.

	4.	 	How to Exercise; Who Can Exercise. The Options hereby granted may be exercised by approved
means permitted under the terms of the Plan, through the Company’s designated agent. During
your lifetime, the Options will be exercisable only by you.

	5.	 	Stockholder Rights. The Options do not confer on you any rights of a stockholder of the
Company unless and until shares of Common Stock are in fact issued to you in connection with
the exercise of the Options.

	6.	 	Transferability. No rights granted under this Agreement can be assigned or transferred,
whether voluntarily or involuntarily, by operation of law or otherwise, except by will or the
laws of descent and distribution. In the event of any transfer or assignment of rights
granted under this Agreement in accordance with this Section 6, the person or persons, if any,
to whom such rights are transferred by will or by the laws of descent and distribution shall
be treated after your death the same as you under this Agreement. Any attempted transfer or
assignment of rights under this Agreement prohibited under this Section 6 shall be null and
void.

	7.	 	Change in Control. Upon a Change in Control, the Options will become fully vested and
nonforfeitable as of the date of the Change in Control.

	8.	 	Tax Withholding; Code Section 409A. The Company has the right to deduct or withhold, or
require you to remit to the Company, an amount sufficient for payment of required withholding
taxes with respect to any taxable event arising as a result of this Agreement or take such
other action as may be necessary in the opinion of the Company to satisfy all obligations for
withholding of such taxes. The Options granted under this Agreement are intended to comply
with or be exempt from Code Section 409A, and ambiguous provisions of this Agreement, if any,
shall be construed and interpreted in a manner consistent with such intent.

	9.	 	Notice. Any written notice required or permitted by this Agreement shall be mailed,
certified mail (return receipt requested) or hand-delivered. Notice to the Company shall be
addressed to the Company’s General Counsel at 1000 Main St., Houston, TX 77002. Notice to you
shall be addressed to you at your most recent home address on record with the Company.
Notices are effective upon receipt.

	10.	 	Requirements of Law. The granting of Options and the issuance of shares of Common Stock
under the Plan will be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be required.

 

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	11.	 	Miscellaneous.

	 	a.	 	Limitation of Rights. The granting of this Award shall not give you any rights
to similar grants in future years or any right to be retained in the employ or service
of the Company or its Subsidiaries or interfere in any way with the right of the
Company or any such Subsidiary to terminate your services at any time, or your right to
terminate your services at any time.

	 	b.	 	Severability. If any term, provision, covenant or restriction contained in
this Agreement is held by a court or a federal regulatory agency of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions contained in this Agreement shall remain in full
force and effect, and shall in no way be affected, impaired or invalidated.

	 	c.	 	Governing Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware.

	12.	 	Acceptance of Award. You are deemed to accept this Award and to agree that it is subject to
the terms and conditions set forth in this Agreement and the Plan unless you provide the
Company written notification not later than 30 days after the Grant Date of your rejection of
this Award (in which case your Award will be forfeited and you shall have no further right or
interest therein as of the Grant Date).

	 	 	 	 	 
	 	GENON ENERGY, INC.

 	 
	 	
 	 
	 	Karen D. Taylor 	 
	 	Senior Vice President, Human Resources and
Administration 	 
	 

 

3Exhibit 10.4

Exhibit 10.4

GENON ENERGY, INC.

2010 OMNIBUS INCENTIVE PLAN

2011 RESTRICTED STOCK UNIT AWARD AGREEMENT

To: [Omnibus Incentive Plan Participant]:

Congratulations on your selection as a recipient of restricted stock units (“Restricted Stock
Units”) under the GenOn Energy, Inc. 2010 Omnibus Incentive Plan (the “Plan”). This Award
Agreement (“Agreement”) and the Plan together govern your rights and set forth all of the
conditions and limitations affecting such rights.

Terms used in this Agreement that are defined in the Plan will have the meanings ascribed to them
in the Plan.

	 	(i)	 	Termination. A “termination” of employment with the Company includes a
termination of employment with a Subsidiary (other than a direct transfer of employment
between Subsidiaries or the Company and a Subsidiary).

	 	(ii)	 	Retirement. “Retirement” means termination of employment other than for Cause
on or after the date when you are at least 55 years old and have at least five years of
service (based on your employment with the Company and its Subsidiaries or predecessor
companies).

	 	(iii)	 	Cause. “Cause” means: (i) your willful and continued failure to
substantially perform your duties with the Company (other than any such failure
resulting from Disability), as determined by the Company; or (ii) willfully engaging in
conduct (other than conduct covered under (i) above) which is demonstrably and
materially injurious to the Company, monetarily or otherwise, as determined by the
Company, including, but not limited to, conviction of a felony.

If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the
Plan’s terms will supersede and replace the conflicting terms of this Agreement.

