Document:

Third Amendment to the Dynegy Inc. Executive Severance Pay Plan

 Exhibit 10.17 
 THIRD AMENDMENT TO THE 
 DYNEGY INC. EXECUTIVE SEVERANCE PAY PLAN 
 WHEREAS, Dynegy Inc., an Illinois corporation (“Dynegy Illinois”) and certain subsidiaries and affiliated entities have heretofore
established and maintained the Dynegy Inc. Executive Severance Pay Plan (the “Executive Plan”); 
 WHEREAS, Dynegy Illinois
has heretofore amended and restated the Executive Plan, effective February 1, 2005, and has subsequently amended such amended and restated Executive Plan, on behalf of itself and all of its subsidiaries and affiliated entities that participate
in the Executive Plan; 
 WHEREAS, Dynegy Illinois has entered into that certain Plan of Merger, Contribution and Sale Agreement by
and among Dynegy Illinois, LSP GEN Investors, L.P., LS Power Partners, L.P., LS Power Equity Partners PIE I, L.P., LS Power Equity Partners, L.P., LS Power Associates, L.P., Falcon Merger Sub Co., and Dynegy Acquisition, Inc., executed
September 14, 2006 (the “Merger Agreement”); 
 WHEREAS, pursuant to the transactions contemplated in the Merger
Agreement, Dynegy Illinois will become a wholly-owned subsidiary of a newly-formed Delaware corporation, named “Dynegy Inc.” (“Dynegy Inc.”), and Dynegy Illinois will thereafter be renamed “Dynegy Illinois Inc.”, as of
the Effective Time specified in the Merger Agreement (the “Effective Time”); 
 WHEREAS, in connection with the completion
of such transactions, the Board of Directors of Dynegy Illinois and Dynegy Inc. have approved the adoption, assumption and sponsorship of the Plan by Dynegy Inc.; 
 WHEREAS, immediately after the Effective Time, Dynegy Illinois will withdraw as the sponsor of the Executive Plan and Dynegy Inc. will assume sponsorship of the Executive Plan; 
 WHEREAS, Article VI of the Executive Plan provides that Dynegy Illinois may amend the Executive Plan at any time; 
 NOW THEREFORE, the Executive Plan is hereby amended as follows: 
 1. Section I of the Executive Plan is hereby amended in its entirety to provide as follows, effective immediately after the Effective Time: 
 “Dynegy Inc., an Illinois corporation (‘Dynegy Illinois’), and its participating subsidiaries and affiliated entities
originally established the Dynegy Inc. Executive Severance Pay Plan effective as of November 7, 2001, to provide severance benefits for certain eligible employees whose employment is terminated involuntarily under certain conditions. Dynegy
Illinois amended such Plan in certain respects and restated it in the form of the 

 
Dynegy Inc. Executive Severance Pay Plan (the ‘Executive Plan’), as amended and restated effective February 1, 2005 (the ‘Effective
Date’); provided, however, that such amendment and restatement of the Executive Plan was not intended to amend or otherwise modify any supplement specifically referring to the Executive Plan that was effective as of the Effective Date and any
such supplement remained effective in accordance with its terms on and after the Effective Date. As of February 1, 2005, unless an employee is covered by an agreement or plan recognized and administered by the Company, the only Company
severance benefits for employees eligible to participate in the Executive Plan are those offered under the Executive Plan, as amended and restated February 1, 2005, together with any amendments thereto, and any supplement specifically referring
to the Executive Plan that is effective on or after February 1, 2005. 
 Dynegy Illinois has entered into that certain
Plan of Merger, Contribution and Sale Agreement by and among Dynegy Illinois, LSP GEN Investors, L.P., LS Power Partners, L.P., LS Power Equity Partners PIE I, L.P., LS Power Equity Partners, L.P., LS Power Associates, L.P., Falcon Merger Sub Co.,
and Dynegy Acquisition, Inc., executed September 14, 2006 (the ‘Merger Agreement’). Pursuant to the transactions contemplated in the Merger Agreement, Dynegy Illinois became a wholly-owned subsidiary of a newly-formed Delaware
corporation, named ‘Dynegy Inc. (‘Dynegy Inc.’), and Dynegy Illinois was thereafter renamed ‘Dynegy Illinois Inc.’, as of the Effective Time specified in the Merger Agreement (the ‘Effective Time’). 
 Effective immediately after the Effective Time, Dynegy Illinois withdrew as the sponsor of the Executive Plan and Dynegy Inc. adopted and
assumed the sponsorship of the Executive Plan. The term ‘Company’ shall include Dynegy Inc. and each of its subsidiaries and affiliated entities that participate in the Executive Plan. The participating subsidiaries and affiliated entities
are listed on Attachment A.” 
 2. The second paragraph of Section II.A. of the Executive Plan is hereby amended in its entirety to
provide as follows, effective immediately after the Effective Time: 
 “The Company, upon written approval of the Plan
Administrator, in its sole discretion, may grant participation eligibility due to an employment termination for additional reasons within the policy or guidelines of the Company and approved by the Executive Vice President, Administration of Dynegy
Inc., or the individual who, at the time in question, is the highest ranking officer over administration in Dynegy Inc.” 
  

