Document:

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                                                                   Exhibit 10(j)

                             EMPLOYMENT AGREEMENT
                             --------------------

     This Employment Agreement is executed on the 13th day of March, 2000, by
Texas Utilities Company (the "Employer") and Brian N. Dickie, an individual (the
"Employee") in order to evidence the terms and conditions of Employee's
employment with Employer which became effective as of the 12/th/ day of April,
1999. The term Employer shall also include any successor employer of Employee if
such successor employer is within the Texas Utilities Company System.

     1.  Employment.  Employer hereby agrees to employ Employee and Employee
         ----------
hereby agrees to serve Employer, subject to the terms and conditions set forth
herein.

     2.  Term.  The parties acknowledge that Employee's employment with Employer
         ----
commenced on April 12, 1999, and, subject to the provisions of this Agreement
relating to severance, or similar, pay following termination , such employment
and this Agreement will terminate at the will of either of the parties hereto.
The effective date of this Agreement and Employee's employment with Employer
shall be April 12, 1999.

     3.  Initial Title and Duties.  Employee currently serves Employer as
         ------------------------
President, Emerging Businesses Group. Employee reports, and shall continue to
report to the Chairman and Chief Executive of Employer, and shall perform such
duties and tasks as he may be called upon by Employer to perform from time to
time.  Employee will endeavor to promote the business affairs and interests of
Employer and will devote all of his working time and attention to Employer.

     4.  Compensation.
         ------------

         (a)   Base Salary.  As compensation for his services hereunder,
               -----------
Employee shall initially receive a base salary of $62,500 per month, payable in
equal installments at such periods as shall from time to time be established by
Employer as regular payroll periods. Employee's base salary shall be subject to
review and modification from time to time at the discretion of Employer;
provided that, other than in the event of the termination of this Agreement,
Employee's base salary may not be decreased during the period commencing with
the effective date of this Agreement and ending May 31, 2002.

         (b)   Annual Bonus.  Employee shall be entitled to receive an incentive
               ------------
bonus award under the Company's Annual Incentive Plan ("AIP") following, and in
connection with, the executive officer annual review by the Organization and
Compensation Committee of the board of directors of Employer ("O&C Committee")
in each of May 2000, 2001 and 2002, in an amount not less than one-half ( 1/2)
of Employee's annualized base salary in effect at the time of such award
("Minimum Bonus Amount"). Under the current terms of the AIP, one-half of each
such award will be paid to Employee in cash following the date of the award and
one-half will be deferred under Employer's Deferred and Incentive Compensation
Plan ("DICP"). If, for any of the three years

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referenced above, Employee receives an aggregate AIP award in an amount less
than the Minimum Bonus Amount, the difference between the actual aggregate AIP
award and the Minimum Bonus Amount will be paid to Employee concurrently with
the payment of the cash component of the AIP award.

          (c)  Restricted Stock Awards.  Following, and in connection with, the
               -----------------------
executive officer annual review by the O&C Committee in each of May 2000, 2001
and 2002, Employee shall be entitled to receive an award of at least 10,000
shares of restricted stock under Employer's Long-Term Incentive Compensation
Plan ("LTICP").  Each such award shall be subject to terms, conditions and
restrictions comparable to those contained in contemporaneous awards granted to
officers of similar status as Employee.  In the event that no awards of
restricted stock are made under the LTICP at any of the above-referenced times
to any other officer or key employee, Employer may, in lieu of awarding Employee
restricted stock, grant Employee an award of a type comparable to that awarded
to other officers of similar rank having a value reasonably comparable to an
award of at least 10,000 shares of restricted stock (taking into consideration
performance targets and vesting periods applicable to restricted stock awards
heretofore granted under the LTICP, and assuming that performance goals and
targets would have been attained so that 100% of the restricted stock would have
become payable).  In the event that no awards of any type are awarded under the
LTICP at any of the above-referenced times, Employee will be entitled to receive
cash in an amount equal to the present value of an award of at least 10,000
shares of restricted stock (taking into consideration performance targets and
vesting periods applicable to restricted stock awards heretofore granted under
the LTICP and assuming that performance goals and targets would have been
attained so that 100% of the restricted stock would have become payable).

          (d)  Additional Retirement Compensation.  In addition to the
               ----------------------------------
compensation and benefits described above, Employee shall be entitled to
additional retirement compensation on the following basis:

               (i)  Employee shall, commencing upon his retirement, be entitled
                    to receive additional retirement compensation (the
                    "Additional Retirement Amount") equal to the aggregate
                    benefits which would have been payable to Employee under the
                    Retirement Plan for Employees of the Texas Utilities Company
                    System (the "Retirement Plan") and the Second Supplemental
                    Retirement Plan for Employees of the Texas Utilities Company
                    System (the "Supplemental Retirement Plan") as if, during
                    each of the first ten (10) years of employment with
                    Employer, Employee was credited with two (2) years of
                    Accredited Service (as defined in the Retirement Plan).
                    Thus, after having completed ten (10) full years of
                    employment, Employee will have accrued twenty (20) years of
                    Accredited Service for purposes of calculating the
                    Additional Retirement Amount. The Additional Retirement
                    Amount shall be reduced by: (a) all amounts payable to
                    Employee under the Retirement Plan and the Supplemental

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                    Retirement Plan (or any successor plan or plans) pursuant to
                    the provisions of those plans as a result of his employment
                    with Employer; and (b) all amounts payable to Employee as a
                    result of the vesting of retirement benefits under any other
                    employer sponsored defined benefit retirement plan or for
                    any amounts paid or payable to him in lieu thereof.

              (ii)  The Additional Retirement Amount shall accrue and vest in
                    the same manner and at the same time as benefits under the
                    Retirement Plan accrue and vest.

              (iii) The Additional Retirement Amount shall be payable in
                    periodic installments in the form elected by Employee with
                    respect to the benefits which are or may become payable
                    under the Retirement Plan. The amount of each such periodic
                    installment shall be determined by Employer using actuarial
                    assumptions (including any actuarial reduction for
                    retirement earlier than age 65) substantially similar to
                    those used in connection with the determination of benefits
                    payable under the Retirement Plan.

              (iv)  The Additional Retirement Amount shall be provided on an
                    unfunded basis and is not intended to meet the qualification
                    requirements of Section 401 of the Internal Revenue Code of
                    1986, as amended (the "Code").

         (e)  Employee Benefits.  Employee shall be entitled to participate in
              -----------------
all of Employer's employee benefit plans, programs, arrangements and fringe
benefit policies to the extent he is qualified to do so by virtue of his
employment with Employer, subject to the terms, conditions and limitations of
such plans, arrangements and policies, as they may be amended, altered or
terminated from time to time. For purposes of Employee's participation in
certain of Employer's executive compensation plans, Employee shall be deemed to
be a "corporate officer" of Employer.

     5.  Special One-Time Bonus.  In order to provide Employee with financial
         ----------------------
assistance in relocating from his home in Connecticut to Dallas, Texas, and to
accommodate Employee in his forfeiture of certain stock related incentive
compensation from his previous employer, Employer  paid Employee a one-time
special bonus in the aggregate amount of $492,656.25.  Such payment was made
following the commencement of Employee's employment hereunder and Employee
hereby acknowledges receipt of the full amount of such bonus.  In addition to
such special relocation bonus, Employee shall be entitled to all relocation
benefits available under Employer's standard relocation reimbursement plan.

