Document:

ex10_41.htm

  
    

      Exhibit
10.41

      PROMISSORY
NOTE

      (Term
Note)

      

      

      $22,750,000.00 December
30, 2009

       

      FOR VALUE
RECEIVED, EMERGENT BIODEFENSE
OPERATIONS LANSING INC., formerly known as BioPort Corporation, a
Michigan corporation (the “Borrower”) promises to pay to
the order of HSBC REALTY CREDIT
CORPORATION (USA), a Delaware corporation (hereinafter referred to as the
“Bank”) at its office at
1130 Connecticut Avenue, N.W., 12th
Floor, Washington, D. C. 20036, or at such other place as the Bank may from time
to time direct, the sum of TWENTY-TWO MILLION SEVEN HUNDRED FIFTY THOUSAND AND
NO/100 DOLLARS ($22,750,000.00), with interest computed daily on the unpaid
principal balance at the Interest Rate (as such term is hereinafter defined),
and payable according to the repayment terms set forth herein (the “Loan”). The Loan is made
pursuant to a Loan Agreement of even date herewith (the “Loan Agreement”) among the
Borrower, the Bank and Emergent BioSolutions Inc. (the “Guarantor”). The Loan is
guaranteed by a Guaranty of even date herewith from the Guarantor to the Bank
(the “Guaranty”).  The
Loan is secured by, among other things, those certain Mortgages dated as of
August 25, 2006, from the Borrower in favor of the Bank, each as amended by a
First Amendment to Mortgage dated June 29, 2007, and each as further amended by
a Second Amendment to Mortgage of even date herewith (collectively, the “Mortgage”), and a Security
Agreement of even date herewith from the Borrower to the Bank (the “Security Agreement”). This
Note, the Loan Agreement, the Guaranty, the Mortgage, the Security Agreement and
any other documents entered into in connection with the Loan are referred to as
the “Loan
Documents”).

       

      Interest Rate and Payment
Terms

       

      This Note
shall bear interest at a rate per annum (the “Interest Rate”) equal to
90-day LIBOR plus three and 25/100 percent (3.25%).  “LIBOR” shall mean the rate of
interest (rounded upwards if necessary to the next 100th of one percent)
determined by the Bank to be the prevailing rate per annum at which deposits in
United States dollars for the applicable period are offered to the Bank by first
class banks in the London Interbank Market in which the Bank regularly
participates at any such time (as shown on the Reuters Screen LIBOR01 Page, at
approximately 11:00a.m. (London time) on the proposed borrowing date), or, in
the discretion of the Bank, the base, reference or other rate then designated by
the Bank for general commercial loan reference purposes, it being understood
that such rate is a reference rate, not necessarily the lowest, established from
time to time, which serves as the basis upon which effective interest rates are
calculated for loans making reference thereto.  Interest will accrue
on any non-banking day at the rate in effect on the immediately preceding
banking day.

       

      This Note
shall be payable in monthly installments of principal and interest in the amount
required to amortize this Note over fifteen (15) years, payable on the 1st day
of each month beginning January 1, 2010, and in one final balloon payment of all
accrued interest and outstanding principal on December 30, 2014 (the “Maturity Date”).

       

      The
Interest Rate on this Note:  (a) will not exceed applicable legal
limits, and in the event a payment is made by the Borrower or received by the
Bank in excess of the applicable legal limits, such excess payment shall be
credited as a payment of principal; and (b) shall be computed on the basis of
360-day year and charged for the actual number of days elapsed in each interest
calculation period.