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 3. The last sentence of the first paragraph of Section VI of the Executive Plan is hereby amended in its
entirety to provide as follows, effective immediately after the Effective Time: 
 “Any amendment to the Executive Plan
must be signed by the Executive Vice President, Administration of Dynegy Inc., or the individual who, at the time in question, is the highest ranking officer over administration in Dynegy Inc.” 
 4. Section IX of the Executive Plan is hereby amended in its entirety to provide as follows, effective immediately after the Effective Time: 

“The Executive Plan is a welfare benefit plan providing benefits from the general assets of the Company. Dynegy Inc. is the plan
sponsor. The Plan Year is from January 1 to the following December 31 of each year. The plan sponsor has assigned plan number 554 to the Executive Plan. The Employer identification number for Dynegy Inc. is 20-5653152. 
  

	 	A.	Plan Sponsor 

 Dynegy Inc. 
 1000 Louisiana Street, Suite 5800 
 Houston,
Texas 77002 
 (713) 507-6400 
  

	 	B.	Plan Administrator 

 Dynegy Inc. Benefit
Plans Committee 
 c/o Executive Vice President, Administration 
 Dynegy Inc. 
 1000 Louisiana Street, Suite 5800 
 Houston, Texas 77002 
 (713) 507-6400

  

	 	C.	Agent for Legal Service of Process 

 Dynegy
Inc. Benefit Plans Committee 
 c/o Executive Vice President, Administration 
 Dynegy Inc, 
 1000 Louisiana Street, Suite
5800 
 Houston, Texas 77002.” 
  

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 5. Except as modified herein, the Executive Plan shall remain in full force and effect. This Third
Amendment may be executed in multiple counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 
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 IN WITNESS WHEREOF, the undersigned has caused this Amendment to the Plan to be executed on the date
indicated below, to be effective immediately after the Effective Time. 
  

			
	 DYNEGY ILLINOIS INC.
 (formerly
known as Dynegy Inc.),
 an Illinois corporation

		
	By:	 	/s/ J. Kevin Blodgett
		
	Title:	 	Executive Vice President, Administration
		
	Date:	 	April 2, 2007

  

			
	Approved and accepted:
	
	 DYNEGY INC.,
 a Delaware
corporation

		
	By:	 	/s/ J. Kevin Blodgett
		
	Title:	 	Executive Vice President, Administration
		
	Date:	 	April 2, 2007

  

 5Second Amendment to the First Supplemental Plan to the Dynegy, Inc. Severance

 Exhibit 10.18 
 SECOND AMENDMENT TO THE 
 FIRST SUPPLEMENTAL PLAN TO THE 
 DYNEGY INC. SEVERANCE PAY PLAN 
 WHEREAS, Dynegy Inc., an Illinois corporation (“Dynegy Illinois”) and certain subsidiaries and affiliated entities have heretofore established the Dynegy Inc. Severance Pay Plan (the “Plan”); 
 WHEREAS, Dynegy Illinois has heretofore adopted the First Supplemental Plan to the Dynegy Inc. Severance Pay Plan (the “First
Supplement”) on behalf of itself and all of its subsidiaries and affiliated entities that participate in the Plan; 
 WHEREAS,
Dynegy Illinois has entered into that certain Plan of Merger, Contribution and Sale Agreement by and among Dynegy Illinois, LSP GEN Investors, L.P., LS Power Partners, L.P., LS Power Equity Partners PIE I, L.P., LS Power Equity Partners, L.P., LS
Power Associates, L.P., Falcon Merger Sub Co., and Dynegy Acquisition, Inc., executed September 14, 2006, (the “Merger Agreement”); 
 WHEREAS, pursuant to the transactions contemplated in the Merger Agreement, Dynegy Illinois will become a wholly-owned subsidiary of a newly formed Delaware corporation, named “Dynegy Inc.”, and Dynegy Illinois will
thereafter be renamed “Dynegy Illinois Inc.”, as of the Effective Time specified in the Merger Agreement (the “Effective Time”); 
 WHEREAS, after the completion of the transactions contemplated in the Merger Agreement, Dynegy Inc. will become the sponsor of the Plan and as a result, the “Change in Control” definition contained in
the Plan will be amended accordingly and such amended definition will be applicable with respect to events occurring after the Effective Time; 
 WHEREAS, the Compensation and Human Resources Committee of the Board of Directors of Dynegy Illinois desires to amend the First Supplement as follows; 
 NOW, THEREFORE, the First Supplement is hereby amended as follows, effective as provided below: 
 1.
Section I of the First Supplement is hereby amended by changing the definition of “Dynegy” to “Dynegy Inc., a Delaware corporation”, effective immediately after the Effective Time. 
 2. Section II.A of the First Supplement is hereby amended as follows, effective March 30, 2007: 
 “A. ‘Board’ shall mean the Board of Directors of Dynegy 
 3. Section II.B of the First Supplement is hereby amended in its entirety to provide as follows, effective immediately after the Effective Time:

