Document:

exv10w24

EXHIBIT 10.24

DOLE FOOD COMPANY, INC.

2009 STOCK INCENTIVE PLAN

1. Purpose

     The purpose of the Dole Food Company, Inc. 2009 Stock Incentive Plan is to advance the
interests of Dole Food Company, Inc. and its Affiliates by stimulating the efforts of employees,
officers, non-employee directors and other service providers, in each case who are selected to be
participants, by heightening the desire of such persons to continue working toward and contributing
to the success and progress of the Corporation. The Plan provides for the potential grant of
Incentive and Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock and
Restricted Stock Units, any of which may be performance-based, and for Incentive Bonuses, which may
be paid in cash or stock or a combination thereof, as determined by the Administrator.

2. Definitions

     As used in the Plan, the following terms shall have the meanings set forth below:

     (a) “Administrator” means the Administrator of the Plan in accordance with Section 18.

     (b) “Affiliate” shall have the meaning ascribed in Rule 12b-2 promulgated under the Exchange
Act.

     (c) “Associate” shall have the meaning ascribed in Rule 12b-2 promulgated under the Exchange
Act.

     (d) “Award” means an Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit or Incentive Bonus granted to a Participant pursuant
to the provisions of the Plan, any of which the Administrator may structure to qualify in whole or
in part as a Performance Award.

     (e) “Award Agreement” means a written agreement or other instrument as may be approved from
time to time by the Administrator implementing the grant of each Award. An Agreement may be in the
form of an agreement to be executed by both the Participant and the Corporation (or an authorized
representative of the Corporation) or certificates, notices or similar instruments as approved by
the Administrator.

     (f) “Beneficially Owned” shall have the meaning ascribed in Rule 13d-3 under the Exchange Act.

     (g) “Beneficiary” means the person, persons, trust or trusts entitled, by will, the laws of
descent and distribution or by designation on a beneficiary designation form adopted by the
Administrator for such purpose, to receive the benefits specified under this Plan in the event of a
Participant’s death.

 

 

     (h) “Board” means the Board of Directors of the Corporation.

     (i) “Cause” means (unless otherwise expressly provided in the Award Agreement or another
contract, including an employment agreement) Dole’s termination of the Participant’s employment
with Dole pursuant (except under clause (e), below, in which case Dole need not send a Notice of
Termination) to a Notice of Termination given within 120 days following Dole becoming aware of the
occurrence of any one or more of the following to the extent (in the case of clause (b) or (c) if
remediable) not remedied in a reasonable period of time after receipt by the Participant of written
notice from Dole specifying such occurrence:

     (1) The Participant is convicted of, or plead guilty or nolo contendere to, a felony;

     (2) The Participant commits an act of gross misconduct in connection with the
performance of the Participant’s duties;

     (3) The Participant demonstrates habitual negligence in the performance of the
Participant’s duties;

     (4) The Participant commits an act of fraud, misappropriation of funds or embezzlement
in connection with the Participant’s employment by Dole;

     (5) The Participant’s death; or

     (6) The Participant’s Disability.

Notwithstanding the foregoing, the Participant shall not be deemed to have been terminated by the
Corporation for Cause under clauses (2)—(4) or (6) until the later to occur of (i) the 30th day
after Notice of Termination is given and (ii) the delivery to the Participant of a certified copy
of a resolution duly adopted by the affirmative vote of not less than a majority of the total
number of directors at a meeting duly called and held (after reasonable notice to the Participant),
and at which the Participant, together with the Participant’s counsel, was given an opportunity to
be heard, finding that one or more of the events described in clauses (2)—(4) or (6) above
occurred, and specifying the particulars thereof in detail; provided, however, the Corporation may
suspend the Participant and withhold payment and/or suspend vesting in connection with any Award
from the date that Notice of Termination is given until the earliest to occur of (i) termination by
the Corporation for Cause effected in accordance with the foregoing procedures (in which case the
Participant shall not be entitled to such compensation or benefits for such period), (ii) a
determination by a majority of our directors that none of the events described in clauses (2)—(4)
or (6) above occurred (in which case the Participant shall be reinstated and shall receive any of
the Participant’s previously withheld and/or suspended compensation and benefits for such period),
or (iii) the 90th day after Notice of Termination is given (in which case the Participant shall be
reinstated and shall receive any of the Participant’s previously withheld and/or suspended
compensation and benefits for such period).

     (j) “Change of Control” (unless otherwise expressly provided in the Award Agreement or another
contract, including an employment agreement) shall be deemed to occur if

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and as of the first day that any one or more of the following conditions are satisfied,
whether accomplished directly or indirectly, or in one or a series of related transactions:

     (1) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act), other than (a) David H. Murdock or (b) following the death of David H. Murdock, the
trustee or trustees of a trust created by David H. Murdock, becomes the “Beneficial Owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Corporation representing 20% or more of the combined voting power of the Corporation’s
then outstanding securities;

     (2) individuals who, as of the Effective Date, constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual who becomes a director subsequent to the Effective Date whose
election, or nomination for election by the Corporation’s stockholders, was approved by a
vote of at least two-thirds of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, unless the
individual’s initial assumption of office occurs as a result of either an actual or
threatened election contest or other actual or threatened tender offer, solicitation of
proxies or consents by or on behalf of a Person other than the Board;

     (3) a reorganization, merger, consolidation, recapitalization, tender offer, exchange
offer or other extraordinary transaction involving Dole (a “Fundamental Transaction”)
becomes effective or is consummated, unless: (i) more than 50% of the outstanding voting
securities of the surviving or resulting entity (including, without limitation, an entity
(“Parent”) which as a result of such transaction owns the Corporation or all or
substantially all of the Corporation’s assets either directly or through one or more
subsidiaries) (“Resulting Entity”) are, or are to be, Beneficially Owned, directly or
indirectly, by all or substantially all of the Persons who were the Beneficial Owners of the
outstanding voting securities of the Corporation immediately prior to such Fundamental
Transaction (excluding, for such purposes, any Person who is or, within two years prior to
the consummation date of such Fundamental Transaction, was, an Affiliate or Associate (other
than an Affiliate of Dole Food Company, Inc. immediately prior to such consummation date)
(as each of Affiliate and Associate are defined in Rule 12b-2 promulgated under the Exchange
Act) of a party to the Fundamental Transaction) in substantially the same proportions as
their Beneficial Ownership, immediately prior to such Fundamental Transaction, of the
outstanding voting securities of the Corporation and (ii) more than half of the members of
the board of directors or similar body of the Resulting Entity (or its parent) were members
of the Incumbent Board at the time of the execution of the initial agreement providing for
such Fundamental Transaction;

     (4) A sale, transfer or any other disposition (including, without limitation, by way of
spin-off, distribution, complete liquidation or dissolution) of all or substantially all of
the Corporation’s business and/or assets (an “Asset Sale”) is consummated, unless,
immediately following such consummation, all of the requirements of clauses (3)(i) and
(3)(ii) of this definition of Change of Control are satisfied, both with respect to the

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Corporation and with respect to the entity to which such business and/or assets have
been sold, transferred or otherwise disposed of or its parent (a “Transferee Entity”); or

     (5) Any other significant corporate transaction determined by the Board or the
Corporate Compensation and Benefits Committee of the Board to be a change of control for
purposes of the Plan.

The consummation or effectiveness of a Fundamental Transaction or an Asset Sale shall be deemed not
to constitute a Change of Control if more than 50% of the outstanding voting securities of the
Resulting Entity or the Transferee Entity, as appropriate, are, or are to be, Beneficially Owned by
David H. Murdock. For the avoidance of doubt, the consummation of the Initial Public Offering
shall not be considered a Change of Control or Fundamental Transaction for any purpose under this
Plan or any Award. If, in the Initial Public Offering, any Person (other than David H. Murdock)
becomes the Beneficial Owner, directly or indirectly, of securities of the Corporation representing
20% or more of the combined voting power of the Corporation’s then outstanding securities, no
Change of Control shall be deemed to have then occurred, and no Change of Control shall be deemed
to occur thereafter solely as a result of such Person’s Beneficial Ownership of the Corporation’s
securities unless and until (if ever) such Person becomes the Beneficial Owner, directly or
indirectly, of securities of the Corporation representing at least 1% more of the combined voting
power of the Corporation’s then outstanding securities than the percentage of the Corporation’s
outstanding securities Beneficially Owned by such Person upon the consummation of the Initial
Public Offering.

     (k) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
rulings and regulations issues thereunder.

     (l) “Common Stock” means the Corporation’s common stock, par value $0.001, subject to
adjustment as provided in Section 12.

     (m) “Corporation” means Dole Food Company, Inc., a Delaware corporation, and its successors.
For purposes of this definition of Corporation, after the consummation of a Fundamental Transaction
or an Asset Sale, the term “successor” shall include, without limitation, the Resulting Entity or
Transferee Entity, respectively.

     (n) “Dole” means the Corporation and/or its Subsidiaries.

     (o) “Disability” shall have the meaning ascribed to such term in the Participant’s governing
long-term disability plan, or if no such plan exists, shall mean a Participant’s absence from, or
inability to perform duties for, the Corporation on a full-time basis for 90 consecutive business
days or 120 business days in any period of 180 business days as a result of mental or physical
illness or injury that is total and permanent, as determined by a physician selected by the
Corporation or its insurers and acceptable to the Participant or the Participant’s legal
representative (such agreement as to acceptability not to be withheld unreasonably) and that is not
susceptible to reasonable accommodation.

     (p) “Effective Date” means the date the Plan becomes effective pursuant to Section 4.

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     (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

     (r) “Fair Market Value” means, as of any given date, the closing sales price on such date
during normal trading hours (or, if there are no reported sales on such date, on the last date
prior to such date on which there were sales) of the Shares on the New York Stock Exchange
Composite Tape or, if not listed on such exchange, on any other national securities exchange on
which the Shares are listed or on NASDAQ, in any case, as reported in such source as the
Administrator shall select. If there is no regular public trading market for such Common Shares,
the Fair Market Value of the Shares shall be determined by the Administrator in good faith and in
compliance with Section 409A of the Code.

     (s) “Good Reason” means (unless otherwise expressly provided in the Award Agreement or another
contract, including an employment agreement) a Participant’s resignation of employment with Dole
within 120 days following the occurrence of one or more of the following to the extent not remedied
in a reasonable period of time after receipt by Dole of written notice from the Participant
specifying such occurrence, without the Participant’s express written consent:

     (1) Whether direct or indirect, a significant diminution of the Participant’s
authority, duties, responsibilities or status inconsistent with and below those held,
exercised and assigned in the ordinary course during the 90 day period immediately preceding
the Change of Control, excluding any such significant diminution that (i) begins prior, and
ends on or prior, to the date on which a Fundamental Transaction or Asset Sale becomes
effective or is consummated that constitutes a Change of Control, and (ii) results from the
affirmative and negative pre-closing operating covenants applicable to Dole contained in the
definitive transaction agreements providing for such Fundamental Transaction or Asset Sale;

     (2) The assignment to the Participant of duties that are inconsistent (in any
significant respect) with, or that impair (in any significant respect) the Participant’s
ability to perform, the duties customarily assigned to an individual holding the position
the Participant held immediately prior to the Change of Control in a corporation of the size
and nature of Dole, or, if the Participant was employed prior to termination by a Subsidiary
or business unit of the Corporation, in a subsidiary or business unit of the size and nature
of the Subsidiary or business unit of the Corporation in which the Participant was employed;

     (3) Relocation of the Participant’s primary office more than 35 miles from the
Participant’s current office at the time of the Change of Control;

     (4) Any material breach by the Corporation of any employment or other agreement between
the Corporation and the Participant;

     (5) Any reduction in the Participant’s base salary below the Participant’s base salary
in effect immediately prior to the Change of Control (or if the Participant’s base

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salary was reduced within 180 days before the Change of Control, the base salary in
effect immediately prior to such reduction);

     (6) The failure of Dole or any successor to continue in effect any equity-based or
non-equity based incentive compensation plan (whether annual or long-term) in effect
immediately prior to the Change of Control, or a non de minimis reduction, in the aggregate,
in the Participant’s participation in any such plans (based upon (x) in the case of equity
based plans, the average grant date fair value of the Participant’s awards under such plans
over the three years preceding the Change of Control (or such lesser period following the
Dole’s initial public offering that the Participant was employed by Dole or any successor)
or (y) in the case of non-equity based plans, the Participant’s target award under such
plans for the performance period in which the Change of Control occurs), unless the
Participant is afforded the opportunity to participate in an alternative incentive
compensation plan of reasonably equivalent value; provided that a reduction in the aggregate
value of the Participant’s participation in any such plans of not more than 5% in connection
with across-the-board reductions or modifications affecting all similarly situated
Participants of comparable rank in Dole or a combined organization shall not constitute Good
Reason (all determinations under this clause (6) shall be made in good faith by the
corporate compensation and benefits committee of the board of directors of Dole or any
successor in its sole discretion); or

     (7) Any reduction in the aggregate value of benefits provided to the Participant, as in
effect at the time of the Change of Control; provided that a reduction in the aggregate
value of benefits of not more than 5% in connection with across-the-board reductions or
modifications affecting all similarly situated Participants of comparable rank in Dole or a
combined organization shall not constitute Good Reason. All determinations under this
clause (7) shall be made in good faith by the corporate compensation and benefits committee
of the board of directors of Dole or any successor in its sole discretion. As used herein,
“benefits” shall include all deferred compensation, retirement, pension, health, medical,
dental, disability, insurance, automobile, and similar benefits.

     (t) “Incentive Bonus” means a bonus opportunity awarded under Section 9 pursuant to which a
Participant may become entitled to receive an amount based on satisfaction of such performance
criteria as are specified in the Award Agreement. Nothing herein shall be construed as creating
any limitations on Dole’s ability to adopt such other incentive arrangements as either may deem
desirable, including without limitation, annual and/or long-term cash-based incentive compensation
plans.

     (u) “Incentive Stock Option” means a stock option that is intended to qualify as an “incentive
stock option” within the meaning of Section 422 of the Code.