     6.  Severance Benefits.  If: (i) during the period beginning with the
         ------------------
effective date of this Agreement and ending May 31, 2002, Employer and Employee
mutually agree that Employee should

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terminate his employment hereunder, or (ii) at any time while this Agreement is
in effect, Employee is terminated by Employer without Cause (as defined in
Section 9 below), Employee shall be entitled to receive the compensation and
benefits described in (a) and (b) hereinbelow:

        (a)    A one-time cash severance payment, which shall be payable as soon
as reasonably practical following such termination, in an aggregate amount equal
to the sum of the following:

               (v)    Employee's annualized base salary in effect on the date of
                      such termination;

               (vi)   Employee's target bonus under the AIP for the year in
                      which the termination occurs;

               (vii)  An amount equal to the difference between (a) the
                      aggregate required monthly premium for continuation
                      coverage under the Consolidated Omnibus Budget
                      Reconciliation Act of 1985 ("COBRA") under Employer's
                      group medical, dental and prescription drug programs, and
                      (b) the aggregate monthly employee contribution rate in
                      effect for Employee under such programs immediately prior
                      to such termination, multiplied by twelve; and

               (viii) An amount equal to the sum of: (a) the value (as of the
                      date of termination) of all unvested restricted stock
                      awards previously granted to Employee under the LTICP (as
                      if performance criteria had been met to permit payment of
                      100% of the award), and (b) the forfeited portion of
                      Employee's accounts under the DICP and Employer's Salary
                      Deferral Program ("SDP") (valued in accordance with the
                      relevant provisions of the DICP and SDP, respectively).

        (b)    In addition to such special severance payment, Employee shall be
entitled to the following benefits:

               (i)    Employer shall pay on behalf of Employee, or shall
                      reimburse Employee for, the physician fees for one
                      physical examination of Employee during the twelve months
                      following Employee's termination under the general
                      parameters of Employer's executive physical program;

               (ii)   Employee shall, at Employer's cost be entitled to
                      financial planning services equivalent to services
                      available under Employer's executive financial planning
                      program for a period of twelve months following Employee's
                      termination;

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               (iii)  Employee shall receive one (1) additional year of
                      Accredited Service for purposes of determining the
                      Additional Retirement Income;

               (iv)   Employer shall, at Employer's election, provide Employee
                      with (a) a cash payment equal to the required premiums for
                      a twelve month period for an individual conversion life
                      insurance policy covering Employee available under the
                      provisions of Employer's group life insurance plan, or (b)
                      a cash payment in the amount of the death benefit in
                      effect as of the date of termination under Employer's
                      group life insurance plan in the event of Employee's death
                      at any time during the one year period following the date
                      of such termination; and

               (iv)   For purposes of Employer's Split Dollar Life Insurance
                      Plan, such termination shall not be deemed to have
                      occurred until the one year anniversary thereof.

     Notwithstanding any other provision of this Agreement seemingly to the
contrary, each of the benefits provided for in paragraph (b) above shall be
provided to Employee if and only to the extent that a similar type of benefit is
not available to Employee through his subsequent employment with another
employer. Differences in specific coverages, coverage levels or required
contributions shall not cause any such alternative benefit to be dissimilar as
long as the particular benefit is reasonably similar (both in terms of coverage
and cost to Employee) to the benefit for which provision is made in paragraph
(b) above. Additionally, Employee shall not be entitled to any of the payments
or benefits provided for under this Section 6 if Employee's termination is for
Cause (as defined in Section 9 below), or if the circumstances of Employee's
termination entitle him to the payments and benefits provided for in Section 7
below .

     7.   Change In Control.
          -----------------

          (a)  If: (i) Employee voluntarily terminates his employment with
Employer (or its successor) within six(6) months following a Change in Control
(as defined below), or (ii) Employee's employment is terminated by Employer (or
its successor) without Cause, or Employee terminates his employment for Good
Reason (as defined below), within twenty-four (24) months following a Change in
Control, Employee will be entitled to receive the following payments and
benefits:

               (1)  A one-time cash payment equal to three (3) times the
                    aggregate of Employee's annualized base salary in effect
                    immediately prior to the Change in Control plus Employee's
                    target bonus under the AIP for the year in which the Change
                    in Control occurs;

               (2)  A one-time cash payment equal to the aggregate of (a)
                    Employer matching contributions which would have been made
                    under the DICP and SDP had Employee continued to defer
                    salary under such plans at

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                    the rate in effect as of the effective date of the Change in
                    Control for an additional three year period following the
                    effective date of the Change in Control, plus (b) in the
                    event that the termination of Employee's employment
                    following a Change in Control occurs prior to May 31, 2002,
                    an amount equal to the value of restricted stock (or
                    alternative) awards which had not theretofore been made to
                    Employee under paragraph 4(c) hereof (valued on the basis of
                    the assumption that the performance criteria which would
                    have been applicable to such award(s) had been met so that
                    100% of the award would have been payable);

               (3)  A one-time cash payment equal to the difference between (a)
                    the monthly COBRA premium for coverage under Employer's
                    group medical, dental and prescription drug programs, and
                    (b) the monthly employee contribution under such programs in
                    effect for Employee immediately prior to the termination,
                    multiplied by twelve;

               (4)  A one-time cash payment equal to the sum of (a) the value
                    (as of the date termination) of all unvested restricted
                    stock awards previously granted to Employee under the LTICP
                    (as if performance criteria had been met to permit payment
                    of 100% of the award), and (b) the forfeited portion of
                    Employee's accounts under the DICP and SDP (valued in
                    accordance with the relevant provisions of the DICP and SDP,
                    respectively); and

               (5)  Employer shall, at Employer's election, provide Employee
                    with (a) a cash payment equal to the required premiums for a
                    twelve month period for an individual conversion life
                    insurance policy covering Employee pursuant to the
                    provisions of Employer's group life insurance plan, or (b) a
                    cash payment in the amount of the death benefit in effect
                    under Employer's group life insurance plan in the event of
                    Employee's death during the one year period following the
                    date of such termination; and

               (6)  For purposes of Employer's Split Dollar Life Insurance Plan,
                    such termination shall not be deemed to have occurred until
                    the one year anniversary thereof.

          (b)  In the event that the foregoing payments, or any portion thereof,
constitute an "excess parachute payment" under Section 4999 of the Code, or any
successor provision, Employee shall, in addition to such payments be entitled to
receive a tax gross-up payment in an amount to offset the excise tax which
Employee is required to pay as a result thereof.