       

      In the
event that the Bank shall determine that by reason of circumstances affecting
the interbank Eurodollar market, adequate and reasonable means do not exist for
determining  LIBOR, or Eurodollar deposits in the relevant amount and
for the relevant maturity are not available to the Bank in the interbank
Eurodollar market, the Bank shall give the Borrower prompt notice of such
determination.  If such notice is given, and until such notice is
withdrawn, the Interest Rate on this Note shall be a rate per annum equal to the
Prime Rate plus 2.25%. “Prime
Rate” means the rate per annum from time to time established by the Bank
as the Prime Rate and made available by the Bank at its main office or, in the
discretion of the Bank, the base, reference or other rate then designated by the
Bank for general commercial loan reference purposes, it being understood that
such rate is a reference rate, not necessarily the lowest, established from time
to time, which serves as the basis upon which effective interest rates are
calculated for loans making reference thereto. If, after the date of this Note,
any applicable law, treaty, regulation or directive, or any change therein or in
the interpretation or application thereof, shall make it unlawful for the Bank
to make or maintain any LIBOR loan, the Interest Rate on this Note shall be a
rate per annum equal to the Prime Rate plus 2.25%, for so long as such
illegality exists.

       

      Prepayment

       

      Upon five
(5) business days’ written notice from the Borrower to the Bank, the Borrower
may prepay the outstanding principal balance of this Note, in whole or in part,
subject to the following terms and conditions:

       

      (a)           any
prepayment must include payment of all interest accrued and unpaid on the amount
so prepaid as of the date of such prepayment;

       

      (b)           partial
prepayment shall not postpone the due date of any subsequent payment, nor shall
it change the amount of any monthly payment otherwise required to be made under
this Note, unless the Bank otherwise agrees in writing and in advance of receipt
of such partial prepayment;

       

      (c)           Borrower
shall pay a breakage fee equal to the aggregate of all costs, fees and penalties
incurred by Bank in connection with such prepayment; and

       

      (d)           if
the Interest Rate at the time of prepayment has been converted to a fixed rate
pursuant to an ISDA Master Agreement or other interest rate protection agreement
(“Master Agreement”),
the Borrower shall pay a prepayment fee equal to the aggregate of any breakage
fees related to such Master Agreement.

       

      Late
Charge

       

      In the
event the Borrower fails to make a payment of principal and/or interest in fully
collected funds within fifteen (15) days after such payment is due, the Borrower
shall pay a late charge to the Bank in an amount equal to five percent (5%) of
the overdue installment.

       

      Default
Interest

       

      Upon an
Event of Default (as such term is hereinafter defined) and until such Event of
Default is cured or this Note is paid in full, this Note shall bear interest at
a rate equal to three percent (3%) per annum above the Interest Rate in effect
on the date of such Event of Default.

       

      Events of Default and
Remedies

       

      Subject
to any applicable notice and cure periods contained in the Loan Documents, each
of the following shall constitute a default (“Event of Default”) under this
Note:

       

      (a)           A
failure to make a payment of any sum within ten (10) days of when due under this
Note.

       

      (b)           A
failure to perform or observe any of the covenants, conditions or terms of this
Note or any other Loan Document.

       

      Upon the
occurrence of an Event of Default or failure to pay the balance hereof when
otherwise due, and notwithstanding the payment of any late charges: (i) all
remaining payments under this Note shall become due and payable together with
interest accrued to the date of payment without notice, at the option of the
Bank; (ii) the Borrower shall reimburse the Bank for any reasonable expenses,
costs and attorneys’ fees which the Bank may incur in connection with the
collection of any monies due under this Note or in connection with the
enforcement of any right under this Note or under any of the Loan Documents; and
(iii) the Bank may exercise any or all of the other rights, powers and remedies
provided for in any of the Loan Documents, or now or hereafter existing at law
or in equity or by statute or otherwise.

       

      Miscellaneous

       

      The
Borrower hereby waives demand, presentment for payment, protest, and notice of
dishonor, and agrees that at any time and from time to time and with or without
consideration, the Bank may, without notice to or further consent of the
Borrower and without in any manner releasing, lessening or affecting the
obligations of the Borrower: (a) release, surrender, waive, substitute, settle,
exchange, compromise, modify, extend or grant indulgences with respect to: (i)
this Note; and (ii) all or any part of any collateral or security for this Note;
or (b) grant any extension or other postponements of the time of payment
hereof.

