Document:

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                                                                   Exhibit 10(b)

                           TXU SALARY DEFERRAL PROGRAM

                     (As restated effective August 17, 2001)

Section 1. Purpose

     1.1  Purpose. The TXU Salary Deferral Program (the "Plan") was established,
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effective April 1, 1991, was amended as of April 1, 1998, and May 12, 2000, and
is hereby restated as of August 17, 2001. The primary purpose of the Plan is to
provide a mechanism for certain key employees of Participating Employers to
defer a portion of their Salary and Bonus, motivating key employees, and
recognizing the contributions of such employees to the Company as the Plan
sponsor. The Plan is designed as an unfunded arrangement maintained "primarily
for the purpose of providing deferred compensation for a select group of
management or highly compensated employees" as determined under the provisions
of the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA Section
201(2).

Section 2. Definitions

     2.1  Definitions. Whenever used herein, the following terms shall have the
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meanings set forth below:

     (a)  "Account" means the individual account maintained by the Company for
          each Participant for recording deferrals of Salary, Bonus and DICP
          Amounts made by each Participant in the Plan, Matching Awards made on
          behalf of each Participant in the Plan, and earnings on such Deferrals
          and Matching Awards.

     (b)  "Adjustment Date" means the last day of each calendar quarter and such
          other dates as the Committee in its discretion may prescribe.

     (c)  "Beneficiary" means the person or persons named by the Participant as
          the recipient(s) of any distribution remaining to be paid to the
          Participant under the Plan upon the Participant's death.

     (d)  "Board of Directors" means the Board of Directors of the Company.

     (e)  "Bonus" means the cash portion of any future bonus or incentive award
          paid by a Participating Employer to a Participant with respect to
          services to be performed by a Participant during a Plan Year under an
          incentive plan adopted by such Participating Employer.

     (f)  "Business Unit" means a subsidiary, division or operating unit of the
          Company designated by the Chief Executive of the Company which will
          focus on its own unique products, services and markets.

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     (g)  "Change in Control" means a change in control of the Company 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
          limitation, such a change in control shall be deemed to have occurred
          if: (i) any Person is or becomes the beneficial owner (as defined in
          Rule 13-d3 under the Exchange Act), directly or indirectly, of
          securities of the Company representing 20% or more of the combined
          voting power of the Company's then outstanding securities ordinarily
          (apart from rights accruing under special circumstances) having the
          right to vote at elections of directors ("Voting Securities"); or (ii)
          individuals who constitute the Board of Directors on the date hereof
          (the "Incumbent Board") cease for any reason to constitute at least a
          majority thereof, provided that any person becoming a director
          subsequent to the date hereof whose election, or nomination for
          election by the Company's shareholders, was approved by a vote of at
          least three-quarters of the directors comprising the Incumbent Board
          (either by a specific vote or by approval of the proxy statement of
          the Company 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; or (iii) a recapitalization of the Company 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%; or (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 other business combination transaction pursuant to
          which the Company is not the surviving ultimate parent entity; or (vi)
          the Company is a party to a merger, consolidation, reorganization or
          other business combination transaction which requires the approval of
          the shareholders of the Company and which results in an increase of
          20% or more in the number of Voting Securities outstanding. 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 the Company, a subsidiary of the Company or any employee
          benefit plan(s) sponsored or maintained by the Company or any
          subsidiary thereof, and the term "Independent

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          Shareholder" shall mean any shareholder of the Company except any
          employee(s) or director(s) of the Company or any employee benefit
          plan(s) sponsored or maintained by the Company or any subsidiary
          thereof.

     (h)  "Code" means the Internal Revenue Code of 1986, as amended from time
          to time.

     (i)  "Committee" means the Salary Deferral Program Administrative Committee
          whose members are appointed from time to time by the Board of
          Directors or the Chief Executive of the Company.

     (j)  "Company" means TXU Corp., its successors and assigns.

     (k)  "Deferral" means the deferral of Salary, Bonus and/or DICP Amounts
          under this Plan as provided for in Section 4 hereof.

     (l)  "Deferral Period" means the period of deferral, beginning with the
          first day of the applicable Plan Year, which shall be seven years for
          the Seven Year Option and which shall be the period ending with
          Retirement for the Retirement Option. Notwithstanding the foregoing,
          the Deferral Period shall end on the date of death, Disability, or
          termination of employment and, to the extent that amounts otherwise
          eligible for distribution under this Plan combined with the
          Participant's other remuneration exceeds the Applicable Employee
          Remuneration for such year, and subject to the subsequent Transition
          Provision, the Deferral Period for such excess amount shall end with
          Retirement or such earlier date as of which such amounts, or any part
          thereof, combined with other remuneration does not exceed the
          Applicable Employee Remuneration. For purposes of this definition,
          "Applicable Employee Remuneration" means applicable employee
          remuneration as that term is defined in Section 162(m), or any
          successor provision, of the Code. Transition Provision:
          Notwithstanding any other provisions contained herein, the Deferral
          Period for amounts subject to an Election made for periods prior to
          April 1, 1995, shall be the Deferral Period applicable at the time of
          the Election.

     (m)  "DICP" means the TXU Deferred and Incentive Compensation Plan, as it
          may be amended from time to time.

     (n)  "DICP Amounts" means amounts which would mature and be distributed
          under the DICP and which may be deferred hereunder in the manner and
          subject to the provisions prescribed herein.

     (o)  "Disability" shall have the meaning given to it under the TXU
          Long-Term Disability Income Plan.

     (p)  "Early Retirement" means Retirement at age fifty-five or later but
          prior to Normal Retirement.

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     (q)  "Eligible Employee" means, for Plan Years beginning on or before April
          1, 2001, an employee of a Participating Employer whose Salary as of
          January 1, 1991, is $80,000 or more such threshold amount to be
          indexed as of January 1 of each subsequent year is consistent with the
          Consumer Price Index for such year. For Plan years beginning on or
          after January 1, 2002, "Eligible Employee" shall mean an employee of a
          Participating Employer whose Salary, as of October 1 of the previous
          year, meets or exceeds a threshold Salary level (which shall not be
          less than $100,000) established by the Plan Administrator for each
          Plan Year based on such factors as the Plan Administrator deems
          appropriate.