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          (c)  For purposes of this Agreement, "Change in Control" shall mean
any of the following occurrences: (i) a change in control of Employer of a
nature that would be required to be reported in response to Item 1(a) of the
Securities and Exchange Commission Form 8-K, as in effect on the date hereof,
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as
amended ("Exchange Act"), or would have been required to be so reported but for
the fact that such event had been "previously reported" as that term is defined
in Rule 12b-2 of Regulation 12B under the Exchange Act; (ii) any Person is or
becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of Employer representing 20% or more of
the combined voting power of Employer's then outstanding securities having the
right to vote at elections of directors ("Voting Securities") and within two (2)
years thereafter, individuals who constitute the board of directors of Employer
on the effective date of this Agreement, (the "Incumbent Board") cease for any
reason to constitute at least a majority thereof, provided that any person
becoming a director subsequent to the effective date of this Agreement whose
election, or nomination for election by Employer's shareholders, was approved by
at least three-quarters of the directors comprising the Incumbent Board (either
by a specific vote or by approval of the proxy statement of Employer in which
such person is named as a nominee for director, without objection to such
nomination) shall be, for purposes of this clause (ii), considered as though
such person were a member of the Incumbent Board; (iii) a recapitalization of
Employer occurs which results in either a decrease by 33% or more in the
aggregate percentage ownership of Voting Securities held by Independent
Shareholders (on a primary basis or on a fully diluted basis after giving effect
to the exercise of stock options and warrants) or an increase in the aggregate
percentage ownership of Voting Securities held by non-Independent Shareholders
(on a primary basis or on a fully diluted basis after giving effect to the
exercise of stock options and warrants) to greater than 50%; (iv) all or
substantially all of the assets of the Company are liquidated or transferred to
an unrelated party; or (v) the Company is a party to a merger, consolidation,
reorganization or similar transaction pursuant to which the Company or an entity
controlled by the Company is not the surviving entity. For purposes of this
definition, the term "Person" shall mean and include any individual,
corporation, partnership, group, association or other "person", as such term is
used in Section 14(d) of the Exchange Act, other than Employer, a subsidiary of
Employer or any employee benefit plan(s) sponsored or maintained by Employer or
any subsidiary thereof, and the term "Independent Shareholder" shall mean any
shareholder of Employer except any employee(s) or director(s) of Employer or any
employee benefit plan(s) sponsored or maintained by Employer or any subsidiary
thereof.

          (d)  For purposes of this Agreement, "Good Reason" shall mean any one
or more of the following occurrences: (i) Employee's base salary as in effect
immediately prior to the Change in Control, or as it may be increased subsequent
to the Change in Control, is reduced; (ii) Employee's status or responsibilities
with Employer immediately prior to the Change in Control are materially reduced
(it being understood that the mere fact that, by virtue of a Change in Control,
the Employee's position becomes a position with a subsidiary or division will
not, in and of itself, constitute Good Reason); (iii) Employer (or its
successor) fails to continue in effect any pension, health care or executive
compensation plan or arrangement in which Employee was participating immediately
prior to the Change in Control, or Employer (or its successor) takes some action
which materially reduces Employee's benefits under any such plan or program,
without (in either such case) providing

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Employee with substantially similar benefits; or (iv) Employer fails to obtain
the express assumption of this Agreement by any successor to Employer.

     8.   Provision for Company Automobile.  Employee shall be entitled to
          --------------------------------
participate in Employer's executive automobile policy on the same basis as other
executives of Employer subject to the terms and conditions of such automobile
policy as it may be amended, altered or terminated from time to time.

     9.   Definition of Cause.  For purposes of this Agreement, the term "Cause"
          -------------------
shall mean any one or more of the following: (a) the material breach by the
Employee of this Agreement; (b) Employee's breach of his fiduciary duty to
Employer and/or its shareholders in his capacity as an officer of Employer; (c)
any action or failure to act on the part of Employee which results in material
injury to the assets, business prospects or reputation of Employer or any
affiliate of Employer; (d) the appropriation of a material business opportunity
of Employer or any affiliate of Employer, including attempting to secure or
securing any personal profit in connection with any transaction entered into on
behalf of the Employer; or (e) the Employee's failure to substantially perform
his duties and responsibilities hereunder, including without limitation
Employee's breach of Employer's Code of Conduct or an express employment policy
of Employer.

     10.  Confidentiality and Nondisclosure.
          ---------------------------------

          (a)  Employee understands and agrees that he will be given
Confidential Information (as defined below) and Training (as defined below)
during his employment with Employer relating to the business of Employer and/or
its Affiliates (as defined below). Employee hereby expressly agrees to maintain
in strictest confidence and not to use in any way (including without limitation
in any future business relationship of Employee), publish, disclose or authorize
anyone else to use, publish or disclose in any way, any Confidential Information
relating in any manner to the business or affairs of Employer and/or its
Affiliates. Employee agrees further not to remove or retain any figures,
calculations, letters, documents, lists, papers, or copies thereof, which embody
Confidential Information of Employer and/or its Affiliates, and to return, prior
to Employee's termination of employment, any such information in Employee's
possession. If Employee discovers, or comes into possession of, any such
information after his termination he shall promptly return it to Employer.
Employee acknowledges that the provisions of this paragraph are consistent with
Employer's Code of Conduct with which Employee, as an employee of Employer, is
bound.

          (b)  For purposes of this Agreement, "Confidential Information"
includes, but is not limited to, information in the possession of, prepared by,
obtained by, compiled by, or that is used by Employer or any of its Affiliates
or customers and (1) is proprietary to, about, or created by Employer or its
Affiliates or customers; (2) gives Employer or its Affiliates or customers some
competitive business advantage, the opportunity of obtaining such advantage, or
disclosure of which might be detrimental to the interest of Employer or its
Affiliates or customers; (3) is not typically disclosed by Employer or its
Affiliates or customers, or known by persons who are not employed by Employer or
its affiliates or Customers. Without in any way limiting the foregoing and by
way of

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example, Confidential Information shall include: information not generally
available to the general public pertaining to Employer's system-wide business
operations such as financial and operational information and data, operational
plans and strategies for emerging and traditional business units, business and
marketing strategies and plans for various products and services, global
operational planning, and acquisition and divestiture planning.

          (c)  For purposes of this Agreement, "Training" includes, but is not
limited to, specialized and valuable training regarding Confidential
Information.

          (d)  For purposes of this Agreement, "Affiliate" shall mean any
person, or entity (or sub unit of an entity) that, directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with the Company.

     11.  Non-Compete and Non-Solicitation.  Employee acknowledges and agrees
          --------------------------------
that: (1) in order to perform his obligations and job duties for Employer,
Employee will gain Training and access to Confidential Information regarding
Employer and/or its Affiliates or customers; (2) use of such Confidential
Information in competition with Employer and/or its Affiliates or customers
would be detrimental to the business interests of Employer and/or its Affiliates
or customers; and (3) Employee would not have been allowed to gain access to
Confidential Information, or to provide the obligations and job duties
contemplated under this Agreement without his promises and agreements contained
in the following paragraph.

     Employee agrees that, during his employment with Employer, and for a period
of one (1) year thereafter, Employee shall not, directly or indirectly, either
as an employee, employer, independent contractor, consultant, agent, principal,
partner, stockholder, officer, director, or in any other individual or
representative capacity, either for his own benefit or the benefit of any other
person or entity: (i) engage or participate in a business which competes, and in
a material manner, with Employer or any of its Affiliates; (ii) contact, solicit
or attempt to solicit the business or patronage of any of Employer's (or
Affiliate's) customers, or prospective customers, or any person, firm,
corporation, company, partnership, association or entity which was contacted or
whose business was solicited, serviced or maintained by Employer (or its
Affiliates) during the term of Employee's employment with Employer; or (iii)
solicit, recruit, induce, encourage or in any way cause any employee of Employer
to terminate his/her employment with Employer. Notwithstanding the foregoing,
the restriction provided in (i) above shall apply following the termination of
this Agreement only if Employee is entitled to receive the payments and benefits
provided for in Section 6 or 7 above.

