Three-Year Credit Agreement (2005)Full Document 

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U.S. $375,000,000

THREE-YEAR CREDIT AGREEMENT

Dated as of October 23, 2003

Among

FIRSTENERGY CORP.,
as Borrower,

THE BANKS NAMED HEREIN,
as Banks,

CITIBANK, N.A.,
as Administrative Agent,

and

BANK ONE, NA,
as Fronting Bank

CITIGROUP GLOBAL MARKETS INC.
and
BARCLAYS CAPITAL
Joint Lead Arrangers

BARCLAYS BANK PLC
and
BANK ONE CAPITAL MARKETS, INC.
Co-Syndication Agents

J.P. MORGAN SECURITIES INC.
and
WACHOVIA BANK, NATIONAL ASSOCIATION
Co-Documentation Agents

MORGAN STANLEY BANK
Senior Managing Agent

KEYBANK NATIONAL ASSOCIATION
and
THE BANK OF NEW YORK
Managing Agents

TABLE OF CONTENTS

             
        Page
ARTICLE I
       
DEFINITIONS AND ACCOUNTING TERMS
       
 
           
SECTION 1.01.
  Certain Defined Terms     1  
SECTION 1.02.
  Computation of Time Periods     14  
SECTION 1.03.
  Accounting Terms     14  
SECTION 1.04.
  Certain References     14  
 
           
ARTICLE II
       
AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT
       
 
           
SECTION 2.01.
  The Advances     15  
SECTION 2.02.
  Making the Advances     15  
SECTION 2.03.
  Letters of Credit     16  
SECTION 2.04.
  Fees     24  
SECTION 2.05.
  Termination or Reduction of the Commitments     25  
SECTION 2.06.
  Repayment of Advances     25  
SECTION 2.07.
  Interest on Advances     26  
SECTION 2.08.
  Additional Interest on Advances     26  
SECTION 2.09.
  Interest Rate Determination     27  
SECTION 2.10.
  Conversion of Advances     28  
SECTION 2.11.
  Prepayments     28  
SECTION 2.12.
  Increased Costs     29  
SECTION 2.13.
  Illegality     30  
SECTION 2.14.
  Payments and Computations     30  
SECTION 2.15.
  Taxes     32  
SECTION 2.16.
  Sharing of Payments, Etc.     33  
SECTION 2.17.
  Noteless Agreement; Evidence of Indebtedness     34  
 
           
ARTICLE III
       
CONDITIONS OF LENDING AND ISSUING LETTERS OF CREDIT
       
 
           
SECTION 3.01.
  Conditions Precedent to Initial Extension of Credit     34  
SECTION 3.02.
  Conditions Precedent to Each Extension of Credit     36  
SECTION 3.03.
  Conditions Precedent to Conversions     37  
SECTION 3.04.
  Conditions Precedent to Extensions of Credit after December 31, 2005     37  
 
           
ARTICLE IV
       
REPRESENTATIONS AND WARRANTIES
       
 
           
SECTION 4.01.
  Representations and Warranties of the Borrower     38  

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        Page
ARTICLE V
       
COVENANTS OF THE BORROWER
       
 
           
SECTION 5.01.
  Affirmative Covenants of the Borrower     41  
SECTION 5.02.
  Financial Covenants of the Borrower     45  
SECTION 5.03.
  Negative Covenants of the Borrower     45  
 
           
ARTICLE VI
       
EVENTS OF DEFAULT
       
 
           
SECTION 6.01.
  Events of Default     47  
 
           
ARTICLE VII
       
THE AGENT
       
 
           
SECTION 7.01.
  Authorization and Action     49  
SECTION 7.02.
  Agent’s Reliance, Etc.     50  
SECTION 7.03.
  Citibank, Bank One and Affiliates     50  
SECTION 7.04.
  Lender Credit Decision     51  
SECTION 7.05.
  Indemnification     51  
SECTION 7.06.
  Successor Agent     51  
 
           
ARTICLE VIII
       
MISCELLANEOUS
       
 
           
SECTION 8.01.
  Amendments, Etc.     52  
SECTION 8.02.
  Notices, Etc.     53  
SECTION 8.03.
  No Waiver; Remedies     53  
SECTION 8.04.
  Costs and Expenses; Indemnification     53  
SECTION 8.05.
  Right of Set-off     54  
SECTION 8.06.
  Binding Effect     55  
SECTION 8.07.
  Assignments and Participations     55  
SECTION 8.08.
  Governing Law     59  
SECTION 8.09.
  Consent to Jurisdiction; Waiver of Jury Trial     59  
SECTION 8.10.
  Severability     59  
SECTION 8.11.
  Entire Agreement     59  
SECTION 8.12.
  Execution in Counterparts     60  

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Exhibit A
  -   Form of Note
Exhibit B
  -   Form of Notice of Borrowing
Exhibit C
  -   Form of Assignment and Acceptance
Exhibit D
  -   Form of Opinion of Gary D. Benz, Esq.
Exhibit E
  -   Form of Opinion of Pillsbury Winthrop LLP
Exhibit F
  -   Form of Opinion of King & Spalding LLP
Exhibit G
  -   Form of Letter of Credit Request
 
Schedule I
  -   List of Commitments and Lending Offices
Schedule II
  -   Litigation

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THREE-YEAR CREDIT AGREEMENT

     THREE-YEAR CREDIT AGREEMENT, dated as of October 23, 2003, among FIRSTENERGY CORP., an Ohio corporation (the “Borrower”), the banks (the “Banks”) listed on the signature pages hereof, Citibank, N.A. (“Citibank”), as Administrative Agent (the “Administrative Agent”) for the Lenders hereunder, and Bank One, NA (“Bank One”), as Fronting Bank.

PRELIMINARY STATEMENTS

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