Document:

Exhibit 10.2

 

EXECUTION COPY

 

QLT Inc.

887 Great Northern Way, Suite 250

Vancouver, B.C., Canada V5T4T5

 

December 7, 2015

 

Broadfin Healthcare Master Fund Ltd

Attn: Jason Abrams

300 Park Avenue, 25th Floor

New York, NY 10005

 

JW GP, LLC

Attn: Jason Wild

515 Madison Ave, 14B

New York, NY 10022

 

Ladies and Gentlemen:

 

Reference is made to that certain Share Purchase Agreement (“Purchase Agreement”) dated as of June 8, 2015 by and among QLT Inc., and Broadfin Healthcare Master Fund, Ltd, JW Partners, LP, and JW Opportunities Fund, LLC, EcoR1 Capital Fund Qualified, L.P. and EcoR1 Capital Fund, L.P.  The parties to this letter agreement (this “Letter Agreement”) desire to amend the Purchase Agreement, pursuant to Section 8(k) thereof, in the manner set forth in this Letter Agreement.  Capitalized terms not otherwise defined in this Letter Agreement shall have the meaning assigned thereto in the Purchase Agreement.

 

The parties hereby amend the Purchase Agreement as follows:

 

1.              All references to EcoR1 Capital Fund Qualified, L.P. and EcoR1 Capital Fund, L.P. shall be deleted.

 

2.              All references to the “Aralez Subscription Agreement” shall mean such agreement as amended and restated on the date hereof (the “A&R Aralez Subscription Agreement”).

 

3.              The definition of “Purchased Shares” shall be deleted and replaced with the following:

 

“Purchased Shares” shall mean the Company Shares (as defined in the A&R Aralez Subscription Agreement) received by Quest pursuant to the transactions contemplated by the A&R Aralez Subscription Agreement.

 

4.              The definition of “Quest Price” shall be deleted and replaced with the following:

 

“Quest Price” shall mean the quotient obtained by dividing $45,000,000 by the total number of Purchased Shares.”

 

5.              The definition of “Backstop Shares” shall be deleted and replaced with the following:

 

 

“Backstop Shares” shall mean the number of Purchased Shares to be sold to the Backstop Purchasers pursuant to the terms of this Agreement, such number of shares to equal the lesser of (i) the difference between the number of Purchased Shares and the number of Distribution Shares, and (ii) a number of shares equal to the quotient obtained by dividing $15,000,000 by the Quest Price.”

 

6.              The third recital of the Purchase Agreement is hereby amended to replace the words “ordinary shares of Aralez” with “Company Shares”.

 

7.              Section 6(v) of the Purchase Agreement is amended to delete the following language in its entirety:

 

“If (i) the Investment Closing occurs less than four months plus one day after the Aralez Closing, and (ii) at the time of the Aralez Closing, Aralez is a reporting issuer in any province or territory of Canada, then the Backstop Shares will also carry the following Canadian restrictive legend:

 

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE   , 2015 [INSERT THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE ARALEZ CLOSING].”

 

If (i) the Investment Closing occurs less than four months plus one day after the Aralez Closing, and (ii) at the time of the Aralez Closing, Aralez is not a reporting issuer in any province or territory of Canada, then the Backstop Shares will carry the following Canadian restrictive legend:

 

“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER OF (I)    , 2015 [INSERT THE ARALEZ CLOSING DATE], AND (II) THE DATE ARALEZ PHARMACEUTICALS LTD. BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.””

 

8.              Annex A to the Purchase Agreement is amended and restated in the form attached hereto as Annex A.

 

9.              J.W. Opportunities Master Fund, Ltd., a Cayman Islands company limited by shares (“JW Master Fund”), is added as a party to the Purchase Agreement and JW Opportunities Fund, LLC is removed as a party to this Agreement.  JW Master Fund hereby agrees to assume all of the rights and obligations of JW Opportunities Fund, LLC under the Purchase Agreement.

 

2

 

Other than as set forth herein, the Purchase Agreement shall remain in full force and effect and from and after the date hereof all references to the Purchase Agreement shall be the Purchase Agreement, as amended by this Letter Agreement.

 

[Signature Pages Follow]

 

3

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
QLT INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/   Geoffrey Cox
    
	
 
    	
 
    	
Name:   
    	
Geoffrey   Cox
    
	
 
    	
 
    	
Title:   
    	
Interim   Chief Executive Officer
    

 

[SIGNATURE PAGE TO LETTER AGREEMENT – BACKSTOP AMENDMENT]

 

 

	
Agreed and acknowledged
    	
 
    
	
as of the date first   written above:
    	
 
    
	
 
    	
 
    
	
BROADFIN HEALTHCARE MASTER   FUND, LTD
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Kevin Kotler
    	
 
    
	
 
    	
Name: 
    	
Kevin Kotler
    	
 
    
	
 
    	
Title: 
    	
Authorized Signatory
    	
 
    

 

[SIGNATURE PAGE TO LETTER AGREEMENT – BACKSTOP AMENDMENT]

 

 

	
 
    	
 
    
	
Agreed and acknowledged
    	
 
    
	
as of the date first   written above:
    	
 
    
	
 
    	
 
    
	
JW PARTNERS, LP
    	
 
    
	
 
    	
 
    
	
By: JW GP, LLC, its   General Partner
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Jason Wild
    	
 
    
	
 
    	
Name: 
    	
Jason Wild
    	
 
    	
 
    
	
 
    	
Title:
    	
Authorized Signatory
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
JW OPPORTUNITIES FUND, LLC
    	
 
    
	
 
    	
 
    
	
By: JW GP, LLC, its   Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jason Wild
    	
 
    
	
 
    	
Name: 
    	
Jason Wild
    	
 
    
	
 
    	
Title: 
    	
Authorized Signatory
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
J.W. OPPORTUNITIES MASTER   FUND, LTD.
    	
 
    
	
 
    	
 
    
	
By: JW GP, LLC, its   Manager
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jason Wild
    	
 
    
	
 
    	
Name: 
    	
Jason Wild
    	
 
    
	
 
    	
Title: 
    	
Authorized Signatory
    	
 
    

 

[SIGNATURE PAGE TO LETTER AGREEMENT – BACKSTOP AMENDMENT]

 

 

ANNEX A

 

	
Number of Backstop Shares
    	
 
    	
Backstop Purchaser
    
	
First $5,000,000 of Purchase Price
    	
 
    	
Broadfin Healthcare Master Fund Ltd will receive   100%
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Other Backstop Purchasers receive 0%
    
	
 
    	
 
    	
 
    
	
Remaining $10,000,000 of Purchase Price
    	
 
    	
Broadfin Healthcare Master Fund Ltd — 62.50%
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
JW Partners, LP — 29.25%
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
J.W. Opportunities Master Fund, Ltd. — 8.25%EX-10.(a)

 Exhibit 10(a) 

EXECUTION VERSION 

AMENDED & RESTATED SETTLEMENT AGREEMENT 

This settlement agreement (this “Settlement Agreement”), is made and entered into as of September 11, 2015, by and among
the following parties: 
  

	 	(a)	Energy Future Holdings Corp., a Texas corporation (“EFH”); (ii) Energy Future Intermediate Holding Company LLC (“EFIH”), a Delaware limited liability company and a direct,
wholly-owned subsidiary of EFH; (iii) EFH Corporate Services Company (“EFH Corporate Services”), a Delaware corporation and a direct, wholly-owned subsidiary of EFH; (iv) EFIH Finance Inc. (“EFIH
Finance”), a Delaware corporation and a direct, wholly-owned subsidiary of EFIH; (v) Energy Future Competitive Holdings Company LLC (“EFCH”), a Delaware limited liability company and a direct, wholly-owned subsidiary
of EFH; (vi) Texas Competitive Electric Holdings Company LLC (“TCEH”), a Delaware limited liability company and a direct, wholly-owned subsidiary of EFCH; (vii) each of TCEH’s direct and indirect subsidiaries listed
on the signature pages hereto (the “TCEH Subsidiaries,” and together with TCEH and EFCH, the “TCEH Debtors”); and (viii) each of EFH’s other direct and indirect subsidiaries listed on the signature pages
hereto (each of the foregoing entities identified in subclauses (i) through (viii) a “Debtor” and, collectively, the “Debtors”); 

 

	 	(b)	Texas Energy Future Holdings Limited Partnership (“Texas Holdings”), a Texas limited partnership, which holds approximately 99.26% of the outstanding EFH Interests; 

 

	 	(c)	Texas Energy Future Capital Holdings LLC, a Delaware limited liability company and the general partner of Texas Holdings (“TEF”); 

 

	 	(d)	Kohlberg Kravis Roberts & Co., L.P., TPG Capital, L.P. and Goldman, Sachs & Co. (collectively, the “Sponsor Managers”), on their own behalf and on behalf of funds or accounts managed
or advised by the Sponsor Managers that hold direct or indirect interests in Texas Holdings, TEF or EFH (collectively, the “Sponsors” and, together with Texas Holdings and TEF, the “Settling Interest Holders”);

  

	 	(e)	 the undersigned beneficial holders or investment advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders
(collectively, the “Settling TCEH First Lien Creditors”) that hold claims against the TCEH Debtors (i) under that certain Credit Agreement, dated as of October 10, 2007 (the “TCEH Credit Agreement”), by
and among, inter alia, TCEH, as borrower, EFCH and the TCEH Subsidiaries, as guarantors, Wilmington Trust, N.A., as successor administrative agent and collateral agent (the “TCEH First Lien Agent”), and the lenders from time
to time party thereto, (ii) arising out of the 11.50% fixed senior secured notes due October 1, 2020 (the “TCEH First Lien Notes”) issued pursuant to that certain Indenture (the “TCEH First Lien
Indenture”), dated as of April 19, 2011, by and among, inter alia, TCEH and TCEH Finance, as issuers, EFCH and the TCEH Subsidiaries, as guarantors, and Delaware Trust Company (f/k/a CSC Trust Company of Delaware), as successor
trustee, (iii) arising out of or related to the interest rate swaps entered into by TCEH and secured by a first lien on the same collateral as the claims arising under the TCEH Credit Agreement and the TCEH First Lien Indenture (the
“TCEH First Lien Interest Rate 

	 	
Swap Agreements”), and/or (iv) arising out of or related to the commodity hedges entered into by TCEH and secured by a first lien on the same collateral as the claims arising
under the TCEH Credit Agreement and the TCEH First Lien Indenture (the “TCEH First Lien Commodity Hedge Agreements”) (all claims against the TCEH Debtors arising under or relating to the TCEH Credit Agreement, the TCEH First
Lien Indenture, the TCEH First Lien Interest Rate Swap Agreements, and the TCEH First Lien Commodity Hedge Agreements, the “TCEH First Lien Claims”); 

 

	 	(f)	the undersigned beneficial holders or investment advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders (collectively, the “Settling TCEH Unsecured
Noteholders”) that hold claims against the TCEH Debtors arising out of the 10.25% Fixed Senior Notes due 2015 (including Series B) and 10.50%/11.25% Senior Toggle Notes due 2016 issued pursuant to that certain Indenture (the “TCEH
Unsecured Notes Indenture”) dated as of October 31, 2007 by and among, inter alia, TCEH and TCEH Finance, as issuers, and EFCH and the TCEH Subsidiaries, as guarantors, and Law Debenture Trust Company of New York, as successor
indenture trustee to The Bank of New York Mellon (the “TCEH Unsecured Notes Trustee”) (all such claims, the “TCEH Unsecured Note Claims”); 

 

	 	(g)	the undersigned beneficial holders or investment advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders (collectively, the “Settling TCEH Second Lien
Noteholders,” and together with the Settling TCEH First Lien Creditors and the Settling TCEH Unsecured Noteholders, the “Settling Creditors”) that hold claims against the TCEH Debtors arising out of the 15.0% Fixed Senior
Secured Second Lien Notes due 2021 (including Series B) issued pursuant to that certain Indenture (the “TCEH Second Lien Notes Indenture”) dated as of October 6, 2010, by and among, inter alia, TCEH and TCEH Finance, as
issuers, EFCH and the TCEH Subsidiaries, as guarantors, and Wilmington Savings Fund Society, as successor indenture trustee to The Bank of New York Mellon (the “TCEH Second Lien Notes Trustee”) (all such claims, the “TCEH
Second Lien Note Claims,” and, together with the TCEH Unsecured Note Claims, the “TCEH Note Claims”); and 

  

	 	(h)	the statutory committee of unsecured creditors of the TCEH Debtors and EFH Corporate Services appointed in the Chapter 11 Cases pursuant to section 1102 of the Bankruptcy Code by the Office of the United States Trustee
for the District of Delaware on May 13, 2014 (the “TCEH Official Committee”). 

 Each Debtor, each Settling Interest
Holder, each Settling TCEH First Lien Creditor, each Settling TCEH Unsecured Noteholder, the TCEH First Lien Agent (if made a Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), each Settling TCEH Second Lien Noteholder, the
TCEH Second Lien Notes Trustee (if made a Party hereto) and the TCEH Official Committee is referred to herein as a “Party” and are collectively referred to herein as the “Parties.” 