       

      Each
right, power and remedy of the Bank as provided for in this Note, or now or
hereafter existing at law or in equity or by statute or otherwise, shall be
cumulative and concurrent and shall be in addition to every other right, power
or remedy, and the exercise or beginning of the exercise by the Bank of any one
or more of such rights, powers or remedies shall not preclude the simultaneous
or later exercise by the Bank of any or all of such other rights, powers or
remedies.

       

      No
failure or delay by the Bank to insist upon the strict performance of any term,
condition or covenant of this Note, or to exercise any right, power or remedy
upon a breach hereof, shall constitute a waiver of any such term, condition or
covenant or of any such breach, nor shall it preclude the Bank from exercising
any such right, power or remedy at any later time or times, unless such waiver
is in writing signed by an authorized representative of the Bank. If the Bank
accepts any payment after its due date, this does not constitute a waiver of the
Bank’s right to receive timely payment of all other subsequent amounts or to
declare a default for the failure to make any other subsequent payment when
due.

       

      Any
payment on this Note coming due on a day on which the Bank is not open to
conduct full banking business shall be due on the next succeeding business day.
Each payment hereunder may be applied to pay interest, principal, late fees or
costs as the Bank, in its sole discretion, may determine.

       

      All notices under this Note shall be
given as provided in the Loan Agreement.

       

      The
Borrower authorizes the Bank to disburse funds represented by this Note to the
Borrower and agrees that such disbursement shall be deemed to be full and
absolute consideration for the undertaking to make payment hereunder. The
Borrower hereby authorizes the Bank to disclose to any subsidiary or affiliate
of the Bank, to any fiduciary institution or to any banking institution, credit
union or savings and loan association organized under the laws of any State, and
hereby authorizes all subsidiaries and affiliates of the Bank, to disclose to
the Bank, the financial records of the Borrower.

       

      THE
BORROWER AND THE BANK HEREBY VOLUNTARILY AND KNOWINGLY WAIVE ANY RIGHT THEY MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING, OR COUNTERCLAIM
BROUGHT BY EITHER PARTY AGAINST THE OTHER ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS NOTE AND THE TRANSACTIONS CONTEMPLATED HEREIN. THE BORROWER
ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE BANK THAT THE PROVISIONS OF THIS
PARAGRAPH CONSTITUTE A MATERIAL INDUCEMENT UPON WHICH THE BANK HAS RELIED, IS
RELYING AND WILL RELY IN MAKING THE LOAN. THE BORROWER HEREBY CERTIFIES THAT NO
REPRESENTATIVE OR AGENT OF THE BANK (INCLUDING ITS COUNSEL) HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT, IN THE EVENT OF LITIGATION,
ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL. THE BORROWER ACKNOWLEDGES THAT IT
HAS CONSULTED WITH AN ATTORNEY AND FULLY UNDERSTANDS THE LEGAL EFFECT OF THE
PROVISIONS OF THIS PARAGRAPH.

       

      This Note
shall be governed by and construed under and in accordance with the laws of the
State of Maryland (but not including the choice of law rules thereof). The
Borrower hereby submits to the non-exclusive jurisdiction of any State of
Maryland court or Federal court sitting in the State of Maryland in any action
or proceeding arising out of or relating to this Note, and hereby waives any
objection it may have to the laying of venue of any such action or proceeding in
any of said courts and any claim that it may have that any such action or
proceeding has been brought in an inconvenient forum. A final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by
law.

       

      Whenever
used herein, the word “Borrower” or “Bank” shall be deemed to include, as
appropriate, its/his/her respective heirs, personal representatives, successors
and assigns. All words used herein shall be deemed to refer to the singular,
plural, masculine, feminine or neuter as the identity of the person or entity or
the context may require.