     (v) “Initial Public Offering” means the transactions leading up to, and including, the initial
sale by the Underwriters of the shares of the Common Stock pursuant to the Corporation’s
Registration Statement on Form S-1 filed with the Securities and Exchange Commission on August 14,
2009, as amended (the “Form S-1”). For purposes of this definition, the term

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“Underwriters” shall have the meaning ascribed thereto in that certain Underwriting Agreement
attached as Exhibit 1.1 to the Form S-1, as amended.

     (w) “Nonemployee Director” means each person who is, or is elected to be, a member of the
Board and who is not an employee of the Corporation or any Subsidiary.

     (x) “Nonqualified Stock Option” means a stock option that is not intended to qualify as an
“incentive stock option” within the meaning of Section 422 of the Code.

     (y) “Notice of Termination” means a written notice which (1) indicates the specific
termination provision in the Plan relied upon, and (2) to the extent applicable, sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Participant’s employment under the provision so indicated.

     (z) “Option” means an Incentive Stock Option and/or a Nonqualified Stock Option granted
pursuant to Section 6 of the Plan.

     (aa) “Participant” means any individual described in Section 3 to whom Awards have been
granted from time to time by the Administrator and any authorized transferee of such individual.

     (bb) “Performance Award” means an Award, the grant, issuance, retention, vesting or settlement
of which is subject to satisfaction of one or more performance criteria established pursuant to
Section 13.

     (cc) “Plan” means the Dole Food Company, Inc. 2009 Stock Incentive Plan as set forth herein
and as amended from time to time.

     (dd) “Restricted Stock” means Shares granted pursuant to Section 8 of the Plan.

     (ee) “Restricted Stock Unit” means an Award granted to a Participant pursuant to Section 8
pursuant to which Shares or cash in lieu thereof may be issued in the future.

     (ff) “Retirement” means retirement from active employment or service with Dole either (1) at
or after age 65 or (2) at or after age 55 with at least 5 years of full-time employment or service
with Dole.

     (gg) “Share” means a share of the Common Stock, subject to adjustment as provided in Section
12.

     (hh) “Stock Appreciation Right” means a right granted pursuant to Section 7 of the Plan that
entitles the Participant to receive, in cash or Shares or a combination thereof, as determined by
the Administrator, value equal to or otherwise based on the excess of (i) the Fair Market Value of
a specified number of Shares at the time of exercise over (ii) the exercise price of the right, as
established by the Administrator on the date of grant.

     (ii) “Subsidiary” means any corporation or other entity a majority or more of the outstanding
voting stock or voting power of which is beneficially owned directly or indirectly by

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the Corporation, and if specifically determined by the Administrator in the context other than
with respect to Incentive Stock Options, may include an entity in which the Corporation has a
significant ownership interest or that is directly or indirectly controlled by the Corporation.

     (jj) “Termination of Employment” means ceasing to serve as an employee of the Corporation or
any Subsidiary or, with respect to a Nonemployee Director or other service provider, ceasing to
serve as such for the Corporation, except that with respect to all or any Awards held by a
Participant (i) the Administrator may determine, subject to Section 6(c), that an approved leave of
absence or approved employment on a less than full-time basis shall be considered a Termination of
Employment, (ii) the Administrator may determine that a transition of employment to service with a
partnership, joint venture or corporation not meeting the requirements of a Subsidiary in which the
Corporation or a Subsidiary is a party is not considered a Termination of Employment, (iii) service
as a member of the Board or other service provider shall constitute continued employment with
respect to Awards granted to a Participant while he or she served as an employee and (iv) service
as an employee of the Corporation or a Subsidiary shall constitute continued employment with
respect to Awards granted to a Participant while he or she served as a member of the Board or other
service provider. The Administrator shall determine whether any corporate transaction, such as a
sale or spin-off of a division or subsidiary that employs a Participant, shall be deemed to result
in a Termination of Employment with the Corporation or any Subsidiary for purposes of any affected
Participant’s Options, and the Administrator’s decision shall be final and binding.

3. Eligibility

     Any person who is a current or prospective officer or employee of the Corporation or of any
Subsidiary shall be eligible for selection by the Administrator for the grant of Awards hereunder.
In addition, Nonemployee Directors and any other service providers who have been retained to
provide consulting, advisory or other services to the Corporation or to any Subsidiary shall be
eligible for the grant of Awards hereunder as determined by the Administrator. Options intending
to qualify as Incentive Stock Options may only be granted to employees of the Corporation or any
corporate Subsidiary within the meaning of the Code, as selected by the Administrator.

4. Effective Date and Termination of Plan

     This Plan was adopted by the Board and approved by the Corporation’s stockholders by written
consent in accordance with the laws of the State of Delaware as of October 8, 2009 (the “Effective
Date”). The Plan shall remain available for the grant of Awards until the tenth (10th) anniversary
of the Effective Date. Notwithstanding the foregoing, the Plan may be terminated at such earlier
time as the Board may determine. Termination of the Plan will not affect the rights and
obligations of the Participants and the Corporation arising under Awards theretofore granted and
then in effect.

5. Shares Subject to the Plan and to Awards

     (a) Aggregate Limits. The aggregate number of Shares issuable pursuant to all Awards shall
not exceed 6,000,000. The aggregate number of Shares that may be issued

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pursuant to the exercise of Incentive Stock Options granted under this Plan shall not exceed
6,000,000, which number shall be calculated and adjusted pursuant to Section 12 only to the extent
that such calculation or adjustment will not affect the status of any option intended to qualify as
an Incentive Stock Option under Section 422 of the Code.

     (b) Adjustment. The aggregate number of Shares available for grant under this Plan and the
number of Shares subject to outstanding Awards shall be subject to adjustment as provided in
Section 12. The Shares issued pursuant to Awards granted under this Plan may be shares that are
authorized and unissued or shares that were reacquired by the Corporation, including shares
purchased in the open market.

     (c) Issuance of Shares. For purposes of Section 5(a), the aggregate number of Shares issued
under this Plan at any time shall equal only the number of Shares actually issued upon exercise or
settlement of an Award. The aggregate number of Shares available for Awards under this Plan at any
time shall not be reduced by (i) Shares subject to Awards that have been terminated, expired
unexercised, forfeited or settled in cash, (ii) Shares subject to Awards that have been retained or
withheld by the Corporation in payment or satisfaction of the exercise price, purchase price or tax
withholding obligation of an Award, or (iii) Shares subject to Awards that otherwise do not result
in the issuance of Shares in connection with payment or settlement thereof. In addition, Shares
that have been delivered (either actually or by attestation) to the Corporation in payment or
satisfaction of the exercise price, purchase price or tax withholding obligation of an Award shall
be available for Awards under this Plan.

6. Options

     (a) Option Awards. Options may be granted at any time and from time to time prior to the
termination of the Plan to Participants as determined by the Administrator. No Participant shall
have any rights as a stockholder with respect to any Shares subject to an Option hereunder until
said Shares have been issued. Each Option shall be evidenced by an Award Agreement. Options
granted pursuant to the Plan need not be identical but each Option must contain and be subject to
the terms and conditions set forth below.

     (b) Price. The Administrator will establish the exercise price per Share under each Option,
which, in no event will be less than the Fair Market Value of the Shares on the date of grant;
provided, however, that the exercise price per Share with respect to an Option that is granted in
connection with a merger or other acquisition as a substitute or replacement award for options held
by optionees of the acquired entity may be less than 100% of the Fair Market Value of the Shares on
the date such Option is granted if such exercise price is based on a formula set forth in the terms
of the options held by such optionees or in the terms of the agreement providing for such merger or
other acquisition. The exercise price of any Option may be paid in Shares, cash or a combination
thereof, as determined by the Administrator, including an irrevocable commitment by a broker to pay
over such amount from a sale of the Shares issuable under an Option, the delivery of previously
owned Shares and withholding of Shares deliverable upon exercise.

     (c) Provisions Applicable to Options. The date on which Options become exercisable shall be
determined at the sole discretion of the Administrator and set forth in an Award

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Agreement. Unless provided otherwise in the applicable Award Agreement, to the extent that
the Administrator determines that an approved leave of absence is not a Termination of Employment,
the vesting period and/or exercisability of an Option may be adjusted by the Administrator during
or to reflect the effects of any period during which the Participant is on an approved leave of
absence or is employed on a less than full-time basis. The Administrator shall establish the term
of each Option, which in no case shall exceed a period of ten (10) years from the date of grant.

     (d) Incentive Stock Options. Notwithstanding anything to the contrary in this Section 6, in
the case of the grant of an Option intending to qualify as an Incentive Stock Option: (i) if the
Participant owns stock possessing more than 10% of the combined voting power of all classes of
stock of the Corporation (a “10% Stockholder”), the exercise price of such Option must be at least
110% of the Fair Market Value of the Shares on the date of grant and the Option must expire within
a period of not more than five (5) years from the date of grant, and (ii) Termination of Employment
will occur when the person to whom an Award was granted ceases to be an employee (as determined in
accordance with Section 3401(c) of the Code and the regulations promulgated thereunder) of the
Corporation or any Subsidiary. Notwithstanding anything in this Section 6 to the contrary, options
designated as Incentive Stock Options shall not be eligible for treatment under the Code as
Incentive Stock Options (and will be deemed to be Nonqualified Stock Options) to the extent that
either (1) the aggregate Fair Market Value of Shares (determined as of the time of grant) with
respect to which such Options are exercisable for the first time by the Participant during any
calendar year (under all plans of the Corporation and any Subsidiary) exceeds $100,000, taking
Options into account in the order in which they were granted, or (2) such Options otherwise remain
exercisable but are not exercised within three (3) months of Termination of Employment (or such
other period of time provided in Section 422 of the Code). If the requirements for an Option to
qualify for incentive stock option tax treatment are changed, this Section 6(d) shall be deemed to
be automatically amended to reflect such requirements.

     (e) Effect of Termination of Employment. Unless an Option earlier expires upon the expiration
date established pursuant to Section 6(c), upon a Termination of Employment (i) any portion of the
Option that is not exercisable at the time of such Termination of Employment shall be forfeited and
canceled as of the date of such Termination of Employment and (ii) a Participant’s (or his or her
Beneficiary’s) rights to exercise any portion of the Option that is exercisable at the time of such
Termination of Employment shall be only as follows, in each case, unless otherwise expressly
provided in the Award Agreement or another contract, including an employment agreement:

     (1) Death. If a Participant incurs a Termination of Employment by reason of death, any
Option held by such Participant, to the extent then exercisable, may thereafter be exercised
by the Participant’s Beneficiary for a period of twelve months from the date of such death
or until the expiration of the stated term of such Option, whichever period is the shorter.

     (2) Retirement, Disability. If a Participant incurs a Termination of Employment by
reason of Retirement or Disability, any Option held by such Participant, to the extent then
exercisable, may thereafter be exercised by the Participant for a period

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of twelve months from the date of such Termination of Employment or until the
expiration of the stated term of such Option, whichever period is the shorter.

     (3) Cause. If a Participant incurs a Termination of Employment by reason of a
termination by the Company for Cause, the entire Option, whether or not then exercisable,
shall be immediately forfeited and canceled as of the date of such Termination of
Employment.

     (4) Termination for Reasons other than Death, Retirement, Disability or Cause. If a
Participant incurs a Termination of Employment for any reason other than death, Retirement,
Disability or for Cause, any Option held by such Participant, to the extent then
exercisable, may thereafter be exercised by the Participant for a period of three months
from the date of such Termination of Employment or until the expiration of the stated term
of such Option, whichever period is the shorter.

7. Stock Appreciation Rights

     Stock Appreciation Rights may be granted to Participants from time to time either in tandem
with or as a component of other Awards granted under the Plan (“tandem SARs”) or not in conjunction
with other Awards (“freestanding SARs”) and may, but need not, relate to a specific Option granted
under Section 6. The provisions of Stock Appreciation Rights need not be the same with respect to
each grant or each recipient. Any Stock Appreciation Right granted in tandem with an Award may be
granted at the same time such Award is granted or at any time thereafter before exercise or
expiration of such Award. All freestanding SARs shall be granted subject to the same terms and
conditions applicable to Options as set forth in Section 6 and all tandem SARs shall have the same
exercise price, vesting, exercisability, forfeiture and termination provisions as the Award to
which they relate. Subject to the provisions of Section 6 and the immediately preceding sentence,
the Administrator may impose such other conditions or restrictions on any Stock Appreciation Right
as it shall deem appropriate. Stock Appreciation Rights may be settled in Shares, cash or a
combination thereof, as determined by the Administrator and set forth in the applicable Award
Agreement.

8. Restricted Stock and Restricted Stock Units

     (a) Restricted Stock and Restricted Stock Unit Awards. Restricted Stock and Restricted Stock
Units may be granted at any time and from time to time prior to the termination of the Plan to
Participants as determined by the Administrator. Restricted Stock is an award or issuance of
Shares the grant, issuance, retention, vesting and/or transferability of which is subject during
specified periods of time to such conditions (including continued employment or performance
conditions) and terms as the Administrator deems appropriate. Restricted Stock Units are Awards
denominated in units of Shares under which the issuance of Shares is subject to such conditions
(including continued employment or performance conditions) and terms as the Administrator deems
appropriate. Each grant of Restricted Stock and Restricted Stock Units shall be evidenced by an
Award Agreement. Unless determined otherwise by the Administrator, each Restricted Stock Unit will
be equal to one Share and will entitle a Participant to either the issuance of Shares or payment of
an amount of cash determined with reference to the value of Shares. To the extent determined by
the Administrator, Restricted Stock and Restricted Stock

11

 

Units may be satisfied or settled in Shares, cash or a combination thereof. Restricted Stock
and Restricted Stock Units granted pursuant to the Plan need not be identical but each grant of
Restricted Stock and Restricted Stock Units must contain and be subject to the terms and conditions
set forth below.

     (b) Contents of Agreement. Each Award Agreement shall contain provisions regarding (i) the
number of Shares or Restricted Stock Units subject to such Award or a formula for determining such
number, (ii) the purchase price of the Shares, if any, and the means of payment, (iii) the
performance criteria, if any, and level of achievement versus these criteria that shall determine
the number of Shares or Restricted Stock Units granted, issued, retainable and/or vested, (iv) such
terms and conditions on the grant, issuance, vesting and/or forfeiture of the Shares or Restricted
Stock Units as may be determined from time to time by the Administrator, (v) the term of the
performance period, if any, as to which performance will be measured for determining the number of
such Shares or Restricted Stock Units, and (vi) restrictions on the transferability of the Shares
or Restricted Stock Units. Shares issued under a Restricted Stock Award may be issued in the name
of the Participant and held by the Participant or held by the Corporation, in each case as the
Administrator may provide.