     (r)  "Matching Award" means contributions made by the Participating
          Employers pursuant to Section 5.1 herein.

     (s)  "Normal Retirement" means Retirement at age sixty-two or later.

     (t)  "Participant" means an Eligible Employee who elects to participate in
          the Plan and whose Account(s) has not been completely distributed.

     (u)  "Participating Employer" means the Company and each of its
          subsidiaries, affiliates or Business Units which are approved by the
          Committee for participation in this Plan. The Participating Employers,
          as of the date of the restatement of this Plan, are listed on Exhibit
          "A" attached hereto. Participation in the Plan by additional
          Participating Employers will commence as of the beginning of the Plan
          Year following Committee approval of such participation.

     (v)  "Plan Administrator" means the person(s) or entities appointed by the
          Committee to assist in carrying out the operation of the Plan.

     (w)  "Plan Year" means, with respect to Plan Years beginning on or prior to
          April 1, 2001, the twelve-month period beginning April 1 and ending
          March 31; provided that, beginning January 1, 2002, Plan Year shall
          mean the twelve-month period beginning January 1 and ending December
          31. A special transition rule shall apply to the Plan Years beginning
          April 1, 2001 and January 1, 2002, as described in Section 3.2 hereof.

     (x)  "Rate" means the earnings rate to be applied to certain Deferrals and
          Matching Awards under Section 6.2 and pursuant to Section 9.1 hereof
          for the Deferral Period which shall be the greater of: (i) the actual
          earnings rate, as determined by the Trustee, for assets held in Trust
          under the Seven-Year Option and invested in accordance with the
          provisions of Section 6.2; and (ii) the Alternative Rate. The term
          "Alternative Rate" shall mean the average earnings rate, as determined
          by the Trustee, of

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          interest rates payable on Treasury Notes of the United States
          Government with a maturity period of ten years. Income credited under
          the Alternative Rate shall be determined by multiplying the
          Alternative Rate for the Plan Year within the Deferral Period times
          the average balance in the Account for such Plan Year, including
          income earned for prior periods. Income on all Accounts under the Plan
          shall be deemed to have been earned on a consistent basis.

     (y)  "Retirement" means retirement from a Participating Employer upon
          attaining age 65, or as early as attaining age 55 with at least 15
          years of accredited service, under the TXU Retirement Plan, or a
          successor plan.

     (z)  "Retirement Option" means the option to defer receipt of certain
          amounts of Salary, Bonus and/or DICP Amounts until Retirement.

     (aa) "Salary" means the annualized rate of normal base pay earnings, prior
          to any deferrals, of an Employee exclusive of overtime, bonuses or any
          fringe benefits.

     (bb) "Seven Year Option" means the option to defer receipt of certain
          amounts of Salary, Bonus and/or DICP Amounts for seven years.

     (cc) "Trust" means the trust established by the Company to assist it in
          meeting its obligations under the Plan.

     (dd) "Trustee" means the trustee appointed by the Committee to hold assets
          of the Plan.

     (ee) "Vesting Period" means the period beginning with the date of the
          beginning of the Plan Year of deferral and ending with the end of the
          seventh Plan Year.

Section 3. Deferral Eligibility and Participation

     3.1  Eligibility. An Eligible Employee shall be eligible to participate in
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the Plan as of the date that he satisfies the eligibility requirements set forth
herein. All Eligible Employees will be given the opportunity, annually during an
election period prior to the beginning of a Plan Year, to participate in the
Plan during such Plan Year. Different annual election periods may apply to
Deferrals of Salary and Bonus, on the one hand, and DICP Amounts, on the other
hand. Individuals who first become Eligible Employees during the Plan Year shall
be notified of their eligibility and shall be given the opportunity, during the
thirty (30) day period following such notification, to participate in the Plan
for the remainder of such Plan Year. Elections with regard to participation
during a Plan Year shall be irrevocable.

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     3.2  Special Transition Rule for Plan Years Beginning April 1, 2001 and
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          January 1, 2002.
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The following special transition rule shall apply for the Plan Years beginning
April 1, 2001 and January 1, 2002. The Plan Year beginning April 1, 2001 shall
continue for the full twelve-month period ending March 31, 2002, and deferral
elections for such Plan Year shall continue in effect through its expiration on
March 31, 2002. For the period beginning January 1, 2002 through March 31, 2002,
the Plan Year beginning April 1, 2001 shall run concurrently with the Plan Year
beginning January 1, 2002, and, during such period, Eligible Employees may elect
to participate concurrently under both the Plan Year beginning April 1, 2001 and
the Plan Year beginning January 1, 2002. Alternatively, Eligible Employees may
choose to have their deferral elections for the Plan Year beginning January 1,
2002, begin on April 1, 2002, and end on December 31, 2002. The elections with
respect to such transition rule shall be made at the time elections are made
with respect to the Plan Year beginning January 1, 2002.

     3.3  Participation. All Eligible Employees may elect to participate in this
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Plan, and defer Salary, Bonus and/or DICP Amounts, in the manner prescribed in
Section 4.1 below.

Section 4. Election to Defer

     4.1  Deferral Election. An Eligible Employee may elect, irrevocably, by
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written notice to the Plan Administrator on an election form, at the time(s),
and in the manner prescribed by the Plan Administrator, to make Deferrals during
the Plan Year of a percentage of Salary and/or Bonus, under the Retirement
Option, the Seven Year Option, or a combination thereof, in one percent (1%)
increments, up to a maximum of fifty percent (50%) of Salary and one hundred
percent (100%) of Bonus. Additionally, an Eligible Employee may elect,
irrevocably, by written notice to the Plan Administrator on an election form, at
the time(s), and in the manner prescribed by the Plan Administrator, to make
DICP Deferrals under the Retirement Option, the Seven Year Option, or a
combination thereof, in one percent (1%) increments up to a maximum of one
hundred percent (100%) of DICP Amounts; provided that such DICP Deferral
election is made at least twelve months prior to the date that such amounts
would otherwise mature under the DICP.