  
 2 

 RECITALS 

WHEREAS, on April 29, 2014 (the “Petition Date”), the Debtors commenced chapter 11 cases in the United States
Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) by filing voluntary petitions for relief under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532
(the “Bankruptcy Code”), which chapter 11 cases are being jointly administered and are captioned In re Energy Future Holdings Corp., et al., Case No. 14-10979 (CSS) (the “Chapter 11 Cases”); 

WHEREAS, from the outset of the Chapter 11 Cases, various parties in interest, including the ad hoc group of holders of TCEH Unsecured
Note Claims (the “TCEH Unsecured Group”), the ad hoc consortium of holders of TCEH Second Lien Note Claims (the “TCEH Second Lien Group”), and the TCEH Official Committee, have alleged that various inter-Debtor and
affiliate claims and causes of action exist, as well as estate claims and causes of action against holders of TCEH First Lien Claims; 

WHEREAS, on June 6, 2014 the Bankruptcy Court entered that certain Final Order (A) Authorizing Use of Cash Collateral for
Texas Competitive Electric Holdings Company LLC and Certain of Its Debtor Affiliates, (B) Granting Adequate Protection, and (C) Modifying the Automatic Stay [D.I. 855] (as it may be amended from time to time, the “Final Cash
Collateral Order”), pursuant to which the Debtors stipulated to the validity, nature, and priority of the claims and liens of the TCEH First Lien Creditors and a deadline was established for parties in interest to file motions seeking
standing to challenge the stipulations of the Debtors;1 
 WHEREAS, certain of
the Parties and other parties in interest in the Chapter 11 Cases negotiated and agreed on procedures and parameters regarding discovery (the “Legacy Discovery”) in connection with the alleged inter-Debtor and affiliate claims and
causes of action, which were approved by the Bankruptcy Court through entry of the Order Establishing Discovery Procedures in Connection with Legacy Discovery of Energy Future Holdings Corporation, its Affiliates, and Certain Third Parties and
Other Related Matters [D.I. 1832] (the “Legacy Discovery Order”) on August 13, 2014; 
 WHEREAS, on
September 16, 2014 the parties executed, and the Bankruptcy Court so-ordered, the Stipulation and Agreed Order Regarding a Protocol for Certain Case Matters [D.I. 2051] (as amended, the “Case Matters Protocol”), as
amended by the Stipulation and Agreed Order Extending Dates in Order Regarding a Protocol for Certain Case Matters [D.I. 2760], dated November 13, 2014, the Stipulation and Agreed Order Extending Dates in Order Regarding a Protocol
for Certain Case Matters [D.I. 4012], dated March 31, 2015, and the Stipulation and Agreed Order Extending Dates in Order Regarding a Protocol for Certain Case Matters [D.I. 5057], dated July 21, 2015, which impose a
process to govern the investigation and filing by parties in interest of motions seeking standing to commence certain claims and causes of action; 
  

 

	1 	The deadline for parties in interest to file motions seeking standing to challenge certain stipulations set forth in the Final Cash Collateral Order was subsequently extended by so-ordered stipulations dated
August 8, 2014 [D.I. 1771], September 19, 2014 [D.I. 2083], November 5, 2014 [D.I. 2704], December 2, 2014 [D.I. 2916], January 27, 2015 [D.I. 3380], March 10, 2015 [D.I. 3857], April 17, 2015
[D.I. 4210], and July 9, 2015 [D.I. 4958]. 

  
 3 

 WHEREAS, pursuant to the Legacy Discovery Order, certain of the Parties and other parties
in interest in the Chapter 11 Cases engaged in Legacy Discovery over a period of several months; 
 WHEREAS, in November and December
2014, each of EFH, EFIH, and EFCH/TCEH, at the direction of their directors or managers that are disinterested with respect to matters on which there is an actual conflict of interest between such Debtor and another Debtor
(the “Disinterested Directors”), retained separate counsel and financial advisors to advise and represent the applicable Debtor or Debtors with respect to such actual conflict matters, including potential inter-Debtor
Claims; 
 WHEREAS, on February 19, 2015, the TCEH Official Committee filed the Motion of Official
Committee of Unsecured Creditors for Entry of an Order Granting Exclusive Standing and Authority to Commence, Prosecute, and Settle Certain Claims for Declaratory Judgment, Avoidance and Recovery of Liens, Security Interests, Obligations, Fees, and
Interest Payments, and Disallowance of Claims [D.I. 3593] (the “TCEH Committee Standing Motion”), whereby the TCEH Official Committee seeks standing to, among other things, challenge, on behalf of the TCEH
Debtors’ estates, the validity, nature, and priority of certain of the claims and liens of, and obligations owed to, the TCEH First Lien Creditors; 

WHEREAS, on February 19, 2015, the TCEH Unsecured Group filed the Motion of the Ad Hoc Group of TCEH Unsecured
Noteholders for Entry of an Order Granting Standing and Authority to Commence, Prosecute, and Settle Certain Claims for Declaratory Judgment, Avoidance and Recovery of Liens, Security Interests, Obligations, Fees, and Interest Payments, and
Disallowance of Claims [D.I. 3603] (the “TCEH Unsecured Group Standing Motion”), whereby the TCEH Unsecured Group also seeks standing to, among other things, challenge, on behalf of the TCEH Debtors’ estates,
the validity, nature, and priority of the claims and liens of, and obligations owed to, the TCEH First Lien Creditors; 

WHEREAS, on February 19, 2015, the statutory committee of unsecured creditors of EFH, EFIH, EFIH Finance, and EECI, Inc. appointed
in the Chapter 11 Cases pursuant to section 1102 of the Bankruptcy Code by the U.S. Trustee on October 27, 2014, filed the Motion of the EFH Official Committee for Entry of an Order Granting Derivative Standing and Authority to
Prosecute and Settle Claims on Behalf of the Luminant Debtors’ Estates [D.I. 3605] (the “EFH Committee Standing Motion,” and together with the TCEH Committee Standing Motion and the TCEH Unsecured Group Standing Motion, the
“Standing Motions”); 
 WHEREAS, on March 3, 2015, certain parties filed objections to the Standing Motions,
including the Debtors, the TCEH First Lien Agent, certain holders of TCEH First Lien Claims, individually and as members of the ad hoc group of TCEH First Lien Creditors; 

WHEREAS, in accordance with the Case Matters Protocol, on March 31, 2015, and on April 30, 2015, the TCEH Official Committee
sent a letter to the Debtors identifying general categories of alleged claims and causes of action, including against other Debtors, the TCEH Debtors’ and the other Debtors’ directors and officers, and the Sponsors, belonging to the TCEH
Debtors’ estates that the TCEH Official Committee may seek standing to pursue, including claims and causes of action for fraudulent transfers under state law and sections 544 and 548 of the Bankruptcy Code, preferential transfers under section
547 of the Bankruptcy Code, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, breach of contract, and/or unjust enrichment (the “TCEH Committee Litigation Letters”); 

  
 4 

 WHEREAS, on April 13, 2015, the Debtors, with the approval of the Disinterested
Directors, filed in the Chapter 11 Cases the Joint Plan of Reorganization of Energy Future Holdings Corp., et al., Pursuant to Chapter 11 of the United States Bankruptcy Code [D.I. 4142] (the “Initial Plan”) and a related
disclosure statement; 
 WHEREAS, the Initial Plan contemplated, among other things, a settlement negotiated by and between the
Disinterested Directors of inter-Debtor claims (the “Disinterested Director Settlement”), pursuant to which any and all inter-Debtor claims and causes of action would be settled and released except for an allowed non-priority
unsecured claim and an interest of TCEH against and in EFH which could receive a recovery of up to $805,000,000, and which, after subsequent amendment, was entitled to receive 50 percent of the distributable value up to $1,610,000,000 payable to EFH
under a plan of reorganization; but the Disinterested Director Settlement did not establish how the proceeds of such allowed inter-Debtor Claim of TCEH would be allocated between and among TCEH First Lien Creditors and the unsecured creditors of
TCEH; 
 WHEREAS, in accordance with the Case Matters Protocol, on April 30, 2015, the TCEH Unsecured Group sent a letter to
counsel to the Debtors identifying general categories of alleged inter-Debtor and other claims and causes of action, including against other Debtors, the TCEH Debtors’ and the other Debtors’ directors and officers, and the Sponsors,
belonging to the TCEH Debtors’ estates that the TCEH Unsecured Group may seek standing to pursue, including claims and causes of action for fraudulent transfers under state law and sections 544 and 548 of the Bankruptcy Code, preferential
transfers under section 547 of the Bankruptcy Code, breaches of fiduciary duty, aiding and abetting breaches of fiduciary duty, breaches of contract, and unjust enrichment (the “TCEH Unsecured Group Litigation Letter,” and together
with the TCEH Committee Litigation Letters, the “Litigation Letters”); 
 WHEREAS, on July 23,
2015, the Debtors, with the approval of the Disinterested Directors, filed in the Chapter 11 Cases the Amended Joint Plan of Reorganization of Energy Future Holdings Corp., et al., Pursuant to Chapter 11 of the Bankruptcy Code [D.I. 5078] and
a related disclosure statement;  
 WHEREAS, on August 3, 2015, the Debtors, with the approval of the
Disinterested Directors, filed in the Chapter 11 Cases the Second Amended Joint Plan of Reorganization of Energy Future Holdings Corp., et al., Pursuant to Chapter 11 of the Bankruptcy Code [D.I. 5197] (the “Second Amended
Plan”); 
 WHEREAS, the Parties recognize that the outcome of the litigation in connection with the Standing
Motions and the Litigation Letters may cause the Parties to incur significant costs and suffer significant delay in resolving their disputes, and the Parties seek to avoid the risks, cost and delay of litigating such disputes and have been,
therefore, engaged in good faith negotiations with each other regarding settlement of such disputes; 

  
 5 

 WHEREAS, certain the Parties also have been engaged in good faith negotiations with each
other regarding the terms of an alternative transaction or transactions (the “Restructuring Transactions”) to be implemented through a joint plan of reorganization for the Debtors (as it may be amended from time to time in
accordance with the Plan Support Agreement (as defined below), the “Plan”) that would amend and replace the Second Amended Plan, and the Parties desire to pursue and support the Plan and Restructuring Transactions, subject to the
terms and conditions set forth in that certain Plan Support Agreement, dated as of August 9, 2015, by and among the Debtors, the Settling Interest Holders, the Settling Creditors, the TCEH Official Committee, and certain other Entities (as
amended, the “Plan Support Agreement”); 
 WHEREAS, certain of the Parties have also been engaged in Court-ordered
mediation in an effort to consensually resolve, inter alia, the claims and causes of action that the TCEH Official Committee and the TCEH Unsecured Group sought to pursue in connection with the Standing Motions; 

WHEREAS, as a result of their extensive arm’s-length negotiations, (a) the Parties have resolved to enter into this
Settlement Agreement to settle all disputes, claims and causes of action, whether or not previously identified, and whether known or unknown, as described herein on the terms set forth herein, which upon entry of the Settlement Order, shall remain
binding on all Parties regardless of whether the Plan is confirmed or consummated; and (b) the Parties have agreed, as part of the consideration for each Party’s agreement to enter into this Settlement Agreement, to enter into the Plan
Support Agreement, pursuant to which the Parties agree, subject to the terms and conditions of the Plan Support Agreement, to pursue and support the Plan, and certain Parties agree that if the Plan is not consummated (and under certain other
circumstances), then they will support an Alternative Restructuring (as defined in the Plan Support Agreement); and 
 WHEREAS,
certain of the Parties entered into a settlement agreement, dated as of August 9, 2015, and desire to amend and restate such settlement agreement in accordance with the terms thereof as set forth in this Settlement Agreement. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the recitals stated above, and the premises and mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties agree as follows: 
 Section 1. Definitions.  

As used in this Settlement Agreement and for purposes of this Settlement Agreement only, the following terms have the following
meanings; provided, that other capitalized terms used but not otherwise defined in this Settlement Agreement shall have the meanings ascribed to such terms in the Plan attached as Exhibit A to the Plan Support Agreement: 

“Alternative Restructuring” has the meaning ascribed to it in the Plan Support Agreement. 

  
 6 

 “Case Matters Protocol” has the meaning ascribed to it in the
Recitals. 
 “Chapter 11 Cases” has the meaning ascribed to it in the Recitals. 

“Debtor” has the meaning ascribed to it in the Preamble. 

“Debtor Party Released Parties” has the meaning ascribed to it in Section 2.4. 

“Debtor Party Releasor Parties” has the meaning ascribed to it in Section 2.4.  

“Debtor Released Parties” has the meaning ascribed to it in Section 2.4. 

“Debtor Releasor Parties” has the meaning ascribed to it in Section 2.4.  

“Disinterested Directors” has the meaning ascribed to it in the Recitals. 

“Disinterested Director Settlement” has the meaning ascribed to it in the Recitals. 

“EFCH” has the meaning ascribed to it in the Preamble.  

“EFH” has the meaning ascribed to it in the Preamble. 

“EFH Corporate Services” has the meaning ascribed to it in the Preamble. 

“EFH Debtors” means, collectively: (a) EFH; (b) Brighten Energy LLC; (c) Brighten Holdings LLC;
(d) Dallas Power and Light Company, Inc.; (e) Ebasco Services of Canada Limited; (f) EEC Holdings, Inc.; (g) EECI, Inc.; (h) EFH Australia (No. 2) Holdings Company; (i) EFH CG Holdings Company LP; (j) EFH CG
Management Company LLC; (k) EFH Corporate Services; (l) EFH Finance (No. 2) Holdings Company; (m) EFH FS Holdings Company; (n) EFH Renewables Company LLC; (o) Generation Development Company LLC; (p) Lone Star Energy
Company, Inc.; (q) Lone Star Pipeline Company, Inc.; (r) LSGT Gas Company LLC; (s) LSGT SACROC, Inc.; (t) NCA Development Company LLC; (u) Southwestern Electric Service Company, Inc.; (v) Texas Electric Service Company,
Inc.; (w) Texas Energy Industries Company, Inc.; (x) Texas Power and Light Company, Inc.; (y) Texas Utilities Company, Inc.; (z) Texas Utilities Electric Company, Inc.; (aa) TXU Electric Company, Inc.; and (bb) TXU Receivables
Company. 
 “EFH Interest Holder Released Parties” has the meaning ascribed to it in Section 2.3. 

“EFH Interest Holder Releasor Parties” has the meaning ascribed to it in Section 2.3. 

“EFH Interests” means the Equity Interests in EFH. 

“EFH Interests Proceeds” has the meaning ascribed to it in Section 2.3. 

“EFIH” has the meaning ascribed to it in the Preamble. 

“EFIH Debtors” means, collectively: (a) EFIH; and (b) EFIH Finance. 

  
 7 

 “EFIH Finance” has the meaning ascribed to it in the Preamble. 

 “Equity Interests” means all shares of capital stock, beneficial, partnership or membership interests,
participations or other equivalents of a corporation, partnership, limited liability company or equivalent entity, whether voting or non-voting, and including all warrants, options, securities, or other instruments convertible into or exchangeable
for any of the foregoing, or other rights to purchase any of the foregoing. 
 “Final Cash Collateral Order”
has the meaning ascribed to it in the Recitals. 
 “Initial Plan” has the meaning ascribed to it in the
Recitals. 
 “Legacy Discovery” has the meaning ascribed to it in the Recitals. 

“Legacy Discovery Order” has the meaning ascribed to it in the Recitals. 

“Litigation Letters” has the meaning ascribed to it in the Recitals.  