     (c) Vesting and Performance Criteria. The grant, issuance, retention, vesting and/or
settlement of shares of Restricted Stock and Restricted Stock Units will occur when and in such
installments as the Administrator determines or under criteria the Administrator establishes, which
may include performance criteria.

     (d) Discretionary Adjustments and Limits. Subject to the limits imposed under Section 162(m)
of the Code for Awards that are intended to qualify as “performance-based compensation,”
notwithstanding the satisfaction of any performance goals, the number of Shares granted, issued,
retainable and/or vested under an Award of Restricted Stock or Restricted Stock Units on account of
either financial performance or personal performance evaluations may, to the extent specified in
the Award Agreement, be reduced, but not increased, by the Administrator on the basis of such
further considerations as the Administrator shall determine.

     (e) Voting Rights. Unless otherwise determined by the Administrator, Participants holding
shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those
shares during the period of restriction. Participants shall have no voting rights with respect to
Shares underlying Restricted Stock Units unless and until such Shares are reflected as issued and
outstanding shares on the Corporation’s stock ledger.

     (f) Dividends and Distributions. Participants in whose name Restricted Stock is granted shall
be entitled to receive all dividends and other distributions paid with respect to those Shares,
unless determined otherwise by the Administrator. The Administrator will determine whether any
such dividends or distributions will be automatically reinvested in additional shares of Restricted
Stock and subject to the same restrictions on transferability as the Restricted Stock with respect
to which they were distributed or whether such dividends or distributions will be paid in cash.
Shares underlying Restricted Stock Units shall be entitled to dividends or dividend equivalents
only to the extent provided by the Administrator.

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     (g) Effect of Termination of Employment. Upon a Participant’s Termination of Employment for
any reason (including by reason of death, Retirement or Disability), any then unvested Restricted
Stock or Restricted Stock Units held by the Participant shall be forfeited and canceled as of the
date of such Termination of Employment, unless otherwise expressly provided in the Award Agreement
or another contract, including an employment agreement.

9. Incentive Bonuses

     (a) General. Each Incentive Bonus Award will confer upon the Participant the opportunity to
earn a future payment tied to the level of achievement with respect to one or more performance
criteria established for a performance period established by the Administrator.

     (b) Incentive Bonus Document. The terms of any Incentive Bonus will be set forth in an Award
Agreement. Each Award Agreement evidencing an Incentive Bonus shall contain provisions regarding
(i) the target and maximum amount payable to the Participant as an Incentive Bonus, (ii) the
performance criteria and level of achievement versus these criteria that shall determine the amount
of such payment, (iii) the term of the performance period as to which performance shall be measured
for determining the amount of any payment, (iv) the timing of any payment earned by virtue of
performance, (v) restrictions on the alienation or transfer of the Incentive Bonus prior to actual
payment, (vi) forfeiture provisions and (vii) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by the Administrator.

     (c) Performance Criteria. The Administrator shall establish the performance criteria and
level of achievement versus these criteria that shall determine the target and maximum amount
payable under an Incentive Bonus, which criteria may be based on financial performance and/or
personal performance evaluations. The Administrator may specify the percentage of the target
Incentive Bonus that is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code.

     (d) Timing and Form of Payment. The Administrator shall determine the timing of payment of
any Incentive Bonus. Payment of the amount due under an Incentive Bonus may be made in cash or in
Shares, as determined by the Administrator. The Administrator may provide for or, subject to such
terms and conditions as the Administrator may specify, may permit a Participant to elect for the
payment of any Incentive Bonus to be deferred to a specified date or event.

     (e) Discretionary Adjustments. Notwithstanding satisfaction of any performance goals, the
amount paid under an Incentive Bonus on account of either financial performance or personal
performance evaluations may, to the extent specified in the Award Agreement, be reduced, but not
increased, by the Administrator on the basis of such further considerations as the Administrator
shall determine.

     (f) Subplans. Incentive Bonuses payable hereunder may be pursuant to one or more subplans.

     (g) Effect of Termination of Employment. Upon a Participant’s Termination of Employment for
any reason (including by reason of death, Retirement or Disability), the

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Participant shall receive payment in respect of any Incentive Bonuses only to the extent
specified by the Administrator, unless otherwise expressly provided in the Award Agreement or
another contract, including an employment agreement. Payments in respect of any such Incentive
Bonuses shall be made at the time specified by the Administrator and set forth in the Award
Agreement.

10. Deferral of Gains

     The Administrator may, in an Award Agreement or otherwise, provide for the deferred delivery
of Shares upon settlement, vesting or other events with respect to Restricted Stock or Restricted
Stock Units, or in payment or satisfaction of an Incentive Bonus. Notwithstanding anything herein
to the contrary, in no event will any deferral of the delivery of Shares or any other payment with
respect to any Award be allowed if the Administrator determines, in its sole discretion, that the
deferral would result in the imposition of the additional tax under Section 409A(a)(1)(B) of the
Code. No award shall provide for deferral of compensation that does not comply with Section 409A
of the Code, unless the Board, at the time of grant, specifically provides that the Award is not
intended to comply with Section 409A of the Code. The Corporation shall have no liability to a
Participant, or any other party, if an Award that is intended to be exempt from, or compliant with,
Section 409A of the Code is not so exempt or compliant or for any action taken by the Board.

11. Conditions and Restrictions Upon Securities Subject to Awards

     The Administrator may provide that the Shares issued upon exercise of an Option or Stock
Appreciation Right or otherwise subject to or issued under an Award shall be subject to such
further agreements, restrictions, conditions or limitations as the Administrator in its discretion
may specify prior to the exercise of such Option or Stock Appreciation Right or the grant, vesting
or settlement of such Award, including without limitation, conditions on vesting or
transferability, forfeiture or repurchase provisions and method of payment for the Shares issued
upon exercise, vesting or settlement of such Award (including the actual or constructive surrender
of Shares already owned by the Participant) or payment of taxes arising in connection with an
Award. Without limiting the foregoing, such restrictions may address the timing and manner of any
resales by the Participant or other subsequent transfers by the Participant of any Shares issued
under an Award, including without limitation (i) restrictions under an insider trading policy or
pursuant to applicable law, (ii) restrictions designed to delay and/or coordinate the timing and
manner of sales by Participant and holders of other Corporation equity compensation arrangements,
(iii) restrictions as to the use of a specified brokerage firm for such resales or other transfers
and (iv) provisions requiring Shares to be sold on the open market or to the Corporation in order
to satisfy tax withholding or other obligations.

12. Adjustment of and Changes in the Stock; Certain Transactions; Change of Control

     (a) In the event that any dividend or other distribution (whether in the form of cash, Shares,
other securities or other property, but excluding regular, quarterly and other periodic cash
dividends), stock split or a combination or consolidation of the outstanding Shares into a lesser
number of shares, is declared with respect to the Shares, the authorization limits under Sections
5(a) and 5(c) shall be increased or decreased proportionately, and the Shares then

14

 

subject to each Award shall be increased or decreased proportionately without any change in the aggregate
purchase price therefore. In the event the Shares shall be changed into or exchanged for a
different number or class of shares of stock or securities of the Corporation or of another
corporation, whether through recapitalization, reorganization, reclassification, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other
securities of the Corporation, issuance of warrants or other rights to purchase Shares or other
securities of the Corporation, or any other similar corporate transaction or event affects the
Shares such that an equitable adjustment would be required in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available under the Plan,
then the authorization limits under Sections 5(a) and 5(c) shall be adjusted proportionately, and
an equitable adjustment shall be made to each Share subject to an Award such that no dilution or
enlargement of the benefits or potential benefits occurs. Each such Share then subject to each
Award shall be adjusted to the number and class of shares into which each outstanding Share shall
be so exchanged such that no dilution or enlargement of the benefits occurs, all without change in
the aggregate purchase price for the Shares then subject to each Award. Action by the
Administrator pursuant to this Section 12(a) may include adjustment to any or all of: (i) the
number and type of Shares (or other securities or other property) that thereafter may be made the
subject of Awards or be delivered under the Plan; (ii) the number and type of Shares (or other
securities or other property) subject to outstanding Awards; (iii) the purchase price or exercise
price of a Share under any outstanding Award or the measure to be used to determine the amount of
the benefit payable on an Award; and (iv) any other adjustments the Administrator determines to be
equitable. No right to purchase fractional shares shall result from any adjustment in Awards
pursuant to this Section 12. In case of any such adjustment, the Shares subject to the Award shall
be rounded down to the nearest whole share. The Corporation shall notify Participants holding
Awards subject to any adjustments pursuant to this Section 12(a) of such adjustment, but (whether
or not notice is given) such adjustment shall be effective and binding for all purposes of the
Plan.

     (b) Unless otherwise expressly provided in the Award Agreement or another contract, including
an employment agreement, in the case of an Award that the acquiring or surviving company in the
transaction assumes upon and maintains immediately following the Change of Control (which Award
shall be adjusted as to the number and kind of shares as may be determined appropriate by the
Administrator prior to the Change of Control), if the Participant incurs a Termination of
Employment by the Corporation (or the acquiring or surviving company, as applicable) without Cause
or by the Participant for Good Reason within twenty four months following the Change of Control,
then the Awards held by the Participant at the time of such Termination of Employment shall be
treated as follows: (i) in the case of an Option or Stock Appreciation Right, the Award shall
become fully vested and the Participant shall have the ability to exercise such Option or Stock
Appreciation Right, including any portion of the Option or Stock Appreciation Right not previously
exercisable, (ii) in the case of an Incentive Bonus, the Participant shall have the right to
receive a payment equal to the target amount payable or, if greater, a payment based on actual
performance through a date determined by the Administrator, and (iii) in the case of Restricted
Stock or Restricted Stock Units, the Award shall become fully vested and shall be settled in full.

     (c) Unless otherwise expressly provided in the Award Agreement or another contract, including
an employment agreement, in the event of a Change of Control in which the acquiring

15

 

or surviving company in the transaction does not assume or continue outstanding Awards in
connection with the Change of Control, all Awards that are not assumed or continued shall be
treated as follows effective immediately prior to the Change of Control: (i) in the case of an
Option or Stock Appreciation Right, the Award shall become fully vested and the Participant shall
have the ability to exercise such Option or Stock Appreciation Right, including any portion of the
Option or Stock Appreciation Right not previously exercisable, (ii) in the case of an Incentive
Bonus, the Participant shall have the right to receive a payment equal to the target amount payable
or, if greater, a payment based on actual performance through a date determined by the
Administrator, and (iii) in the case of Restricted Stock or Restricted Stock Units, the Award shall
become fully vested and shall be settled in full.

     (d) In addition to the above, in connection with a Change of Control the Administrator may
provide for the conversion of any outstanding Award, or portion thereof, into a right to receive
cash or other property upon or following the consummation of the Change of Control in an amount
equal to the value of the consideration to be received by holders of Common Stock in connection
with such transaction for one Share, less the per share purchase or exercise price of such Award,
if any, multiplied by the number of Shares subject to such Award, or a portion thereof.

13. Performance-Based Compensation

     The Administrator may establish performance criteria and level of achievement versus such
criteria that shall determine the number of Shares to be granted, retained, vested, issued or
issuable under or in settlement of or the amount payable pursuant to an Award. Notwithstanding
satisfaction of any performance goals, the number of Shares issued under or the amount paid under
an award may, to the extent specified in the Award Agreement, be reduced, but not increased, by the
Administrator on the basis of such further considerations as the Administrator in its sole
discretion shall determine.

14. Transferability

     No Award may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
by a Participant other than by will or the laws of descent and distribution, and, during his or her
lifetime, each Option or Stock Appreciation Right shall be exercisable only by the Participant;
provided that the designation of a Beneficiary shall not constitute a sale, transfer, pledge,
assignment, alienation or hypothecation of an Award. Notwithstanding the foregoing, to the extent
permitted by the Administrator, the person to whom an Award is initially granted (the “Grantee”)
may transfer an Award to any “family member” of the Grantee (as such term is defined in Section
1(a)(5) of the General Instructions to Form S-8 under the Securities Act of 1933, as amended (“Form
S-8”)), to trusts solely for the benefit of such family members and to partnerships in which such
family members and/or trusts are the only partners; provided that, (i) as a condition thereof, the
transferor and the transferee must execute a written agreement containing such terms as specified
by the Administrator, and (ii) the transfer is pursuant to a gift or a domestic relations order to
the extent permitted under the General Instructions to Form S-8. Except to the extent specified
otherwise in the agreement the Administrator provides for the Grantee and transferee to execute,
all vesting, exercisability and forfeiture provisions that are conditioned on the Grantee’s
continued employment, performance or service shall continue to be

16

 

determined with reference to the Grantee’s employment, performance or service (and not to the
status of the transferee) after any transfer of an Award pursuant to this Section 14, and the
responsibility to pay any taxes in connection with an Award shall remain with the Grantee
notwithstanding any transfer other than by will or intestate succession. Any attempted sale,
transfer, pledge, assignment, alienation or hypothecation of an Award by a Participant in violation
of this Section 14 shall result in forfeiture of such Award.

15. Suspension or Termination of Awards

     Except as otherwise provided by the Administrator, if at any time (including after a notice of
exercise has been delivered or an award has vested) the Chief Executive Officer or any other person
designated by the Administrator (each such person, an “Authorized Officer”) reasonably believes
that a Participant may have committed any act constituting Cause for termination of employment, or
a violation of any non-competition covenant, the Authorized Officer, Administrator or the Board may
suspend the Participant’s rights to exercise any Option, to vest in an Award, and/or to receive
payment for or receive Shares in settlement of an Award pending a determination of whether such an
act has been committed.

     If the Administrator or an Authorized Officer determines a Participant has committed any act
constituting Cause for termination of employment or a violation of any non-competition covenant,
then except as otherwise provided by the Administrator, (a) neither the Participant nor his or her
estate nor transferee shall be entitled to exercise any Option or Stock Appreciation Right
whatsoever, vest in or have the restrictions on an Award lapse, or otherwise receive payment of an
Award, (b) the Participant will forfeit all outstanding Awards and (c) the Participant may be
required, at the Administrator’s sole discretion, to return and/or repay to the Corporation any
then unvested Shares previously issued under the Plan. In making such determination, the
Administrator or an Authorized Officer shall give the Participant an opportunity to appear and
present evidence on his or her behalf at a hearing before the Administrator or its designee or an
opportunity to submit written comments, documents, information and arguments to be considered by
the Administrator.