     4.2  Salary Deferrals. Salary deferred under the Plan will be ratably
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deducted in each pay period during the Plan Year.

     4.3  Bonus Deferrals. Bonus deferred under the Plan will be deferred at the
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time that the Bonus would otherwise have been paid.

     4.4  Deferrals of DICP Amounts. Amounts which would otherwise mature under
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the DICP but are deferred hereunder, will be deferred immediately prior to the
time that such amounts would otherwise mature under the terms of the DICP.

Section 5. Matching Awards, Vesting, and Forfeitures.

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     5.1  Matching Awards. Each Participating Employer shall contribute to the
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Account of each Participant employed by such Participating Employer, as a
Matching Award, an amount equal to one hundred percent (100%) of the
Participant's Salary Deferral up to a maximum Salary Deferral of eight percent
(8%). Such contribution shall be credited at the time of the crediting of the
Salary Deferral amount to be matched. Notwithstanding the foregoing, Eligible
Employees who first become eligible to participate in the DICP for a DICP plan
year beginning on or after April 1, 2002, as well as Eligible Employees who were
eligible for, but were not participating in, the DICP on January 1, 2002, shall
be entitled to receive the Matching Awards provided for under the terms of the
DICP, but shall not be eligible to receive Matching Awards hereunder while they
are eligible to participate in the DICP.

     5.2  Vesting. Subject to the forfeiture provisions of Section 5.3, a
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Participant shall at all times be one hundred percent (100%) vested in the
Participant's Salary Deferrals, Bonus Deferrals, DICP Deferrals and all earnings
thereon. A Participant shall be one hundred percent (100%) vested in the
Participant's Matching Awards, and on income earned on such Matching Awards at
the end of the Vesting Period. Notwithstanding any other provision of this Plan,
a Participant's Account shall become one hundred percent (100%) vested upon the
Participant's Normal Retirement, death, or Disability regardless of the
applicable Vesting Period.

     5.3  Forfeitures. The following amounts shall be forfeited from a
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Participant's Account as of the date upon which the forfeiture is created:

     (a)  Seven Year Option Forfeitures.
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          (1)  Early Retirement. An amount equal to four percent (4%) of the
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               portion of the Participant's Account balance relating to Matching
               Awards and earnings thereon, and Salary Deferrals subject to
               Matching Awards and earnings thereon, for each full year
               Retirement occurs prior to Normal Retirement shall be forfeited.

          (2)  Termination for other than Death, Disability or Retirement. If
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               termination of service with the Company occurs for reasons other
               than death, Disability, or Retirement, Matching Awards and all
               earnings thereon shall be forfeited.

     (b)  Retirement Option Forfeitures.
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          (1)  Early Retirement. An amount equal to four percent (4%) of the
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               Participant's Account balance relating to non-vested Matching
               Awards and earnings thereon, and Salary Deferrals subject to
               Matching Awards and earnings thereon, for each full year
               Retirement occurs prior to Normal Retirement shall be forfeited.

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          (2)  Termination for other than Death, Disability or Retirement. If
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               termination of service with the Company occurs for reasons other
               than death, Disability, or Retirement, Matching Awards and all
               earnings thereon for Plan Years which are nonvested, shall be
               forfeited.

Section 6. Investments and Earnings

     6.1  Investments and Earnings For Deferrals and Matching Awards After April
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1, 1998. With respect to Salary and Bonus Deferrals and Matching Awards made
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from and after April 1, 1998, and DICP Amounts deferred hereunder, the amount
credited to a Participant's Account shall be adjusted as of each Adjustment Date
to reflect such gain, loss and/or expenses incurred based on the experience of
the investments selected by the Participant prior to the date prescribed by the
Committee for the investment of his or her Account and taking into account
additional Deferrals credited to and distributions made from such Account since
the last Adjustment Date. The Committee shall have sole and absolute discretion
with respect to the number and type of investment choices made available for
selection by Participants, the timing and manner of Participant investment
elections and the method by which adjustments are made. The designation of
investment choices by the Committee shall be for the sole purpose of adjusting
Accounts pursuant to this Section and this provision shall not obligate the
Participating Employers to invest or set aside any assets for the payment of
benefits hereunder; provided, however, that a Participating Employer may invest
a portion of its general assets in investments, including investments which are
the same as or similar to the investment choices designated by the Committee and
selected by Participants, but any such investments shall remain part of the
general assets of such Participating Employer and shall not be deemed or
construed to grant a property interest of any kind to any Participant,
designated beneficiary or estate. The Committee shall notify the Participants of
the investment choices available and the procedures for making and changing
investment elections.

     6.2  Investments and Earnings For Deferrals and Matching Awards Made Prior
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to April 1, 1998. The Trustee shall continue to invest Salary Deferrals and
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Matching Awards made prior to April 1, 1998 under the Seven Year Option,
together with all earnings on such Salary Deferrals and Matching Awards, in a
fixed income fund of investment grade securities under investment guidelines
established by the Committee. The Trustee shall continue to invest all other
contributions to Participants' Accounts made prior to April 1, 1998 in a manner
consistent with investment guidelines established by the Committee. At the time
of distribution of the portion of Accounts attributable to Salary Deferrals and
Matching Awards made prior to April 1, 1998, Participants will receive their
Account balances relating to such pre-April 1, 1998 Salary Deferrals and
Matching Awards, including income determined by applying the Rate.

Section 7. Participant Accounts

     7.1  Separate Accounts. The Plan Administrator shall establish and maintain
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separate individual Accounts for each Participant for deferrals of Salary, Bonus
and DICP Amounts, Matching Awards and earnings thereon for each Plan Year.

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     7.2  Unsecured Interest. No Participant or Beneficiary shall have any
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security interest whatsoever in any assets of the Company or any Participating
Employer. To the extent that any person acquires a right to receive payments
under the Plan, such right shall not be secured or represented by any assets of
the Company or any Participating Employer.