     12.  Injunctive Relief.  Because of the unique nature of the business to be
          -----------------
conducted by Employer or its affiliates and the Confidential Information
relating thereto, Employee acknowledges, understands and agrees that Employer
and/or its affiliates will suffer immediate and irreparable harm if Employee
fails to comply with any of this obligations under Sections 10 and 11 of this
Agreement, and that monetary damages alone will be inadequate to compensate
Employer or its affiliates for such breach. Accordingly, Employee agrees that
Employer and/or its affiliates shall, in addition to any

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other remedies available to it at law or in equity, be entitled to temporary,
preliminary, and permanent injunctive relief and specific performance to enforce
the terms of Sections 10 and 11 without the necessity of proving inadequacy of
legal remedies or irreparable harm or posting bond.

     13.  Deductions and Nonalienation of Benefits.  Employee shall be required
          ----------------------------------------
to pay promptly on demand, by payroll deduction or otherwise, the amount
required to be withheld by Employer for income and employment taxes in respect
of amounts paid under this agreement. No right, benefit or payment hereunder
shall be subject to anticipation, alienation, sale, assignments, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be null and void. No right, benefit or
payment hereunder shall in any manner be subject to, voluntarily or
involuntarily, the debts, contracts, liabilities or torts of Employee or be
otherwise subject to any execution, garnishment, attachment, insolvency,
bankruptcy or legal proceedings of any character or legal sequestration, levy or
sale. If Employee or any other beneficiary hereunder shall become bankrupt or
attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any
right, benefit or payment hereunder, such right, benefit or payment may be
terminated at any time by Employer without liability or further obligation.

     14.  Employer's Right to Modify Employee Benefit Plans.  Nothing in this
          -------------------------------------------------
Agreement shall be construed as a limitation on the absolute right of Employer,
at any time and from time to time at its sole discretion, to amend or modify, in
whole or in part, or to terminate, any employee benefit plan, program or policy
sponsored or maintained by Employer.

     15.  Entire Agreement.  This Agreement contains the complete understanding
          ----------------
and agreement between the parties and supersedes any and all other agreements,
understandings, or communications of any kind, either oral or in writing,
between the parties hereto with respect to the subject matter hereof. Each party
to this agreement acknowledges that no representations, inducements, promises,
or agreements, orally or otherwise, have been made by any party, or anyone
acting on behalf of any party, which are not embodied herein, and that no other
agreement, statement, or promise with respect to the subject matter of this
Agreement shall be valid or binding. Nothing in this agreement shall be
construed as conferring any right upon Employee to continued employment by
Employer. Any modification of this Agreement will be effective only if it is in
writing signed by both of the parties hereto.

     16.  Severability.  If any provision in this Agreement is held by a court
          ------------
of competent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or
invalidated in any way.

     17.  Survival.  The parties hereby acknowledge and agree that certain
          --------
provisions of this Agreement, are, by their nature, intended to survive this
Agreement and the parties agree that all of such provisions shall survive
Employee's termination of employment, regardless of the reason for such
termination.  Employee acknowledges and agrees that the covenants and
restrictions in Sections 10 and 11 of this Agreement are reasonable and
necessary due to the highly competitive, confidential and proprietary nature of
the services to be performed by Employee hereunder.

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     18.  Successors.  This Agreement shall be binding upon and inure to the
          ----------
benefit of Employee, her heirs, beneficiaries and personal representatives, and
Employer and any successor of Employer, but neither this Agreement, nor any of
the rights or obligations of either party hereunder may be assigned, in whole or
in part, except Employer may assign this Agreement to any affiliate of Employer.

     19.  Notices.  Any notices to be given hereunder by either party to the
          -------
other may be effected by personal delivery in writing, by facsimile or by mail,
registered or certified, postage prepaid to the current address of the other
party with return receipt requested.  Notices delivered personally or by
facsimile shall be deemed communicated as of actual receipt; mailed notices
shall be deemed communicated as of three (3) days after mailing.

     20.  Governing Law.  This Agreement shall be governed by and construed in
          -------------
accordance with the laws of the State of Texas.

     EXECUTED on the 13th day of March, 2000 and effective as of the effective
date of Employee's commencement of employment as set forth above.

                                                EMPLOYER:

                                                TEXAS UTILITIES COMPANY

                                                By: /s/ Erle Nye
                                                   -----------------------

                                                EMPLOYEE:

                                                /s/ Brian N. Dickie
                                                --------------------------
                                                Brian N. Dickie

                                      -11-<PAGE>

                                                                   EXHIBIT 10(K)

                             EMPLOYMENT AGREEMENT
                             --------------------

     This Employment Agreement is entered into as of the 1st day of June, 2000,
by and between TXU Corp. f/k/a Texas Utilities Company, a Texas corporation (the
"Employer") and Erle Nye, an individual (the "Employee").

                                   RECITALS

     WHEREAS, Employee has served Employer in various capacities for over 40
years and currently serves Employer as its Chairman of the Board and Chief
Executive; and

     WHEREAS, Employer currently desires Employee to continue in such capacity,
and the parties desire to evidence their understanding and agreement regarding
the terms and conditions of Employee's continued employment with Employer, all
as set forth herein.

     NOW, THEREFORE, the parties agree as follows.

     1.   Employment. Employer hereby agrees to employ Employee and Employee
          ----------
hereby agrees to serve Employer, subject to the terms and conditions set forth
herein.

     2.   Term. This Employment Agreement shall commence as of the date first
          ----
set forth above and, unless terminated earlier pursuant to the provisions
hereof, shall expire on June 1, 2004 ("Term").

     3.   Title and Duties. Employee shall serve Employer as its Chairman of the
          ----------------
Board and Chief Executive, and shall perform such duties and tasks as he may be
called upon by Employer to perform from time to time. Employee will endeavor to
promote the business affairs and interests of Employer and will devote all of
his working time and attention to Employer.

     4.   Compensation.
          ------------

          (a)  Base Salary. As compensation for his services hereunder, Employee
               -----------
shall initially receive a base salary of $79,166.67 per month, payable in equal
installments at such periods as shall from time to time be established by
Employer as regular payroll periods.  Employee's base salary shall be subject to
review and modification from time to time at the discretion of Employer;
provided that Employee's base salary may be increased, but not decreased, during
the Term.

          (b)  Annual Bonus. Employee shall be entitled to receive incentive
               ------------
bonus awards subject to, and in accordance with the provisions of, the Company's
Annual Incentive Plan ("AIP").

          (c)  Restricted Stock Awards. Following, and in connection with, the
               -----------------------
executive officer annual review by the Organization and Compensation  Committee
of the Board of Directors of Employer ("O&C Committee") in each year during the
Term, Employee shall be entitled to
<PAGE>

receive an award of at least 40,000 shares of restricted stock under Employer's
Long-Term Incentive Compensation Plan ("LTICP"). Each such award shall be
subject to terms, conditions and restrictions comparable to those contained in
contemporaneous awards granted to comparably situated officers of Employer;
except that each such award shall provide that retirement by Employee during the
relevant performance period shall not cause or result in a forfeiture of any
portion of such award and that, in the event Employee retires, all such awards
which would otherwise forfeit upon Employee's retirement shall be paid at the
time and in the amount they otherwise would have been paid in the absence of
such retirement. In the event that no awards of restricted stock are made under
the LTICP at one or more of the above-referenced times to any other officer or
key employee, Employer shall, in lieu of awarding Employee restricted stock,
grant to Employee at such time(s) an award of a type comparable to that awarded
to other officers of similar rank (but including a provision for the waiver of
forfeiture upon Employee's retirement as described above) having a value
reasonably comparable to an award of at least 40,000 shares of restricted stock
(taking into consideration performance targets and vesting periods applicable to
restricted stock awards heretofore granted under the LTICP, and assuming that
performance goals and targets would have been attained so that 100% of the
restricted stock would have become payable). In the event that no awards of any
type are awarded under the LTICP at one or more of the above-referenced times,
Employee will be entitled to receive at such time(s) cash in an amount equal to
the present value of an award of at least 40,000 shares of restricted stock
(taking into consideration performance targets and vesting periods applicable to
restricted stock awards heretofore granted under the LTICP and assuming that
performance goals and targets would have been attained so that 100% of the
restricted stock would have become payable).