“Non-EFH Debtor Intercompany Claims” means any Claim, other than the TCEH Settlement Claim, by any direct or indirect
subsidiary of EFH (other than an EFH Debtor) against an EFH Debtor. 
 “Non-EFIH Debtor Intercompany Claims” means
any Claim by EFH or any direct or indirect subsidiary of EFH (other than an EFIH Debtor) against an EFIH Debtor. 
 “Non-TCEH Debtor
Intercompany Claims” means any Claim by EFH or any direct or indirect subsidiary of EFH (other than a TCEH Debtor) against a TCEH Debtor, including any TCEH First Lien Claims or TCEH Unsecured Note Claims held by EFH or EFIH. 

“Oncor” has the meaning ascribed to it in the Recitals. 

“Party” or “Parties” have the meanings ascribed to them in the Preamble. 

“Petition Date” has the meaning ascribed to it in the Recitals.  

“Plan” has the meaning ascribed to it in the Recitals. 

“Plan Support Agreement” has the meaning ascribed to it in the Recitals. 

“Professional Fees” has the meaning ascribed to it in Section 2.7. 

“Required TCEH Creditor Parties” means, collectively, the Required TCEH Unsecured Noteholders, the Required TCEH First
Lien Creditors, and the Required TCEH Second Lien Noteholders. 
 “Required TCEH First Lien Creditors” means
at least five unaffiliated Settling TCEH First Lien Creditors that are members of the ad hoc committee of TCEH First Lien Creditors holding in the aggregate at least 50.1% in principal amount of the aggregate principal amount of the TCEH First Lien
Claims held by the Settling TCEH First Lien Creditors that are members of the ad hoc committee of TCEH First Lien Creditors at such time.  

  
 8 

 “Required TCEH Second Lien Noteholders” means at least two unaffiliated
Settling TCEH Second Lien Noteholders holding in the aggregate at least 50.1% in principal amount of the aggregate principal amount of the TCEH Second Lien Note Claims held by the Settling TCEH Second Lien Noteholders at such time. 

“Required TCEH Unsecured Noteholders” means at least three unaffiliated Settling TCEH Unsecured Noteholders holding in
the aggregate at least 50.1% in principal amount of the aggregate principal amount of the TCEH Unsecured Note Claims held by the Settling TCEH Unsecured Noteholders at such time. 

“Restructuring” means any plan of reorganization or other form of restructuring, liquidation, sale, structured
dismissal, spin-off, or other disposition of one or more of the Debtors, including an Alternative Restructuring. 

“Restructuring Transactions” has the meaning ascribed to it in the Recitals. 

“Second Amended Plan” has the meaning ascribed to it in the Recitals. 

“Settlement Agreement” has the meaning ascribed to it in the Preamble. 

“Settlement Approval Motion” has the meaning ascribed to it in Section 3.2. 

“Settlement Effective Date” has the meaning ascribed to it in Section 3.1. 

“Settlement Order” means an order of the Bankruptcy Court (i) approving this Settlement Agreement and the
compromise and settlement memorialized herein among the Parties pursuant to Rule 9019(a) of the Bankruptcy Rules, and (ii) if not previously authorized by separate order of the Bankruptcy Court, authorizing the Debtors to enter into the Plan
Support Agreement pursuant to section 363 of the Bankruptcy Code, the proposed form of which is attached as Annex A hereto. 

“Settling Creditors” has the meaning ascribed to it in the Preamble. 

“Settling Interest Holder Released Parties” has the meaning ascribed to it in Section 2.3. 

“Settling Interest Holder Releasor Parties” has the meaning ascribed to it in Section 2.3. 

“Settling Interest Holders” has the meaning ascribed to it in the Preamble. 

“Settling TCEH First Lien Creditors” has the meaning ascribed to it in the Preamble. 

“Settling TCEH Second Lien Noteholders” has the meaning ascribed to it in the Preamble. 

  
 9 

 “Settling TCEH Unsecured Noteholders” has the meaning ascribed to it in
the Preamble. 
 “Sponsor Managers” has the meaning ascribed to it in the Preamble. 

“Sponsors” has the meaning ascribed to it in the Preamble.  

“Standing Motions” has the meaning ascribed to it in the Recitals. 

“TCEH” has the meaning ascribed to it in the Preamble.  

“TCEH Cash Payment” has the meaning ascribed to it in Section 2.2. 

“TCEH Cash Payment Carve Out” has the meaning ascribed to it in Section 2.2. 

“TCEH Committee Litigation Letters” has the meaning ascribed to it in the Recitals.  

“TCEH Committee Standing Motion” has the meaning ascribed to it in the Recitals.  

“TCEH Credit Agreement” has the meaning ascribed to it in the Preamble.  

“TCEH Creditor Released Parties” has the meaning ascribed to it in Section 2.2. 

“TCEH Creditor Releasor Parties” has the meaning ascribed to it in Section 2.2. 

“TCEH Debtors” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Agent” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Claims” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Commodity Hedge Agreements” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Creditors” means holders of TCEH First Lien Claims, including the TCEH First Lien Agent (if made a
Party hereto). 
 “TCEH First Lien Indenture” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Interest Rate Swap Agreements” has the meaning ascribed to it in the Preamble. 

“TCEH First Lien Notes” has the meaning ascribed to it in the Preamble.  

“TCEH First Lien Released Parties” has the meaning ascribed to it in Section 2.2. 

“TCEH First Lien Releasor Parties” has the meaning ascribed to it in Section 2.2. 

“TCEH Note Claims” has the meaning ascribed to it in the Preamble. 

  
 10 

 “TCEH Official Committee” has the meaning ascribed to it in the
Preamble. 
 “TCEH Second Lien Note Claims” has the meaning ascribed to it in the Preamble. 

“TCEH Second Lien Noteholders” has the meaning ascribed to it in the Preamble. 

“TCEH Second Lien Notes Indenture” has the meaning ascribed to it in the Preamble. 

“TCEH Second Lien Notes Trustee” has the meaning ascribed to it in the Preamble. 

“TCEH Settlement Claim” has the meaning ascribed to it in Section 2.1. 

“TCEH Subsidiaries” has the meaning ascribed to it in the Preamble. 

“TCEH Unsecured Group” has the meaning ascribed to it in the Recitals. 

“TCEH Unsecured Group Litigation Letter” has the meaning ascribed to it in the Recitals.  

“TCEH Unsecured Group Standing Motion” has the meaning ascribed to it in the Recitals.  

“TCEH Unsecured Note Claims” has the meaning ascribed to it in the Preamble. 

“TCEH Unsecured Notes Indenture” has the meaning ascribed to it in the Preamble. 

“TCEH Unsecured Notes Trustee” has the meaning ascribed to it in the Preamble. 

“TEF” has the meaning ascribed to it in the Preamble. 

“Texas Holdings” has the meaning ascribed to it in the Preamble. 

Section 2. Settlement Terms 
 2.1 Settlement of
Certain Inter-Debtor Claims. 
 (a) Effective upon the occurrence of the Settlement Effective Date, all Non-EFH Debtor Intercompany
Claims, all Non-EFIH Debtor Intercompany Claims, and all Non-TCEH Debtor Intercompany Claims arising from the beginning of the world through the Settlement Effective Date, including claims and Causes of Action identified, claimed, or released in the
Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted on behalf of the Debtors, that such Entity
would have been legally entitled to assert (whether individually or collectively), which any of the applicable Debtors ever had, now have, or hereinafter can, shall or may have, against any of the other applicable Debtors for, upon or by reason of
any matter, cause or thing whatsoever, from the beginning of the world through the Settlement Effective Date, relating to or arising from disputes with respect to the Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany
transactions (including dividends paid), transactions pursuant and/or related to the Master Separation Agreement dated December 

  
 11 

 
12, 2001, the TCEH Credit Agreement, the Liability Management Program, the Tax Sharing Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit Agreement,
the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the Luminant Makewhole Settlement, the Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, any preference, fraudulent
transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548, 550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation, dissemination, negotiation, or Filing of the Terminated
Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any Restructuring Transaction, contract, instrument, release, or other agreement or document (including providing any legal opinion requested by any
Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the Plan or the reliance by any of the applicable released Debtors on the Plan or the Confirmation Order in lieu of such legal opinion) created or
entered into in connection with the Plan Support Agreement, the Terminated Restructuring Support Agreement, the Disclosure Statement, the Plan, the Merger and Purchase Agreement, the Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the
filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or distribution of Securities pursuant to the Plan, or the distribution of property
under the Plan, the Merger and Purchase Agreement, the Backstop Agreement, or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Settlement Effective Date
related or relating to the foregoing, but excluding: (i) ordinary course inter-Debtor Claims incurred pursuant to, and in accordance with, Paragraph 10 of the Final Order (A) Authorizing the Debtors to (I) Continue Using Their
Existing Cash Management System, (II) Maintain Existing Bank Accounts and Business Forms, and (III) Continue Using Certain Investment Accounts; (B) Authorizing Continued Intercompany Transactions and Netting of Intercompany Claims;
and (C) Granting Postpetition Intercompany Claims Administrative Expense Priority [D.I. 801] (provided that the foregoing shall not alter or impair the Debtors’ rights to allocate fees, expenses, and other costs thereunder) and
(ii) the TCEH Settlement Claim (as defined below), shall be voluntarily and knowingly, unconditionally, absolutely, and forever waived, remised, released, settled, acquitted, satisfied, and discharged. Each applicable Debtor shall also be
deemed to knowingly and voluntarily waive and relinquish any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a
person’s release of unknown claims as applied to the releases contained in this Section 2.1(a). 
 (b) On the Settlement
Effective Date, TCEH shall have an Allowed, non-priority, unsecured Claim against EFH in the amount of $700 million (the “TCEH Settlement Claim”), which TCEH Settlement Claim shall not be subject to subordination or
recharacterization under section 105 or section 510 of the Bankruptcy Code or otherwise and, unless otherwise agreed by the Required TCEH First Lien Creditors, shall be treated on a pari passu basis with the EFH Legacy Note Claims in any EFH
Restructuring. 
 (c) Except as otherwise agreed by the Debtors and Required TCEH First Lien Creditors, any proceeds of the TCEH Settlement
Claim shall constitute Prepetition Collateral (as defined in the Final Cash Collateral Order) of the TCEH First Lien Creditors; provided, however, that the TCEH Settlement Claim shall be deemed satisfied under the Plan. 

  
 12 

 (d) In connection with the consummation of any Restructuring of EFH: (i) effectuated through
a joint plan of reorganization that includes the TCEH Debtors, TCEH shall be deemed to vote the TCEH Settlement Claim in the same manner as the class of claims that includes the TCEH First Lien Secured Claims (as defined in the Plan); or
(ii) effectuated through a plan of reorganization other than as set forth in (i), the Required TCEH First Lien Creditors shall have the sole right to submit a vote to accept or reject such plan of reorganization on account of the TCEH
Settlement Claim on behalf of TCEH. 
 (e) In the event an Entity that is not a Party pursues and recovers on a claim or Cause of Action
described in Section 2.1(a) of this Settlement Agreement against any Debtor, other than the TCEH Settlement Claim, any such recovery or distribution on account of such claim or Cause of Action received by a Debtor, a Settling Interest Holder, a
Settling TCEH Unsecured Noteholder, the TCEH First Lien Agent (if made a Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Trustee (if made a Party hereto), or the TCEH Official Committee (each in its
capacity as such) shall be deposited in and held in an escrow account and, (i) upon receipt of the TCEH Cash Payment as set forth in Section 2.2(a) of this Settlement Agreement, released to the applicable Debtor(s) or its designee based on
any economic losses incurred by each such Debtor as a result of the litigation of the claims and Causes of Action described in Section 2.1(a) of this Settlement Agreement, or (ii) in all other events, returned to each Party that deposited
such recovery or distribution into escrow. 
 2.2 Settlement of Claims Against TCEH First Lien Creditors. 

(a) Subject to the occurrence of the Settlement Effective Date, except as otherwise agreed in writing by the Debtors, the Required TCEH
Creditor Parties, and the TCEH Official Committee (including pursuant to the Plan Support Agreement), upon consummation of an Alternative Restructuring of any or all of the TCEH Debtors (other than any TCEH Debtor whose total assets are less than
2.5% of the consolidated total assets, or whose total revenues are less than 2.5% of the consolidated revenues, of the TCEH Debtors as of the date of such Alternative Restructuring), holders of Allowed TCEH First Lien Deficiency Claims, Allowed TCEH
Unsecured Note Claims, Allowed TCEH Second Lien Note Claims, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other Than EFCH shall receive, in the aggregate, $550 million in Cash (which shall be subject to
reduction only (A) pursuant to (i) Section 11 of the Plan Support Agreement, (ii) Section 2.7 of this Settlement Agreement, and (iii) Section 5 of that certain Settlement & Support Agreement, dated as of
November 23, 2015, by and among EFH, EFIH, EFIH Finance, EECI, Inc., EEC Holdings, Inc., LSGT Gas Company LLC, LSGT SACROC, Inc., TCEH, the EFH/EFIH Committee, the EFH Notes Trustee, the Settling TCEH First Lien Creditors signatory thereto, the
Plan Sponsors, and the TCEH Official Committee, and (B) subject to Bankruptcy Court approval of that certain Stipulation and Settlement Agreement, dated as of December 1, 2015, by and among EFH, TCEH, EFCH, the United States on behalf of
the U.S. Environmental Protection Agency, the Settling TCEH First Lien Creditors signatory thereto, the Plan Sponsors, and the TCEH Official Committee, by $1 million and shall not otherwise be subject to dilution or reduction as a consequence of any
claim or liability incurred as a result of any act, event or transaction) (the “TCEH Cash Payment”). The TCEH Cash Payment shall be made (i) from the Cash on hand at the TCEH Debtors and, if none (or if Cash on hand is
insufficient to make the full amount of the TCEH Cash Payment), the first proceeds of any sale, transfer, or other disposition of the 

  
 13 

 
Prepetition Collateral (as defined in the Final Cash Collateral Order) (including the first proceeds of any financing or similar transaction secured or supported by the Prepetition Collateral)
(the “TCEH Cash Payment Carve Out”) and (ii) before any payment or other distribution (including transfer) is made in connection with such an Alternative Restructuring to the holders of Allowed TCEH First Lien Claims;
provided, however, that the TCEH Cash Payment Carve Out shall be subordinate in all respects to: (a) the RCT Reclamation Support Carve Out (as defined in the Final Cash Collateral Order); (b) the Carve Out (as defined in the
Final Cash Collateral Order); and (c) the Permitted Liens (as defined in the Final Cash Collateral Order). For the avoidance of doubt, any distribution of the TCEH Cash Payment that would otherwise be made to or received by holders of Allowed
TCEH First Lien Deficiency Claims pursuant to this Section 2.2(a), if applicable, shall be subject to Section 2.2(b) of this Settlement Agreement. 