       

      Borrower
has previously executed and delivered to Bank that certain Promissory Note dated
June 29, 2007, in the original principal amount of $30,000,000.00 (the “Original
Note”).  In connection with the execution and delivery of this Note,
the Original Note shall be hereby terminated and replaced with this Note
evidencing a total loan amount of $22,750,000.00.

       

      (Signature
Page Follows)

      
        
           

        

        
           

           

        

        
           

        

      

      IN
WITNESS WHEREOF, the Borrower has duly executed this Note under seal as of the
date and year first hereinabove set forth.

       

      EMERGENT BIODEFENSE
OPERATIONS

      LANSING
INC., formerly known as BioPort Corporation, a Michigan corporation

      

      By:/s/R. Don Elsey
(SEAL)

      Name:R. Don
Elsey

      Title:Treasurer

      

      

      
        
           

        

        
           

           

        

        
           

        

      

      CONSENT OF THE
GUARANTOR

       

      The
undersigned Guarantor hereby consents to the terms of this Note and acknowledges
it has guaranteed this Note pursuant to the terms of that certain Guaranty
executed by the undersigned of even date herewith.

       

      EMERGENT BIOSOLUTIONS
INC.,

      a Delaware corporation

      

      

      By: /s/Jay G.
Reilly(SEAL)

      Name: Jay G.
Reilly

      Title:
Assistant
Secretaryex10-1.htm

    
      EXHIBIT
10.1

      PERFORMANCE AWARD AGREEMENT

       

    

    
       

       

      THIS PERFORMANCE AWARD
AGREEMENT (this “Agreement”) is made as of the ___th day of March, 2010, between
DYNEGY INC., a Delaware corporation (“Dynegy”), and all of its Affiliates
(collectively, the “Company”), and Bruce A. Williamson (“Employee”).  A
copy of the Dynegy Inc. _________ Long Term Incentive Plan (the “Plan”) is
annexed to this Agreement and shall be deemed a part of this Agreement as if
fully set forth herein.  Unless the context otherwise requires, all terms
that are not defined herein but which are defined in the Plan shall have the
same meaning given to them in the Plan when used herein.

       

      1.                 
The
Grant.  The Compensation and Human Resources Committee of the
Board of Directors (the “Committee”) granted to Employee on March ___, 2010
(“Effective Date”), a Performance Award of _________ performance units, each of
which has a designated value of $100 and represents the right to receive an
amount payable in the form of cash or shares of Dynegy’s Class A Common Stock (a
“Share” or “Shares”), as determined in the discretion of the Committee. 
Employee acknowledges receipt of a copy of the Plan, and agrees that this
Performance Award shall be subject to all of the terms and provisions of the
Plan, including future amendments thereto, if any, pursuant to the terms
thereof, and to all of the terms and conditions of this Agreement. 
If it is subsequently determined by the
Committee, in its sole discretion, that the terms and conditions of this
Agreement and/or the Plan are not compliant with Code Section 409A, or any
Treasury regulations or Internal Revenue Service guidance promulgated
thereunder, this Agreement and/or the Plan may be amended
accordingly.

       