          (d)  Funding Supplemental Retirement Plan Benefit. As soon as
               --------------------------------------------
reasonably practical following January 1, 2001, Employer shall fully fund the
retirement benefit which Employee shall become eligible to receive under
Employer's Second Supplemental Retirement Plan ("Supplemental Retirement Plan")
by depositing sufficient amounts in the secular trust previously established
under the Supplemental Retirement Plan (the "Trust").  The amount to be
deposited in the Trust to fully fund such benefit shall include amounts
sufficient to make the Tax Liability Distributions provided for under Section
5.1 of the Trust.  The amount to be deposited shall be based on calculations
performed by the actuary for the Supplemental Retirement Plan using the
actuarial assumptions and factors set forth on Appendix I to this Agreement and
incorporated herein by reference, together with such other assumptions and
factors (not inconsistent with the factors and assumptions set forth on said
Appendix I) determined by such actuary to be reasonable, necessary and
appropriate to fully fund such benefit; provided that the amount necessary to be
deposited in the Trust as of January 1, 2001, will not be less than $15,847,586.
Upon Employee's retirement, Employer shall cause the actuary to review the
funded status of Employee's Supplemental Retirement Plan benefit, and Employer
shall make additional deposits to the Trust if necessary to adjust the funded
status of such benefit so that it is fully funded at that time based on the
assumptions and factors specified herein, or such other or different assumptions
and factors as may be deemed by the actuary to be appropriate at the time of
such review if the use of such other or different assumptions and factors would
require a higher level of funding of the Trust.

                                       2
<PAGE>

          (e)  Provision for Company Automobile. Employee shall be entitled to
               --------------------------------
participate in Employer's executive automobile policy on the same basis as other
executives of Employer subject to the terms and conditions of such automobile
policy as it may be amended, altered or terminated from time to time.

          (f)  Employee Benefits. Employee shall be entitled to participate in
               -----------------
all of Employer's employee benefit plans, programs, arrangements and fringe
benefit policies to the extent he is qualified to do so by virtue of his
employment with Employer, subject to the terms, conditions and limitations of
such plans, arrangements and policies, as they may be amended, altered or
terminated from time to time. For purposes of Employee's participation in
certain of Employer's executive compensation plans, Employee shall be deemed to
be a "corporate officer" of Employer.

     5.   Severance Benefits. If Employee is terminated by Employer without
          ------------------
Cause (as defined in Section 7 below) during the Term, Employee shall be
entitled to receive the compensation and benefits described in (a), (b), (c) and
(d) hereinbelow:

          (a)  A one-time cash severance payment, which shall be payable as soon
as reasonably practical following such termination, but in any event within ten
(10) business days thereafter, in an aggregate amount equal to the sum of the
following:

               (i)    The greater of: (a) the amount of base salary (as in
                      effect on the date of the termination) plus annual
                      incentive awards (at the highest previous target level and
                      assuming performance satisfying a target payout) that
                      Employee would have received had he continued in the
                      employment of Employer hereunder through the expiration of
                      the Term; or (b) twelve months base salary (as in effect
                      on the date of the termination) plus Employee's target
                      annual incentive award for the year of the termination;

               (ii)   An amount equal to the sum of: (a) the value (as of the
                      date of termination) of all unvested and otherwise
                      unpayable restricted stock (or alternative) awards
                      previously granted to Employee under the LTICP (as if
                      performance criteria had been met to permit payment of
                      100% of the award), and (b) the forfeited portion of
                      Employee's accounts under Employer's Deferred and
                      Incentive Compensation Plan ("DICP") and Employer's Salary
                      Deferral Program ("SDP") (valued in accordance with the
                      relevant provisions of the DICP and SDP, respectively);

               (iii)  An amount equal to the sum of: (a) Employer matching
                      contributions which would have been made under the DICP
                      and SDP had Employee continued to defer salary under such
                      plans at the rate in effect as of the date of such
                      termination for the remainder of the

                                       3
<PAGE>

                      Term, plus (b) the value of restricted stock (or
                      alternative) awards which had not theretofore been made to
                      Employee under paragraph 4(c) hereof (valued on the basis
                      of the assumption that the performance criteria which
                      would have been applicable to such awards had been met so
                      that 100% of the award(s) would have been payable);

               (iv)   Employer shall, to the extent such benefits are not
                      continued under the provisions of Employer's Split-Dollar
                      Life Insurance Program ("Split-Dollar Life Insurance
                      Program"), provide Employee with the benefits contemplated
                      under the Split-Dollar Life Insurance Program, as in
                      effect on the date of this Agreement, as if the
                      Participation Agreement between Employer and Employee
                      entered into under the Life Insurance Program continued in
                      accordance with its terms as in effect on the date of this
                      Agreement; and

               (v)    An amount equal to the difference between (a) the
                      aggregate required monthly premium for continuation
                      coverage under the Consolidated Omnibus Budget
                      Reconciliation Act of 1985 ("COBRA") under Employer's
                      group medical, dental, prescription drug and group life
                      insurance programs, and (b) the aggregate monthly employee
                      contribution rate in effect for Employee under such
                      programs immediately prior to such termination, multiplied
                      by eighteen (18).

          (b)  In addition to such special severance payment, Employee shall be
entitled to the following benefits:

               (i)    The portion of Employee's retirement benefit payable under
                      the Supplemental Retirement Plan, including the Additional
                      Retirement Compensation provided for in paragraph (c)
                      below, shall be immediately fully funded (based on the
                      factors described in paragraph 4(d) above) under the Trust
                      to the extent it had not previously been so funded;

               (ii)   Employer shall pay on behalf of Employee, or shall
                      reimburse Employee for, the physician fees for one
                      physical examination of Employee under the general
                      parameters of Employer's executive physical program for
                      each year during the period equal to the greater of the
                      remainder of the Term or one (1) year following Employee's
                      termination; and

               (iii)  Employee shall, at Employer's cost, be entitled to
                      financial planning services equivalent to services
                      available under Employer's executive financial planning
                      program during the period equal to the greater of

                                       4
<PAGE>

                      the remainder of the Term or twelve months following
                      Employee's termination.