(b) Subject to the occurrence of the Settlement Effective Date, except as otherwise agreed in writing by the Debtors, the Required TCEH
Creditor Parties, and the TCEH Official Committee, in connection with the Plan or upon consummation of an Alternative Restructuring, the Settling TCEH First Lien Creditors will waive, and the TCEH First Lien Agent will not take any action to
interfere or that is inconsistent with the waiver of, any recovery or distribution on account of (but not voting rights in respect of) such Allowed TCEH First Lien Deficiency Claims (including on account of any recovery or distribution provided for
in Section 2.2(a) of this Settlement Agreement) (the “Limited Waiver”) for the benefit of the holders of Allowed TCEH Unsecured Note Claims, Allowed TCEH Second Lien Note Claims, and Allowed General Unsecured Claims Against the
TCEH Debtors Other Than EFCH (collectively, the “Beneficiary-Claimants”), such that any payment or other distribution (including transfer) that would otherwise have been made to, or for the benefit of, one or more of the TCEH First
Lien Creditors on account of their Allowed TCEH First Lien Deficiency Claims pursuant to the Plan or an Alternative Restructuring will instead be paid or distributed pro rata to the Beneficiary-Claimants on the basis of the amounts of their
respective Allowed Claims; provided, however, that, (x) if the Bankruptcy Court (or other court of competent jurisdiction) determines that the Limited Waiver cannot be for the benefit of only the Beneficiary-Claimants, or
(y) the Required TCEH Unsecured Noteholders, the Required TCEH Second Lien Noteholders, and the TCEH Official Committee each agree, in consultation with the Required TCEH First Lien Creditors, that the Limited Waiver should benefit any
non-Beneficiary-Claimants (in whole or in part), then the Limited Waiver shall be for the benefit of the Beneficiary-Claimants and such other holders of Allowed Unsecured Claims against the TCEH Debtors as ordered by such court or agreed to by the
Required TCEH Unsecured Noteholders, the Required TCEH Second Lien Noteholders, and the TCEH Official Committee, in consultation with the Required TCEH First Lien Creditors, but in no event shall include the holders of Allowed TCEH First Lien
Deficiency Claims, such that any payment or other distribution (including transfer) that would otherwise have been made to, or for the benefit of, one or more of the TCEH First Lien Creditors on account of their Allowed TCEH First Lien Deficiency
Claims pursuant to the Plan or an Alternative Restructuring will instead be paid or distributed pro rata to the Beneficiary-Claimants and such other holders of Allowed Unsecured Claims against the TCEH Debtors on the basis of the amounts of their
respective Allowed Claims. For the avoidance of doubt, (A) under no circumstances will any holder of a TCEH First Lien Deficiency Claim receive on account of such claim any portion of or distribution from the TCEH Cash Payment, and (B) the
Limited Waiver shall not increase the aggregate amount of payments, distributions or transfers required pursuant to Section 2.2(a) of this Settlement Agreement and only relates to the allocation of such payments, distributions and transfers as
between the holders of Allowed Unsecured Claims against the TCEH Debtors. 

  
 14 

 (c) Effective upon the occurrence of the Settlement Effective Date, each of the Debtors and their
Estates, the Settling Interest Holders, the Settling TCEH Unsecured Noteholders, the TCEH Unsecured Notes Trustee (if made a Party hereto), the Settling TCEH Second Lien Noteholders, the TCEH Second Lien Notes Trustee (if made a Party hereto), the
TCEH Official Committee, each such Entity’s respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held
directly or indirectly), predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys,
accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “TCEH First Lien Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely,
and forever waives, remises, releases, settles, acquits, satisfies, and discharges each of the TCEH First Lien Creditors, each such Entity’s respective current and former affiliates, and each such Entity’s and its current and former
affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals,
members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “TCEH
First Lien Released Parties”) from any and all claims and Causes of Action, including claims and Causes of Action identified, claimed, or released in the Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as
well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted on behalf of the Debtors, that such TCEH First Lien Releasor Parties would have been legally entitled to assert (whether individually
or collectively), which any of the TCEH First Lien Releasor Parties ever had, now has, or hereinafter can, shall or may have, against any of the TCEH First Lien Released Parties for, upon or by reason of any matter, cause or thing whatsoever, from
the beginning of the world through the Settlement Effective Date solely to the extent relating to or arising from disputes with respect to the Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions (including
dividends paid), transactions pursuant and/or related to the Master Separation Agreement dated December 12, 2001, the Prepetition Collateral (as defined in the Final Cash Collateral Order), the Liability Management Program, the Tax Sharing
Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the Luminant Makewhole Settlement, the Tax and
Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, the TCEH First Lien Claims, the TCEH Credit Agreement, the TCEH First Lien Indenture, the TCEH First Lien Interest Rate Swap Agreements, the TCEH First Lien Commodity
Hedge Agreements, the Final Cash Collateral Order (and any payments or transfers made in connection therewith), any preference, fraudulent transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548, 550, or 551
of the Bankruptcy Code and applicable state laws, the formulation, preparation, dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any Restructuring
Transaction, 

  
 15 

 
contract, instrument, release, or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other
agreement contemplated by the Plan or the reliance by any TCEH First Lien Released Party on the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support Agreement, the Terminated
Restructuring Support Agreement, the Disclosure Statement, the Plan, the Merger and Purchase Agreement, the Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of
Consummation, the administration and implementation of the Plan, including the issuance or distribution of Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase Agreement, the Backstop Agreement, or
any other related agreement, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing. The TCEH First Lien Releasor Parties
shall also be deemed to knowingly and voluntarily waive and relinquish any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or
limits a person’s release of unknown claims as applied to the releases contained in this Section 2.2(c). 
 (d) Effective upon the
occurrence of the Settlement Effective Date, the TCEH First Lien Claims and the Prepetition Collateral (as defined in the Final Cash Collateral Order), as applicable, shall not be subject to avoidance, reduction, surcharge (except as expressly
provided for in Section 2.2(a) of this Settlement Agreement), set-off, recoupment, offset, recharacterization, subordination (whether equitable, contractual or otherwise), counterclaim, cross-claim, defense, disallowance, impairment, objection,
or any other challenge under applicable law or regulation, and shall be Allowed for all purposes in the Chapter 11 Cases (and any successor cases), including with respect to any distributions or other transfers that may be made under the Plan or in
connection with any other Restructuring of the TCEH Debtors, in the following amounts: 
  

	 	(i)	TCEH Credit Agreement Claims: $22,863,271,257; 

  

	 	(ii)	TCEH First Lien Note Claims: $1,815,965,278; and 

  

	 	(iii)	TCEH First Lien Interest Rate Swap Claims and TCEH First Lien Commodity Hedge Claims: no less than $1,235,249,136. 

(e) Effective upon the occurrence of the Settlement Effective Date, each of the Settling TCEH First Lien Creditors, the TCEH First Lien Agent
(if made a Party hereto) each such Entity’s respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held
directly or indirectly), predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys,
accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “TCEH Creditor Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely, and
forever waives, remises, releases, settles, acquits, satisfies, and forever discharges each of the Settling Interest Holders, the Settling TCEH Unsecured Noteholders, the TCEH Unsecured 

  
 16 

 
Notes Trustee (if made a Party hereto), the Settling TCEH Second Lien Noteholders, the TCEH Second Lien Notes Trustee (if made a Party hereto), the TCEH Official Committee, each such
Entity’s respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly), predecessors,
successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants,
representatives, and other professionals, each in their capacity as such (collectively, the “TCEH Creditor Released Parties”) from any and all claims and Causes of Action, including claims and Causes of Action identified, claimed,
or released in the Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted on behalf of the Debtors,
that such TCEH Creditor Releasor Parties would have been legally entitled to assert (whether individually or collectively), which any of the TCEH Creditor Releasor Parties ever had, now has, or hereinafter can, shall or may have, against any of the
TCEH Creditor Released Parties for, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world through the Settlement Effective Date solely to the extent relating to or arising from disputes with respect to the
Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions (including dividends paid), transactions pursuant and/or related to the Master Separation Agreement dated December 12, 2001, the TCEH Credit
Agreement, the Liability Management Program, the Tax Sharing Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005
Oncor Transfer, the Luminant Makewhole Settlement, the Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, the TCEH First Lien Claims, the TCEH Credit Agreement, the TCEH First Lien Indenture, the TCEH First Lien
Interest Rate Swap Agreements, the TCEH First Lien Commodity Hedge Agreements, the Final Cash Collateral Order (and any payments or transfers made in connection therewith), any preference, fraudulent transfer, or other avoidance, recovery, or
preservation claim pursuant to sections 544, 547, 548, 550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation, dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan
Support Agreement, the EFIH First Lien Settlement, or any Restructuring Transaction, contract, instrument, release, or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction, contract,
instrument, document, or other agreement contemplated by the Plan or the reliance by any TCEH First Lien Released Party on the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support
Agreement, the Terminated Restructuring Support Agreement, the Disclosure Statement, the Plan, the Merger and Purchase Agreement, the Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of
Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or distribution of Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase
Agreement, the Backstop Agreement, or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing;
provided, however, that the foregoing release does not and shall not be deemed to include the TCEH First Lien Claims, the TCEH Unsecured Note Claims, the TCEH Second Lien Note Claims, or any

  
 17 

 
other Claims for the Debtors’ funded indebtedness or swap obligations held by any of the Settling First Lien Creditors; provided, further, that the releases set forth above
shall not release the Debtors or the Holders of TCEH First Lien Claims from any obligations with respect to the payment of fees and expenses or indemnification obligations owed to the TCEH First Lien Agent under the TCEH Credit Agreement or the TCEH
First Lien Intercreditor Agreement, provided, however, that such obligations of the Debtors may be discharged pursuant to an order of the Bankruptcy Court. The TCEH Creditor Releasor Parties shall also be deemed to knowingly and
voluntarily waive and relinquish any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a person’s release of
unknown claims as applied to the releases contained in this Section 2.2(e). 
 2.3 Settlement of Claims Against EFH Interest Holders and
Sponsors. 
 (a) Subject to the occurrence of the Settlement Effective Date, Texas Holdings agrees that, from and after the Settlement
Effective Date, it will pay over and deposit into escrow for the benefit of holders of Allowed TCEH Unsecured Note Claims, Allowed TCEH Second Lien Note Claims, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other
Than EFCH (but, in no event, holders of Allowed TCEH First Lien Deficiency Claims) 100% of the proceeds of any recovery received by Texas Holdings on account of its Interests in EFH (except for the payment of up to $15,000,000.00 referred to in
Section 2.7(b) of this Settlement Agreement) (the “EFH Interests Proceeds”). 
 (b) Subject to the occurrence of the
Settlement Effective Date, Texas Holdings shall not (i) take any action that results in an ownership change of EFH within the meaning of Section 382(g) of the Internal Revenue Code (including by treating the equity interests of EFH as
becoming worthless within the meaning of Section 382(g)(4)(D) of the Internal Revenue Code and thereby resulting in an ownership change of EFH within the meaning of Section 382(g) of the Internal Revenue Code) until at or after the
Effective Date of the Plan; (ii) knowingly permit any person (other than Texas Holdings) to own directly, indirectly or constructively (by operation of Section 318 as modified by Section 382(l)(3)(A) of the Internal Revenue Code) 50%
or more of the equity interests of EFH until at or after the Effective Date of the Plan or the consummation of any Alternative Restructuring; or (iii) change its taxable year to be other than the calendar year until after the Effective Date of
the Plan or the consummation of any Alternative Restructuring. 
 (c) Effective upon the occurrence of the Settlement Effective Date, each of
the Debtors, the Settling Creditors, the TCEH First Lien Agent (if made a Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Notes Trustee (if made a Party hereto), and the TCEH Official Committee, each
such Entity’s respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly),
predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment
bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “EFH Interest Holder Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely, and forever waives,

  
 18 

 
remises, releases, settles, acquits, satisfies, and discharges the holders of EFH Interests, including the Settling Interest Holders (including each of the Sponsor Managers and other Sponsors),
each such Entity’s respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly),
predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment
bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “EFH Interest Holder Released Parties”), from any and all claims and Causes of Action, including claims and Causes of
Action identified, claimed, or released in the Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted
on behalf of the Debtors, that such EFH Interest Holder Releasor Parties would have been legally entitled to assert (whether individually or collectively), which any of the EFH Interest Holder Releasor Parties ever had, now has, or hereinafter can,
shall or may have, against any of the EFH Interest Holder Released Parties for, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world through the Settlement Effective Date solely to the extent relating to or
arising from disputes with respect to the Debtors (including the management, ownership or operation thereof), the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions (including dividends paid), transactions pursuant
and/or related to the Master Separation Agreement dated December 12, 2001, the TCEH Credit Agreement, the Liability Management Program, the Tax Sharing Agreements, the 2007 Acquisition, the 2009 amendment to the TCEH Credit Agreement, the
Management Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the Luminant Makewhole Settlement, the Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, the
TCEH First Lien Claims, the TCEH Credit Agreement, the TCEH First Lien Indenture, the TCEH First Lien Interest Rate Swap Agreements, the TCEH First Lien Commodity Hedge Agreements, the Final Cash Collateral Order (and any payments or transfers made
in connection therewith), any preference, fraudulent transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548, 550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation,
dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any Restructuring Transaction, contract, instrument, release, or other agreement or document
(including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the Plan or the reliance by any EFH Interest Holder Released Party on the Plan or the
Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support Agreement, the Terminated Restructuring Support Agreement, the Disclosure Statement, the Plan, the Merger and Purchase Agreement, the
Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or distribution of
Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase Agreement, the Backstop Agreement, or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other
occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing; provided, however, that the foregoing release does not and shall not be deemed to include the

