Exhibit 10.1

 

LIMITED CONSENT AND WAIVER

 

This LIMITED CONSENT AND WAIVER (this “Consent”) dated as of May 24, 2011 is
entered into by and among THE DAYTON POWER AND LIGHT COMPANY, an Ohio
corporation (the “Borrower”), BANK OF AMERICA, N.A., in its capacity as
administrative agent for the Lenders (as defined in the Credit Agreement
described below) (in such capacity, the “Administrative Agent”), and each of the
Lenders.  Each capitalized term used and not otherwise defined in this Consent
has the definition specified in the Credit Agreement described below.

 

WITNESSETH:

 

WHEREAS, the Borrower, the Administrative Agent and the Lenders party thereto
have entered into that certain Credit Agreement dated as of April 20, 2010 (the
“Credit Agreement”), pursuant to which the Lenders have made available to the
Borrower a revolving credit facility with a letter of credit sublimit;

 

WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that
pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”)
dated as of April 19, 2011 by and among DPL Inc., an Ohio corporation and the
parent company of the Borrower (the “Parent”), The AES Corporation, a Delaware
corporation (“AES”), and Dolphin Sub, Inc., an Ohio corporation and a
wholly-owned subsidiary of AES (the “Merger Sub”), the Parent will be merged
with and into the Merger Sub with the Parent surviving the Merger as a
wholly-owned subsidiary of AES (such merger, the “Merger”);

 

WHEREAS, the Borrower has requested that the Administrative Agent and the
Required Lenders consent to, and waive any Event of Default that would otherwise
result from, the “Change of Control” resulting from the closing of the Merger,
and the Administrative Agent and the Required Lenders are willing to grant such
consent and waiver on the terms and conditions contained in this Consent; and

 

WHEREAS, pursuant to Section 10.01 of the Credit Agreement, this Consent shall
be effective when signed by the Borrower and the Required Lenders and
acknowledged by the Administrative Agent;

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged by the parties hereto, the parties hereto
hereby agree as follows:

 

1.             Limited Consent and Waiver.   Subject to the terms and conditions
set forth herein, and in reliance upon the representations and warranties of the
Borrower made herein, the Administrative Agent and each of the Lenders hereby
consent to, and waive any Event of Default that would otherwise result from, the
“Change of Control” resulting from the closing of the Merger; provided that the
Merger is consummated substantially in accordance with the Merger Agreement
provided to the Administrative Agent and the Lenders prior to the date hereof.

 

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2.             Effectiveness; Conditions Precedent.  The effectiveness of this
Consent and the consent provided in Section 1 are subject to the satisfaction of
the following conditions precedent:

 

(a)           The Administrative Agent shall have received original counterparts
of this Consent, duly executed by the Borrower, the Administrative Agent and the
Required Lenders. The Administrative Agent’s execution of this Consent shall
constitute the acknowledgement required by Section 10.01 of the Credit
Agreement.

 

(b)           All fees and expenses payable by the Borrower to the
Administrative Agent and the Lenders pursuant to the Credit Agreement (including
the reasonable fees and expenses of counsel to the Administrative Agent) to date
shall have been paid in full (without prejudice to final settling of accounts
for such fees and expenses).

 

3.             Representations and Warranties.  In order to induce the
Administrative Agent and the Lenders to enter into this Consent, the Borrower
represents and warrants to the Administrative Agent and such Lenders as follows:

 

(a)           The representations and warranties made by it in Article V of the
Credit Agreement are true and correct in all material respects on and as of the
date hereof, except that (i) if a qualifier relating to materiality, Material
Adverse Effect or a similar concept applies, such representation or warranty
shall be required to be true and correct in all respects, (ii) to the extent
that such representations and warranties expressly relate to an earlier date, in
which case such representations and warranties are true and correct in all
material respects as of such earlier date (except that if a qualifier relating
to materiality, Material Adverse Effect or a similar concept applies, such
representation or warranty shall be required to be true and correct in all
respects), and (iii) the representations and warranties contained in subsections
(a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to
the most recent statements furnished pursuant to clauses (a) and (b),
respectively, of Section 6.01 of the Credit Agreement;