Section 8. Distribution of Accounts

     8.1  Value of Participant's Accounts.
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          (a)  Deferrals and Matching Awards Made On or After April 1, 1998. The
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               value of the portion of a Participant's Account relating to
               Salary and Bonus Deferrals and Matching Awards made on or after
               April 1, 1998, and deferrals of DICP Amounts, shall be determined
               based upon the amount credited to such Account as of the most
               recent Adjustment Date plus any Deferrals and Matching Awards
               credited to such Account since such Adjustment Date.

          (b)  Deferrals and Matching Awards Made Prior to April 1, 1998. The
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               value of the portion of a Participant's Account relating to
               Salary Deferrals and Matching Awards made prior to April 1, 1998
               shall be determined as of the last day of the applicable Deferral
               Period, or, if earlier, at termination of employment.

          (c)  Reduction of Accounts Upon Distributions and Forfeitures. The
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               amount of each distribution made with respect to an Account and
               any forfeiture amounts applied pursuant to Section 5.3 shall be
               deducted from the balance credited to such Account at the time of
               distribution or forfeiture.

     8.2  Form and Timing of Distribution. The value of the Participant's
          -------------------------------
Accounts at distribution shall be paid in cash, as follows:

          (a)  Seven-Year Option - in a lump-sum distribution as soon as
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               practicable after the end of the Deferral Period or, if earlier,
               termination of employment, but in no event later than sixty days
               following such date. No interest shall accrue or be paid for the
               period from the end of the Deferral Period until distribution.

          (b)  Retirement Option -
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               (i)  If Participant Retires - in annual installments over the
                    ----------------------
                    period certain selected by the Participant from one to ten
                    years, or fifteen years, or twenty years, commencing in the
                    year after, but in any event at least twelve months
                    following the date of Retirement. With respect to the
                    portion of the Participant's Account relating to Salary and
                    Bonus Deferrals and Matching Awards made on or after

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                    April 1, 1998 and DICP Amounts, the Participant shall have a
                    one-time, irrevocable election prior to the commencement of
                    such installments to have such installments paid: (1) on a
                    fixed annuity basis using a fixed annuity rate of return
                    determined by the Committee ("Fixed Annuity"); or (2) on a
                    variable annuity basis taking into consideration the
                    earnings and losses credited to the Participant's Account as
                    a result of the investment return tracking elections made by
                    the Participant during the annuity period ("Variable
                    Annuity"); or (3) a combination of a Fixed Annuity and a
                    Variable Annuity as selected by the Participant in 1%
                    increments. With respect to the portion of the Participant's
                    Account relating to Salary Deferrals and Matching Awards
                    made prior to April 1, 1998, such installments shall be in a
                    fixed amount which shall amortize the value of such portion
                    of the Participant's Account over twenty annual installments
                    using the Rate as a projected earnings rate of return. In
                    the event of the death of a Participant or Beneficiary
                    during the distribution period, the Plan Administrator may
                    direct that the remainder of the Account be distributed to
                    the estate of the Participant or Beneficiary in a lump-sum
                    distribution as soon as practicable after death occurs.

               (ii) If Participant Terminates - in a lump-sum distribution as
                    -------------------------
                    soon as practicable after termination occurs but in no event
                    later than sixty days following such date. No interest shall
                    accrue or be paid for the period from the date of
                    termination until distribution.

Section 9. Certain Elections for Pre-April 1, 1998 Participants

     9.1 Election to Continue Under Prior Plan Provisions. Notwithstanding
         ------------------------------------------------
anything herein to the contrary, Eligible Employees who, as of March 31, 1998,
were Participants in this Plan will be given the opportunity, pursuant to a
one-time, irrevocable written election, to have certain Plan provisions relating
to permitted Deferrals, Matching Awards and investments which were in effect
immediately prior to the effective date of the restatement of this Plan and are
described in Exhibit "B" attached hereto and incorporated herein by reference
(the "Prior Plan Provisions") apply with respect to their future Plan
participation. Such election shall be made at the time and on an election form
prescribed by the Committee.

     9.2 Election for Investment of Pre-April 1, 1998 Deferrals and Matching
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Awards. Notwithstanding anything herein to the contrary, Eligible Employees who,
------
as of March 31, 1998, were Participants in this Plan and who do not make the
election provided for in Section 9.1 to have the Prior Plan Provisions apply to
their future Plan participation, will be given the opportunity, pursuant to a
one-time, irrevocable written election, to have the investment

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provisions set forth in Section 6.1 and the valuation provisions set forth in
Section 8.1(a) apply to the entirety of their Account, including Salary
Deferrals and Matching Awards made prior to April 1, 1998. Such election shall
be made at the time and on an election form prescribed by the Committee. The
Account of each Participant who makes such election shall be valued as of March
31, 1998 using the actual rate of return of such Account assets in accordance
with the investment provisions of Section 6.2. From and after April 1, 1998, the
provisions of Sections 6.2 and 8.1(b) shall not apply to any portion of their
Account. Furthermore, the rate of return calculated under Section 8.2(b) shall,
with respect to the Participant's entire Account, be the actual rate of return
credited to the Participant's Account as of the Adjustment Date in accordance
with Section 6.1.

Section 10. Nontransferability

     10.1 Nontransferability. In no event shall the Company or any Participating
          ------------------
Employer make any distribution or payment under this Plan to any assignee or
creditor of a Participant or a Beneficiary. Prior to the time of a distribution
or payment hereunder, a Participant or a Beneficiary shall have no right by way
of anticipation or otherwise to assign or otherwise dispose of any interest
under this Plan.

Section 11. Designation of Beneficiaries

     11.1 Specified Beneficiary. A Participant shall designate a Beneficiary or
          ---------------------
Beneficiaries who, upon the Participant's death are to receive the amounts that
otherwise would have been paid to the Participant. All Beneficiary designations
shall be in writing and signed by the Participant, and shall be effective only
if and when delivered to the Plan Administrator during the lifetime of the
Participant. A Participant may, from time to time during his lifetime, change
his Beneficiary or Beneficiaries by a signed, written instrument delivered to
the Plan Administrator. The payment of amounts shall be in accordance with the
last unrevoked written designation of the Beneficiary that has been signed and
so delivered.