  
 19 

 
TCEH First Lien Claims, the TCEH Unsecured Note Claims, the TCEH Second Lien Note Claims, or any other Claims for the Debtors’ funded indebtedness or swap obligations held by the Settling
Creditors unless and until, solely with respect to the Settling TCEH Unsecured Noteholders, Settling TCEH Second Lien Noteholders, the TCEH Unsecured Notes Trustee (if made a Party hereto) and the TCEH Second Lien Notes Trustee (if made a Party
hereto), the holders of Allowed TCEH Unsecured Notes Claims, Allowed TCEH Second Lien Note Claims, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other Than EFCH (but not, in any event, holders of Allowed TCEH
First Lien Deficiency Claims) receive the payments set forth in Sections 2.2(a) and 2.3(a) of this Settlement Agreement; provided, further, that the releases set forth above shall not release the Debtors or the Holders of TCEH First
Lien Claims from any obligations with respect to the payment of fees and expenses or indemnification obligations owed to the TCEH First Lien Agent under the TCEH Credit Agreement or the TCEH First Lien Intercreditor Agreement, provided,
however, that such obligations of the Debtors may be discharged pursuant to an order of the Bankruptcy Court. The EFH Interest Holder Releasor Parties shall also be deemed to knowingly and voluntarily waive and relinquish any and all
provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a person’s release of unknown claims as applied to the releases
contained in this Section 2.3(c). 
 (d) In the event an Entity that is not a Party pursues and recovers on a claim or Cause of Action
described in Section 2.3(c) of this Settlement Agreement against any EFH Interest Holder Released Party, any such recovery or distribution on account of such claim or Cause of Action received by a EFH Interest Holder Releasor Party (each in its
capacity as such) shall be deposited in and held in an escrow account and, (i) upon the consummation of an Alternative Restructuring of any or all of the TCEH Debtors (other than any TCEH Debtor whose total assets are less than 2.5% of the
consolidated total assets, or whose total revenues are less than 2.5% of the consolidated revenues, of the TCEH Debtors as of the date of such Alternative Restructuring) and receipt of the TCEH Cash Payment as set forth in Section 2.2(a) of
this Settlement Agreement, released to the applicable EFH Interest Holder Released Party(ies) based on any economic losses incurred by each such EFH Interest Holder Released Party as a result of the litigation of the claims and Causes of Action
described in Section 2.3(c) of this Settlement Agreement, or (ii) in all other events, returned to each EFH Interest Holder Releasor Party that deposited such recovery or distribution into escrow. 

(e) Effective upon the occurrence of the Settlement Effective Date, each of the Settling Interest Holders (including each of the Sponsor
Managers and other Sponsors), and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, and assigns,
subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and
other professionals, each in their capacity as such (collectively, the “Settling Interest Holder Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely, and forever waives, remises, releases, settles, acquits,
satisfies, and discharges the Debtors, Settling Creditors, the TCEH First Lien Agent (if made a Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Notes Trustee (if made a Party hereto), the TCEH Official
Committee, each such Entity’s 

  
 20 

 
respective current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held
directly or indirectly), predecessors, successors, and assigns, subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys,
accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the “Settling Interest Holder Released Parties”) from any and all claims and Causes of Action,
including claims and Causes of Action identified, claimed, or released in the Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including
any derivative claims, asserted on behalf of the Debtors, that such Settling Interest Holder Releasor Parties would have been legally entitled to assert (whether individually or collectively), which any of the Settling Interest Holder Releasor
Parties ever had, now has, or hereinafter can, shall or may have, against any of the Settling Interest Holder Released Parties for, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world through the Settlement
Effective Date solely to the extent relating to or arising from disputes with respect to the Debtors, the Debtors’ in- or out-of-court restructuring efforts, intercompany transactions (including dividends paid), transactions pursuant and/or
related to the Master Separation Agreement dated December 12, 2001, the TCEH Credit Agreement, the Liability Management Program, the Tax Sharing Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit
Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the Luminant Makewhole Settlement, the Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, the TCEH First
Lien Claims, the TCEH Credit Agreement, the TCEH First Lien Indenture, the TCEH First Lien Interest Rate Swap Agreements, the TCEH First Lien Commodity Hedge Agreements, the Final Cash Collateral Order (and any payments or transfers made in
connection therewith), any preference, fraudulent transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548, 550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation,
dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any Restructuring Transaction, contract, instrument, release, or other agreement or document
(including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the Plan or the reliance by any TCEH First Lien Released Party on the Plan or the
Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support Agreement, the Terminated Restructuring Support Agreement, the Disclosure Statement, the Plan, the Merger and Purchase Agreement, the
Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and implementation of the Plan, including the issuance or distribution of
Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase Agreement, the Backstop Agreement, or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other
occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing. The Settling Interest Holder Releasor Parties shall also be deemed to knowingly and voluntarily waive and relinquish any and all
provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a person’s release of unknown claims as applied to the releases
contained in this Section 2.3(d). 

  
 21 

 2.4 Settlement of Claims Against Debtor Parties. 

(a) Effective upon the occurrence of the Settlement Effective Date, each of the Debtors, the Settling Creditors, the TCEH First Lien Agent (if
made a Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Notes Trustee (if made a Party hereto), the TCEH Official Committee, and the Settling Interest Holders, and each such Entity’s respective
current and former affiliates, and each such Entity’s and its current and former affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, and assigns,
subsidiaries, and their current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and
other professionals, each in their capacity as such (collectively, the “Debtor Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely, and forever waives, remises, releases, settles, acquits, satisfies, and
discharges each of the Debtors’ current and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants,
representatives, and other professionals, each in their capacity as such (collectively, the “Debtor Released Parties”), from any and all claims and Causes of Action, including claims and Causes of Action identified, claimed, or
released in the Standing Motions, the Litigation Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted on behalf of the Debtors, that
such Debtor Releasor Parties would have been legally entitled to assert (whether individually or collectively), which any of the Debtor Releasor Parties ever had, now has, or hereinafter can, shall or may have, against any of the Debtor Released
Parties for, upon or by reason of any matter, cause or thing whatsoever, from the beginning of the world through the Settlement Effective Date solely to the extent relating to or arising from disputes with respect to the Debtors, the Debtors’
in- or out-of-court restructuring efforts, intercompany transactions (including dividends paid), transactions pursuant and/or related to the Master Separation Agreement dated December 12, 2001, the TCEH Credit Agreement, the Liability
Management Program, the Tax Sharing Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the
Luminant Makewhole Settlement, the Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, any preference, fraudulent transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548,
550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation, dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any
Restructuring Transaction, contract, instrument, release, or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the
Plan or the reliance by any Released Party on the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support Agreement, the Terminated Restructuring Support Agreement, the Disclosure
Statement, the Plan, the Merger and Purchase Agreement, the Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and

  
 22 

 
implementation of the Plan, including the issuance or distribution of Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase Agreement, the
Backstop Agreement, or any other related agreement, or upon any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing; provided,
however, that the foregoing release does not and shall not be deemed to include the TCEH First Lien Claims, the TCEH Unsecured Note Claims, the TCEH Second Lien Note Claims, or any other Claims for the Debtors’ funded indebtedness or
swap obligations held by the Settling Creditors unless and until, solely with respect to the Settling TCEH Unsecured Noteholders, the Settling TCEH Second Lien Noteholders, the TCEH Unsecured Notes Trustee (if made a Party hereto) and the TCEH
Second Lien Notes Trustee (if made a Party hereto), the holders of Allowed TCEH Unsecured Notes Claims, Allowed TCEH Second Lien Note Claims, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other Than EFCH (but
not, in any event, holders of Allowed TCEH First Lien Deficiency Claims) receive the payments set forth in Sections 2.2(a) and 2.3(a) of this Settlement Agreement; provided, further, that the releases set forth above shall not release
the Debtors or the Holders of TCEH First Lien Claims from any obligations with respect to the payment of fees and expenses or indemnification obligations owed to the TCEH First Lien Agent under the TCEH Credit Agreement or the TCEH First Lien
Intercreditor Agreement, provided, however, that such obligations of the Debtors may be discharged pursuant to an order of the Bankruptcy Court. The Debtor Releasor Parties shall also be deemed to knowingly and voluntarily waive and
relinquish any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a person’s release of unknown claims as applied
to the releases contained in this Section 2.4(a). 
 (b) In the event an Entity that is not a Party pursues and recovers on a claim or
Cause of Action described in Section 2.4(a) of this Settlement Agreement against any Debtor Released Party, any such recovery or distribution on account of such claim or Cause of Action received by a Debtor Releasor Party (each in its capacity
as such) shall be deposited in and held in an escrow account and, (i) upon the consummation of a Restructuring of any of the Debtors and payment on account of the TCEH Settlement Claim and payment of the TCEH Cash Payment, as applicable, in
accordance with Section 2.1(c) and Section 2.2(a) of this Settlement Agreement, released to the applicable Debtor Released Parties based on any economic losses incurred by each such Debtor Released Party as a result of the litigation of
the claims and Causes of Action described in Section 2.4(a) of this Settlement Agreement or (ii) in all other events, returned to each Debtor Releasor Party that deposited such recovery or distribution into escrow. 

(c) Effective upon the occurrence of the Settlement Effective Date, each of the Debtors’ current and former officers, directors, managers,
principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and other professionals, each in their capacity as such (collectively, the
“Debtor Party Releasor Parties”) voluntarily and knowingly, unconditionally, absolutely, and forever waives, remises, releases, settles, acquits, satisfies, and discharges the Settling Creditors, the TCEH First Lien Agent (if made a
Party hereto), the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Notes Trustee (if made a Party hereto), the TCEH Official Committee, the Settling Interest Holders, and each such Entity’s respective current and
former affiliates, and each such Entity’s and its current and former 

  
 23 

 
affiliates’ current and former equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, and assigns, subsidiaries, and their current
and former officers, directors, managers, principals, members, employees, agents, advisory board members, financial advisors, partners, attorneys, accountants, investment bankers, consultants, representatives, and other professionals, each in their
capacity as such (collectively, the “Debtor Party Released Parties”) from any and all claims and Causes of Action, including claims and Causes of Action identified, claimed, or released in the Standing Motions, the Litigation
Letters or the Disinterested Directors Settlement, as well as all other claims and Causes of Action, whether known or unknown, including any derivative claims, asserted on behalf of the Debtors, that such Debtor Party Releasor Parties would have
been legally entitled to assert (whether individually or collectively), which any of the Debtor Party Releasor Parties ever had, now has, or hereinafter can, shall or may have, against any of the Debtor Party Released Parties for, upon or by reason
of any matter, cause or thing whatsoever, from the beginning of the world through the Settlement Effective Date solely to the extent relating to or arising from disputes with respect to the Debtors, the Debtors’ in- or out-of-court
restructuring efforts, intercompany transactions (including dividends paid), transactions pursuant and/or related to the Master Separation Agreement dated December 12, 2001, the TCEH Credit Agreement, the Liability Management Program, the Tax
Sharing Agreements, the 2007 Acquisition, the Management Agreement, the 2009 amendment to the TCEH Credit Agreement, the 2011 Amend and Extend Transactions, the 2013 Revolver Extension, the 2005 Oncor Transfer, the Luminant Makewhole Settlement, the
Tax and Interest Makewhole Agreements, the TCEH Intercompany Notes, the Shared Services, the TCEH First Lien Claims, the TCEH Credit Agreement, the TCEH First Lien Indenture, the TCEH First Lien Interest Rate Swap Agreements, the TCEH First Lien
Commodity Hedge Agreements, the Final Cash Collateral Order (and any payments or transfers made in connection therewith), any preference, fraudulent transfer, or other avoidance, recovery, or preservation claim pursuant to sections 544, 547, 548,
550, or 551 of the Bankruptcy Code and applicable state laws, the formulation, preparation, dissemination, negotiation, or Filing of the Terminated Restructuring Support Agreement, the Plan Support Agreement, the EFIH First Lien Settlement, or any
Restructuring Transaction, contract, instrument, release, or other agreement or document (including providing any legal opinion requested by any Entity regarding any transaction, contract, instrument, document, or other agreement contemplated by the
Plan or the reliance by any Debtor Party Released Party on the Plan or the Confirmation Order in lieu of such legal opinion) created or entered into in connection with the Plan Support Agreement, the Terminated Restructuring Support Agreement, the
Disclosure Statement, the Plan, the Merger and Purchase Agreement, the Backstop Agreement, the DIP Facilities, the Chapter 11 Cases, the filing of the Chapter 11 Cases, the pursuit of Confirmation, the pursuit of Consummation, the administration and
implementation of the Plan, including the issuance or distribution of Securities pursuant to the Plan, or the distribution of property under the Plan, the Merger and Purchase Agreement, the Backstop Agreement, or any other related agreement, or upon
any other act or omission, transaction, agreement, event, or other occurrence taking place on or before the Settlement Effective Date related or relating to the foregoing. The Debtor Party Releasor Parties shall also be deemed to knowingly and
voluntarily waive and relinquish any and all provisions, rights and benefits conferred by any law of the United States or any state or territory of the United States, or principle of common law, which governs or limits a person’s release of
unknown claims as applied to the releases contained in this Section 2.4(c). 

  
 24 

 (d) Unless otherwise agreed by the Debtors, the Required TCEH Unsecured Noteholders, and the
Required TCEH Second Lien Noteholders including pursuant to the Plan Support Agreement, upon the consummation of a Restructuring (other than the Plan) of any of the Debtors and payment of the TCEH Cash Payment and the EFH Interests Proceeds (if
any), as applicable, in accordance with Sections 2.2(a) and 2.3(a) of this Settlement Agreement (i) the Debtors shall be included in the definitions of “Debtor Released Parties” and “Debtor Party Releasor Parties” under
this Section 2.4 solely with respect to the Settling TCEH Unsecured Noteholders, Settling TCEH Second Lien Noteholders, the TCEH Unsecured Notes Trustee (if made a Party hereto), the TCEH Second Lien Notes Trustee (if made a Party hereto), and
the TCEH Official Committee (and, for the avoidance of doubt, not with respect to the Settling TCEH First Lien Creditors or the TCEH First Lien Agent (if made a Party hereto)), and (ii) the TCEH Unsecured Note Claims and the TCEH Second Lien
Note Claims (but, in no event, the TCEH First Lien Claims or Claims for any of the EFH Debtors’ or EFIH Debtors’ funded indebtedness or swap obligations) shall be deemed to be included within the releases in Sections 2.3 and 2.4 of
this Settlement Agreement. 
 2.5 No Release of Certain Obligations. 