          (c)  In addition to such severance payments and benefits, Employee
shall be entitled to additional retirement compensation ("Additional Retirement
Compensation") in an amount equal to the difference between: (i) the benefit
Employee is entitled to receive under Employer's Retirement Plan ("Retirement
Plan") and the Supplemental Retirement Plan, and (ii) the amount of the
retirement benefit Employee would have been entitled to receive under the
Retirement Plan and the Supplemental Retirement Plan had Employee earned
additional Accredited Service (as defined in the Retirement Plan) through the
expiration of the Term. The Additional Retirement Compensation shall be funded
under the secular trust provided for under the Supplemental Retirement Plan and
shall be payable in periodic installments in the form elected by Employee with
respect to benefits under the Retirement Plan. The amount of each such periodic
installment shall be determined by the actuary for the Retirement Plan using
reasonable actuarial assumptions substantially similar to those used in
connection with the determination of benefits payable under the Retirement Plan.
The Additional Retirement Compensation is not intended to meet the qualification
requirements of Section 401 of the Internal Revenue Code of 1986, as amended
("Code"); however, the Additional Retirement Compensation shall be fully funded
and payable under the Trust pursuant to the parameters set forth in Section 4(d)
hereof.

          (d)  In the event that the foregoing payments, or any portion thereof,
constitute an "excess parachute payment" under Section 4999 of the Code, or any
successor provision, Employer shall, in addition to providing the foregoing
payments and benefits, pay Employee a tax gross-up cash payment(s) in an amount
agreed upon by Employee to be sufficient to fully offset the excise tax which
Employee is, or may be, required to pay as a result thereof. Such tax gross-up
payment shall be paid to Employee concurrently with the cash payments provided
for hereinabove; provided that if the amount of such tax gross-up payment cannot
be finally determined by such date, Employer shall pay Employee concurrently
with such other payments an estimate, determined in good faith by Employer, of
the minimum amount of the required tax gross-up payment. Thereafter, Employer
shall promptly (but in any event within forty-five (45) days of Employee's
termination) determine in good faith the total amount of the tax gross-up
payment and seek to obtain Employee's approval thereof. The remaining portion of
the tax gross-up payment shall be paid to Employee promptly after Employee
approves the total amount.

     Notwithstanding any other provision of this Agreement seemingly to the
contrary, each of the benefits provided for in paragraph (b) above shall be
provided to Employee if and only to the extent that a similar type of benefit is
not provided to Employee through his subsequent employment with another
employer.  Additionally, Employee shall not be entitled to any of the payments
or benefits provided for under this Section 5 if Employee's termination is for
Cause, or if the circumstances of Employee's termination entitle him to the
payments and benefits provided for in Section 6 below.

     6.   Change In Control.
          -----------------

                                       5
<PAGE>

          (a)  If, during the Term; (i) Employee voluntarily terminates his
employment with Employer (or its successor) within six(6) months following a
Change in Control (as defined below), or (ii) Employee's employment is
terminated by Employer (or its successor) without Cause, or Employee terminates
his employment for Good Reason (as defined below), in either case within twenty-
four (24) months following a Change in Control, Employee will be entitled to
receive the following payments and benefits which shall be paid as soon as
reasonably practical following such termination but in any event within ten (10)
business days thereafter:

               (1)  A one-time cash payment equal to the greater of: (i) the
                    amount of base salary (as in effect on the date of the
                    termination) plus target annual incentive awards (at the
                    highest previous target level and assuming performance
                    satisfying a target payout) that Employee would have
                    received had he continued in the employment of Employer (or
                    its successor) hereunder through the expiration of the Term;
                    or (ii) three (3) times the aggregate of Employee's
                    annualized base salary in effect immediately prior to the
                    Change in Control plus Employee's target annual incentive
                    award for the year in which the Change in Control occurs;

               (2)  The portion of Employee's retirement benefit payable under
                    the Supplemental Retirement Plan, including the Additional
                    Retirement Compensation, shall be immediately fully funded
                    (based on the factors described in paragraph 4(d) above)
                    under the Trust to the extent it had not previously been so
                    funded;

               (3)  Employer shall, to the extent such benefits are not
                    continued under the provisions of the Split-Dollar Life
                    Insurance Program, provide Employee with the benefits
                    contemplated under the Split-Dollar Life Insurance Program,
                    as in effect on the date of this Agreement, as if the
                    Participation Agreement between Employer and Employee
                    entered into under the Life Insurance Program continued in
                    accordance with its terms as in effect on the date of this
                    Agreement;

               (4)  A one-time cash payment equal to the aggregate of (a)
                    Employer matching contributions which would have been made
                    under the DICP and SDP had Employee continued to defer
                    salary under such plans at the rate in effect as of the
                    effective date of the Change in Control, for a period equal
                    to the greater of the remainder of the Term or an additional
                    three years, plus (b) an amount equal to the value of
                    restricted stock (or alternative) awards which had not
                    theretofore been made to Employee under paragraph 4(c)
                    hereof (valued on the basis of the assumption that the
                    performance criteria which would have

                                       6
<PAGE>

                    been applicable to such award(s) had been met so that 100%
                    of the award would have been payable);

               (5)  A one-time cash payment equal to the aggregate of (a) the
                    value (as of the date termination) of all unvested and
                    otherwise unpayable restricted stock (or alternative) awards
                    previously granted to Employee under the LTICP (as if
                    performance criteria had been met to permit payment of 100%
                    of the award), and (b) the forfeited portion of Employee's
                    accounts under the DICP and SDP (valued in accordance with
                    the relevant provisions of the DICP and SDP, respectively);

               (6)  A one-time cash payment equal to the difference between (a)
                    the monthly COBRA premium for coverage under Employer's
                    group medical, dental and prescription drug programs, and
                    (b) the monthly employee contribution under such programs in
                    effect for Employee immediately prior to the termination,
                    multiplied by eighteen (18);

               (7)  Employee shall, at Employer's cost, be entitled to financial
                    planning services equivalent to services available under
                    Employer's executive financial planning program for a period
                    equal to the greater of the remainder of the Term, or three
                    years from the date of the termination; and

               (8)  Employer shall pay on behalf of Employee, or shall reimburse
                    Employee for, the physician fees for one physical
                    examination of Employee for each year during the period
                    equal to the greater of the remainder of the Term, or three
                    years from the date of the termination.

          (b)  In addition to such severance payments and benefits, Employee
shall be entitled to the Additional Retirement Compensation as calculated and
payable under the provisions of paragraph 5(c) above.

          (c)  In the event that the foregoing payments, or any portion thereof,
constitute an "excess parachute payment" under Section 4999 of the Code, or any
successor provision, Employer shall, in addition to providing the foregoing
payments and benefits, pay Employee a tax gross-up cash payment(s) in an amount
agreed upon by Employee to be sufficient to fully offset the excise tax which
Employee is, or may be, required to pay as a result thereof.  Such tax gross-up
payment shall be paid to Employee concurrently with the cash payments provided
for hereinabove; provided that if the amount of such tax gross-up payment cannot
be finally determined by such date, Employer shall pay Employee concurrently
with such other payments an estimate, determined in good faith by Employer, of
the minimum amount of the required tax gross-up payment.  Thereafter, Employer
shall

                                       7
<PAGE>

promptly (but in any event within forty-five (45) days of Employee's
termination) determine in good faith the total amount of the tax gross-up
payment and seek to obtain Employee's approval thereof. The remaining portion of
the tax gross-up payment shall be paid to Employee promptly after Employee
approves the total amount.