     11.2 Estate as Beneficiary. If a Participant designates a Beneficiary
          ---------------------
without providing in the designation that the Beneficiary must be living at the
time of each distribution, the designation shall vest in the Beneficiary all of
the distributions whether payable before or after the Beneficiary's death, and
any distributions remaining upon the Beneficiary's death shall be made to the
Beneficiary's estate. In the event a Participant shall not designate a
Beneficiary or Beneficiaries, or if, for any reason, such designation shall be
ineffective, in whole or in part, as determined solely in the discretion of the
Plan Administrator, the distribution that otherwise would have been paid to such
Participant shall be paid to the Participant's estate.

Section 12. Rights of Participants

     12.1 Employment. Nothing in the Plan shall alter or interfere in any way
          ----------
with the employment relationship between Participants and Participating
Employers, nor limit in any way the right of the Company or any Participating
Employer to terminate any Participant's employment at any time. This Plan shall
not confer upon any Participant any right to continue in the employ of the
Company or any Participating Employer.

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Section 13. Administration

     13.1 Administration. The Committee shall be responsible for the
          --------------
administration of the Plan. The Committee is authorized, in its sole discretion,
to interpret the Plan, to prescribe, amend, and rescind rules and regulations
relating to the Plan, provide for conditions and assurances deemed necessary or
advisable to protect the interests of the Company, and to make all other
determinations necessary or advisable for the administration of the Plan. The
determination of the Committee, interpretation or other action made or taken
pursuant to the provisions of the Plan, shall be final and shall be binding and
conclusive for all purposes and upon all persons whomsoever. The Committee shall
appoint a Plan Administrator to assist in carrying out the operations of the
Plan and a Trustee of the Trust to accompany the Plan.

     13.2 Annual Reports. The Plan Administrator shall render annually a written
          --------------
report to each Participant which shall set forth, at a minimum, the
Participant's Account balances as of the end of the most recent Plan Year.

Section 14. Amendment or Termination of the Plan

     14.1 Amendment or Termination of the Plan. The Board of Directors may
          ------------------------------------
amend, terminate, or suspend the Plan at any time. Any such amendment,
termination, or suspension of the Plan shall be effective on such date as the
Board of Directors may determine. An amendment or modification of the Plan may
affect Participants at the time thereof as well as future Participants, but no
amendment or modification of the Plan for any reason may diminish any
Participant's Accounts as of the effective date thereof. As soon as practical,
but in no event more than fifteen (15) days following Plan termination, the
Participating Employers shall make irrevocable contributions to the Trust in an
aggregate amount, as determined by the Committee, which when added to the total
value of the assets of the Trust at such time equals the total amount credited
to all Accounts as of the date of Plan termination. Each Participant shall
receive, as soon as practical after Plan termination, but in any event within
thirty (30) days following Plan termination, a lump sum distribution of his
Account based on the value of his Account as of the date of Plan termination.

Section 15. Corporate Changes

     15.1 Dissolution or Liquidation. Notwithstanding any provision herein to
          --------------------------
the contrary, upon the dissolution or liquidation of the Company, the
Participants' Accounts shall vest as of the day preceding the date of
dissolution or liquidation and shall not be subject to the forfeiture provisions
of this Plan. The Company shall cause the full amount of each Participant's
Account to be paid in cash in a lump sum to the Participant, or his Beneficiary,
as soon as is practicable, but in no event later than sixty days following the
date of dissolution or liquidation.

     15.2 Change in Control. Notwithstanding anything in this Plan to the
          -----------------
contrary, in the event of a Change in Control: (i) the Participants' Accounts
shall vest as of the day immediately preceding the date of such Change in
Control and shall not be subject to the forfeiture provisions of this Plan, and
(ii) the Participating Employers shall, as soon as possible, but in any event
within thirty (30) days, following such Change in Control, make irrevocable
contributions to the

                                       12

<PAGE>

Trust in an aggregate amount which, when added to the total value of the assets
of the Trust at such time, equals the total amount credited to all Accounts as
of the date of such Change in Control. Thereafter, the Participating Employers
shall make monthly contributions to the Trust in aggregate amounts sufficient to
maintain the total value of Trust assets at an amount equal to the total amount
credited to all Accounts. Notwithstanding any provision of this Plan to the
contrary, no action taken on or within two years following such Change in
Control to amend or terminate this Plan shall be effective unless written
consent thereto is obtained from a majority of the Participants.

Section 16. Requirements of Law

     16.1 Governing Law. The Plan, and all agreements hereunder, shall be
          -------------
construed in accordance with and governed by the laws of the State of Texas.

Section 17. Withholding Taxes

     17.1 Withholding Taxes. The Company shall have the right to deduct from all
          -----------------
cash payments under the Plan or from a Participant's compensation an amount
necessary to satisfy any federal, state, or local withholding tax requirements.

Section 18. Investment and Funding

     18.1 Trust. The benefits to be derived by Participants in the Plan will be
          -----
funded through the Trust, provided, however, that any assets held by the Trust
shall at all times be subject to the claims of judgment creditors of the
Company.

     18.2 Funding of Trust. With respect to Deferrals made under the Seven Year
          ----------------
Option, the Participating Employers shall, promptly after Deferrals are credited
to Participants' Accounts, provide the Trust with resources in amounts equal to
the amounts of such Deferrals. With respect to Deferrals made under the
Retirement Option, the Participating Employers shall fund the Trust through the
purchase of corporate owned life insurance or such other Trust assets as may be
determined by the Committee from time to time.

     18.3 Distributions from Trust. If Trust assets allocated to any
          ------------------------
Participant's Account for a Plan Year are less than the amount required to
affect a distribution to such Participant provided for in this Plan, the
applicable Participating Employer will pay such difference either through the
Trust or directly to the Participant. If, after all obligations to Participants
hereunder have been fully satisfied, there remain assets in the Trust, such
excess amounts shall be returned to the Company.