Notwithstanding anything to the contrary herein, nothing in this Settlement Agreement shall (a) release the Parties from any obligations
they may have under this Settlement Agreement, the Plan Support Agreement, or any contract, instrument, release, or other agreement or document created or entered into in connection with the Plan, or for, upon or by reason of any cause whatsoever
from and after the Settlement Effective Date or (b) release or be deemed to release any Claims for any of the EFH Debtors’ or EFIH Debtors’ funded indebtedness or swap obligations or TCEH First Lien Claims held by any of the Settling
Creditors. 
 2.6 Dismissal or Withdrawal, With Prejudice, of Standing Motions. 

On the Settlement Effective Date, the TCEH Official Committee and the TCEH Unsecured Group shall irrevocably and unconditionally dismiss or
withdraw, with prejudice, the TCEH Committee Standing Motion and the TCEH Unsecured Group Standing Motion, respectively, without costs to any party. On the Settlement Effective Date, the EFH Committee Standing Motion shall be deemed dismissed as a
result of the releases set forth herein. 
 2.7 Payment of Certain Fees and Expenses. 

(a) In exchange for the applicable Parties’ agreements contained in the Plan Support Agreement, as well as their agreement to the
settlements and releases set forth herein, TCEH shall, not later than the first Business Day following the Settlement Effective Date, pay the reasonable and documented out-of-pocket fees, expenses, and reimbursements of (i) the members of the
ad hoc committee of TCEH First Lien Creditors and (ii)(A) the TCEH Unsecured Group (but not the individual members thereof), (B) the TCEH Unsecured Notes Trustee, (C) the TCEH Second Lien Group (but not the individual members thereof),
(D) the TCEH Second Lien Trustee, and (E) The Bank of New York Mellon Trust Company, N.A., as collateral agent under the TCEH Second Lien Notes Indenture (the foregoing fees, expenses, and reimbursements in clause (ii), collectively, the
“Professional Fees”); provided, however, that the aggregate fees, expenses, and reimbursements payable to the foregoing Parties under this 

  
 25 

 
Section 2.7(a)(ii) for the period before and including June 30, 2015, shall not exceed $49,750,000.00. Upon the Effective Date of the Plan, EFH shall reimburse TCEH in cash for the
Professional Fees paid pursuant to this Section 2.7, provided, however, that EFH shall have no obligation to reimburse TCEH for the Professional Fees paid pursuant to this Section 2.7 in the event that the Effective Date of
the Plan does not occur. If the Effective Date of the Plan does not occur, under any Alternative Restructuring, the TCEH Cash Payment shall be reduced by the amount of the Professional Fees actually paid pursuant to this Section 2.7. The
Settling TCEH Unsecured Noteholders, Settling TCEH Second Lien Noteholders and TCEH Official Committee agree that, solely for purposes of allocating the TCEH Cash Payment among the holders of Allowed TCEH Unsecured Note Claims, Allowed TCEH Second
Lien Claim, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other Than EFCH: (x) the Professional Fees of the TCEH Unsecured Group and TCEH Second Lien Group that (1) are actually paid pursuant to this
Section 2.7, and (2) are not subject to or covered by the TCEH Unsecured Notes Trustee’s and TCEH Second Lien Notes Trustee’s “charging liens,” respectively, shall reduce pro rata the distributions to all holders of
Allowed TCEH Unsecured Note Claims, Allowed TCEH Second Lien Claim, Allowed PCRB Claims, and Allowed General Unsecured Claims Against the TCEH Debtors Other Than EFCH based on the amounts of the respective distributions such holders would otherwise
have received but for such reduction and taking into account the effect of the Limited Waiver; (y) the Professional Fees of the TCEH Unsecured Group and TCEH Unsecured Notes Trustee that (1) are actually paid pursuant to this
Section 2.7 and (2) are subject to or covered by the TCEH Unsecured Notes Trustee’s “charging lien” shall reduce pro rata the distributions to holders of Allowed TCEH Unsecured Notes Claims based on the amounts of their
Allowed Claims; and (z) the Professional Fees of the TCEH Second Lien Group and TCEH Second Lien Notes Trustee that (1) are actually paid pursuant to this Section 2.7 and (2) are subject to or covered by the TCEH Second Lien
Notes Trustee’s “charging lien,” shall reduce pro rata the distributions to holders of Allowed TCEH Second Lien Note Claims based on the amounts of their Allowed Claims. 

(b) On the Effective Date of the Plan, EFH shall pay to Texas Holdings an amount equal to the fees and expenses of Texas Holdings up to
$15,000,000.00, and Texas Holdings shall use such amount exclusively to pay such fees and expenses. 
 Section 3. Miscellaneous Provisions 

3.1 Settlement Agreement Effective Date.  

This Settlement Agreement shall become effective and binding on the Parties at 12:00 a.m., prevailing Eastern Time, on the date (the
“Settlement Effective Date”) on which the last of the following conditions is satisfied: (a) all of the following have executed and delivered to the other Parties pursuant to Section 3.12 hereof counterpart signature pages
of this Settlement Agreement (i) the Debtors; (ii) each of the Settling Interest Holders; (iii) one or more beneficial holders (or investment advisors or managers for such beneficial holders or discretionary accounts of such
beneficial holders) of TCEH First Lien Claims; (iv) one or more beneficial holders (or investment advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders) of TCEH Second Lien Note Claims;
(v) one or more beneficial holders (or investment advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders) of TCEH Unsecured Note Claims; and (vi) the TCEH Official Committee;
(b)

  
 26 

 
the Settlement Order, in form and substance reasonably acceptable to the Debtors, the Settling Interest Holders, the Required TCEH Creditor Parties, and the TCEH Official Committee shall have
been entered by the Bankruptcy Court and be in full force and effect and not stayed (by operation of Rule 6004(h) of the Bankruptcy Rules or otherwise), reversed, vacated or amended; and (c) unless waived by the Parties, five (5) Business
Days shall have passed after the expiration of the deadline by which the Class comprised of Allowed TCEH First Lien Secured Claims must vote to accept or reject the Plan; provided, however, that this Settlement Agreement shall be
binding on the Parties (other than the Debtors) immediately upon such Parties’ execution of signature pages to this Settlement Agreement; provided, further, however, that no provisions of this Settlement Agreement shall be
effective as to the Debtors until the Settlement Effective Date; provided, further, for the avoidance of doubt, that any applicable Entity may become a Party to this Settlement Agreement after the Settlement Effective Date by executing
and delivering to the other Parties pursuant to Section 3.12 hereof its counterpart signature page to this Settlement Agreement. 
 3.2 Settlement
Approval Motion. 
 Within three (3) Business Days after the date of execution by all Parties to this Settlement Agreement, the
Debtors shall file a motion (the “Settlement Approval Motion”) with the Bankruptcy Court seeking (i) approval of this Settlement Agreement pursuant to Rule 9019(a) of the Bankruptcy Rules, (ii) authorization for the
Debtors to enter into the Plan Support Agreement pursuant to section 363 of the Bankruptcy Code, and (iii) waiver of any stay of the Settlement Order pursuant to Rule 6004(h) of the Bankruptcy Rules. The Settlement Approval Motion shall be in
form and substance reasonably acceptable to the Parties. 
 3.3 Commitments of the Settling Creditors. 

(a) The Settling TCEH First Lien Creditors shall use commercially reasonable efforts (which shall not include incurring any indemnification
obligation) to direct the TCEH First Lien Agent to join in this Settlement Agreement; provided, however, that (i) if the TCEH First Lien Agent does not become a party to this Settlement Agreement, then the Settling TCEH First Lien
Creditors shall use commercially reasonable efforts (which shall not include incurring any indemnification obligation) to direct the TCEH First Lien Agent to take actions consistent with such Parties’ obligations under this Settlement
Agreement, and (ii) if the TCEH First Lien Agent takes any action inconsistent with such Parties’ obligations under this Settlement Agreement, the Settling TCEH First Lien Creditors shall promptly direct the TCEH First Lien Agent to cease
and refrain from taking any such action. 
 (b) The Settling TCEH Second Lien Noteholders shall use commercially reasonable efforts (which
shall not include incurring any indemnification obligation) to direct the TCEH Second Lien Notes Trustee to join in this Settlement Agreement; provided, however, that (i) if the TCEH Second Lien Notes Trustee does not become a party to
this Settlement Agreement, then the Settling TCEH Second Lien Noteholders shall use commercially reasonable efforts (which shall not include incurring any indemnification obligation) to direct the TCEH Second Lien Notes Trustee to take actions
consistent with such Parties’ obligations under this Settlement Agreement, and (ii) if the TCEH Second Lien Notes Trustee takes any action inconsistent with such Parties’ obligations under this Settlement Agreement, the Settling TCEH
Second Lien 

  
 27 

 
Noteholders shall promptly direct the TCEH Second Lien Notes Trustee to cease and refrain from taking any such action. The Settling TCEH Second Lien Noteholders shall also use commercially
reasonable efforts (which shall not include incurring any indemnification obligation) to cause the TCEH Second Lien Notes Trustee to amend or enter into any applicable agreements or take any actions reasonably necessary to cause this Settlement
Agreement to bind, or to make this Settlement Agreement otherwise effective as to, any holders of TCEH Second Lien Note Claims not party hereto. 

(c) The Settling TCEH Unsecured Noteholders shall use commercially reasonable efforts (which shall not include incurring any indemnification
obligation) to direct the TCEH Unsecured Notes Trustee to join in this Settlement Agreement; provided, however, (i) that if the TCEH Unsecured Notes Trustee does not become a party to this Settlement Agreement, then the Settling TCEH
Unsecured Noteholders shall use commercially reasonable efforts (which shall not include incurring any indemnification obligation) to direct the TCEH Unsecured Notes Trustee to take actions consistent with such Parties’ obligations under this
Settlement Agreement, and (ii) if the TCEH Unsecured Notes Trustee takes any action inconsistent with such Parties’ obligations under this Settlement Agreement, the Settling TCEH Unsecured Noteholders shall promptly direct the TCEH
Unsecured Notes Trustee to cease and refrain from taking any such action. The Settling TCEH Unsecured Noteholders shall also use commercially reasonable efforts (which shall not include incurring any indemnification obligation) to cause the TCEH
Unsecured Notes Trustee to amend or enter into any applicable agreements or take any actions reasonably necessary to cause this Settlement Agreement to bind, or to make this Settlement Agreement otherwise effective as to, any holders of TCEH
Unsecured Note Claims not party hereto. 
 3.4 Representations of the Parties. 

(a) Settling Interest Holder and Settling Creditor Representations and Warranties. 

To induce each other Party to enter into and perform its obligations under this Settlement Agreement, each Settling Interest Holder and each
Settling Creditor, severally but not jointly, represents, warrants and acknowledges, as of the Settlement Effective Date, as follows: 

(i) Authority. (A) It is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its organization and has all the requisite corporate, partnership, limited liability company or other power and authority to execute and deliver this Settlement Agreement and the other documents and instruments contemplated hereby to which it is
contemplated to be a party and perform its obligations under this Settlement Agreement and the other documents and instruments contemplated hereby to which it is contemplated to be a party, and to consummate the transactions contemplated herein and
therein, and (B) the execution, delivery and performance by it under this Settlement Agreement and the other documents and instruments contemplated hereby to which it is contemplated to be a party and the consummation of the transactions
contemplated herein and therein, have been duly authorized by all necessary action on its part, and no other actions or proceedings on its part are necessary to authorize and approve this Settlement Agreement or the other documents or instruments
contemplated hereby to which it is contemplated to be a party or any of the transactions contemplated herein or therein. 

  
 28 

 (ii) Ownership. It is the legal owner, beneficial owner, and/or the
investment advisor or manager for such legal or beneficial owner or discretionary account of such legal or beneficial owner of a Claim against and/or Equity Interest in the Debtors. 

(iii) Validity. This Settlement Agreement has been duly executed and delivered by it and constitutes its legal, valid
and binding agreement, enforceable against it in accordance with its terms. 
 (iv) No Conflict. Its execution,
delivery and performance (when such performance is due) of this Settlement Agreement does not and shall not (A) subject to the actions, consents and filings referred to in clause (v) below, violate any provision of law, rule or regulation
applicable to it or any of its subsidiaries or its or their subsidiaries’ certificates of incorporation or bylaws or other organizational documents, or (B) conflict with, result in a breach of or constitute (with due notice or lapse of
time or both) a default under any material contractual obligations to which it or any of its subsidiaries is a party. 
 (v)
Authorization of Governmental Authorities. No action by (including any authorization, consent or approval), in respect of, or filing with, any governmental authority or regulatory body, except such filing as may be necessary and/or required
for disclosure by the Securities and Exchange Commission or pursuant to state securities or “blue sky” laws, is required for, or in connection with, the valid and lawful authorization, execution, delivery and performance by it of this
Settlement Agreement. 
 (vi) No Reliance. It (A) is a sophisticated party with respect to the matters that are
the subject of this Settlement Agreement, (B) has had the opportunity to be represented and advised by legal counsel in connection with this Settlement Agreement, (C) has adequate information concerning the matters that are the subject of
this Settlement Agreement, and (D) has independently and without reliance upon any other Party hereto, or any of their affiliates, or any officer, employee, agent or representative thereof, and based on such information as it has deemed
appropriate, made its own analysis and decision to enter into this Settlement Agreement, except that it has relied upon each other Party’s express representations, warranties and covenants in this Settlement Agreement, which it enters, or as to
which it acknowledges and agrees, voluntarily and of its own choice and not under coercion or duress. 
 In addition, each of the Sponsor
Managers represents, warrants, and acknowledges that it does not manage or advise funds or accounts that, directly or indirectly, own 50% or more of the EFH Interests. 

(b) TCEH Official Committee Representations and Warranties. 