          (d)  For purposes of this Agreement, "Change in Control" shall mean a
change in control of Employer of a nature that would be required to be reported
in response to Item 1(a) of the Securities and Exchange Commission Form 8-K, as
in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended ("Exchange Act"), or would have been required
to be so reported but for the fact that such event had been "previously
reported" as that term is defined in Rule 12b-2 of Regulation 12B under the
Exchange Act; provided that, without in any way limiting the foregoing, a Change
in Control shall be deemed to have occurred if any one or more of the following
events occurs: (i) any Person is or becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
Employer representing 20% or more of the combined voting power of Employer's
then outstanding securities having the right to vote at elections of directors
("Voting Securities"); (ii) individuals who constitute the board of directors of
Employer on the effective date of this Agreement (the "Incumbent Board") cease
for any reason to constitute at least a majority thereof, provided that any
person becoming a director subsequent to the effective date of this Agreement
whose election, or nomination for election by Employer's shareholders, was
approved by at least three-quarters of the directors comprising the Incumbent
Board (either by a specific vote or by approval of the proxy statement of
Employer in which such person is named as a nominee for director, without
objection to such nomination) shall, for purposes of this clause (ii), be
considered as though such person were a member of the Incumbent Board; (iii) a
recapitalization or reclassification of the Voting Securities of Employer, which
results in either (a) a decrease by 33% or more in the aggregate percentage
ownership of Voting Securities held by Independent Shareholders (on a primary
basis or on a fully diluted basis after giving effect to the exercise of stock
options and warrants), or (b) an increase in the aggregate percentage ownership
of Voting Securities held by non-Independent Shareholders (on a primary basis or
on a fully diluted basis after giving effect to the exercise of stock options
and warrants) to greater than 50%; (iv) all or substantially all of the assets
of Employer are liquidated or transferred to an unrelated party; or (v) Employer
is a party to a merger, consolidation, reorganization or similar transaction
pursuant to which Employer is not the surviving ultimate parent entity.  For
purposes of this definition, the term "Person" shall mean and include any
individual, corporation, partnership, group, association or other "person", as
such term is used in Section 14(d) of the Exchange Act, other than Employer, a
subsidiary of Employer or any employee benefit plan(s) sponsored or maintained
by Employer or any subsidiary thereof, and the term "Independent Shareholder"
shall mean any shareholder of Employer except any employee(s) or director(s) of
Employer or any employee benefit plan(s) sponsored or maintained by Employer or
any subsidiary thereof.

          (e)  For purposes of this Agreement, "Good Reason" shall mean any one
or more of the following occurrences: (i) Employee's base salary as in effect
immediately prior to the Change in Control, or as it may be increased subsequent
to the Change in Control, is reduced; (ii) Employee's status or responsibilities
with Employer immediately prior to the Change in Control are

                                       8
<PAGE>

materially reduced, or Employee is assigned duties which are inconsistent with
such status or responsibilities, or Employee's business location is materially
changed; (iii) Employer (or its successor) fails to continue in effect any
pension, health care or executive compensation plan or arrangement in which
Employee was participating immediately prior to the Change in Control, or
Employer (or its successor) takes some action which materially reduces
Employee's benefits under any such plan or program, without (in either such
case) providing Employee with substantially similar benefits; or (iv) any
successor to Employer in connection with the Change in Control does not, prior
to the Change in Control, expressly assume this Agreement.

     7.   Definition of Cause. For purposes of this Agreement, the term "Cause"
          -------------------
shall mean any one or more of the following: (a) the material breach by the
Employee of this Agreement; (b) Employee's breach of his fiduciary duty to
Employer and/or its shareholders in his capacity as an officer and/or director
of Employer; (c) any action or failure to act on the part of Employee which
results in material injury to the assets, business prospects or reputation of
Employer or any affiliate of Employer; (d) the appropriation of a material
business opportunity of Employer or any affiliate of Employer, including
attempting to secure or securing any personal profit in connection with any
transaction entered into on behalf of the Employer; or (e) Employee's failure to
substantially perform his duties and responsibilities hereunder, including
without limitation Employee's breach of Employer's Code of Conduct or an express
employment policy of Employer.

     8.   Confidentiality and Nondisclosure.
          ---------------------------------

          (a)  Employee understands and agrees that he will be given
Confidential Information (as defined below) and Training (as defined below)
during his employment with Employer relating to the business of Employer and/or
its Affiliates (as defined below). Employee hereby expressly agrees to maintain
in strictest confidence and not to use in any way (including without limitation
in any future business relationship of Employee), publish, disclose or authorize
anyone else to use, publish or disclose in any way, any Confidential Information
relating in any manner to the business or affairs of Employer and/or its
Affiliates. Employee agrees further not to remove or retain any figures,
calculations, letters, documents, lists, papers, or copies thereof, which embody
Confidential Information of Employer and/or its Affiliates, and to return, prior
to Employee's termination of employment, any such information in Employee's
possession. If Employee discovers, or comes into possession of, any such
information after his termination he shall promptly return it to Employer.
Employee acknowledges that the provisions of this paragraph are consistent with
Employer's Code of Conduct with which Employee, as an employee of Employer, is
bound.

          (b)  For purposes of this Agreement, "Confidential Information"
includes, but is not limited to, information in the possession of, prepared by,
obtained by, compiled by, or that is used by Employer or any of its Affiliates
or customers and (1) is proprietary to, about, or created by Employer or its
Affiliates or customers; (2) gives Employer or its Affiliates or customers some
competitive business advantage, the opportunity of obtaining such advantage, or
disclosure of which might be detrimental to the interest of Employer or its
Affiliates or customers; and (3) is not typically

                                       9
<PAGE>

disclosed by Employer or its Affiliates or customers, or known by persons who
are not employed by Employer or its Affiliates or customers. Without in any way
limiting the foregoing and by way of example, Confidential Information shall
include: information not generally available to the general public pertaining to
Employer's system-wide business operations such as financial and operational
information and data, operational plans and strategies for emerging and
traditional business units (both domestic and foreign), business and marketing
strategies and plans for various products and services, global operational
planning, and acquisition and divestiture planning.

          (c)  For purposes of this Agreement, "Training" includes, but is not
limited to, specialized and valuable training regarding Confidential
Information.

          (d)  For purposes of this Agreement, "Affiliate" shall mean any
person, or entity (or sub unit of an entity) that, directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with Employer.

     9.   Non-Compete and Non-Solicitation. Employee acknowledges and agrees
          --------------------------------
that: (1) in order to perform his obligations and job duties for Employer,
Employee will gain Training and access to Confidential Information regarding
Employer and/or its Affiliates or customers; (2) use of such Confidential
Information in competition with Employer and/or its Affiliates or customers
would be detrimental to the business interests of Employer and/or its Affiliates
or customers; and (3) Employee would not have been allowed to gain access to
Confidential Information, or to provide the obligations and job duties
contemplated under this Agreement without his promises and agreements contained
in the following paragraph.

     Employee agrees that, during his employment with Employer, and for a period
of one (1) year thereafter, Employee shall not, directly or indirectly, either
as an employee, employer, independent contractor, consultant, agent, principal,
partner, stockholder, officer, director, or in any other individual or
representative capacity, either for his own benefit or the benefit of any other
person or entity: (i) engage or participate in a business which competes in a
material manner with Employer or any of its Affiliates; (ii) contact, solicit or
attempt to solicit the business or patronage of any of Employer's (or
Affiliate's) customers, or prospective customers, or any person, firm,
corporation, company, partnership, association or entity which was contacted or
whose business was solicited, serviced or maintained by Employer (or its
Affiliates) during the term of Employee's employment with Employer; or (iii)
solicit, recruit, induce, encourage or in any way cause any employee of Employer
(or an Affiliate) to terminate his/her employment with Employer (or such
Affiliate).  Notwithstanding the foregoing, the restriction provided in (i)
above shall apply following the termination of this Agreement only if Employee
receives the payments and benefits provided for in Section 5 or 6 above.