      2.                 
Performance Period and
Performance Goals.  Subject to the provisions of Section 5 of
this Agreement, the performance period for purposes of determining whether the
Performance Award will be paid shall be March ___, 2010 through March ___, 2013
for the two-thirds of the Performance Award that is based on stock-price
performance (with the final payout to be based on average stock-price
performance for February 2013) and shall be January 1, 2010 through December 31,
2012 for the one-third of the Performance Award that is based on accumulated
Adjusted EBITDA (collectively, the “Performance Period”).  The performance
goals for purposes of determining whether, and the extent to which, the
Performance Award will be paid are set forth in Exhibit 1 to
this Agreement, which Exhibit is made a part of this Agreement. 
Notwithstanding the foregoing, for awards that are not designated as Qualified
Performance-Based Awards, the Committee shall have discretion to adjust the
performance goals to reflect actions undertaken in the best interest of the
Company and its shareholders, including, but not limited to, strategic
transactions affecting the performance goals as well as recapitalizations,
reorganizations, mergers, consolidations, split-ups, split-offs, spin-offs,
exchanges or other relevant changes in capitalization or structure of the
Company, and for awards that are designated as Qualified
Performance-Based Awards, the Committee may disregard or offset the effect of
any “Extraordinary Items” in determining the attainment of performance
goals.  For this purpose, “Extraordinary Items” means extraordinary,
unusual and/or non-recurring items, including but not limited to, (a)
restructuring or restructuring-related charges, (b) gains or losses on the
disposition of a business or major asset, (c) changes in business conditions,
regulatory, tax or accounting regulations or laws, (d) resolution and/or
settlement of litigation and other legal proceedings or (e) the effect of a
merger or acquisition.

       

      3.                 
Payment. 
Subject to the provisions of Sections 4 and 5 of this Agreement, after the
Performance Period, the Performance Award shall be paid as soon as practicable
after the Committee determines whether and to what extent the performance goals
have been achieved for the Performance Period in accordance with the terms set
forth in Exhibit 1 to
this Agreement; provided, however, that any such payment shall be made no later than March 15,
2013.

       

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

       

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

       

          (1)              
death, or

       

          (2)              
Involuntary Termination (as defined in the Dynegy Inc. Executive
Severance Pay Plan, as amended and restated effective January 1, 2008),
or

       

          (3)              
a Change in Control Termination occurring in connection with, but
in no event earlier than sixty (60) days prior to, a Change in Control,
or

       

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

       

      Employee shall
be treated as if he or she had been continuously employed by the Company through
the Performance Award payment date.  In such case, Employee or Employee’s
legal representative, or the person, if any, who acquired the Performance Award
by bequest or inheritance or by reason of the death of Employee, shall be
entitled to receive any payment with respect to the Performance Award in
accordance with this Agreement; provided, however, that if Employee’s
termination of employment is for the reason described in Sections 4(a)(2), any
such payment shall be prorated by multiplying the payment by a fraction, the
numerator of which shall be the number of calendar days that elapsed between the
date of Employee’s termination and the Effective Date and the denominator of
which shall be 1,080 but in no case shall such fraction be greater than one
(1).

       

      For purposes of this Agreement,
the term “Cause” shall mean, and hence arise as a result of, as determined by
the Committee in its sole discretion, the Employee’s (A) refusal to implement or
adhere to lawful policies or lawful directives of the Board; (B) engaging in
conduct which is materially injurious (monetarily or otherwise) to the Company
(including, without limitation, misuse of the Company’s funds or other
property); (C) misconduct or dishonesty directly related to the performance of
the Employee’s duties for the Company or gross negligence in the performance of
the Employee’s duties for the Company; (D) conviction (or entering into a plea
bargain admitting criminal guilt) in any criminal proceeding involving a felony
or a crime of moral turpitude; (E) drug or alcohol abuse; or (F) continued
failure to perform Employee’s duties which is not cured within 10 days after
written notice is provided to Employee by the Company.  In addition, the
term “Change in Control Termination” shall mean Employee’s employment is
terminated by the Company (or a successor thereto) without Cause, or by Employee
following: (A) a significant diminution in Employee’s responsibilities,
authority or duties; (B) a material reduction in Employee’s base salary; or (C)
relocation of Employee’s position outside the Houston, Texas metropolitan area,
all as determined by the Committee in its sole discretion.