	1.	 	Terms. Pursuant to the terms and conditions of the Plan and this Agreement, you have been
granted Restricted Stock Units as outlined below:

	 	 	 

	Grant Date:

	 	February 23, 2011
	 
	 	 
	Number of Restricted Stock Units:

	 	                    

	2.	 	Vesting. Except as provided in Section 3 below, the Restricted Stock Units will vest and
become non-forfeitable on the following dates (each such date, a “Vesting Date”):

                     Restricted Stock Units on February 23, 2012;

                     Restricted Stock Units on February 23, 2013; and

                     Restricted Stock Units on February 23, 2014

 

 

 

	3.	 	Impact of Change in Employment Status. The Vesting Dates of your Restricted Stock Units will
change if the status of your employment with the Company changes, according to the following
table:

	 	 	 
	 	 	Treatment of Unvested Restricted Stock
	Employment Event	 	Units
	Death

	 	Fully vest
	Termination due to Disability

	 	Continue vesting as if in active employment
	Termination due to Retirement

	 	Continue vesting as if in active employment
	Involuntary termination other
than for Cause

	 	Vest in any Restricted Stock Units scheduled to vest on the Vesting Date next
following termination; forfeit remainder,
if any
	Involuntary termination for Cause

	 	Forfeit
	Voluntary resignation

	 	Forfeit

	4.	 	Book Entry Account. Within a reasonable time after the date of this Agreement, the Company
shall instruct its transfer agent or stock plan administrator to establish a book entry
account representing the Restricted Stock Units in your name effective as of the Grant Date,
provided that the Company shall retain control of such account until the Restricted Stock
Units have become vested in accordance with this Agreement and shares of Common Stock have
been issued in settlement of the Restricted Stock Units.

	 
	5.	 	Distribution of Shares. You shall receive one share of Common Stock in satisfaction of each
vested Restricted Stock Unit credited to your account, which shall be registered in your name
and transferable by you, on the date on which such Restricted Stock Units vest.

	 
	6.	 	Stockholder Rights; Dividend Equivalents. The Restricted Stock Units do not confer on you
any rights of a stockholder of the Company unless and until shares of Common Stock are in fact
issued to you in connection with the vested Restricted Stock Units. However, if and when cash
dividends or other cash distributions are paid or distributed with respect to the Common Stock
while the Restricted Stock Units are outstanding, the dollar amount of such dividends or
distributions with respect to the number of shares of Common Stock then underlying the
Restricted Stock Units shall be reflected in your account. Any such cash dividends or other
cash distributions shall vest and be paid in cash if and at such times the underlying
Restricted Stock Units are vested and paid.

	 
	7.	 	Transferability. No rights granted under this Agreement can be assigned or transferred,
whether voluntarily or involuntarily, by operation of law or otherwise, except by will or the
laws of descent and distribution. In the event of any transfer or assignment of rights
granted under this Agreement in accordance with this Section 7, the person or persons, if any,
to whom such rights are transferred by will or by the laws of descent and distribution shall
be treated after your death the same as you under this Agreement. Any attempted transfer or
assignment of rights under this Agreement prohibited under this Section 7 shall be null and
void.

	 
	8.	 	Change in Control. Upon a Change in Control, the Restricted Stock Units will become fully
vested and nonforfeitable as of the date of the Change in Control.

	 
	9.	 	Withholding; Code Section 409A. The Company has the right to deduct applicable taxes from
any payment under this Agreement and withhold, at the time of vesting of shares of Common
Stock, an appropriate number of shares of Common Stock for payment of required withholding
taxes or to take such other action as may be necessary in the opinion of the Company to
satisfy all obligations for withholding of such taxes. The Fair Market Value of the shares of
Common Stock withheld for payment of required withholding taxes must equal no more than the
required minimum withholding taxes. The Restricted Stock Units granted under this Agreement
are intended to comply with or be exempt from Code Section 409A, and ambiguous provisions of
this Agreement, if any, shall be construed and interpreted in a manner consistent with such
intent.

 

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	10.	 	Notice. Any written notice required or permitted by this Agreement shall be mailed,
certified mail (return receipt requested) or hand-delivered. Notice to the Company shall be
addressed to the Company’s General Counsel at 1000 Main St., Houston, TX 77002. Notice to you
shall be addressed to you at your most recent home address on record with the Company.
Notices are effective upon receipt.

	 
	11.	 	Requirements of Law. The granting of Restricted Stock Units and the issuance of shares of
Common Stock under the Plan will be subject to all applicable laws, rules, and regulations,
and to such approvals by any governmental agencies or national securities exchanges as may be
required.

	 
	12.	 	Miscellaneous.

	 	a.	 	Limitation of Rights. The granting of this Award shall not give you any rights
to similar grants in future years or any right to be retained in the employ or service
of the Company or its Subsidiaries or interfere in any way with the right of the
Company or any such Subsidiary to terminate your services at any time, or your right to
terminate your services at any time.

	 	b.	 	Severability. If any term, provision, covenant or restriction contained in
this Agreement is held by a court or a federal regulatory agency of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions contained in this Agreement shall remain in full
force and effect, and shall in no way be affected, impaired or invalidated.

	 	c.	 	Governing Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware.

	13.	 	Acceptance of Award. You are deemed to accept this Award and to agree that it is subject to
the terms and conditions set forth in this Agreement and the Plan unless you provide the
Company written notification not later than 30 days after the Grant Date of your rejection of
this Award (in which case your Award will be forfeited and you shall have no further right or
interest therein as of the Grant Date).

	 	 	 	 	 
	 	GENON ENERGY, INC.

 	 
	 	/s/ Karen D. Taylor
 	 
	 	Karen D. Taylor 	 
	 	Senior Vice President, Human Resources and
Administration 	 

 

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