Three-Year Credit Agreement (2005)Full Document 

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U.S. $125,000,000

THREE-YEAR CREDIT AGREEMENT

Dated as of October 23, 2003

Among

OHIO EDISON COMPANY,
as Borrower,

THE BANKS NAMED HEREIN,
as Banks,

CITIBANK, N.A.
as Administrative Agent

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

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TABLE OF CONTENTS

             
        Page
ARTICLE I
       
DEFINITIONS AND ACCOUNTING TERMS
       
 
           
SECTION 1.01.
  Certain Defined Terms     1  
SECTION 1.02.
  Computation of Time Periods     12  
SECTION 1.03.
  Accounting Terms     12  
SECTION 1.04.
  Certain References     12  
 
           
ARTICLE II
       
AMOUNTS AND TERMS OF THE ADVANCES
       
 
           
SECTION 2.01.
  The Advances     12  
SECTION 2.02.
  Making the Advances     13  
SECTION 2.03.
  Fees     14  
SECTION 2.04.
  Termination or Reduction of the Commitments     14  
SECTION 2.05.
  Repayment of Advances     15  
SECTION 2.06.
  Interest on Advances     15  
SECTION 2.07.
  Additional Interest on Advances     15  
SECTION 2.08.
  Interest Rate Determination     16  
SECTION 2.09.
  Conversion of Advances     17  
SECTION 2.10.
  Prepayments     18  
SECTION 2.11.
  Increased Costs     18  
SECTION 2.12.
  Illegality     19  
SECTION 2.13.
  Payments and Computations     19  
SECTION 2.14.
  Taxes     21  
SECTION 2.15.
  Sharing of Payments, Etc     22  
SECTION 2.16.
  Noteless Agreement; Evidence of Indebtedness     22  
 
           
ARTICLE III
       
CONDITIONS OF LENDING
       
 
           
SECTION 3.01.
  Conditions Precedent to Initial Advances     23  
SECTION 3.02.
  Conditions Precedent to Each Advance     25  
SECTION 3.03.
  Conditions Precedent to Conversions     25  
 
           
ARTICLE IV
       
REPRESENTATIONS AND WARRANTIES
       
 
           
SECTION 4.01.
  Representations and Warranties of the Borrower     26  

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        Page
ARTICLE V
       
COVENANTS OF THE BORROWER
       
 
           
SECTION 5.01.
  Affirmative Covenants of the Borrower     29  
SECTION 5.02.
  Financial Covenants of the Borrower     32  
SECTION 5.03.
  Negative Covenants of the Borrower     33  
 
           
ARTICLE VI
       
EVENTS OF DEFAULT
       
 
           
SECTION 6.01.
  Events of Default     34  
 
           
ARTICLE VII
       
THE AGENT
       
SECTION 7.01.
  Authorization and Action     37  
SECTION 7.02.
  Agent’s Reliance, Etc     37  
SECTION 7.03.
  Citibank and Affiliates     38  
SECTION 7.04.
  Lender Credit Decision     38  
SECTION 7.05.
  Indemnification     38  
SECTION 7.06.
  Successor Agent     39  
 
           
ARTICLE VIII
       
MISCELLANEOUS
       
 
           
SECTION 8.01.
  Amendments, Etc     39  
SECTION 8.02.
  Notices, Etc     40  
SECTION 8.03.
  No Waiver; Remedies     40  
SECTION 8.04.
  Costs and Expenses; Indemnification     40  
SECTION 8.05.
  Right of Set-off     41  
SECTION 8.06.
  Binding Effect     42  
SECTION 8.07.
  Assignments and Participations     42  
SECTION 8.08.
  Governing Law     46  
SECTION 8.09.
  Consent to Jurisdiction; Waiver of Jury Trial     46  
SECTION 8.10.
  Severability     46  
SECTION 8.11.
  Entire Agreement     46  
SECTION 8.12.
  Execution in Counterparts     47  

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EXHIBITS

         
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
 
SCHEDULES
         
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 OHIO EDISON COMPANY, an Ohio corporation (the “Borrower”), the lenders (the “Banks”) listed on the signature pages hereto and Citibank, N.A. (“Citibank”), as Administrative Agent (the “Administrative Agent”) for the Lenders hereunder.

PRELIMINARY STATEMENTS

     The Borrower has requested that the Banks provide to the Borrower a $125,000,000 unsecured revolving loan facility for general corporate purposes. The Lenders have indicated their willingness to agree to lend such amount on the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

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