Common use of Initial Stock Option Grant Clause in Contracts

Initial Stock Option Grant. On the Commencement Date, in consideration of the Executive’s entering into this Agreement and as an inducement to join the Company, the Executive shall be granted, under the Dynegy Inc. 2010 Long Term Incentive Plan, as amended or modified from time to time (the “LTIP”), a non-qualified stock option to purchase the following number of shares of the Company’s common stock (the “Option”), subject to the approval of the Board or committee thereof, at the following corresponding per share exercise prices: 50,000 shares at fair market value (as determined in accordance with the LTIP) on the Option grant date; 62,500 shares at $6.50 per share; 75,000 shares at $8.00 per share; and 100,000 shares at $10.00 per share; provided that in no event will the exercise price be less than the fair market value of the Company’s common stock on the Option grant date. Such award shall be governed by the LTIP and a stock option award agreement between the Executive and the Company. Subject to the terms of the LTIP and the Option award agreement, and provided the Executive remains in active working status at such time, the Option shall become exercisable in equal installments on each of the first four (4) anniversaries of the Commencement Date; provided, however, that if the Executive’s employment is terminated for any reason other than by the Company for Cause or by the Executive without Good Reason (each as defined in the Dynegy Inc. Executive Severance Pay Plan (the “Severance Plan”)), the Option shall immediately vest in full and thereafter be exercisable in accordance with the terms of the Option award agreement.

Initial Stock Option Grant. On the Commencement Date, in consideration of the Executive’s entering into this Agreement and as an inducement to join the Company, the Executive shall be granted, under the Dynegy Inc. 2010 Long Term Incentive Plan, as amended or modified from time to time (the “LTIP”), a non-qualified stock option to purchase the following number of shares of the Company’s common stock (the “Option”), subject to the approval of the Board or committee thereof, at the following corresponding per share exercise prices: 50,000 60,000 shares at fair market value (as determined in accordance with the LTIP) on the Option grant date; 62,500 75,000 shares at $6.50 per share; 75,000 90,000 shares at $8.00 per share; and 100,000 120,000 shares at $10.00 per share; provided that in no event will the exercise price be less than the fair market value of the Company’s common stock on the Option grant date. Such award shall be governed by the LTIP and a stock option award agreement between the Executive and the Company. Subject to the terms of the LTIP and the Option award agreement, and provided the Executive remains in active working status at such time, the Option shall become exercisable in equal installments on each of the first four (4) anniversaries of the Commencement Date; provided, however, that if the Executive’s employment is terminated for any reason other than by the Company for Cause or by the Executive without Good Reason (each as defined in the Dynegy Inc. Executive Severance Pay Plan (the “Severance Plan”)), the Option shall immediately vest in full and thereafter be exercisable in accordance with the terms of the Option award agreement.