     18.4 Funding and Distribution Requirements Under Certain Circumstances. The
          -----------------------------------------------------------------
provisions of this Section 18 shall be subject to (and, if deemed to be
contradicting, overridden by) the provisions of Section 15 of this Plan.

                                       13

<PAGE>

             EXECUTED effective as of the 17th day of August, 2001.

                                    TXU CORP.

                                    By: /s/ Peter B. Tinkham
                                        -------------------------------------
                                           Peter B. Tinkham,
                                           Secretary and Assistant Treasurer

                                       14

<PAGE>

                                   EXHIBIT "A"

                             PARTICIPATING EMPLOYERS
                              As of August 17, 2001

                                    TXU Corp.
                          TXU Energy Industries Company
                              TXU Electric Company
                                 TXU Gas Company
                                TXU Fuel Company
                               TXU Mining Company
                          TXU Business Services Company
                                TXU SESCO Company
                             TXU Properties Company
                              Basic Resources Inc.
                              Chaco Energy Company

                             PARTICIPATING EMPLOYERS
                              As of January 1, 2002

           TXU Corp. and each of its direct and indirect United States
                       subsidiary companies other than TXU
                  Communications Ventures Company ("Ventures")
                        and the subsidiaries of Ventures

<PAGE>

                                   EXHIBIT "B"

                              Prior Plan Provisions

     The following provisions shall apply to all future Plan participation of
Participants who make the one-time irrevocable election to continue to be
governed by the Prior Plan Provisions in Section 9.1 of the Plan:

     1.   Deferral Election. The Participant may elect, irrevocably, by written
          -----------------
notice to the Plan Administrator on an election form and in the manner
prescribed by the Plan Administrator, to defer a percentage of Salary, in one
percent (1%) increments not to exceed a maximum of ten percent (10%), during
each Plan Year, in the Retirement Option, the Seven Year Option, or a
combination thereof. Deferrals of Bonus shall not be permitted.

     2.   Matching Awards. The Company shall contribute to each Participant's
          ---------------
Account, as a Matching Award, an amount equal to one hundred percent (100%) of
the amount of Salary deferred by the Participant. Such contribution shall be
credited at the time of the crediting of the Salary Deferral amount to be
matched.

     3.   Investments, Earnings and Valuation.
          -----------------------------------

          (a)  The Trustee shall invest, as soon as administratively feasible,
               all contributions received for Accounts held in Trust under the
               Seven Year Option of the Plan in a fixed income fund of
               investment grade securities under investment guidelines
               established by the Committee. Interest received on the
               investments shall be reinvested in such fund. All other
               contributions shall be invested in accordance with investment
               guidelines established by the Committee.

          (b)  At the time of distribution, the Participant will receive his
               Account balance including income determined by applying the Rate.

          (c)  The total of all assets held by the Trustee for Accounts held in
               Trust will be deemed held in an unsegregated fund for valuation
               purposes. Each month the Trustee shall determine the value of
               each unit by dividing the current value of the fund by the total
               number of units held in all such Accounts. The value of Accounts
               held in Trust under the Retirement Option of the Plan shall be
               determined in the same manner as amounts deferred under the Seven
               Year Option of the Plan.

     4.   Forfeitures. The following provisions shall apply with respect to
          -----------
forfeitures in lieu of the provisions of Section 5.3 of the Plan. The amounts
described below shall be forfeited from an Account as of the date upon which the
forfeiture is created:

<PAGE>

          (a)  Seven Year Option Forfeitures.
               -----------------------------

               (i)  Early Retirement. An amount equal to four percent (4%) of
                    ----------------
                    the total Account balance for each full year Retirement
                    occurs prior to Normal Retirement shall be forfeited.

               (ii) Termination for other than Death, Disability or Retirement.
                    ----------------------------------------------------------
                    If termination of service with the Company occurs for
                    reasons other than death, Disability, or Retirement, income
                    on and contributions to the Matching Account shall be
                    forfeited and income in excess of six percent (6%) per annum
                    credited to Salary Deferrals shall be forfeited.

          (b)  Retirement Option Forfeitures.
               -----------------------------

               (i)  Early Retirement. An amount equal to four percent (4%) of
                    ----------------
                    the total Account balance for all non-vested Plan Years for
                    each full year Retirement occurs prior to Normal Retirement
                    shall be forfeited.

               (ii) Termination for other than Death, Disability or Retirement.
                    ----------------------------------------------------------
                    If termination of service with the Company occurs for
                    reasons other than death, Disability, or Retirement, income
                    earned on and contributions to the Matching Account, for
                    Plan Years which are nonvested, shall be forfeited and
                    income in excess of six percent (6%) per annum credited to
                    Salary Deferrals shall be forfeited for all nonvested Plan
                    Years.

     5.   Value of a Participant's Account. The cash value of a Participant's
          --------------------------------
Account shall be determined as of the last day of the applicable Deferral
Period, or, if earlier, at termination of employment.

     6.   Form and Timing of Distributions. The following provisions shall apply
          --------------------------------
with respect to the form and timing of distributions in lieu of Section 8.2 of
the Plan. The value of a Participant's Account at distribution shall be paid in
cash as follows:

          (a)  Seven-Year Option - in a lump-sum distribution as soon as
               -----------------
               practicable after the end of the Deferral Period or, if earlier,
               termination of employment, but in no event later than sixty days
               following such date. No interest shall accrue or be paid for the
               period from the end of the Deferral Period until distribution.

          (b)  Retirement Option -
               -----------------

               (i)  If Participant Retires - in twenty annual installments
                    ----------------------
                    beginning twelve months after the date of such

<PAGE>

                    Retirement. Such installments shall be in a fixed amount
                    which shall amortize the value of the Participant's Account
                    over twenty annual installments using the Rate as a
                    projected earnings rate of return. In the event of the death
                    of the Participant or Beneficiary during the distribution
                    period, the Plan Administrator may direct that the remainder
                    of the Account be distributed to the estate of the
                    Participant or Beneficiary in a lump-sum distribution as
                    soon as practicable after death occurs.