 “B. ‘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 sixty percent (60%) or more of the votes then eligible to be cast in the election of directors
(or comparable governing body) of the resulting entity in substantially the same proportions that they owned the equity securities of Dynegy immediately prior to such event or (b) the persons who were members of the Board immediately prior to
such event do not constitute at least a majority of the board of directors of the resulting entity immediately after such event; (2) the dissolution or liquidation of Dynegy, but excluding a reorganization pursuant to chapter 11 of Title 11,
U.S. Code, as amended; (3) a circumstance where any person or entity, including a ‘group’ as contemplated by Section 13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without limitation, power to
vote) of more than twenty percent (20%) (which percentage shall be increased to forty percent (40%) in the case of ownership or control by Chevron Corporation or a ‘group’ of which Chevron Corporation is a part) of the combined
voting power of the outstanding securities of, (a) if Dynegy has not engaged in a merger or consolidation, Dynegy, or (b) if Dynegy has engaged in a merger or consolidation, the resulting entity; (4) circumstances where, as a result
of or in connection with, a contested election of directors, the persons who were members of the Board immediately before such election shall cease to constitute a majority of the Board; or (5) the Board (or the Compensation and Human Resources
Committee of the Board) adopts a resolution declaring that a Change in Control has occurred. For purposes of the ‘Change in Control’ definition, (a) ‘resulting entity’ in the context of an event that is a merger,
consolidation or sale of all or substantially all of the subject assets or equity interests shall mean the surviving entity (or acquiring entity in the case of an asset or equity interest sale), unless the surviving entity (or acquiring entity in
the case of an asset sale) is a subsidiary of another entity and the holders of common stock of Dynegy receive capital stock of such other entity in such transaction or event, in which event the resulting entity shall be such other entity, and
(b) subsequent to the consummation of a merger or consolidation that does not constitute a Change in Control, the term ‘Dynegy’ shall refer to the resulting entity and the term ‘Board’ shall refer to the board of directors
(or comparable 

  

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governing body) of the resulting entity. Notwithstanding the foregoing, for all stock option, restricted stock, phantom stock, performance unit and all other
equity-based awards, granted on or after April 2, 2007, the ‘Change in Control’ definitions contained in the instruments granting such awards shall be controlling and operative for all purposes of this First Supplemental Plan related
to such awards, including, but not limited to, Sections III(A)(3) and IV of the First Supplemental Plan.” 
 4. Section III(A)(3) of the
First Supplement is hereby amended in its entirety to provide as follows, effective March 30, 2007; provided, however, that the following amendment to Section III(A)(3) of the First Supplement, which is being adopted as a good faith effort to
comply with Internal Revenue Code Section 409A (“Section 409A”) and the regulations or other guidance promulgated thereunder, shall not apply with respect to the extension of the exercise period previously provided under Section
III(A)(3) of the First Supplement with respect to any existing stock options which qualify for any transition relief under regulations or other guidance issued by the Internal Revenue Service pursuant to Code Section 409A: 
 “(3) All of the Severed Participant’s outstanding stock options, restricted stock awards, phantom stock and other equity-based awards previously
granted by his Employer(s) shall become fully vested and immediately exercisable in full on the date of a Change in Control and such stock options shall remain exercisable from such date for the lesser of: (1) the mandatory exercise period
specified in the particular stock option agreements that would otherwise be triggered by the termination of such Severed Participant, provided, however, that such exercise period shall be extended to the maximum exercise extension period permitted
under Code section 409A and the regulations and guidance promulgated thereunder, not to exceed five (5) years from the date of such Change in Control, or (2) such period of time (which period of time may end as early as the consummation of
a Change in Control) as the Board of Directors may determine in connection with or in contemplation of a Change in Control in the exercise of its discretion under the applicable stock option plans, with respect to which the Board of Directors has
the discretion to, among other things, require the surrender of stock options (which surrender may be in exchange for a cash-payment, if applicable) and to cancel such stock options upon the consummation of a Change in Control as further described
in the applicable stock option plans;” 
 5. Section IV of the First Supplement is hereby amended in its entirety to provide as follows,
effective March 30, 2007: 
 “IV. Equity-Based Awards. Any outstanding stock options, restricted stock awards, phantom
stock and other equity-based 

  

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awards previously granted to a Participant shall immediately vest upon a Change in Control. If a Participant becomes a Severed Participant after his stock
options have vested under this Section IV, the stock option exercise provisions of Subsection III(A)(3) shall apply upon such Participant becoming a Severed Participant.” 
 6. Except as modified herein, the First Supplement shall remain in full force and effect. 
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 EXECUTED this 30th day of March, 2007. 
  

			
	DYNEGY INC.
		
	By:	 	 /s/ J. Kevin Blodgett

	Name:	 	J. Kevin Blodgett
	Title:	 	Executive Vice President – Administration

  

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