To induce each other Party to enter into and perform its obligations under this Settlement Agreement, the TCEH Official Committee represents,
warrants and acknowledges, as of the Settlement Effective Date, as follows: 

  
 29 

 (i) Authority. (A) It has all the requisite authority to execute and
deliver this Settlement Agreement and the other documents and instruments contemplated hereby to which it is contemplated to be a party and perform its obligations under this Settlement Agreement and the other documents and instruments contemplated
hereby to which it is contemplated to be a party, and to consummate the transactions contemplated herein and therein; and (B) the execution, delivery and performance by it of this Settlement Agreement and the other documents and instruments
contemplated hereby to which it is contemplated to be a party and the consummation of the transactions contemplated herein and therein have been duly authorized by all necessary action (corporate, partnership, limited liability company or otherwise)
on the part of the TCEH Official Committee and no other action or proceeding on the part of the TCEH Official Committee is necessary to authorize and approve this Settlement Agreement or the other documents and instruments contemplated hereby to
which it is contemplated to be a party or any of the transactions contemplated herein or therein. 
 (ii) Validity.
This Settlement Agreement has been duly executed and delivered by it and constitutes a legal, valid and binding agreement by it, enforceable against it in accordance with the terms of this Settlement Agreement. 

(iii) No Conflict. The execution, delivery and performance by it (when such performance is due) of this Settlement
Agreement does not and shall not (A) violate any provision of law, rule or regulation applicable to it, or (B) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any material
contractual obligation to which it is a party. 
 (iv) No Reliance. It (A) is a sophisticated party with respect
to the subject matter of this Settlement Agreement, (B) has been represented and advised by legal counsel in connection with this Settlement Agreement, (C) has adequate information concerning the matters that are the subject of this
Settlement Agreement, and (D) has independently and without reliance upon any other Party hereto or any of their affiliates, or any officer, employee, agent or representative thereof, and based on such information as it has deemed appropriate,
made its own analysis and decision to enter into this Settlement Agreement, except that it has relied upon each other Party’s express representations, warranties and covenants in this Settlement Agreement, and it acknowledges that it has
entered into this Settlement Agreement voluntarily and of its own choice and not under coercion or duress. 
 (c) Debtor Representations
and Warranties. 
 To induce each other Party to enter into and perform its obligations under this Settlement Agreement, each Debtor
hereby represents, warrants and acknowledges, as of the Settlement Effective Date, as follows: 
 (i) Authority.
Except as expressly provided in this Settlement Agreement and subject to the Bankruptcy Code, Bankruptcy Court approval, and/or regulatory approvals associated with the Plan and the Restructuring Transactions and any Alternative Restructuring, as
applicable, (A) each of the Debtors is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all the requisite corporate, partnership, limited liability company or other power and
authority to 

  
 30 

 
execute and deliver this Settlement Agreement and the other documents and instruments contemplated hereby to which the Debtors are contemplated to be parties and perform their obligations under
this Settlement Agreement and the other documents and instruments contemplated hereby to which they are contemplated to be parties, and to consummate the transactions contemplated herein and therein, and to consummate the transactions contemplated
herein and therein, and (B) the execution, delivery and performance by such Debtors under this Settlement Agreement and the other documents and instruments contemplated hereby to which each such Debtor is contemplated to be a party and the
consummation of the transactions contemplated herein and therein, have been duly authorized by all necessary action on the part of such Debtor, and no other actions or proceedings on the part of such Debtor are necessary to authorize and approve
this Settlement Agreement or the other documents or instruments contemplated hereby to which such Debtor is contemplated to be a party or any of the transactions contemplated herein or therein. 

(ii) Validity. Except as expressly provided in this Settlement Agreement and subject to the Bankruptcy Code, Bankruptcy
Court approval, and/or regulatory approvals associated with the Plan and Restructuring Transactions and any Alternative Restructuring, as applicable, this Settlement Agreement has been duly executed and delivered by the Debtors and constitutes the
legal, valid and binding agreement of the Debtors, enforceable against the Debtors in accordance with its terms. 
 (iii)
No Conflict. Subject to Bankruptcy Court approval and/or regulatory approvals associated with the Plan and the Restructuring Transactions and any Alternative Restructuring, as applicable, the execution, delivery and performance by the Debtors
(when such performance is due) of this Settlement Agreement does not and shall not (A) subject to the actions, consents and filings referred to in clause (iv) below, violate any provision of law, rule or regulation applicable to the
Debtors or any of their subsidiaries or the Debtors’ or their subsidiaries’ certificates of incorporation or bylaws or other organizational documents, or (B) conflict with, result in a breach of or constitute (with due notice or lapse
of time or both) a default under any material contractual obligations to which it or any of its subsidiaries is a party. 

(iv) Authorization of Governmental Authorities. No action by (including any authorization, consent or approval), in
respect of, or filing with, any governmental authority or regulatory body, except such filing as may be necessary and/or required for disclosure by the Securities and Exchange Commission or pursuant to state securities or “blue sky” laws,
and the approval of the Bankruptcy Court of the Debtors’ authority to enter into and implement this Settlement Agreement, is required for, or in connection with, the valid and lawful authorization, execution, delivery and performance by the
Debtors of this Settlement Agreement. 
 (v) No Reliance. Each of the Debtors (A) is a sophisticated party with
respect to the matters that are the subject of this Settlement Agreement, (B) has had the opportunity to be represented and advised by legal counsel in connection with this Settlement Agreement, (C) has adequate information concerning the
matters that are the subject of this Settlement Agreement, and (D) has independently and without reliance 

  
 31 

 
upon any other Party hereto, or any of their affiliates, or any officer, employee, agent or representative thereof, and based on such information as such Debtor has deemed appropriate, made its
own analysis and decision to enter into this Settlement Agreement, except that the Debtors have relied upon each other Party’s express representations, warranties and covenants in this Settlement Agreement, which each of the Debtors enters, or
as to which each Debtor acknowledges and agrees, voluntarily and of its own choice and not under coercion or duress. 
 3.5 Termination.  

(a) This Settlement Agreement and the obligations of the Parties may be terminated by mutual written agreement of (i) the Debtors;
(ii) the Settling Interest Holders; (iii) the Required TCEH Creditor Parties; and (iv) the TCEH Official Committee. 
 (b)
This Settlement Agreement and the obligations of the Parties may be terminated by (i) the Debtors, or (ii) together, the Required TCEH Unsecured Noteholders, the Required TCEH Second Lien Noteholders, and the TCEH Official Committee, in
the exercise of their discretion, by delivery of a written notice to the other Parties in accordance with Section 3.12 hereof, subject to the occurrence of any of the following events: 

(i) beneficial holders (or investment advisors or managers for such beneficial holders or discretionary accounts of such
beneficial holders) of at least 50.1% of the aggregate outstanding principal amount of the TCEH First Lien Claims (determined without regard to any claims held by any Debtor) have not joined in this Settlement Agreement as Settling TCEH First Lien
Creditors on or before September 11, 2015, provided that this Settlement Agreement may only be terminated pursuant to this clause (i) before the earlier to occur of (A) entry of the order approving the Plan Support Agreement
and (B) entry of the order approving the Disclosure Statement; 
 (ii) the TCEH First Lien Agent has not joined in, and
agreed to take actions consistent with the Settling TCEH First Lien Creditors’ obligations under this Settlement Agreement, including those set forth in Section 2.2 of this Settlement Agreement, on or before September 11, 2015;
provided that this Settlement Agreement may only be terminated pursuant to this clause (ii) before the earlier to occur of (A) entry of the order approving the Plan Support Agreement and (B) entry of the order approving the
Disclosure Statement; and 
 (iii) the Class comprised of Allowed TCEH First Lien Secured Claims is permitted to vote to
accept or reject the Plan and fails to accept the Plan, as determined pursuant to section 1126(c) of the Bankruptcy Code, provided that the Parties shall have fifteen (15) Business Days from receiving notice of such failure to
accept the Plan to cure such failure; provided, further, that this Settlement Agreement may only be terminated pursuant to this clause (iii) before the earlier to occur of (A) fifteen (15) Business Days after the end of
this cure period and (B) the Settlement Effective Date. 

  
 32 

 (c) This Settlement Agreement and the obligations of the Parties may be terminated by the Debtors
or the Required TCEH First Lien Creditors in the exercise of their discretion, by delivery of a written notice to the other Parties in accordance with Section 3.12 hereof, subject to the occurrence of any of the following events: 

(i) beneficial holders (or investment advisors or managers for such beneficial holders or discretionary accounts of such
beneficial holders) of at least 66.7% of the aggregate outstanding principal amount of the TCEH Unsecured Note Claims (determined without regard to any claims held by any Debtor) have not joined in this Settlement Agreement as Settling TCEH
Unsecured Noteholders on or before September 11, 2015, provided that this Settlement Agreement may only be terminated pursuant to this clause (i) before the earliest to occur of (A) entry of the order approving the Plan Support
Agreement and (B) entry of the order approving the Disclosure Statement; and 
 (ii) beneficial holders (or investment
advisors or managers for such beneficial holders or discretionary accounts of such beneficial holders) of at least 50.1% of the aggregate outstanding principal amount of the TCEH Second Lien Note Claims (determined without regard to any claims held
by any Debtor) have not joined in this Settlement Agreement as Settling TCEH Second Lien Noteholders on or before September 11, 2015, provided that this Settlement Agreement may only be terminated pursuant to this clause (ii) before
the earliest to occur of (A) entry of the order approving the Plan Support Agreement and (B) entry of the order approving the Disclosure Statement. 

(d) This Settlement Agreement shall terminate automatically as between the Parties if the Debtors withdraw (without the written consent of the
other Parties) or the Court denies the Settlement Approval Motion. 
 3.6 Effect of Termination. 

Upon termination of this Settlement Agreement in accordance with Section 3.5 hereof, all obligations of the Parties under this Settlement
Agreement shall terminate and shall be of no further force and effect; provided, that any claim for breach of this Settlement Agreement occurring after the Settlement Effective Date shall survive termination and all rights and remedies with
respect to such claim shall be neither waived nor prejudiced in any way by termination of this Settlement Agreement. 
 3.7 Acknowledgments. 

Notwithstanding any other provision herein, this Settlement Agreement is not and shall not be deemed to be an offer with respect to any
securities or solicitation of votes for the acceptance of a plan of reorganization for purposes of sections 1125 and 1126 of the Bankruptcy Code or otherwise. Any such offer or solicitation will be made only in compliance with all applicable
securities laws and provisions of the Bankruptcy Code. The relevant Parties will not solicit acceptances of the Plan, or any Alternative Restructuring, as applicable, from the relevant Parties in any manner inconsistent with the Bankruptcy Code or
applicable non-bankruptcy law. 

  
 33 

 3.8 Cooperation and Support. 

The Parties and their advisors shall cooperate with each other in good faith and shall coordinate their activities (to the extent possible and
subject to the terms of this Settlement Agreement) in respect of (a) the filing of the Settlement Approval Motion with the Bankruptcy Court, obtaining Bankruptcy Court approval of this Settlement Agreement, the entry of the Settlement Order,
and the implementation of the terms set forth in this Settlement Agreement, and (b) the consummation of the transactions contemplated by this Settlement Agreement. Furthermore, (i) subject to the terms of this Settlement Agreement, each of
the Parties and their advisors shall use their commercially reasonable efforts to (A) support and complete all transactions contemplated hereby; (B) take any and all necessary and appropriate actions in furtherance of the transactions
contemplated hereby (provided, however, that the TCEH First Lien Agent, TCEH Second Lien Notes Trustee, and/or TCEH Unsecured Notes Trustee shall not be obligated to take any action that is inconsistent with the TCEH Credit Agreement,
TCEH Second Lien Notes Indenture, or TCEH Unsecured Notes Indenture, as applicable, or any direction given thereunder); and (C) refrain from taking any action, causing an affiliate or any third party to take any action, or encouraging any
affiliate or third party to take any action, inconsistent with this Settlement Agreement, and (ii) in no event shall any Party or their counsel file, cause an affiliate or any other third party to file, or encourage any affiliate or any third
party to file, an opposition to the Settlement Approval Motion or the Settlement Agreement. 
 3.9 Governing Law; Jurisdiction. 

(a) This Settlement Agreement shall be construed and enforced in accordance with, and the rights of the Parties shall be governed by, the laws
of the State of Delaware, without giving effect to the conflict of laws principles thereof. Each Party hereto agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Settlement Agreement in the
Bankruptcy Court, and solely in connection with claims arising under this Settlement Agreement: (i) irrevocably submits to the exclusive jurisdiction and the constitutional authority of the Bankruptcy Court; (ii) waives any objection to
laying venue in any such action or proceeding in the Bankruptcy Court; and (iii) waives any objection that the Bankruptcy Court is an inconvenient forum, does not have jurisdiction over any Party hereto, or lacks the constitutional authority to
enter final orders in connection with such action or proceeding; provided, however, that this Settlement Agreement and the releases set forth herein may be submitted in any court, arbitration, and/or other legal proceeding to enforce
the terms of such releases. 
 (b) Each Party hereby waives, to the fullest extent permitted by applicable law, any right it may have to a
trial by jury in any legal proceeding arising out of, or relating to, this Settlement Agreement or the transactions contemplated hereby (whether based on contract, tort, or any other theory). Each Party (i) certifies that no representative,
agent, or attorney of any other Party has represented, expressly or otherwise, that such other Party would not, in the event of litigation, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other Parties have been
induced to enter into this Settlement Agreement by, among other things, the mutual waivers and certifications in this Section 3.9. 

  
 34 

 3.10 No Admission of Liability. 

Each Party enters into this Settlement Agreement without admitting any liability or conceding any allegations not already expressly admitted.
This Settlement Agreement and its provisions shall not be offered or received in evidence in any action or proceeding as an admission or concession of liability or wrongdoing of any nature on the part of any Party except that it may be offered and
received in evidence solely to enforce this Settlement Agreement. 
 3.11 Third-Party Beneficiaries. 

Except as otherwise explicitly set forth herein, nothing in this Settlement Agreement is intended to benefit or create any right or cause of
action in or on behalf of any person other than the Parties hereto (and their affiliated persons and entities who are intended to be beneficiaries of the releases and settlements set forth herein). 