16. Compliance with Laws and Regulations

     This Plan, the grant, issuance, vesting, exercise and settlement of Awards thereunder, and the
obligation of the Corporation to sell, issue or deliver Shares under such Awards, shall be subject
to all applicable foreign, federal, state and local laws, rules and regulations, stock exchange
rules and regulations, and to such approvals by any governmental or regulatory agency as may be
required. The Corporation shall not be required to register in a Participant’s name or deliver any
Shares prior to the completion of any registration or qualification of such shares under any
foreign, federal, state or local law or any ruling or regulation of any government body which the
Administrator shall determine to be necessary or advisable. To the extent the Corporation is
unable to or the Administrator deems it infeasible to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Corporation’s counsel to be necessary to the
lawful issuance and sale of any Shares hereunder, the Corporation and its Subsidiaries shall be
relieved of any liability with respect to the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained. No Option shall be exercisable and no Shares
shall be issued and/or transferable under any other Award unless a

17

 

registration statement with respect to the Shares underlying such Award is effective and
current or the Corporation has determined that such registration is unnecessary.

     In the event an Award is granted to or held by a Participant who is employed or providing
services outside the United States, the Administrator may, in its sole discretion, modify the
provisions of the Plan or of such Award as they pertain to such individual to comply with
applicable foreign law or to recognize differences in local law, currency or tax policy. The
Administrator may also impose conditions on the grant, issuance, exercise, vesting, settlement or
retention of Awards in order to comply with such foreign law and/or to minimize the Corporation’s
obligations with respect to tax equalization for Participants employed outside their home country.

17. Withholding

     To the extent required by applicable federal, state, local or foreign law, a Participant shall
be required to satisfy, in a manner satisfactory to the Corporation, any withholding tax
obligations that arise by reason of an Option exercise, disposition of Shares issued under an
Incentive Stock Option, the vesting of or settlement of an Award, an election pursuant to Section
83(b) of the Code or otherwise with respect to an Award. To the extent a Participant makes an
election under Section 83(b) of the Code, within ten (10) days of filing such election with the
Internal Revenue Service, the Participant must notify the Corporation in writing of such election.
The Corporation and its Subsidiaries shall not be required to issue Shares, make any payment or to
recognize the transfer or disposition of Shares until all such obligations are satisfied. The
Administrator may provide for or permit these obligations to be satisfied through the mandatory or
elective sale of Shares and/or by having the Corporation withhold a portion of the Shares that
otherwise would be issued to him or her upon exercise of the Option or the vesting or settlement of
an Award, or by tendering Shares previously acquired.

18. Administration of the Plan

     (a) Administrator of the Plan. The Plan shall be administered by the Administrator who shall
be the Compensation & Benefits Committee of the Board or, in the absence of a Compensation &
Benefits Committee, the Board itself. Any power of the Administrator may also be exercised by the
Board, except to the extent that the grant or exercise of such authority would cause any Award or
transaction to become subject to (or lose an exemption under) the short-swing profit recovery
provisions of Section 16 of the Securities Exchange Act of 1934 or cause an Award designated as a
Performance Award not to qualify for treatment as performance-based compensation under Section
162(m) of the Code. To the extent that any permitted action taken by the Board conflicts with
action taken by the Administrator, the Board action shall control. The Compensation & Benefits
Committee may by resolution authorize one or more officers of the Corporation to perform any or all
things that the Administrator is authorized and empowered to do or perform under the Plan, and for
all purposes under this Plan, such officer or officers shall be treated as the Administrator;
provided, however, that the resolution so authorizing such officer or officers shall specify the
total number of Awards (if any) such officer or officers may award pursuant to such delegated
authority, and any such Award shall be subject to the form of Award Agreement theretofore approved
by the Compensation & Benefits Committee. No such officer shall designate himself or herself as a
recipient of any Awards

18

 

granted under authority delegated to such officer. The Compensation & Benefits Committee
hereby designates the Secretary of the Corporation and the head of the Corporation’s human resource
function to assist the Administrator in the administration of the Plan and execute agreements
evidencing Awards made under this Plan or other documents entered into under this Plan on behalf of
the Administrator or the Corporation. In addition, the Compensation & Benefits Committee may
delegate any or all aspects of the day-to-day administration of the Plan to one or more officers
or employees of the Corporation or any Subsidiary, and/or to one or more agents.

     (b) Powers of Administrator. Subject to the express provisions of this Plan, the
Administrator shall be authorized and empowered to do all things that it determines to be necessary
or appropriate in connection with the administration of this Plan, including, without limitation:
(i) to prescribe, amend and rescind rules and regulations relating to this Plan and to define terms
not otherwise defined herein; (ii) to determine which persons are Participants, to which of such
Participants, if any, Awards shall be granted hereunder and the timing of any such Awards; (iii) to
grant Awards to Participants and determine the terms and conditions thereof, including the number
of Shares subject to Awards and the exercise or purchase price of such Shares and the circumstances
under which Awards become exercisable or vested or are forfeited or expire, which terms may but
need not be conditioned upon the passage of time, continued employment, the satisfaction of
performance criteria, the occurrence of certain events (including a Change of Control), or other
factors; (iv) to establish and verify the extent of satisfaction of any performance goals or other
conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any
Award; (v) to prescribe and amend the terms of the agreements or other documents evidencing Awards
made under this Plan (which need not be identical) and the terms of or form of any document or
notice required to be delivered to the Corporation by Participants under this Plan; (vi) to
determine the extent to which adjustments are required pursuant to Section 12; (vii) to interpret
and construe this Plan, any rules and regulations under this Plan and the terms and conditions of
any Award granted hereunder, and to make exceptions to any such provisions if the Administrator, in
good faith, determines that it is necessary to do so in light of extraordinary circumstances and
for the benefit of the Corporation; (viii) to approve corrections in the documentation or
administration of any Award; (ix) to reduce the exercise price of any Option or Stock Appreciation
Right to the Fair Market Value of the Shares at the time of the reduction if the Fair Market Value
of the Shares covered by that Option or Stock Appreciation Right has declined since the date it was
granted, either directly or through cancellation and regrant of the Option or Stock Appreciation
Right; (x) to exchange Options and Stock Appreciation Rights for other Awards; (xi) to cause the
Corporation to purchase outstanding Options and Stock Appreciation Rights for cash or other
consideration; (xii) to require or permit Participant elections and/or consents under this Plan to
be made by means of such electronic media as the Administrator may prescribe; and (xiii) to make
all other determinations deemed necessary or advisable for the administration of this Plan. The
Administrator may, in its sole and absolute discretion, without amendment to the Plan, waive or
amend the operation of Plan provisions respecting exercise after termination of employment or
service to the Corporation or an Affiliate and, except as otherwise provided herein, adjust any of
the terms of any Award. The Administrator may also (A) accelerate the date on which any Award
granted under the Plan becomes exercisable or (B) accelerate the vesting date or waive or adjust
any condition imposed hereunder with respect to the vesting or exercisability of an Award,

19

 

provided that the Administrator, in good faith, determines that such acceleration, waiver or
other adjustment is necessary or desirable in light of extraordinary circumstances.

     (c) Determinations by the Administrator. All decisions, determinations and interpretations by
the Administrator regarding the Plan, any rules and regulations under the Plan and the terms and
conditions of or operation of any Award granted hereunder, shall be final and binding on all
Participants, beneficiaries, heirs, assigns or other persons holding or claiming rights under the
Plan or any Award. The Administrator shall consider such factors as it deems relevant, in its sole
and absolute discretion, to making such decisions, determinations and interpretations including,
without limitation, the recommendations or advice of any officer or other employee of the
Corporation and such attorneys, consultants and accountants as it may select.

     (d) Subsidiary Awards. In the case of a grant of an Award to any Participant employed by a
Subsidiary, such grant may, if the Administrator so directs, be implemented by the Corporation
issuing any subject Shares to the Subsidiary, for such lawful consideration as the Administrator
may determine, upon the condition or understanding that the Subsidiary will transfer the Shares to
the Participant in accordance with the terms of the Award specified by the Administrator pursuant
to the provisions of the Plan. Notwithstanding any other provision hereof, such Award may be
issued by and in the name of the Subsidiary and shall be deemed granted on such date as the
Administrator shall determine.

19. Amendment of the Plan or Awards

     The Board may amend, alter or discontinue this Plan and the Administrator may amend or alter
any agreement or other document evidencing an Award made under this Plan but, except as provided
pursuant to the provisions of Section 12, no such amendment shall, without the approval of the
stockholders of the Corporation:

     (a) increase the maximum number of Shares for which Awards may be granted under this Plan;

     (b) reduce the price at which Options may be granted below the price provided for in Section
6(b);

     (c) change the class of persons eligible to be Participants; or

     (d) otherwise amend the Plan in any manner requiring stockholder approval by law or under
stock exchange listing requirements.

     No amendment or alteration to the Plan or an Award or Award Agreement shall be made which
would impair the rights of the holder of an Award, without such holder’s consent, provided that no
such consent shall be required if the Administrator determines in its sole discretion and prior to
the date of any Change of Control that such amendment or alteration either is required or advisable
in order for the Corporation, the Plan or the Award to satisfy any law or regulation or to meet the
requirements of or avoid adverse financial accounting consequences under any accounting standard.

20

 

20. No Liability of Corporation

     The Corporation and any Subsidiary or affiliate which is in existence or hereafter comes into
existence shall not be liable to a Participant or any other person as to: (i) the non-issuance or
sale of Shares as to which the Corporation has been unable to obtain from any regulatory body
having jurisdiction the authority deemed by the Corporation’s counsel to be necessary to the lawful
issuance and sale of any Shares hereunder; and (ii) any tax consequence expected, but not realized,
by any Participant or other person due to the receipt, exercise or settlement of any Award granted
hereunder.

21. Non-Exclusivity of Plan

     Neither the adoption of this Plan by the Board nor the submission of this Plan to the
stockholders of the Corporation for approval shall be construed as creating any limitations on the
power of the Board or the Administrator to adopt such other incentive arrangements as either may
deem desirable, including without limitation, the granting of restricted stock or stock options
otherwise than under this Plan or an arrangement not intended to qualify under Code Section 162(m),
and such arrangements may be either generally applicable or applicable only in specific cases.

22. No Right to Employment, Reelection or Continued Service

     Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right
of the Corporation, its Subsidiaries and/or its affiliates to terminate any Participant’s
employment, service on the Board or service for the Corporation at any time or for any reason not
prohibited by law, nor shall this Plan or an Award itself confer upon any Participant any right to
continue his or her employment or service for any specified period of time. Neither an Award nor
any benefits arising under this Plan shall constitute an employment contract with the Corporation,
any Subsidiary and/or its affiliates. Subject to Sections 4 and 19, this Plan and the benefits
hereunder may be terminated at any time in the sole and exclusive discretion of the Board without
giving rise to any liability on the part of the Corporation, its Subsidiaries and/or its
affiliates.

23. Unfunded Plan

     The Plan is intended to be an unfunded plan. Participants are and shall at all times be
general creditors of the Corporation with respect to their Awards. If the Administrator or the
Corporation chooses to set aside funds in a trust or otherwise for the payment of Awards under the
Plan, such funds shall at all times be subject to the claims of the creditors of the Corporation in
the event of its bankruptcy or insolvency.

24. Code Section 409A

     It is intended that any Incentive and Nonqualified Stock Options, Stock Appreciation Rights,
and Restricted Stock issued pursuant to this Plan and any Award Agreement shall not constitute
“Deferrals of Compensation” within the meaning of Code section 409A and, as a result, shall not be
subject to the requirements of Code section 409A. It is further intended that any Restricted Stock
Units and Incentive Bonuses issued pursuant to this Plan and any Award

21

 

Agreement (which may or may not constitute “deferrals of compensation,” depending on the terms
of each Award) shall avoid any “plan failures” within the meaning of Code section 409A(a)(1). The
Plan is to be interpreted and administered in a manner consistent with these intentions. However,
no guarantee or commitment is made that the Plan or any Award Agreement shall be administered in
accordance with the requirements of Code section 409A, with respect to amounts that are subject to
such requirements, or that the Plan or any Award Agreement shall be administered in a manner that
avoids the application of Code section 409A, with respect to amounts that are not subject to such
requirements.

25. Required Delay in Payment on Account of a Separation from Service

     Notwithstanding any other provision in this Plan or any Award Agreement, if any Award
recipient is a “specified employee,” as defined in Treasury Regulations section 1.409A-1(i), as of
the date of his or her “Separation from Service” (as defined in authoritative IRS guidance under
Code section 409A), then, to the extent required by Treasury Regulations section 1.409A-3(i)(2),
any payment made to the Award recipient on account of his or her Separation from Service shall not
be made before a date that is six months after the date of his or her Separation from Service. The
Administrator may elect any of the methods of applying this rule that are permitted under Treasury
Regulations section 1.409A-3(i)(2)(ii).