     10.  Injunctive Relief. Because of the unique nature of the business to be
          -----------------
conducted by Employer or its Affiliates and the Confidential Information
relating thereto, Employee acknowledges, understands and agrees that Employer
and/or its Affiliates will suffer immediate and irreparable harm if Employee
fails to comply with any of this obligations under Sections 8 and 9 of

                                       10
<PAGE>

this Agreement, and that monetary damages alone will be inadequate to compensate
Employer or its Affiliates for such breach. Accordingly, Employee agrees that
Employer and/or its Affiliates shall, in addition to any other remedies
available to it at law or in equity, be entitled to temporary, preliminary, and
permanent injunctive relief and specific performance to enforce the terms of
Sections 8 and 9 without the necessity of proving inadequacy of legal remedies
or irreparable harm or posting bond.

     11.  Deductions and Nonalienation of Benefits. Employee shall be required
          ----------------------------------------
to pay promptly on demand, by payroll deduction or otherwise, the amount
required to be withheld by Employer for income and employment taxes in respect
of amounts paid under this agreement.  No right, benefit or payment hereunder
shall be subject to anticipation, alienation, sale, assignment, pledge,
encumbrance or charge, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or charge the same shall be null and void.  No right, benefit
or payment hereunder shall in any manner be subject to, voluntarily or
involuntarily, the debts, contracts, liabilities or torts of Employee or be
otherwise subject to any execution, garnishment, attachment, insolvency,
bankruptcy or legal proceedings of any character or legal sequestration, levy or
sale.  If Employee or any other beneficiary hereunder shall become bankrupt or
attempt to anticipate, alienate, sell, assign, pledge, encumber or charge any
right, benefit or payment hereunder, such right, benefit or payment may be
terminated at any time by Employer without liability or further obligation.

     12.  Employer's Right to Modify Employee Benefit Plans. Nothing in this
          -------------------------------------------------
Agreement shall be construed as a limitation on the absolute right of Employer,
at any time and from time to time at its sole discretion, to amend or modify, in
whole or in part, or to terminate, any employee benefit plan, program or policy
sponsored or maintained by Employer; provided, however, that no such amendment
or termination shall eliminate or reduce the payments and benefits provided for
in Section 5 and 6 hereof, it being understood that, if, from and after the date
hereof, any plan or program referenced in Section 5 or 6 hereof is terminated or
amended and such termination or amendment would reduce the payments or benefits
provided for under Section 5 or 6, such terminated or amended plan or program
shall, for purposes of calculating the payments and benefits under Sections 5 or
6 hereof, be deemed to be in effect as of the effective date of this Agreement.
Any plan or program which is specifically referenced herein shall be deemed to
include any successor plan or program or any similar plan or program adopted and
maintained by Employer to provide Employee with the same or similar benefits
provided for under such specifically referenced plan or program.

     13.  Entire Agreement. This Agreement contains the complete understanding
          ----------------
and agreement between the parties and supersedes any and all other agreements,
understandings, or communications of any kind, either oral or in writing,
between the parties hereto with respect to the subject matter hereof.  Each
party to this Agreement acknowledges that no representations, inducements,
promises, or agreements, orally or otherwise, have been made by any party, or
anyone acting on behalf of any party, which are not embodied herein, and that no
other agreement, statement, or promise with respect to the subject matter of
this Agreement shall be valid or binding. Subject to the provisions of Section 5
and 6 hereof regarding certain payments and benefits upon a

                                       11
<PAGE>

termination satisfying the criteria set forth in such sections, nothing in this
Agreement shall be construed as conferring any right upon Employee to continued
employment by Employer. Any modification of this Agreement will be effective
only if it is in writing signed by both of the parties hereto.

     14.  Severability. If any provision in this Agreement is held by a court
          ------------
of competent jurisdiction to be invalid, void, or unenforceable, the remaining
provisions shall nevertheless continue in full force without being impaired or
invalidated in any way.

     15.  Survival. The parties hereby acknowledge and agree that certain
          --------
provisions of this Agreement are, by their nature, intended to survive this
Agreement and the parties agree that all of such provisions shall survive
Employee's termination of employment, regardless of the reason for such
termination.  Employee acknowledges and agrees that the covenants and
restrictions in Sections 8 and 9 of this Agreement are reasonable and necessary
due to the highly competitive, confidential and proprietary nature of the
services to be performed by Employee hereunder.

     16.  Successors. This Agreement shall be binding upon and inure to the
          ----------
benefit of Employee, his heirs, beneficiaries and personal representatives, and
Employer and any successor or assignee of Employer, but neither this Agreement,
nor any of the rights or obligations of either party hereunder may be assigned,
in whole or in part, except Employer may assign this Agreement to any affiliate
of Employer.  Employer will seek to obtain the written acknowledgment and
assumption of this Agreement by any successor of Employer prior to any
transaction or event pursuant to which such successor becomes the successor to
Employer.  Whether or not such written acknowledgment and assumption is given,
this Agreement shall be binding on such successor and its assignees.

     17.  Notices. Any notices to be given hereunder by either party to the
          -------
other may be effected by personal delivery in writing, by facsimile or by mail,
registered or certified, postage prepaid to the current address of the other
party with return receipt requested.  Notices delivered personally or by
facsimile shall be deemed communicated as of actual receipt; mailed notices
shall be deemed communicated as of three (3) days after mailing.

     18.  Governing Law. This Agreement shall be governed by and construed in
          -------------
accordance with the laws of the State of Texas.

                                       12
<PAGE>

     EXECUTED effective as of the 1st day of June, 2000.

                              EMPLOYER:

                              TXU CORP.

                              By: /s/ James A. Middleton
                                  ----------------------
                                    James A. Middleton, Chairman -
                                    Organization and Compensation Committee

                              EMPLOYEE:

                              /s/ Erle Nye
                              -------------------------
                              Erle Nye

                                       13
<PAGE>

                                  Appendix I

<TABLE>
<CAPTION>
Actuarial Assumptions and Factors
<S>                                                          <C>
Projected retirement date                                    June 1, 2004
Rate of future pay increases                                     3%
Future AIP awards as percent of base pay                        75%

Tax rates during gross-up period
     Marginal rate for Federal Income Tax                    39.60%
     FICA tax rate -Social Security                           6.20%
                   -Medicare                                  1.45%
Tax rates during payment period
     Marginal rate for Federal Income Tax                    39.60%
     FICA tax rate -Social Security                           N/A
                   -Medicare                                  N/A

Annual after-tax investment rate of return of trust           5.40%
Annual increase in CPI                                        3.00%

Period for payment of benefits                               30 years from date of retirement

Future ad hoc cost of living increases
     Percent increase in benefit                             50% of assumed change in CPI
     Frequency of increase                                   Every 5 years

Optional form of payment for funding purposes                50% Joint & Survivor
Optional form of payment at retirement                       As elected
</TABLE>

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