       

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

       

                  If the
amount paid in settlement of the Performance Award pursuant to the preceding
paragraph is zero, then, notwithstanding any other provision of the Performance
Award, Employee shall receive a payment equal to 100% of the amount that would
have been paid had the Performance Period ended on the date of the Change in
Control and the Target set out on Exhibit I of the Performance Award had been
achieved.  Such payment shall be made in the form of cash to Employee as
soon as administratively feasible but no later than the later of December 31 of
the calendar year in which the Change in Control occurs or the 15th day of the
third month following the effective date of the Change in Control. 
Notwithstanding anything in this Agreement to the contrary, in the event
of a Change in Control during the Performance Period, Employee shall
receive a minimum payment equal to 100% of each $100 performance unit
covered by this Performance Award. 

       

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

       

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

       

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

       

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

       

      9.                 
Miscellaneous.

       

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

       

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

       

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

       

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

       

       

      DYNEGY
INC.

       

      By:         /s/ J.
Kevin
Blodgett                           

       

      Name:  J. Kevin Blodgett 

       

      Title:    General Counsel & EVP,
Administration

       

       

      
        
          
          

        

        
          
          

           

        

        
          
          

        

      

      
 

    

    Exhibit
1

     

     

    Performance Unit Award
Summary

     

     

    For 2010 Long
Term Incentive grants made to those at the Managing Director and above level,
the Compensation and Human Resources Committee decided to base two-thirds of the
performance unit awards on long-term stock price performance and one-third of
the performance units awards on accumulated Adjusted EBITDA, each over a three
year period.  The Committee believes these metrics provide a simple,
transparent and meaningful measure of Dynegy’s performance relative to its
long-term goal of creating value for stockholders.  The material terms of
the performance units are summarized below:

     

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

     

    	With respect to two-thirds of the award, payment (if any)
  will be made in accordance with Section 3 of the Agreement based on Dynegy’s
  three-year stock price performance; 

    ·        
Starting
share price is the average closing price of Dynegy’s Class A common stock for
the month February 2010 ($_____);

     

    ·        
Ending share price will be the average closing price of Dynegy’s
Class A common stock during the month of February 2013;

     

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

     

     

    Stock
Price Performance Goals for Performance Period

     

    (March 3, 2010 — March 3, 2013)

     

     

    
      	
               

               

            	
               

               

            	
              Threshold

               

            	
              Target

               

            	
              Maximum

               

            
	
              Performance
      Goals

            	
              Dynegy
      Inc.

              Achieved Share Price*

            	
              $2.50

            	
              $4.00

            	
              $6.00

            
	
              Payment
      Levels**

            	
              % of each $100 Performance Unit

            	
              0%

            	
              100%

            	
              200%

            

    

     

     

    *Achieved
Share Price shall be the ending Share price equal to the average closing Share
price for the month of February 2013 or, if applicable, the ending Share price
determined in accordance with Section 5 of the Agreement in the event of a
Change in Control.

     

     

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

     

    	With respect to one-third of the award, payment (if any) will
  be made in accordance with Section 3 of the Agreement based on Dynegy’s
  Adjusted EBITDA over the three year award period.  The starting date for
  this period shall be January 1, 2010 and the end date shall be December 31,
  2012. 

     

    ·        
For purposes of this Agreement, the term Adjusted EBITDA shall be
determined based on the “Adjusted EBITDA” public guidance construction disclosed
to the investing community; 

     

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

     

     

    Adjusted Performance Goals for Performance Period

     

    (January 1, 2010 — December 31, 2012)

     

     

    
      	
               

               

            	
              Threshold

               

            	
              Target

               

            	
              Maximum

               

            
	
              Adjusted
      EBITDA+

            	
              $1.4 billion

            	
              $1.6 billion

            	
              $2.0 billion

            
	
              Payment
      Levels++

            	
              0%

            	
              100%

            	
              200%

            

    

     

     

    +
Calculated based on Adjusted EBITDA as determined for the fiscal years ending
December 31, 2010, December 31, 2011 and December 31, 2012.  

     

    ++Payment
levels will be based upon the Adjusted EBITDA and will be interpolated between
Adjusted EBITDA goals.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]