22Exhibit 10.1

Exhibit 10.1

ASSET PURCHASE AGREEMENT

dated as of

March 11, 2011

by and

between

FirstEnergy Generation Corp.

as Seller

and

American Municipal Power, Inc.

as Buyer

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	ARTICLE 1 DEFINITIONS AND RULES OF CONSTRUCTION
	 	 	1	 
	Section 1.01 Definitions
	 	 	1	 
	Section 1.02 Rules of Construction
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE
	 	 	14	 
	Section 2.01 Purchase and Sale
	 	 	14	 
	Section 2.02 Excluded Assets
	 	 	16	 
	Section 2.03 Assumed Liabilities
	 	 	17	 
	Section 2.04 Excluded Liabilities
	 	 	18	 
	Section 2.05 Assignment of Contracts and Rights
	 	 	18	 
	Section 2.06 Purchase Price; Allocation of Purchase Price for Federal Taxes
	 	 	19	 
	Section 2.07 Closing
	 	 	23	 
	Section 2.08 Deliveries at Closing
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	25	 
	Section 3.01 Corporate Existence and Power
	 	 	25	 
	Section 3.02 Corporate Authorization
	 	 	25	 
	Section 3.03 Governmental Authorization
	 	 	25	 
	Section 3.04 Noncontravention
	 	 	26	 
	Section 3.05 Finders’ Fees
	 	 	26	 
	Section 3.06 Required Consents
	 	 	26	 
	Section 3.07 Litigation
	 	 	26	 
	Section 3.08 Compliance with Laws
	 	 	27	 
	Section 3.09 Title to Purchased Assets
	 	 	27	 
	Section 3.10 Permits
	 	 	27	 
	Section 3.11 Environmental Matters
	 	 	28	 
	Section 3.12 Representations Complete
	 	 	28	 
	Section 3.13 Seller’s Acknowledgement
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	29	 
	Section 4.01 Corporate Existence and Power
	 	 	29	 
	Section 4.02 Corporate Authorization
	 	 	29	 
	Section 4.03 Governmental Authorization
	 	 	29	 
	Section 4.04 Noncontravention
	 	 	30	 
	Section 4.05 Finders’ Fees
	 	 	30	 
	Section 4.06 Litigation
	 	 	30	 
	Section 4.07 No Other Representations
	 	 	30	 
	Section 4.08 Representations Complete
	 	 	30	 
	Section 4.09 Buyer’s Acknowledgement
	 	 	31	 

 

i

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	ARTICLE 5 COVENANTS OF SELLER
	 	 	31	 
	Section 5.01 Conduct Through the Closing
	 	 	31	 
	Section 5.02 Access to Information
	 	 	31	 
	Section 5.03 Further Assurances
	 	 	33	 
	Section 5.04 Emissions Allowances
	 	 	33	 
	Section 5.05 Exclusivity
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 6 COVENANTS OF BUYER
	 	 	34	 
	Section 6.01 Access
	 	 	34	 
	Section 6.02 Transition Proceedings
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 7 COVENANTS OF BUYER AND SELLER
	 	 	35	 
	Section 7.01 Reasonable Best Efforts
	 	 	35	 
	Section 7.02 Certain Actions
	 	 	35	 
	Section 7.03 Public Announcements
	 	 	35	 
	Section 7.04 Supplements to Seller Disclosure Schedule
	 	 	36	 
	Section 7.05 Antitrust Clearance
	 	 	36	 
	Section 7.06 Approvals
	 	 	37	 
	Section 7.07 Notices of Certain Events
	 	 	38	 
	Section 7.08 Certain Employee Matters
	 	 	38	 
	Section 7.09 Confidentiality
	 	 	40	 
	Section 7.10 Transfer of Capacity Rights
	 	 	40	 
	Section 7.11 Technical Arbitration
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 8 TAX MATTERS
	 	 	43	 
	Section 8.01 Tax Definitions
	 	 	43	 
	Section 8.02 Tax Cooperation; Allocation of Taxes
	 	 	43	 
	 
	 	 	 	 
	ARTICLE 9 CONDITIONS TO CLOSING
	 	 	45	 
	Section 9.01 Conditions to Obligations of Buyer and Seller
	 	 	45	 
	Section 9.02 Conditions to Obligation of Buyer
	 	 	45	 
	Section 9.03 Conditions to Obligation of Seller
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 10 SURVIVAL; INDEMNIFICATION
	 	 	48	 
	Section 10.01 Survival
	 	 	48	 
	Section 10.02 Indemnification
	 	 	48	 
	Section 10.03 Procedures
	 	 	50	 
	Section 10.04 Calculation of Damages
	 	 	52	 
	Section 10.05 Assignment of Claims
	 	 	53	 
	Section 10.06 Exclusive Remedy; Mitigation
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 11 TERMINATION
	 	 	54	 
	Section 11.01 Grounds for Termination
	 	 	54	 
	Section 11.02 Effect of Termination
	 	 	56	 

 

ii

 

	 	 	 	 	 
	 	 	PAGE	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	57	 
	Section 12.01 Notices
	 	 	57	 
	Section 12.02 Amendments and Waivers
	 	 	59	 
	Section 12.03 Expenses
	 	 	59	 
	Section 12.04 Successors and Assigns
	 	 	59	 
	Section 12.05 Governing Law
	 	 	59	 
	Section 12.06 Jurisdiction
	 	 	60	 
	Section 12.07 WAIVER OF JURY TRIAL
	 	 	60	 
	Section 12.08 Counterparts; Third Party Beneficiaries
	 	 	60	 
	Section 12.09 Entire Agreement
	 	 	61	 
	Section 12.10 Captions
	 	 	61	 
	Section 12.11 Severability
	 	 	61	 
	Section 12.12 Specific Performance
	 	 	61	 
	Section 12.13 Governmental Authorization
	 	 	3	 
	Section 12.14 Covenants of Seller — Conduct of Business Through the Closing
	 	 	2	 

 

iii

 

EXHIBITS

	 	 	 	 	 
	Exhibit A
	 	Form of Assignment and Assumption Agreement
	 
	 	 	 	 
	Exhibit B
	 	Form of Bill of Sale
	 
	 	 	 	 
	Exhibit C
	 	Form of Limited Warranty Deed

SELLER DISCLOSURE SCHEDULE

BUYER DISCLOSURE SCHEDULE

 

iv

 

ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement (“Agreement”) is dated as of March 11, 2011 (the “Execution
Date”) between FirstEnergy Generation Corp., an Ohio corporation (the “Seller”), and American
Municipal Power, Inc. an Ohio nonprofit corporation (the “Buyer” and, together with Seller, the
“Parties”).

RECITALS:

A. Seller owns the Fremont Energy Center Natural Gas Combined Cycle Power Plant, a natural
gas-fired combined cycle electric generating facility located predominately in the City of Fremont,
Sandusky County, Ohio (the “Generating Facility”); and

B. Seller desires to sell and transfer the Purchased Assets and Assumed Liabilities to Buyer,
and Buyer desires to purchase the Purchased Assets and assume the Assumed Liabilities, upon the
terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual promises herein made and the mutual benefits to
be derived therefrom, and in consideration of the representations, warranties and covenants
contained herein, the Parties agree as follows:

ARTICLE 1

Definitions And Rules of Construction

Section 1.01 Definitions. The following terms and phrases, as used in this Agreement, have the
following meanings:

“Additional Capacity” is defined in Section 2.06(e)(i).

“Affiliate” means, with respect to any Person, any other Person that directly, or indirectly
through one or more intermediaries, Controls, is Controlled by, or is under Common Control with,
such first Person.

“Agreement” is defined in the preamble.

 

1

 

“Allocation” is defined in Section 2.06(b).

“Antitrust Clearance” means any and all necessary clearances or approvals under antitrust,
competition and similar Laws, including the HSR Act, that are or may be required to be obtained
from any Governmental Body in order to complete the transfer of the Purchased Assets to Buyer
pursuant to this Agreement.

“Apportioned Obligations” is defined in Section 8.02(b).

“Assigned Contracts” is defined in Section 2.01(f).

“Assignment and Assumption Agreement” means an Assignment and Assumption Agreement in
substantially the form set forth on Exhibit A.

“Assumed Liabilities” is defined in Section 2.03.

“Attorney Work Product” means all notes, memoranda, correspondence or similar material
reflecting the legal conclusions, recommendations, privileged communications or other work product
of or to attorneys, whether they be in-house or external, acting as counsel to Seller or any of its
Affiliates to the extent (but only to the extent) relating to any Excluded Asset or Excluded
Liability.

“Bill of Sale” means a Bill of Sale in substantially the form set forth on Exhibit B.

“Breach Notice” is defined in Section 11.01(d).

“Break-Up Fee” means $4,850,000.00 (consisting of $1,000,000.00 deposited by Buyer with Seller
on February 3, 2011 and $3,850,000.00, which Buyer is depositing with Seller simultaneously with
the execution of this Agreement).

“Business Day” means any day other than Saturday, Sunday or a day on which United States
national banks are authorized or required by Law to be closed.

“Buyer” is defined in the preamble.

“Buyer Disclosure Schedule” means the schedules setting forth certain disclosures of Buyer, or
qualifications or exceptions to any of Buyer’s representations or warranties set forth in
ARTICLE 4, which schedules are delivered simultaneously with the execution and delivery of
this Agreement.

 

2

 

“Buyer Material Adverse Effect” means an event, fact, circumstance, effect or occurrence that
materially and adversely affects the ability of Buyer to consummate the Transactions or perform its
obligations under the Transaction Agreements.

“Buyer’s Response” is defined in Section 7.11(b).

“CBA Employees” means Employees subject to the Collective Bargaining Agreement.

“Claim” means any contest, action, claim, assessment, demand, suit, complaint, inquiry, notice
of violation, hearing, arbitration, proceeding or investigation, whether civil, criminal or
administrative, by or before any Governmental Body, or notice of any of the foregoing involving any
Person.

“Claim Notice” is defined in Section 10.03(b).

“Closing”
is defined in Section 2.06(e)(iii) Section 2.07.

“Closing Date” means the date of the Closing.

“Code” means the Internal Revenue Code of 1986, as amended.

“Collective Bargaining Agreement” means the collective bargaining agreement currently in place
between Seller and Local Union No. 245 of the International Brotherhood of Electrical Workers and
addenda thereto, continuing in effect until November 1, 2012.

“Confidential Information” is defined in Section 7.09.

“Confidentiality Agreement” means the Confidentiality Agreement, dated October 31, 2008, by
and between Buyer and FirstEnergy Service Company, as amended on January 3, 2011.

“Contract” means any agreement, contract, lease (including leases related to the Real
Property), commitment or consensual obligation.

“Contract Capacity” is defined in Section 7.10(b).

 

3

 

“Control,” including corresponding meaning of the terms “Controlled by” and “under Common
Control with,” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, as general partner or managing member, by contract or
otherwise.

“Criteria Failure” is defined in Section 2.06(f)(i).

“Damages” means any damage, loss, penalty, liability, cost and expense, including reasonable
expenses of investigation and reasonable attorneys’ fees and expenses in connection with any
action, suit or proceeding.

“Direct Claim” is defined in Section 10.03(b).

“e-mail” is defined in Section 12.01.

“Emissions Allowances” means all authorizations by a Governmental Body with jurisdiction over
the Generating Facility with respect to any of the Purchased Assets under any of the Environmental
Laws to emit specified units of pollutants or Hazardous Materials from the Generating Facility
during a calendar year or other period of time, including (i) an authorization by the USEPA under
the Acid Rain Program of the federal Clean Air Act or from Ohio under any trading program for
nitrogen oxide (NOx) or sulfur dioxide (SOx), (ii) any other USEPA or state program for air
emissions or (iii) any pollution reduction program with a similar purpose, in each case regardless
of whether the Governmental Body establishing such authorizations designates such authorizations by
a name other than “allowances.”

“Employee” means any employee of Seller who works at the Generating Facility or whose
principal activities relate to the Generating Facility at any time between February 3, 2011 and the
Closing Date.

“Enforceable” means, with respect to any Contract stated to be Enforceable by or against any
Person, that such Contract is a legal, valid and binding obligation enforceable by or against such
Person in accordance with its terms, except to the extent that enforcement of the rights and
remedies created thereby is subject to bankruptcy, insolvency, reorganization, moratorium and other
similar Laws of general application affecting the rights and remedies of
creditors and to general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law).

 

4

 

“Entitled Real Property” is defined in Section 2.01(c).

“Environmental Laws” means all Laws or Orders relating to the emission of pollution or
contamination of the environment (including ambient air, soil, surface water, groundwater, land
surface or subsurface strata) or protection of human health and safety, including those relating to
Releases or threatened Releases of any Hazardous Material, or otherwise relating to the management,
manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of
any Hazardous Material including, but not limited to, the Comprehensive Environmental Response,
Compensation, and Liability Act (42 U.S.C. Section 9601 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. Section 5101 et seq.), the Resource Conservation and Recovery Act (42
U.S.C. Section 6901 et seq.), the Clean Water Act (33 U.S.C. Section 1251 et seq.), the Clean Air
Act (42 U.S.C. Section 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. Section 2601 et
seq.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Section 136 et seq.), and
any analogous state or local Laws, each as amended from time to time, and the regulations
promulgated pursuant thereto.

“Equipment” is defined in Section 2.01(d).

“Excluded Assets” is defined in Section 2.02.

“Excluded Liabilities” is defined in Section 2.04.

“Execution Date” is defined in the preamble.

“Expected Criteria” is defined in Section 2.06(f)(i).

“GAAP” means United States generally accepted accounting principles in effect from time to
time.

“Generating Facility” is defined in the preamble.

“Governmental Body” means any legislature, agency, bureau, branch, department, division,
commission, court, tribunal, magistrate, justice, multi-national organization, quasi-governmental
body, regional governmental council, or other similar recognized organization or
body of any federal, state, county, municipal, local, or foreign government or other similar
recognized organization or body exercising similar powers or authority, including NERC.

 

5

 

“Hazardous Material” means any (i) substance, material, pollutant, contaminant, chemical or
waste, the presence, emission or exposure to which is regulated, prohibited or forms the basis for
liability under any applicable Environmental Law and (ii) petroleum or hydrocarbons in any form,
and any derivative or byproduct thereof, natural gas or natural gas products, radon gas, asbestos
and asbestos-containing materials, mercury, radioactive materials, lead-based paint, and
polychlorinated biphenyls.

“HHV” is defined in Section 9.02(d)(ii).

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indemnification Claim” is defined in Section 10.03(b).

“Indemnified Party” is defined in Section 10.03(a)

“Indemnifying Party” is defined in Section 10.03(a).

“Inventory” is defined in Section 2.01(g).

“Knowledge”: an individual will be deemed to have Knowledge of a particular fact or other
matter if (i) that individual is actually aware of that fact or matter or (ii) a reasonably prudent
individual could be expected to be actually aware of that fact or matter in the course of such
individual’s ordinary employment duties.

“Knowledge of Buyer,” “Buyer’s Knowledge” or any other similar knowledge qualification with
respect to Buyer means the Knowledge of the following individuals: Robert W. Trippe, Dan Preising
and John W. Bentine.