3.12 Notices. 
 All notices hereunder
shall be deemed given if in writing and delivered, if sent by electronic mail, courier, or registered or certified mail (return receipt requested) to the following addresses (or at such other addresses as shall be specified by like notice): 

(a) if to a Settling Interest Holder, to: 
  

			
	Wachtell Lipton Rosen & Katz
	51 W. 52nd Street
	New York, New York 10019
	Attention: Richard G. Mason, Emil A. Kleinhaus and Austin T. Witt
	E-mail addresses:	  	rgmason@wlrk.com
		  	eakleinhaus@wlrk.com
		  	awitt@wlrk.com

 (b) if to a Settling TCEH First Lien Creditor, to: 

 

			
	Paul, Weiss, Rifkind, Wharton & Garrison LLP
	1285 Avenue of the Americas
	New York, New York 10019
	Attention: Alan W. Kornberg, Brian S. Hermann, and Jacob A. Adlerstein
	E-mail addresses:	  	akornberg@paulweiss.com
		  	 bhermann@paulweiss.com,

jadlerstein@paulweiss.com

 (c) if to the TCEH First Lien Agent (but only if made a Party hereto), to: 

 

			
	Seward & Kissel LLP
	One Battery Park Plaza
	New York, New York 10004
	Attention: John R. Ashmead, Mark D. Kotwick and Thomas Ross Hooper
	E-mail addresses:	  	ashmead@sewkis.com
		  	 kotwick@sewkis.com

hooper@sewkis.com

  
 35 

 (d) if to a Settling TCEH Unsecured Noteholder, to: 

 

			
	White & Case LLP
	1155 Avenue of the Americas
	New York, New York 10036
	Attention: Gregory Pryor and J. Christopher Shore
	E-mail addresses:	  	gpryor@whitecase.com
		  	cshore@whitecase.com
		
	and	  	
	
	White & Case LLP
	Southeast Financial Center
	200 S. Biscayne Blvd., Suite 4900
	Miami, Florida 33131
	Attention: Thomas E Lauria and Matthew C. Brown
	E-mail addresses:	  	tlauria@whitecase.com
		  	mbrown@whitecase.com

 (e) if to the TCEH Unsecured Notes Trustee (but only if made a Party hereto), to: 

 

			
	Patterson Belknap Webb & Tyler LLP
	1133 Avenue of the Americas
	New York, New York 10036
	Attention: Daniel A. Lowenthal, Brian P. Guiney and Craig W. Dent
	E-mail addresses:	  	dalowenthal@pbwt.com
		  	 bguiney@pbwt.com
 cdent@pbwt.com

 (f) if to a Settling TCEH Second Lien Noteholder or to the TCEH Second Lien Notes Trustee (but only if
made a Party hereto), to: 
  

			
	Brown Rudnick LLP
	Seven Times Square
	New York, NY 10036
	Attention: Edward S. Weisfelner
	E-mail address:	  	eweisfelner@brownrudnick.com

 (g) if to the TCEH Official Committee, to: 

 

			
	Morrison & Foerster LLP
	250 West 55th Street
	New York, New York 10019-9601
	Attention: Brett H. Miller, James M. Peck, Lorenzo Marinuzzi, and Todd M. Goren

  
 36 

			
	E-mail addresses:	  	brettmiller@mofo.com
		  	jpeck@mofo.com
		  	lmarinuzzi@mofo.com
		  	tgoren@mofo.com

 (h) if to the Debtors, to: 

 

			
	Energy Future Holdings Corp., et al.
	Energy Plaza
	1601 Bryan Street
	Dallas, Texas 75201
	Attention: General Counsel
	E-mail addresses:	  	stacey.dore@energyfutureholdings.com
		  	andrew.wright@energyfutureholdings.com
	
	with copies (which shall not constitute notice) to:
	
	Kirkland & Ellis LLP
	601 Lexington Avenue
	New York, New York 10022
	Attention: Edward O. Sassower, P.C., Stephen E. Hessler, and Brian E. Schartz
	E-mail addresses:	  	esassower@kirkland.com
		  	shessler@kirkland.com
		  	bschartz@kirkland.com
		
	and	  	
	
	Kirkland & Ellis LLP
	300 North LaSalle Street
	Chicago, IL 60654
	Attention: James H.M. Sprayregen, P.C., Marc Kieselstein, P.C., Chad J. Husnick and Steven N. Serajeddini
	E-mail addresses:	  	jsprayregen@kirkland.com
		  	marc.kieselstein@kirkland.com
		  	chusnick@kirkland.com
		  	steven.serajeddini@kirkland.com
		
	and	  	
	
	Proskauer Rose LLP
	Three First National Plaza
	70 W. Madison Street, Suite 3800
	Chicago, IL 60602
	Attention: Mark K. Thomas and Paul V. Possinger
	Email addresses:	  	mthomas@ proskauer.com
		  	ppossinger@proskauer.com

  
 37 

			
	and	  	
	
	Cravath, Swaine and Moore LLP
	Worldwide Plaza
	825 Eighth Avenue
	New York, NY 10019
	Attention: Philip A. Gelston
	Email address:	  	pgelston@cravath.com
		
	and	  	
	
	Jenner & Block LLP
	919 Third Avenue
	New York, NY 10022
	Attention: Richard Levin
	Email address:	  	rlevin@jenner.com
		
	and	  	
	
	Munger, Tolles & Olson LLP
	335 South Grand Avenue, 35th Floor
	Los Angeles, CA 90071
	Attention: Thomas B. Walper and Seth Goldman
	Email addresses:	  	thomas.walper@mto.com
		  	seth.goldman@mto.com;

 or such other address as may have been furnished by a Party to each of the other Parties by notice given in accordance
with the requirements set forth above. Any notice given by delivery, mail, or courier shall be effective when received. 
 3.13 Entire Agreement.

 This Settlement Agreement, including any exhibits, annexes and/or schedules hereto and the exhibits, annexes, and/or schedules thereto,
constitutes the entire agreement between the Parties concerning the subject matter of this Settlement Agreement and supersedes all prior negotiations, agreements and understandings, whether written or oral, between and among the Parties concerning
the subject matter of this Settlement Agreement. Each of the Parties hereto acknowledges that it is executing this Settlement Agreement without reliance on any representations, warranties or commitments other than those representations, warranties
and commitments expressly set forth in this Settlement Agreement. 

  
 38 

	3.14	Modification or Amendment. 

 This Settlement Agreement may be modified or amended only by
written agreement executed by (i) the Required TCEH Creditor Parties, (ii) all of the undersigned Settling Interest Holders, (iii) the Debtors and (iv) the TCEH Official Committee; provided, however, that if the
proposed modification, amendment, or supplement has a material, disproportionate, and adverse effect on any Settling Creditor (in its capacity as a TCEH First Lien Creditor, holder of TCEH Unsecured Note Claims, or holder of TCEH Second Lien Note
Claims), then the consent of each such disproportionately affected Settling Creditor shall also be required to effectuate such modification, amendment, or supplement. 

3.15 Further Assurances.  
 From
and after the Settlement Effective Date, each of the Parties agrees to use their respective commercially reasonable efforts to execute or cause to be executed and deliver or cause to be delivered all such agreements, instruments and documents and
take or cause to be taken all such further actions as may reasonably be necessary from time to time to carry out the intent and purpose of this Settlement Agreement, and to consummate the transactions contemplated hereby and thereby. 

3.16 Successors and Assigns. 
 Except as
otherwise provided in this Settlement Agreement, this Settlement Agreement is intended to bind and inure to the benefit of each of the Parties and each of their respective successors, assigns, heirs, executors, administrators and representatives.

 3.17 Interpretation. 
 This
Settlement Agreement is the product of negotiations among the Parties, and the enforcement or interpretation of this Settlement Agreement is to be interpreted in a neutral manner and in accordance with section 102 of the Bankruptcy Code; and any
presumption with regard to interpretation for or against any Party by reason of that Party (or its counsel) having drafted or caused to be drafted this Settlement Agreement or any portion of this Settlement Agreement, shall not be effective in
regard to the interpretation of this Settlement Agreement. 
 3.18 Settlement Discussions. 

This Settlement Agreement and the transactions contemplated herein are part of a proposed settlement among the Parties. Nothing herein shall be
deemed an admission of any kind. To the extent provided by Federal Rule of Evidence 408, all applicable mediation privileges, and any applicable state rules of evidence, this Settlement Agreement and all negotiations relating thereto shall not be
admissible into evidence in any proceeding other than a proceeding to enforce the terms of this Settlement Agreement. 
 3.19 Specific Performance.

 It is understood and agreed by the Parties that money damages would be an insufficient remedy for any breach of this Settlement Agreement
by any Party, that such breach would represent irreparable harm, and that each non-breaching Party shall be entitled to specific performance and injunctive relief (without the posting of any bond and without proof of actual damages), but no other
form of equitable relief, as the sole remedy for any such breach, including an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder; provided, that
each Party agrees to waive any requirement for the securing or posting of a bond in connection with such remedy. 

  
 39 

 3.20 Headings. 

Titles and headings in this Settlement Agreement are inserted for convenience of reference only and are not intended to affect the
interpretation or construction of the Settlement Agreement. 
 3.21 Execution of Agreement. 

This Settlement Agreement may be executed in counterparts, and by the different Parties hereto on separate counterparts, each of which when
executed and delivered shall constitute an original. Delivery of an executed counterpart by facsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart. 

3.22 Non-Severability of Agreement.  

This Settlement Agreement is to be construed as a whole, and all provisions of it are to be read and construed together. Notwithstanding
anything in this Settlement Agreement or the Settlement Order to the contrary, and in light of the integrated nature of the settlements and compromises embodied in this Settlement Agreement and the Settlement Order, in the event that (a) a
court of competent jurisdiction enters a final order ruling that any of the provisions of this Settlement Agreement or the Settlement Order are void, invalid, illegal, or unenforceable in any material respect, or (b) any of the provisions of
this Settlement Agreement or the Settlement Order are reversed, vacated, overturned, voided, or unwound in any material respect, then in each case, the entirety of this Settlement Agreement (other than this Section 3.22) shall be void ab initio
and of no force and effect and, during any subsequent proceeding, the Parties shall not assert claim preclusion, issue preclusion, estoppel or any similar defense in respect of rights and claims of the Parties that were the subject of this
Settlement Agreement prior to this Settlement Agreement being of no force or effect; provided, however, that, the Settlement Agreement being rendered void ab initio and of no force and effect in accordance herewith shall not impair the
force and effect of the Plan Support Agreement or any order authorizing the Debtors entry into the Plan Support Agreement. 
 [Signature
pages follow] 

  
 40 

 IN WITNESS WHEREOF, the Parties hereto have executed this Settlement Agreement as of the date set
forth above. 
 ENERGY FUTURE HOLDINGS CORP. 
 TEXAS
COMPETITIVE ELECTRIC HOLDINGS COMPANY LLC 
 4CHANGE ENERGY COMPANY 

4CHANGE ENERGY HOLDINGS LLC 
 BIG BROWN 3 POWER COMPANY LLC 

BIG BROWN LIGNITE COMPANY LLC 
 BIG BROWN POWER COMPANY LLC 

BRIGHTEN ENERGY LLC 
 BRIGHTEN HOLDINGS LLC COLLIN POWER COMPANY
LLC 
 DALLAS POWER AND LIGHT COMPANY, INC. 
 DECORDOVA POWER
COMPANY LLC 
 DECORDOVA II POWER COMPANY LLC 
 EAGLE MOUNTAIN
POWER COMPANY LLC 
 EBASCO SERVICES OF CANADA LIMITED 
 EEC
HOLDINGS, INC. 
 EECI, INC. 
 EFH AUSTRALIA (NO. 2) HOLDINGS
COMPANY 
 EFH CG HOLDINGS COMPANY LP 
 EFH CG MANAGEMENT
COMPANY LLC 
 EFH CORPORATE SERVICE COMPANY 
 EFH FINANCE (NO.
2) HOLDINGS COMPANY 
 EFH FS HOLDINGS COMPANY 
 EFH RENEWABLES
COMPANY LLC 
 EFIH FINANCE INC. 
 ENERGY FUTURE COMPETITIVE
HOLDINGS COMPANY LLC 
 ENERGY FUTURE INTERMEDIATE HOLDING COMPANY LLC 

GENERATION DEVELOPMENT COMPANY LLC 
 GENERATION MT COMPANY LLC

 GENERATION SVC COMPANY 
 LAKE CREEK 3 POWER COMPANY LLC 

LONE STAR ENERGY COMPANY, INC. 
 LONE START PIPELINE COMPANY, INC.

 LSGT GAS COMPANY LLC 
 LSGT SACROC, INC. 

LUMINANT BIG BROWN MINING COMPANY LLC 
 LUMINANT ENERGY COMPANY
LLC 
 LUMINANT ENERGY TRADING CALIFORNIA COMPANY 
 LUMINANT ET
SERVICES COMPANY 
 LUMINANT GENERATION COMPANY LLC 
 LUMINANT
HOLDING COMPANY LLC 
 LUMINANT MINERAL DEVELOPMENT COMPANY LLC 

LUMINANT MINING COMPANY LLC 
 LUMINANT RENEWABLES COMPANY LLC 

MARTIN LAKE 4 POWER COMPANY LLC 
 MONTICELLO 4 POWER COMPANY LLC

 MORGAN CREEK 7 POWER COMPANY LLC 
 NCA DEVELOPMENT COMPANY
LLC 
 NCA RESOURCES DEVELOPMENT COMPANY LLC 
 OAK GROVE
MANAGEMENT COMPANY LLC 
 OAK GROVE MINING COMPANY LLC 
 OAK
GROVE POWER COMPANY LLC 
 SANDOW POWER COMPANY LLC 

SOUTHWESTERN ELECTRIC SERVICE COMPANY, INC. 

 TCEH FINANCE , INC. 

TEXAS ELECTRIC SERVICE COMPANY, INC. 
 TEXAS ENERGY INDUSTRIES
COMPANY, INC. 
 TEXAS POWER AND LIGHT COMPANY, INC. 
 TEXAS
UTILITIES COMPANY, INC. 
 TEXAS UTILITIES ELECTRIC COMPANY, INC. 

TRADINGHOUSE 3 & 4 POWER COMPANY LLC 
 TRADINGHOUSE POWER
COMPANY LLC 
 TXU ELECTRIC COMPANY, INC. 
 TXU ENERGY
RECEIVABLES COMPANY LLC 
 TXU ENERGY RETAIL COMPANY LLC 
 TXU
ENERGY SOLUTIONS COMPANY LLC 
 TXU RECEIVABLES COMPANY 
 TXU
RETAIL SERVICES COMPANY 
 TXU SEM COMPANY 
 VALLEY NG POWER
COMPANY LLC 
 VALLEY POWER COMPANY LLC 
  

			
	By:	 	       /s/ Anthony R. Horton

	Name:  Anthony R. Horton
	Title:    Senior Vice President & Treasurer

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