               (ii) If Participant Terminates - in a lump-sum distribution as
                    -------------------------
                    soon as practicable after termination occurs but in no event
                    later than sixty days following such date. No interest shall
                    accrue or be paid for the period from the date of
                    termination until distribution.

     7. Certain Inapplicable Provisions. The provisions of Sections 3.3, 4.1,
        -------------------------------
4.3, 5.1, 5.3, 6.1 and 8.1(a) of the Plan shall not apply and shall be of no
force or effect with respect to any portion of the Participant's Account or his
prior or future Plan participation. All of the remaining provisions of the Plan
shall remain in full force and effect.

<PAGE>

                                       TXU

                             Salary Deferral Program

This document constitutes part of a prospectus covering securities that have
been registered under the Securities Act of 1933.

August 17, 2001<PAGE>

                                                                   Exhibit 10(c)

                                      TXU

                       SECOND SUPPLEMENTAL RETIREMENT PLAN

         (As amended and restated effective as of August 17, 2001)

                                   ARTICLE ONE

                              Purposes of the Plan
                              --------------------

     1.1  The TXU Second Supplemental Retirement Plan ("Plan") is a restatement
and amendment of the TXU Supplemental Retirement Plan (the "First Plan") which
was initially established, effective January 1, 1983, was amended and restated
effective as of January 1, 1995, August 11, 1998, May 12, 2000, and is hereby
restated effective August 17, 2001. The principal purpose of the Plan is to
provide benefits, not otherwise provided by the First Plan, for Participants in
excess of the limitations on contributions and benefits imposed by relevant
provisions of the Internal Revenue Code of 1986, as amended (the "Code"), on
qualified defined benefit plans.

     1.2  The Plan is established for the benefit of Participants as an unfunded
compensation arrangement; provided, however, Supplemental Retirement Benefits
for Eligible Participants shall be provided, in whole or in part, under the
Trust Agreement for Participants who are eligible to receive Supplemental
Retirement Benefits under the Trust Agreement, and shall be provided under the
Second Trust Agreement for all other Participants and for Eligible Participants,
to the extent such Supplemental Retirement Benefits are not payable under the
Trust Agreement. Any Supplemental Retirement Benefit not paid under the Trust
Agreement or the Second Trust Agreement shall be paid by the
Employer-corporations under the provisions of the Plan.

     1.3 The Plan does not give Participants any rights not expressly granted
them in the Plan.

<PAGE>

                                   ARTICLE TWO

                                   Definitions
                                   -----------

     The following definitions apply to the Plan unless the context clearly
indicates otherwise:

     2.1 "Adjusted Retirement Benefit" shall mean the Retirement Income
Allowance which would have been payable under the provisions of Section 7 of the
Retirement Plan without regard to Section 8 of the Retirement Plan and without
excluding from Earnings: (i) amounts awarded under the TXU Annual Incentive Plan
or deferred under nonqualified executive compensation plans and arrangements
adopted from time to time by Employer-corporations; and (ii) amounts in excess
of the dollar maximum imposed on Earnings, as defined in the Retirement Plan.
Adjusted Retirement Benefit shall also mean and include special retirement
compensation not payable under the Retirement Plan to which an
Employer-corporation is contractually committed to pay to a Participant pursuant
to an individually negotiated agreement between the Employer-corporation and the
Participant. For purposes of this Plan, such special retirement compensation
shall be referred to as "Special Contractual Retirement Compensation."

     2.2 "Board of Directors" shall mean the Board of Directors of TXU Corp.

     2.3 "Change of Control" shall mean a change in control of the Company 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
limitation, such a change in control shall be deemed to have occurred if: (i)
any Person is or becomes the beneficial

                                        2

<PAGE>

owner (as defined in Rule 13-d3 under the Exchange Act), directly or indirectly,
of securities of the Company representing 20% or more of the combined voting
power of the Company's then outstanding securities ordinarily (apart from rights
accruing under special circumstances) having the right to vote at elections of
directors ("Voting Securities"); or (ii) individuals who constitute the Board of
Directors on the date hereof (the "Incumbent Board") cease for any reason to
constitute at least a majority thereof, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least
three-quarters of the directors comprising the Incumbent Board (either by a
specific vote or by approval of the proxy statement of the Company 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; or (iii) a recapitalization of the Company
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%; or (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 other
business combination transaction pursuant to which the Company is not the
surviving ultimate parent entity; or (vi) the Company is a party to a merger,
consolidation, reorganization or other business combination transaction which
requires the approval of the shareholders of the Company and which results in an
increase of 20% or more in the number

                                        3

<PAGE>

of Voting Securities outstanding. 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 the Company, a subsidiary of the Company or any
employee benefit plan(s) sponsored or maintained by the Company or any
subsidiary thereof, and the term "Independent Shareholder" shall mean any
shareholder of the Company except any employee(s) or director(s) of the Company
or any employee benefit plan(s) sponsored or maintained by the Company or any
subsidiary thereof.

     2.4  "Committee" shall mean the Retirement Committee for the TXU Retirement
Plan.

     2.5  "Company" shall mean TXU Corp., its successors and assigns.

     2.6  "Eligible Participant" shall mean a Participant eligible to receive
benefits under the Trust Agreement, as set forth in the Trust Agreement.

     2.7  "Employer-corporation" shall mean the Company or any company, more
than 50% of the voting stock of which is owned directly or indirectly by the
Company, which has been approved for participation in, and which has adopted,
the Plan. "Employer-corporations" shall be used to refer to such companies
jointly or severally.

     2.8  "Independent Committee" shall mean the Independent Committee provided
for in the Second Trust Agreement.

     2.9  "Participant" shall mean each person who is entitled to receive a
benefit on or after January 1, 1983, under the Retirement Plan and whose
Retirement Benefit is less than his Adjusted Retirement Benefit, but excluding
any Participant who is eligible to receive benefits under the Retirement Income
Restoration Plan of ENSERCH Corporation and Participating Subsidiary Companies.

