Working Capital Agreement (2000)Full Document 

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                            WORKING CAPITAL AGREEMENT

                            Dated as of March 1, 2000

                                      among

                              AES RED OAK, L.L.C.,
                                   as Borrower

                                       and

                             THE BANKS NAMED HEREIN

                                       and

                                DRESDNER BANK AG,
                       acting through its New York Branch
                           and/or Grand Cayman Branch
                          as Initial Bank and as a Bank

                                       and

                                DRESDNER BANK AG,
                       acting through its New York Branch,
                                    as Agent

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       830 MW (Net) Gas-Fired Combined Cycle Electric Generating Facility
               Borough of Sayreville, Middlesex County, New Jersey

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                                TABLE OF CONTENTS
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                                                                                                PAGE
<S>                  <C>                                                                        <C>
ARTICLE I DEFINITIONS; CONSTRUCTION................................................................1

   SECTION 1.2       DEFINITIONS...................................................................1
   SECTION 1.3       CONSTRUCTION..................................................................5

ARTICLE II COMMITMENTS AND LOANS...................................................................5

   SECTION 2.1       COMMITMENTS...................................................................5
   SECTION 2.2       MAKING LOANS..................................................................7
   SECTION 2.3       INTEREST......................................................................8
   SECTION 2.4       REPAYMENT....................................................................11
   SECTION 2.5       PREPAYMENTS..................................................................11
   SECTION 2.6       FEES.........................................................................11
   SECTION 2.7       SECURITY.....................................................................12
   SECTION 2.8       PAYMENTS.....................................................................12
   SECTION 2.9       COMPUTATION OF INTEREST AND FEES.............................................12
   SECTION 2.10      PAYMENTS ON NON-BUSINESS DAYS................................................12
   SECTION 2.11      SHARING OF PAYMENTS, ETC.....................................................13
   SECTION 2.12      EVIDENCE OF DEBT.............................................................13
   SECTION 2.13      INCREASED COSTS AND REDUCED RETURNS..........................................14
   SECTION 2.14      CAPITAL ADEQUACY.............................................................16
   SECTION 2.15      TAXES........................................................................16
   SECTION 2.16      ILLEGALITY...................................................................18
   SECTION 2.17      ASSIGNMENTS BY BANKS.........................................................19
   SECTION 2.18      REFINANCING OPTION...........................................................19
   SECTION 2.19      RIGHT OF SET-OFF.............................................................19

ARTICLE III CONDITIONS PRECEDENT..................................................................20

   SECTION 3.1       CONDITIONS PRECEDENT TO EFFECTIVENESS........................................20
   SECTION 3.2       CONDITIONS PRECEDENT TO EACH BORROWING.......................................21

ARTICLE IV REPRESENTATIONS AND WARRANTIES.........................................................22

   SECTION 4.1       REPRESENTATIONS AND WARRANTIES OF BORROWER...................................22
   SECTION 4.2       REPRESENTATIONS AND WARRANTIES OF INITIAL BANK...............................22

ARTICLE V COVENANTS...............................................................................22

   SECTION 5.1       COVENANTS....................................................................22

ARTICLE VI DEFAULTS AND REMEDIES..................................................................23

   SECTION 6.1       EVENTS OF DEFAULT............................................................23
   SECTION 6.2       REMEDIES.....................................................................23


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