 

(b)           Since the date of the most recent financial reports of the
Borrower delivered pursuant to Section 6.01 of the Credit Agreement, no act,
event, condition or circumstance has occurred or arisen which, singly or in the
aggregate with one or more other acts, events, occurrences or conditions
(whenever occurring or arising), has had or could reasonably be expected to have
a Material Adverse Effect;

 

(c)           This Consent has been duly authorized, executed and delivered by
the Borrower and constitutes a legal, valid and binding obligation of the
Borrower, except as may be limited by general principles of equity or public
policy or by the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally;
and

 

(d)           No Default or Event of Default has occurred and is continuing or
will exist after giving effect to this Consent.

 

4.             Entire Agreement.  This Consent, together with the Loan Documents
(collectively, the “Relevant Documents”), sets forth the entire understanding
and agreement of the parties hereto in relation to the subject matter hereof and
supersedes any prior negotiations

 

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and agreements among the parties relating to such subject matter.  No promise,
condition, representation or warranty, express or implied, not set forth in the
Relevant Documents shall bind any party hereto, and no such party has relied on
any such promise, condition, representation or warranty.  Each of the parties
hereto acknowledges that, except as otherwise expressly stated in the Relevant
Documents, no representations, warranties or commitments, express or implied,
have been made by any party to the other in relation to the subject matter
hereof or thereof.  None of the terms or conditions of this Consent may be
changed, modified, waived or canceled orally or otherwise, except in writing and
in accordance with Section 10.01 of the Credit Agreement.

 

5.             Full Force and Effect of Loan Documents.  Except as hereby
specifically amended, modified or supplemented, the Credit Agreement and all
other Loan Documents are hereby confirmed and ratified in all respects and shall
be and remain in full force and effect according to their respective terms.

 

6.             Counterparts.  This Consent may be executed in any number of
counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which shall together constitute one
and the same instrument.  Delivery of an executed counterpart of a signature
page of this Consent by telecopy, facsimile or other electronic transmission
(including .pdf) shall be effective as delivery of a manually executed
counterpart of this Consent.

 

7.             Governing Law.  This Consent shall in all respects be governed
by, and construed in accordance with, the laws of the State of New York.

 

8.             Enforceability.  Should any one or more of the provisions of this
Consent be determined to be illegal or unenforceable as to one or more of the
parties hereto, all other provisions nevertheless shall remain effective and
binding on the parties hereto.

 

9.             References.  All references in any of the Loan Documents to the
“Credit Agreement” shall mean the Credit Agreement, as amended hereby and as
from time to time hereafter further amended, modified, supplemented, restated or
amended and restated.

 

10.           Successors and Assigns.  This Consent shall be binding upon and
inure to the benefit of the Borrower, the Administrative Agent, each Lender and
their respective successors and assignees to the extent such assignees are
permitted assignees as provided in Section 10.06 of the Credit Agreement.

 

[Signature pages follow.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Limited Consent and
Waiver to be executed as of the date first above written.

 

 

BORROWER:

 

 

 

THE DAYTON POWER AND LIGHT COMPANY

 

 

 

By:

 

 

Name:

 

Title:

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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ADMINISTRATIVE AGENT:

 

 

 

BANK OF AMERICA, N.A., as

 

Administrative Agent

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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LENDERS:

 

 

 

BANK OF AMERICA, N.A.,

 

as a Lender

 

 

 

By:

 

 

Name:

 

Title:

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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PNC BANK, NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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FIFTH THIRD BANK,

 

as a Lender

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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JPMORGAN CHASE BANK, N.A.,

 

as a Lender

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

LIMITED CONSENT AND WAIVER

Signature Page

 

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