                                       4

<PAGE>

     2.10 "Plan" shall mean this TXU Second Supplemental Retirement Plan, as
amended from time to time.

     2.11 "Plan Administrator" shall mean the person or persons appointed by the
Committee or, following a Change of Control, the Independent Committee, to
assist in carrying out the day-to-day operation and administration of the Plan,
the Trust Agreement and/or the Second Trust Agreement. In the event no Plan
Administrator is appointed, then the Committee or, following a Change of
Control, the Independent Committee shall be the Plan Administrator.

     2.12 "Plan Year" shall be the calendar year.

     2.13 "Retirement Benefit" shall be the Retirement Income Allowance payable
to a Participant under the Retirement Plan.

     2.14 "Retirement Plan" shall be the TXU Retirement Plan, as amended from
time to time.

     2.15 "Second Trust Agreement" shall mean the trust agreement dated as of
August 11, 1998 which establishes a rabbi trust to provide benefits under the
Plan for Participants to the extent benefits are not covered under the Trust
Agreement.

     2.17 "Supplemental Retirement Benefit" or "Benefit" shall be the benefit
equal in amount to: (a) the difference between the Participant's Adjusted
Retirement Benefit and the Participant's Retirement Benefit; and (b) any Special
Contractual Retirement Compensation applicable to the Participant, if any.
Except as an Employer-corporation may have otherwise agreed in connection with
any Special Contractual Retirement Compensation, the Supplemental Retirement
Benefit shall be payable at the same time, in the same manner or form, and
subject to the same payment terms applicable to the payment of the Retirement
Benefit. The Supplemental Retirement Benefit shall be

                                       5

<PAGE>

determined by the actuary for the Retirement Plan using assumptions consistent
with those used in determining the Participant's Retirement Benefit.

     2.18 "Trust Agreement" shall mean that certain trust agreement dated as of
May 3, 1993, which establishes a secular trust to provide benefits under the
Plan for certain Participants.

     2.19 "Trustee" shall mean the entity appointed by the Plan Administrator to
serve as trustee of the Trust.

                                 ARTICLE THREE

                              Allocation of Costs
                              -------------------

     3.1 The cost of providing the benefits payable under the Plan shall be
allocated to the Employer-corporation which is the employer of the Participant.

     3.2 If a Participant has service with more than one of the
Employer-corporations which is relevant to benefits provided thereunder, the
costs of providing that portion of such benefits payable to such Participant
shall be borne on the basis of the accrued Supplemental Retirement Benefit as of
date of transfer of the employee from such Employer-corporation or shall be
borne by the Employer-corporation in the proportion which the salary paid by the
Employer-corporation bears to the aggregate salaries paid by all joint employers
during such joint employment.

     3.3 The Company, as agent for the Employer-corporations, will pay all
Benefits provided hereunder and administer all transactions relating to the
Plan, except Benefits payable under the Trust Agreement and the Second Trust
Agreement shall be paid by the respective Trustee of each such trust in
accordance with the terms of the Trust Agreement or the Second Trust Agreement,
as the case may be.

                                       6

<PAGE>

                                  ARTICLE FOUR

                                    Benefits
                                    --------

     4.1  A Participant shall be entitled to receive a Supplemental Retirement
Benefit, pursuant to the provisions of the Plan and/or the First Plan; provided,
however, Benefits payable to Eligible Participants under the Trust Agreement or
the Second Trust Agreement shall be subject to additional provisions set forth
in the Trust Agreement and/or the Second Trust Agreement, as applicable, which
provisions shall be controlling. To the extent that Benefits are paid out of a
trust established related to the Plan or First Plan, separate accounts shall be
maintained for each covered Participant.

     4.2  Any Benefit payable under the Plan shall constitute a general
unsecured obligation of the Company, and shall be subject to the claims of the
Company's creditors.

                                  ARTICLE FIVE

                                  Miscellaneous
                                  -------------

     5.1  The Board of Directors shall be vested with full power and authority
to amend the Plan or to terminate the Plan at any time; provided that no act of
amendment or termination shall reduce any Benefit accrued to the date such act
is adopted. Furthermore, if the Plan is terminated, amended, or frozen or any
other action is taken to limit future Benefit accruals under the Plan, or in the
event of a Change of Control, each of the Employer-corporations shall be
obligated to take all action as may be provided for under the Trust Agreement,
the Second Trust Agreement or any other agreement affecting, in any way, the
funding and/or securitization and the current or future payment of Benefits.

     5.2  The Committee shall have the same powers, duties and responsibilities
with respect to the administration of the Plan as provided in Section 12 of the
Retirement Plan. Furthermore, the

                                        7

<PAGE>

Committee may appoint a person or persons as Plan Administrator to assist in
carrying out the day-to-day operation of the Plan, the Trust Agreement and/or
the Second Trust Agreement. The powers, duties and responsibilities of the
Committee shall include specifically, but not by way of limitation, the
authority to carry out the policy of the Company that applicable remuneration
for a taxable year beginning after December 31, 1993, with respect to an
Eligible Participant, shall not exceed the level of deductibility provided for
in Section 162(m) of the Internal Revenue Code or any successor provision.
Notwithstanding any other provision of this Plan, in the event of a Change of
Control, the Independent Committee shall have the powers, duties and
responsibilities provided for in the Second Trust Agreement.

     5.3  Any Employer-corporation, as defined herein, may participate under
this Plan upon approval of the Board of Directors and approval of the board of
directors of such Employer-corporation. Any Employer-corporation may, by action
of its board of directors, withdraw from participation in the Plan upon thirty
days prior notice to the Company.

     5.4  The Plan shall be construed under the laws of Texas.

     Executed effective as of the 17th day of August, 2001.

                                      TXU CORP.

                                      By: /s/ Peter B. Tinkham
                                         ---------------------------------------
                                              Peter B. Tinkham,
                                              Secretary and Assistant Treasurer

                                       8

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