“Knowledge of Seller,” “Seller’s Knowledge” or any other similar knowledge qualification with
respect to Seller means the Knowledge of the following individuals: Raymond Evans, Kevin Florence,
William Harker and Charles Lasky.

 

6

 

“Law” means any federal, state, local, municipal or foreign (including supranational) law
(including common law), statute, ordinance, rule, code, directive, ruling, regulation, judgment,
Order, injunction, decree, arbitration award, agency requirement, license or permit of any
Governmental Body having or asserting jurisdiction over the Parties or any of their assets.

“Leased Real Property” is defined in Section 2.01(b).

“LIBOR” means an interest rate per annum, determined monthly, equal to the rate per annum
reported on the date two days prior to the first day of any relevant month on the Telerate Page
3750 (or if such screen shall cease to be publicly available, as reported on Reuters Screen page
“LIBO” or by any other publicly available source of such market rate) for London interbank offered
rates for U.S. dollar deposits for such month (or portion thereof).

“Lien” means, with respect to any property or asset, any mortgage, lien, encumbrance, pledge,
charge, security interest, warrant, claim, equitable interest, option, conditional sale or other
title retention device or arrangement (including a capital lease), transfer or security for the
payment of any indebtedness, or restriction on the creation of any of the foregoing, whether
relating to any property or right or the income or profits therefrom.

“Limited Warranty Deed” means a Limited Warranty Deed in substantially the form set forth on
Exhibit C.

“Material” when used with respect to Buyer, means material to the ability of Buyer to
consummate the Transactions or perform its obligations under the Transaction Agreements, and when
used with respect to Seller or the Generating Facility, means material to (i) the ownership and
operation (including development, construction and permitting) of the Generating Facility or the
Purchased Assets, taken as a whole or (ii) the financial prospects of operating the Generating
Facility promptly after commercial operation (assuming that all necessary Permits are obtained).

 

7

 

“Mechanically Complete” means (i) the Generating Facility is mechanically, electrically, and
structurally complete and the equipment and systems needed to operate the Generating Facility are
capable of operating safely to support commissioning in accordance with applicable codes,
standards, and Laws in all material respects; (ii) the Generating Facility’s equipment and systems
are ready for commissioning in all material respects; (iii) Seller has provided a written
record in the form of construction turn-over packages for each plant system as developed by
the construction commissioning contractor and consistent with those developed prior to the date
hereof, which includes as required, all tests including date of test, equipment number, test
equipment used, calibration records for test equipment, testing personnel, tests performed, and
test results; (iv) all system construction turn-over packages have been approved and signed by an
appropriate representative appointed by Seller and reasonably acceptable to Buyer (PIC to be deemed
acceptable); (v) notice that the facility is Mechanically Complete has been issued by Seller to
Buyer, which notice may include certain minor punch list items remaining to be completed by Buyer
after Closing during commissioning provided that the punch list does not contain any items which
would materially impair commissioning or safe operation of the Generating Facility; and (vi)
subject to Section 7.11, Seller and Buyer, acting reasonably, agree that the Generating Facility
will achieve the operating conditions set forth in Section 9.02(d)(ii) prior to January 1, 2012.

“MISO” means the Midwest Independent Transmission System Operator, Inc., or any successor
thereto, and any committee, division or unit thereof.

“Mortgage Indenture” means that Open-End Mortgage, General Mortgage and Deed of Trust, by and
between FirstEnergy Generation Corp. and The Bank of New York Trust Company, N.A., as Trustee,
dated as of June 19, 2008.

“NERC” means the North American Electric Reliability Corporation or any successor thereto, and
any committee, division, or unit thereof, including any regional reliability organization such as
the ReliabilityFirst Corporation.

“Order” means any order, ruling, decision, verdict, decree, writ, subpoena, mandate, precept,
command, directive, consent, approval, award, judgment, injunction, or other similar determination
or finding by, before, or under the supervision of any Governmental Body, arbitrator, or mediator.

“Other Employees” means Employees not subject to the Collective Bargaining Agreement.

“Owned Real Property” is defined in Section 2.01(a).

 

8

 

“Parties” is defined in the preamble.

“Permits” means any permits, authorizations, approvals, registrations, certificates, and
licenses primarily related to the Generating Facility or Purchased Assets and issued by any
Governmental Body.

“Permitted Liens” means (i) inchoate construction, materialmens’, carriers’, landlords’,
repairers’, and other similar Liens arising or incurred in the ordinary course of business or
consistent with past practice and that are not yet due and payable, (ii) Liens for real estate
taxes for the year in which Closing occurs which are not yet due and payable and (iii) Liens set
forth on Section 1.01(b) of the Seller Disclosure Schedule.

“Person” means an individual, corporation, partnership, limited liability company,
association, trust, an incorporated organization, or other entity or organization, including a
Governmental Body and any department or agency thereof.

“PJM” means PJM Interconnection, LLC.

“Post-Closing Tax Period” is defined in Section 8.02(b).

“Potential Contributor” is defined in Section 10.05.

“Pre-Closing Tax Period” is defined in Section 8.01(a).

“Proceeding” is defined in Section 10.03(b).

“Purchase Price” is defined in Section 2.06(a).

“Purchased Assets” is defined in Section 2.01.

“Real Estate Leases” is defined in Section 2.01(b).

“Real Property” is defined in Section 2.01(c).

 

9

 

“Records” means the operating records, manuals, all Permits set forth on Section 2.01(i) of
the Seller Disclosure Schedule and applications for such Permits, files, papers and similar
documents of Seller in the possession of Seller or its Affiliates relating specifically to the
acquisition, construction and operation of the Purchased Assets, including all data and
electronic information relating to the Purchased Assets stored or archived in any server, computer,
laptop, network, system, or other electronic database (including any such data or information
stored in any Excluded Asset); provided, however, “Records” excludes (i) the
accounting and financial books, related financial records and organizational documents of Seller
and Seller’s Affiliates (except financial records, such as cost data, that specifically relate to
the Purchased Assets), (ii) any Attorney Work Product, (iii) such records, files and papers of
Seller to the extent they do not relate to the Purchased Assets or the Assumed Liabilities, (iv)
any material that Seller is prohibited from sharing with or transferring to Buyer by any
confidentiality obligations after reasonable best efforts by Seller to obtain consent to disclose
such material to Buyer, (v) personnel records of Seller or any of its Affiliates relating to
individual performance or evaluation records, medical histories or other information and (vi) any
information or data that generally relates to Seller’s or its Affiliates’ generating fleet and
which was not specifically created, collected, compiled, archived, or otherwise stored in
connection with the ownership and operation of the Generating Facility or the other Purchased
Assets.

“Release” means any releasing, spilling, emitting, leaking, pumping, pouring, emptying,
injecting, escaping, dumping, disposing, discharging, depositing, leaching or migrating into or
through the environment (including ambient air, soil, surface water, groundwater, land surface or
subsurface strata).

“Required Consents” is defined in Section 3.06.

“RPM Auction” is defined in Section 7.10(a).

“Seller” is defined in the preamble.

“Seller Disclosure Schedule” means the schedules setting forth certain disclosures of Seller,
or qualifications or exceptions to any of Seller’s representations or warranties set forth in
ARTICLE 3, which schedules are delivered simultaneously with the execution and delivery of this
Agreement and may be supplemented in accordance with Section 7.04 hereof.

 

10

 

“Seller Material Adverse Effect” means any fact, circumstance, event, change, effect or
occurrence that, individually or in the aggregate with all other facts, circumstances, events,
changes, effects or occurrences, has or would be reasonably likely to have a material adverse
effect on the assets or properties of the Generating Facility, taken as a whole, or that would be
reasonably likely to prevent or Materially delay or Materially impair the ability of Seller to
consummate the Transactions, provided, however, that no facts, circumstances, events, changes,
effects or occurrences (by themselves or when aggregated with any other facts, circumstances,
events, changes, effects or occurrences) resulting from, relating to or arising out of the
following shall be deemed to be or constitute a Seller Material Adverse Effect or shall be taken
into account when determining whether there has, may, would or could have occurred a Seller
Material Adverse Effect: (a) the effect of any change generally affecting the industries in which
the Generating Facility operates or is expected to operate or the economy or the financial or
securities markets in the United States or elsewhere in the world, including any regulatory and
political conditions or developments, or any outbreak or escalation of hostilities, weather,
climate change, declared or undeclared acts of war or terrorism, (b) any litigation arising from
allegations of any violation of applicable Law relating to this Agreement or the Transactions, (c)
weather, natural disasters or meteorological events, (d) effects of public perceptions of power
generation facilities, (e) the price of natural gas, electricity or any other commodity or supply,
(f) strikes, work stoppages or other labor disturbances, (g) changes in construction costs or (h)
the effect of (i) the announcement of, or compliance with, this Agreement or the announcement of
the Transactions, (ii) any changes in Law or GAAP or interpretation thereof or (iii) any matter set
forth in the Seller Disclosure Schedule; except to the extent that any fact, circumstance, event,
change, effect or occurrence described in (a) through (h) disproportionately impacts the assets or
properties of the Generating Facility relative to other industry participants (but then only to the
extent of any such disproportionate impact).

“Seller’s Notification” is defined in Section 7.11(a).

“Site Visit Milestone” means that, by March 15, 2011, representatives of substantially all of
Buyer’s members have had the opportunity to visit the Generating Facility or view a video of the
Generating Facility for the purpose of analyzing Buyer’s potential purchase of it pursuant to this
Agreement.

“Subscription Milestone” is defined in Section 9.02(e).

 

11

 

“Subscription Period Milestone” means, by June 27, 2011, Buyer has concluded the subscription
period for purposes of the Subscription Milestone.

“Tangible Personal Property” means the machinery, mobile or otherwise, equipment (including
computers and communications equipment and facilities), vehicles, cranes, forklifts, manlifts,
tools, spare parts, fixtures, furniture and furnishings, and other tangible personal property
(other than fuel inventory) located on the Real Property. “Tangible Personal Property” shall also
include, to the extent transferable, all rights of Seller to warranties and licenses received from
manufacturers and sellers of such Tangible Personal Property.

“Tax” is defined in Section 8.01(b).

“Tax Return” means any return, declaration, report, claim for refund, information return or
statement relating to Taxes, including any amended return, extension request with respect thereto
and any schedule or attachment thereto.

“Taxing Authority” is defined in Section 8.01(b).

“Technical Arbitrator” is defined in Section 7.11(c).

“Third Party Claim” is defined in Section 10.03(b).

“Transaction Agreements” means each of this Agreement, the Assignment and Assumption
Agreement, the Limited Warranty Deed and the Bill of Sale.

“Transactions” means, collectively, the transactions contemplated by the Transaction
Agreements.

“Transfer Taxes” is defined in Section 8.02(c).

“Transition Proceedings” is defined in Section 6.02.

“Union” means the Local Union No. 245 of the International Brotherhood of Electrical Workers.

“Uprate Remedies” is defined in Section 2.06(e)(i).

 

12

 

“USEPA” means the United States Environmental Protection Agency or successor thereto, and any
office, committee, department, body, unit or division thereof.

Section 1.02 Rules of Construction.

(a) The Parties have participated jointly in the negotiation and drafting of this Agreement.
If an ambiguity or question of intent or interpretation arises, this Agreement will be construed as
if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or
disfavoring any Party because of the authorship of any provision of this Agreement.

(b) Unless the context of this Agreement otherwise clearly requires, (a) references to the
plural include the singular, (b) references to the singular include the plural, (c) references to
any gender includes the other gender, (d) the term “including” is not limiting and has the
inclusive meaning represented by the phrase “including without limitation,” (e) the term “include”
is not limiting and has the inclusive meaning represented by the phrase “include without
limitation,” (f) the term “includes” is not limiting and has the inclusive meaning represented by
the phrase “includes without limitation,” (g) the terms “hereof,” “herein,” “hereunder,” “hereto”
and similar terms in this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement, and (h) the terms “day” and “days” mean and refer to calendar day(s).

(c) Unless otherwise set forth herein, references in this Agreement to (i) any document,
instrument or agreement (including this Agreement) (A) include and incorporate all exhibits,
schedules, disclosure schedules and other attachments thereto, (B) include all documents,
instruments or agreements issued or executed in replacement thereof and (C) mean such document,
instrument or agreement, or replacement or predecessor thereto, as amended, modified or
supplemented from time to time in accordance with its terms and in effect at any given time, and
(ii) a particular law, regulation or ordinance means such law, regulation or ordinance as amended,
modified, supplemented or succeeded, from time to time and in effect at any given time and all
rules and regulations promulgated thereunder, unless the context requires otherwise. All Article,
Section, Exhibit and Schedule references herein are to Articles, Sections, Exhibits and Schedules
of this Agreement, unless otherwise specified.

 

13

 

(d) The Parties intend that each representation, warranty, covenant, and condition contained
herein will have independent significance. If any Party has breached any representation, warranty,
or covenant contained herein in any respect, the fact that there exists another representation,
warranty or covenant relating to the same or similar subject matter (regardless of the relative
levels of specificity) which the Party has not breached will not detract from or mitigate the fact
that the Party is in breach of the first representation, warranty, or covenant. If any condition
to Closing contained herein has not been satisfied in any respect, the fact that there exists
another condition relating to the same or similar subject matter (regardless of the relative levels
of specificity) which has been satisfied shall not detract from or mitigate the fact that the first
condition has not been satisfied.

