Letter of Credit and Reimbursement Agreement (2006)Full Document 

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LETTER OF CREDIT
 
AND REIMBURSEMENT AGREEMENT
 
Dated as of April 3, 2006
 
among
 
FIRSTENERGY GENERATION CORP.,
 
and
 
THE PARTICIPATING BANKS
 
LISTED ON THE SIGNATURE PAGES HERETO
 
and
 
BARCLAYS BANK PLC,
 
acting through its New York Branch,
 
as Fronting Bank and Administrative Agent
 
and
 
KEYBANK NATIONAL ASSOCIATION,
 
as Syndication Agent
 
relating to
 
$90,140,000
 
State of Ohio
 
Pollution Control Revenue Refunding Bonds, Series 2006-A
 
(FirstEnergy Generation Corp. Project)
 


BARCLAYS CAPITAL and KEYBANK NATIONAL ASSOCIATION,
as Joint Lead Arrangers
 
 

 
TABLE OF CONTENTS

 
Page
PRELIMINARY STATEMENTS
1

ARTICLE I

DEFINITIONS

SECTION 1.01.
Certain Defined Terms
2
SECTION 1.02.
Computation of Time Periods
13
SECTION 1.03.
Accounting Terms
13
SECTION 1.04.
Internal References
13

ARTICLE II

AMOUNT AND TERMS OF THE LETTER OF CREDIT

SECTION 2.01.
The Letter of Credit
14
SECTION 2.02.
Issuing the Letter of Credit; Termination
14
SECTION 2.03.
Commissions and Fees
14
SECTION 2.04.
Reimbursement On Demand
15
SECTION 2.05.
Tender Advances; Interest Rates
15
SECTION 2.06.
Prepayments
16
SECTION 2.07.
Yield Protection
16
SECTION 2.08.
Changes in Capital Adequacy Regulations
16
SECTION 2.09.
Payments and Computations
17
SECTION 2.10.
Non-Business Days
17
SECTION 2.11.
Source of Funds
17
SECTION 2.12.
Extension of the Stated Expiration Date
17
SECTION 2.13.
Amendments Upon Extension
18
SECTION 2.14.
Evidence of Debt
18
SECTION 2.15.
Obligations Absolute
18
SECTION 2.16.
Net of Taxes, Etc
18
SECTION 2.17.
Participation by Banks in Letter of Credit
20

ARTICLE III

CONDITIONS PRECEDENT

SECTION 3.01.
Conditions Precedent to Issuance of the Letter of Credit
24
SECTION 3.02.
Additional Conditions Precedent to Issuance of the Letter of Credit
 
 
and Amendment of the Letter of Credit
26
SECTION 3.03.
Conditions Precedent to Each Tender Advance
27



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Page

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01.
Representations and Warranties of the Company
28

ARTICLE V

COVENANTS OF THE COMPANY

SECTION 5.01.
Affirmative Covenants
32
SECTION 5.02.
Negative Covenants
37

ARTICLE VI

EVENTS OF DEFAULT

SECTION 6.01.
Events of Default
43
SECTION 6.02.
Upon an Event of Default
45

ARTICLE VII

[RESERVED]

ARTICLE VIII

THE ADMINISTRATIVE AGENT AND THE FRONTING BANK

SECTION 8.01.
Appointment
46
SECTION 8.02.
Delegation of Duties
46
SECTION 8.03.
Exculpatory Provisions
47
SECTION 8.04.
Reliance by Administrative Agent
47
SECTION 8.05.
Notice of Default
47
SECTION 8.06.
Non-Reliance on Administrative Agent and Other Banks
48
SECTION 8.07.
Indemnification
48
SECTION 8.08.
Administrative Agent in Its Individual Capacity
48
SECTION 8.09.
Successor Administrative Agent
49
SECTION 8.10.
Fronting Bank
49
SECTION 8.11.
Notices; Actions Under Related Documents
49
 
 
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ARTICLE IX

MISCELLANEOUS

SECTION 9.01.
Amendments, Etc
49
SECTION 9.02.
Notices, Etc
50
SECTION 9.03.
No Waiver; Remedies
50
SECTION 9.04.
Set-off
51
SECTION 9.05.
Indemnification
51
SECTION 9.06.
Liability of the Banks
52
SECTION 9.07.
Costs, Expenses and Taxes
53
SECTION 9.08.
Binding Effect
53
SECTION 9.09.
Assignments and Participation
53
SECTION 9.10.
Severability
56
SECTION 9.11.
GOVERNING LAW
56
SECTION 9.12.
Headings
56
SECTION 9.13.
Submission To Jurisdiction; Waivers
57
SECTION 9.14.
Acknowledgments
57
SECTION 9.15.
WAIVERS OF JURY TRIAL
57
SECTION 9.16.
Execution in Counterparts
58
SECTION 9.17.
"Reimbursement Agreement" for Purposes of Indenture
58
SECTION 9.18.
USA PATRIOT Act
58

 
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SCHEDULES
   
 
Schedule I
 
-
 
Commitments, Commitment Percentages and Applicable Booking Offices
 
Schedule 5.02(i)
 
-
 
Existing Investments and Guarantees
 
EXHIBITS
   
 
Exhibit A
 
-
 
Form of Letter of Credit
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