ARTICLE 2

Purchase and Sale

Section 2.01 Purchase and Sale. Except as otherwise provided in, and subject to, Section
2.02, upon the terms and subject to the conditions of this Agreement, Buyer agrees to purchase,
acquire and accept from Seller and Seller agrees to sell, convey, transfer, assign and deliver to
Buyer at the Closing all of Seller’s and its Affiliates’ right, title and interest in, to and
under the following assets as the same shall exist on the Closing Date (the “Purchased Assets”):

(a) the real property owned by Seller and listed on Section 2.01(a) of the Seller Disclosure
Schedule (the “Owned Real Property”);

(b) all of Seller’s rights under the leases of real property (the “Real Estate Leases”) listed
on Section 2.01(b) of the Seller Disclosure Schedule (the real property leased by Seller pursuant
to the Real Estate Leases, the “Leased Real Property”);

(c) all of Seller’s rights under the easements, rights of way, real property licenses, and
other real property entitlements listed on Section 2.01(c) of the Seller Disclosure Schedule, to
the extent transferrable (the “Entitled Real Property” and, together with the Owned Real Property
and the Leased Real Property, the “Real Property”);

 

14

 

(d) all of (i) Seller’s Tangible Personal Property or other property listed on Section 2.01(d)
of the Seller Disclosure Schedule or otherwise located at the Generating Facility as of the
Execution Date or any additions thereto as of the Closing (the “Equipment”); and (ii) any rights of
Seller, to the extent transferable, to the warranties and licenses received from manufacturers and
sellers of the Equipment (if any);

(e) [reserved];

(f) subject to Section 2.05, all of Seller’s and its Affiliates’ rights under the Contracts
(including rights to transmission credits, if any) that are listed on Section 2.01(f) of the Seller
Disclosure Schedule (together with the Real Estate Leases, the “Assigned Contracts”);

(g) (i) all inventories of chemicals and gases, supplies, materials and spares located at or
in transit to the Real Property and owned by Seller on the Execution Date (and not consumed prior
to Closing) or any net additions thereto as of the Closing Date that are used for the Generating
Facility and that are listed on Section 2.01(g) of the Seller Disclosure Schedule (the “Inventory”)
and (ii) any rights of Seller, to the extent transferable, to the warranties received from
suppliers with respect to such Inventory;

(h) any computer software or systems located at the Real Property or elsewhere and owned
exclusively by Seller and licenses held exclusively by Seller, solely to the extent transferable,
in each case to the extent relating to the Generating Facility and only to the extent listed on
Section 2.01(h) of the Seller Disclosure Schedule;

(i) solely to the extent transferable under applicable Law, all rights of Seller under the
Permits (and pending applications for the foregoing) listed on Section 2.01(i) of the Seller
Disclosure Schedule;

(j) copies, including copies in electronic form, of all Records relating primarily to the
Generating Facility; and

(k) to the extent not included in (a) through (j) above, the Generating Facility.

It is understood that there are no other assets, rights, business, claims or properties to be
transferred pursuant to this Agreement.

 

15

 

Section 2.02 Excluded Assets. The Purchased Assets shall specifically exclude all of the following
assets, rights, business, Claims or properties owned by Seller (the “Excluded Assets”):

(a) all of Seller’s cash and cash equivalents, marketable securities, prepaid expenses,
advance payments, surety accounts, deposits and other similar prepaid items (including for the
purchase of natural gas);

(b) assets, property and other rights held or owned by Seller and its Affiliates that are not
located on the Real Property;

(c) forecasts, financial information or financial statements and proprietary manuals (except
rights to use manuals specific to and necessary for the operation of the Generating Facility)
prepared by or used by Seller or its Affiliates to the extent not relating exclusively to the
Generating Facility;

(d) all of Seller’s rights under Contracts that are not Assigned Contracts;

(e) (i) all rights to Claims, refunds or adjustments, and all other refunds or adjustments
with respect to the Excluded Assets or, to the extent related to any Excluded Liabilities, the
Purchased Assets relating to any proceeding before any Governmental Body relating to the period
prior to the Closing, (ii) all rights to insurance proceeds or other insurance recoveries that
relate to, or are reimbursement for, Seller’s or Seller’s Affiliate’s expenditures made prior to
the Closing Date and (iii) all rights to insurance proceeds or other insurance recoveries to the
extent relating to the Excluded Assets or, to the extent related to any Excluded Liabilities, the
Purchased Assets relating to the period prior to the Closing;

(f) any asset of Seller that would constitute a Purchased Asset (if owned by Seller on the
Closing Date) that is, with Buyer’s written consent (not to be unreasonably withheld, conditioned
or delayed), conveyed or otherwise disposed of during the period from the date hereof until the
Closing Date as otherwise permitted by Section 5.01 of this Agreement;

(g) all losses, loss carry forwards and rights to receive refunds, credits and loss carry
forwards with respect to any and all Taxes of Seller incurred or accrued on or prior to the Closing
Date, including interest receivable with respect thereto;

 

16

 

(h) all other assets, rights, business, Claims or properties owned by Seller or an Affiliate
of Seller not specifically set forth in Section 2.01; and

(i) the assets, rights, business, Claims or properties set forth on Section 2.02(i) of the
Seller Disclosure Schedule.

Section 2.03 Assumed Liabilities. Upon the terms and subject to the conditions of this
Agreement, Buyer agrees, effective at the time of the Closing, to assume only the following debts,
obligations, Contracts and liabilities of Seller or its Affiliates relating to the ownership and
operation (including development and construction) of the Generating Facility or the Purchased
Assets arising on or after the Closing Date (except for the Excluded Liabilities, the “Assumed
Liabilities”):

(a) those relating to the period from and after the Closing Date under the Assigned Contracts;

(b) those under Environmental Law, except to the extent that such liabilities are civil
penalties or costs of clean-up related to any matter, action or circumstance which arose from March
6, 2008 to and including the day prior to the Closing Date;

(c) those incurred from and after the Closing Date in connection with, or related to or
otherwise arising out of the employment of any Employees by Buyer from and after the Closing;

(d) those relating to or arising out of any action, suit, investigation or proceeding relating
to or arising out of the ownership and operation (including development and construction) of the
Generating Facility or the Purchased Assets before any court or arbitrator or any Governmental Body
or otherwise relating to or arising out of events, facts or circumstances occurring, in whole or in
part, on or after the Closing Date (but if occurring in part, only to the extent of such part); and

(e) those set forth in Section 7.10.

 

17

 

Section 2.04 Excluded Liabilities. Notwithstanding any provision in this Agreement or any other
writing to the contrary, Buyer is not assuming any of the following
liabilities or obligations of Seller, which shall be retained by and remain liabilities and
obligations of Seller (all such liabilities and obligations not being assumed being herein referred
to as the “Excluded Liabilities”):

(a) those incurred in connection with this Agreement and the Transactions contemplated hereby;

(b) those arising from this Agreement or any of the Transaction Agreements (including any
amendment or supplement thereto);

(c) those arising out of any action, suit, investigation or proceeding arising out of the
ownership and operation (including development and construction) of the Generating Facility or the
Purchased Assets before any court or arbitrator or any Governmental Body or otherwise arising out
of events, facts or circumstances first occurring, in whole or in part, prior to the Closing Date
(but if occurring in part, only to the extent of such part);

(d) subject to Section 7.08, those related to or otherwise arising out of the employment by
Seller of the Employees, including all liabilities arising under or relating to any employee plan
maintained by Seller (or its Affiliates) prior to the Closing Date for the benefit of the
Employees; and

(e) any liability of Seller which is not an Assumed Liability.

Section 2.05 Assignment of Contracts and Rights. Anything in this Agreement to the contrary
notwithstanding, this Agreement shall not constitute an agreement to assign any Purchased Asset or
any claim or right or any benefit arising thereunder or resulting therefrom if such assignment,
without the consent of a third party thereto, would constitute a breach or other contravention of
such Purchased Asset or in any way adversely affect the rights of Buyer or Seller thereunder,
provided that any such required consent is listed on Section 3.06 of the Seller Disclosure
Schedule. Seller and Buyer will use their reasonable best efforts (but without any payment of
money by Seller or Buyer) to obtain the consent of the other parties to any such Purchased Asset or
any claim or right or any benefit arising thereunder for the assignment thereof to Buyer as Buyer
may request. If such consent is not obtained, or if an attempted assignment thereof would be
ineffective or would adversely affect the rights of Seller thereunder so that Buyer would not in
fact receive all such rights, Seller and Buyer will
cooperate in a mutually agreeable arrangement under which, after the Closing, Buyer would obtain
the benefits and assume the obligations thereunder in accordance with this Agreement, including
sub-contracting, sub-licensing, or sub-leasing to Buyer, or under which Seller would enforce for
the benefit of Buyer, with Buyer assuming Seller’s obligations, any and all rights of Seller
against a third party thereto.

 

18

 

Section 2.06 Purchase Price; Allocation of Purchase Price for Federal Taxes.

(a) Purchase Price. The purchase price for the Purchased Assets and the assumption of
the Assumed Liabilities is U.S. $485,000,000.00, plus (A) all costs (up to $25,300,000.00),
including interest and corporate overhead, incurred by Seller or its Affiliates from February 1,
2011 to and including the Closing Date in connection with construction of the Generating Facility,
which amount Seller shall provide to Buyer at least five Business Days prior to the Closing Date,
plus (B) $125,000.00 for every day from July 15, 2011 to the Closing Date, if any, if Buyer
has provided Seller with the notice contemplated by Section 11.01(b), (as so increased, the
“Purchase Price”) in cash, free and clear of any withholding or deduction for applicable Taxes.

(b) The Parties shall allocate the Purchase Price and the Assumed Liabilities, as of the
Closing, among the classes of assets (as described in the Treasury regulations promulgated under
section 338 of the Code) to which the Purchased Assets and the other Transaction Agreements relate
(the “Allocation”) in accordance with section 1060 of the Code and the regulations promulgated
thereunder (or any similar provision of local or state Tax Law), Seller shall prepare and submit a
proposed Allocation to Buyer not later than twenty (20) days prior to Closing for Buyer’s review
and approval and Buyer shall formally respond to such proposed Allocation no later than ten (10)
days from receipt thereof. The Parties shall use commercially reasonable efforts to agree upon the
Allocation prior to Closing and to include the respective Forms 8594 in the transcript for the
Closing. In the event the Parties are unable to agree upon the Allocation, the determination shall
be made by an independent “big four” accounting firm selected by the Parties. For all Tax
purposes, the Transactions contemplated by this Agreement shall be reported in a manner consistent
with the final Allocation and the terms of the Transaction Agreements and no Party, or any of such
Parties’ Affiliates, shall take any position inconsistent therewith in any
Tax Return (including IRS Form 8594), in any Tax refund claim, in any litigation or otherwise,
unless required by applicable Law.

 

19

 

(c) [reserved].

(d) Between the Execution Date and the Closing Date, as promptly as practicable after the end
of each calendar month Seller shall provide Buyer with a report of all costs, including interest
and corporate overhead, incurred by Seller or its Affiliates in such preceding calendar month
(including, with respect to the first such report, incurred in February 2011) in connection with
construction of the Generating Facility.

(e) Transmission Uprate.

(i) Subject to clause (iii) below, from and after the Closing Date until the
twenty-four (24) month anniversary of the Closing Date, or such later time as may be
requested by Buyer and approved by Seller, such approval not to be unreasonably withheld,
Seller may at its own cost and expense install such additional equipment or engage in other
activities (collectively, the “Uprate Remedies”) at the Generating Facility as needed to
achieve transmission export capacity in excess of 685 MW (“Additional Capacity”), and Buyer
shall reasonably cooperate, provide access to the Generating Facility and assist Seller
and/or its contractors in connection therewith, and the parties shall reasonably cooperate
to (A) avoid or mitigate any Uprate Remedy that would materially interfere with the
continuous operation of the Generating Facility, cause the imposition of any material
increase in its operating costs over what otherwise would be expected or materially increase
exposure to material PJM Reliability Pricing Model penalties and (B) agree on reasonable
outage opportunities with respect to the Uprate Remedies.

(ii) If (A) prior to the forty-two (42) month anniversary of the Closing Date, the
relevant transmission authorities grant permission to export Additional Capacity; and (B)
the Generating Facility is or becomes, prior to the twenty-four (24) month anniversary of
the Closing Date, or such later time as may be requested by Buyer and approved by Seller,
such approval not to be unreasonably withheld, mechanically capable of sustained production
of, and has the mechanical ability to export, Additional Capacity
then Buyer shall pay to Seller, within thirty (30) days of the later to occur of (A) or
(B) above, an additional $708,029.00 per MW of Additional Capacity (or pro rata portion
thereof rounded to the nearest tenth of a MW) up to 707 permitted MW, all as additional
Purchase Price.

 

20

 

(iii) Buyer shall be entitled to reject a Seller proposed Uprate Remedy if Buyer in
good faith reasonably believes that such actions would cause material damage to the
Generating Facility, materially increase its operating costs over what otherwise would be
expected or require material capital expenditures by Buyer. But if prior to the five (5)
year anniversary of the Closing Date, Buyer implements a Seller-proposed Uprate Remedy which
Buyer rejected or takes actions substantially similar to those in a Seller-proposed Uprate
Remedy which Buyer rejected, and the Generating Facility, as a result, actually exports
generation transmission in excess of 685 MW, then Buyer shall promptly pay to Seller an
additional $708,029.00 per MW of Additional Capacity (or pro rata portion thereof rounded to
the nearest tenth of a MW) up to 707 permitted MW, less any reasonable documented
costs incurred by Buyer to implement the Seller proposed Uprate Remedy to create the
Additional Capacity, all as additional Purchase Price.

(f) Low Production.

(i) Both Parties expect that the Generating Facility will, at Closing, meet the
conditions set forth in Section 9.02(d)(ii) (the “Expected Criteria”, and failure of the
Generating Facility to reach the Expected Criteria within a reasonable time (not to exceed
90 days, and with Buyer to provide Seller with notice thereof within 120 days) following
commissioning of the Generating Facility (which commissioning Buyer shall promptly inform
Seller of in writing), but not including a de minimis failure to meet the specified heat
rate value, being a “Criteria Failure”).

(ii) Should a Criteria Failure be determined (pursuant to clause (viii) below) to have
occurred solely through the fault of actions taken by Seller or its Affiliates (or Persons
acting under their direction) prior to the Closing, Seller shall, in its sole discretion,
choose to (A) cure the Criteria Failure at its own expense (and Buyer shall reasonably
cooperate, provide access to the Generating Facility and assist Seller and/or
its contractors in connection therewith) or (B) promptly pay to Buyer $708,029.00 for
each MW (or pro rata portion thereof rounded to the nearest tenth of a MW) below the
Expected Criteria that the Generating Facility is capable of sustained production.

 

21

 

(iii) Should a Criteria Failure be determined (pursuant to clause (viii) below) to have
occurred solely through the fault of actions taken after the Closing, Seller shall owe no
amounts pursuant to this Section 2.06(f).

(iv) Should a Criteria Failure be determined (pursuant to clause (viii) below) to have
occurred both through the fault of (X) actions taken by Seller or its Affiliates (or Persons
acting under their direction) prior to the Closing and (Y) actions occurring after the
Closing, but where the actions taken by Seller or its Affiliates (or Persons acting under
their direction) prior to the Closing caused a portion of the Criteria Failure (the
percentage of the cause of the Criteria Failure caused by actions taken by Seller or its
Affiliates (or Persons acting under their direction) prior to the Closing being the “Seller
Percentage”), then either (A) the Parties shall agree to cure the Criteria Failure with
Seller paying the Seller Percentage of the cost of such cure and Buyer paying the remaining
cost of such cure (and Buyer shall reasonably cooperate, provide access to the Generating
Facility and assist Seller and/or its contractors in connection therewith) or (B) if the
Parties do not so agree, Seller shall promptly pay to Buyer $708,029.00 times the Seller
Percentage for each MW (or pro rata portion thereof rounded to the nearest tenth of a MW)
below the Expected Criteria that the Generating Facility is capable of sustained production.

(v) Should a Criteria Failure be determined (pursuant to clause (viii) below) to have
occurred because of a defect that occurred through neither the fault of actions taken by
Seller or its Affiliates prior to the Closing or the fault of actions taken after the
Closing, then either (A) the Parties shall agree to cure the Criteria Failure with Seller
paying 50% of the cost of such cure and Buyer paying 50% of the cost of such cure (and Buyer
shall reasonably cooperate, provide access to the Generating Facility and assist Seller
and/or its contractors in connection therewith) or (B) if the Parties do not so agree,
Seller shall promptly pay to Buyer $354,014.50 for each MW (or pro rata portion
thereof rounded to the nearest tenth of a MW) below the Expected Criteria that the
Generating Facility is capable of sustained production.

 

22

 

(vi) The maximum liability of Seller pursuant to Section 2.06(f)(ii) or (iv) is
$72,750,000.00 in the aggregate, and the maximum liability of Seller pursuant to Section
2.06(f)(v) is $36,375,000.00 in the aggregate.

(vii) Notwithstanding anything else set forth in this Section 2.06(f), Seller shall
retain full rights to perform an Uprate Remedy as set forth in Section 2.06(e) above.

(viii) Should the Parties be unable to determine which of clauses (ii), (iii), (iv) or
(v) above shall apply, the Parties shall reasonably jointly select an independent engineer
or engineering firm of favorable reputation, that has not worked for either Party or their
Affiliates for a period of one (1) year prior to such dispute (and shall use commercially
reasonable efforts to select such engineer or firm prior to the Closing), to investigate and
provide a report containing findings and a recommendation regarding whether clauses (ii),
(iii), or (iv) above shall apply. The independent engineer shall issue a draft report and
the Parties shall have not less than thirty (30) days to provide comments on the same.
After consideration of the comments, the independent engineer shall issue a final report.
The costs of the independent engineer shall be shared equally by the Parties and,
notwithstanding any other provision of this Agreement, the independent engineer’s final
report shall be binding upon the Parties.

Section 2.07 Closing. The closing (the “Closing”) of the purchase and sale of the Purchased
Assets, and the assignment and assumption of the Assumed Liabilities hereunder, shall take place at
the offices of Chester Willcox & Saxbe, LLP, 65 East State Street, Suite 1000, Columbus, Ohio
43215, on the later of (i) July 1, 2011 (unless extended to July 15, 2011 or on or before September
30, 2011 pursuant to Section 11.01(b)) or (ii) no more than three (3) Business Days after
satisfaction of the conditions set forth in ARTICLE 9 (or waiver by the Party for whose benefit
such conditions exist) other than any conditions that are by their nature to be satisfied at
Closing (but subject to the satisfaction or waiver or such conditions), or at such
other time or place as Buyer and Seller may agree. The Closing shall be effective for all purposes
at 12:01 a.m., eastern prevailing time (EPT), on the Closing Date.

 

23

 

Section 2.08 Deliveries at Closing. In addition to any other documents to be delivered under other
provisions of this Agreement, at the Closing:

(a) Seller shall deliver to Buyer:

(i) the Bill of Sale duly executed by Seller;

(ii) the Assignment and Assumption Agreement duly executed by Seller;

(iii) the Limited Warranty Deed duly executed by Seller;

(iv) an officer’s certificate certifying that the conditions in Section 9.01 and
Section 9.02 have been satisfied (other than the condition in Section 9.02(e)); and

(v) any other documents or instruments reasonably required by Buyer to consummate the
Transactions contemplated by this Agreement and reasonably requested of Seller prior to the
Closing Date.

(b) Buyer shall deliver to Seller:

(i) the Purchase Price (as adjusted pursuant to Section 2.06 and with a credit for the
Break-Up Fee) in cash by wire transfer to an account of Seller designated by Seller, by
notice to Buyer, such notice to be delivered not later than five (5) Business Days prior to
the Closing Date (or if not so designated, then by certified or official bank check payable
in immediately available funds to the order of Seller in such amount)(and the Break-Up Fee
shall be irrevocably released by Buyer to Seller);

(ii) the Assignment and Assumption Agreement duly executed by Buyer;

(iii) an officer’s certificate certifying that the conditions in Section 9.01 and
Section 9.03 have been satisfied (other than the conditions in Section 9.03(d) and (e)); and

(iv) any other documents or instruments reasonably required by Seller to consummate the
Transactions contemplated by this Agreement and reasonably requested of Buyer prior to the
Closing Date.

 

24

 

ARTICLE 3

Representations and Warranties of Seller

Except as set forth in the Seller Disclosure Schedule or with respect to representations or
warranties that speak of a specific date, Seller represents and warrants to Buyer that the
statements contained in this ARTICLE 3 are correct and complete as of the Execution Date and will
be correct and complete as of the Closing Date.

Section 3.01 Corporate Existence and Power. Seller is a corporation duly organized, validly
existing, and in good standing under the Laws of the State of Ohio. Seller is duly authorized to
conduct its business and is in good standing under the Laws of each jurisdiction where such
qualification is required, except where failure to be so qualified would not have, individually or
in the aggregate, a Seller Material Adverse Effect.

Section 3.02 Corporate Authorization. Seller has the relevant corporate power and authority
necessary to execute and deliver each Transaction Agreement to which it is a party and to perform
and consummate the Transactions. Seller has taken all action necessary to authorize the execution
and delivery of each Transaction Agreement to which it is a party, the performance of its
respective obligations thereunder, and the consummation of the Transactions. Each Transaction
Agreement to which Seller is a party has been duly authorized by, and has been or will be duly
executed and delivered by, and, assuming the due authorization, execution and delivery thereof by
each counterparty, is Enforceable against, Seller.

Section 3.03 Governmental Authorization. The execution, delivery and performance by Seller of the
Transaction Agreements to which it is a party and the consummation of the Transactions require no
action by or in respect of, or filing with, any Governmental Body other than any such action or
filing as is described in Section 3.03 of the Seller Disclosure Schedule.

 

25

 

Section 3.04 Noncontravention. Except as set forth in Section 3.04 of the Seller Disclosure
Schedule, the execution, delivery and performance by Seller of the Transaction Agreements to which
it is a party and the consummation of the Transactions do not and will not (i) result in a
violation of the articles of incorporation or code of regulations of Seller, (ii) violate any
applicable Law except which would not have, individually or in the aggregate, a Seller Material
Adverse Effect, (iii) assuming that all Required Consents are obtained, constitute a default under
or give rise to any right of termination, cancellation or acceleration of any right or obligation
or to a loss of any benefit relating to the Generating Facility to which Seller or any of its
Affiliates is entitled under any provision of any Contract binding upon Seller or such Affiliate,
or (iv) result in the creation or imposition of any Lien on any Purchased Asset owned by Seller,
except for Permitted Liens.

Section 3.05 Finders’ Fees. There is no investment banker, broker, finder or other intermediary,
which has been retained by or is authorized to act on behalf of Seller or any of its Affiliates who
might be entitled to any fee or commission from Buyer or its Affiliates in connection with the
Transactions.

Section 3.06 Required Consents. Section 3.06 of the Seller Disclosure Schedule sets forth each
Assigned Contract or other Purchased Asset requiring consent or other action by any Person as a
result of the execution, delivery and performance of the Transactions (the “Required Consents”).

Section 3.07 Litigation. Except as set forth in Section 3.07 of the Seller Disclosure Schedule,
there is no action, suit, investigation or proceeding pending against, or to the Knowledge of
Seller, threatened against, Seller or any of Seller’s Affiliates primarily with respect to the
Generating Facility or relating to or affecting any of the Purchased Assets, before any arbitrator
or Governmental Body which, individually or in the aggregate, would reasonably be expected to have
a Seller Material Adverse Effect or which in any manner challenges or seeks to prevent, enjoin,
alter or Materially delay the Transactions contemplated by the Transaction Agreements. Seller has
not received any written or, to the Knowledge of Seller, oral notice from any Governmental Body or
other Person regarding any actual, alleged, possible or potential violation of, or failure to
comply with, any term or requirement of Order to which Seller or any of the Purchased Assets is or
has been subject.

 

26

 

Section 3.08 Compliance with Laws. Seller has complied in all Material respects with all
applicable Laws and Orders that affect the Purchased Assets.

Section 3.09 Title to Purchased Assets. Seller or its Affiliates are the sole owner of, and have
good, marketable and valid title to, all of the Purchased Assets, in each case free and clear of
all Liens arising by, through or under Seller, other than Permitted Liens. Notwithstanding the
foregoing, no representation or warranty is made herein with respect to the Real Property, which
shall be addressed in the Limited Warranty Deed.

Section 3.10 Permits.

(a) Section 3.10(a) of the Seller Disclosure Schedule sets forth a list of all Permits held by
Seller as of the Execution Date. Except as set forth in Section 3.10(a) of the Seller Disclosure
Schedule, with respect to each such Permit, to the Knowledge of Seller:

(i) it is valid, subsisting and in full force and effect and not, to the Knowledge of
Seller, subject to any appeal;

(ii) there is no action, suit, investigation or proceeding pending, or to the Knowledge
of Seller, threatened which might directly and adversely affect the validity of any
effective or proposed Permit and, to the Knowledge of Seller, there exists no basis for
revocation or suspension of any such Permit;

(iii) Seller has not received written notice that such Permit will not be renewed and
to Seller’s Knowledge there is no reasonable basis for such Permit not to be renewed; and

(iv) for any Permit relating to the Generating Facility for which approval, renewal,
amendment, or modification is currently being sought or is currently pending before a
Governmental Body, no Material expenditures, capital improvements, or changes in operation
will be necessary as a condition or result of such approval, renewal, amendment or
modification.

(b) Seller’s operations have been conducted in all Material respects in accordance with the
representations and conditions made in the applications for its Permits.

 

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Section 3.11 Environmental Matters. Except as set forth on Section 3.11 of the Seller Disclosure
Schedule, to the Knowledge of Seller, the Generating Facility is, and has been, in material
compliance with all Environmental Laws.

Section 3.12 Representations Complete. Except as to those matters covered by the
representations and warranties in this Agreement, (I) SELLER MAKES NO OTHER REPRESENTATIONS OR
WARRANTIES WHATSOEVER (INCLUDING ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS) TO BUYER AND (II) THE
PURCHASED ASSETS ARE BEING CONVEYED ON AN “AS-IS, WHERE-IS” AND “WITH ALL FAULTS” BASIS, AND (III)
Seller hereby disclaims all liability and responsibility for any representation, warranty,
statement, or information not included herein that was made, communicated, or furnished (orally or
in writing) to Buyer or its representatives (including any opinion, information, projection, or
advice that may have been or may be provided to Buyer by any director, officer, employee, agent,
consultant, or representative of Seller). Without limiting the foregoing, no representation or
warranty is made with respect to (a) the information included in any materials provided by Seller
or its representatives to Buyer or its representatives, or any supplement or amendment thereof or
other information provided in connection with the solicitation of proposals to acquire the
Purchased Assets or the negotiations related thereto or to this Agreement, such information being
provided for Buyer’s convenience only, (b) any projections, estimates or budgets delivered to or
made available to Buyer of future revenues, future results of operations (or any component
thereof), future cash flows or future financial condition (or any component thereof) of the
Purchased Assets or the future business and operations of the Purchased Assets or (c) any other
information or documents made available to Buyer or its Affiliates, counsel, accountants or other
representatives or advisors with respect to the Purchased Assets, in each case except as expressly
set forth in this Agreement. Except as set forth in this Agreement, Seller and its Affiliates shall
have no liability or responsibility for the Purchased Assets or the Assumed Liabilities, in each
case after the Closing Date.

 

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Section 3.13 Seller’s Acknowledgement. Seller acknowledges and agrees that any Claims arising
under Seller’s or Buyer’s representations and warranties shall be subject to the limitations on
liabilities and other provisions set out in ARTICLE 10.

ARTICLE 4

Representations and Warranties of Buyer

Except as set forth in the Buyer Disclosure Schedule or with respect to representations or
warranties that speak of a specific date, Buyer represents and warrants to Seller that the
statements contained in this ARTICLE 4 are correct and complete as of the Execution Date and will
be correct and complete as of the Closing Date.

Section 4.01 Corporate Existence and Power. Buyer is a corporation duly organized, validly
existing, and in good standing under the Laws of the jurisdiction of its incorporation. Buyer is
duly authorized to conduct its business and is in good standing under the Laws of each jurisdiction
where such qualification is required, except where failure to be so qualified would not have,
individually or in the aggregate, a Buyer Material Adverse Effect.

Section 4.02 Corporate Authorization. Buyer has the relevant entity power and authority necessary
to execute and deliver each Transaction Agreement to which it is a party and to perform and
consummate the Transactions. Buyer has taken all action necessary to authorize the execution and
delivery of each Transaction Agreement to which it is a party, the performance of its respective
obligations thereunder, and the consummation of the Transactions. Each Transaction Agreement to
which Buyer is a party has been duly authorized by, and has been or will be duly executed, and
delivered by, and, assuming the due authorization, execution and delivery thereof by each
counterparty, is Enforceable against, Buyer.

Section 4.03 Governmental Authorization. The execution, delivery and performance by Buyer of the
Transaction Agreements to which it is a party and the consummation of the Transactions require no
action by or in respect of, or filing with, any Governmental Body other than any such action or
filing as is described in Section 4.03 of the Buyer Disclosure Schedule.

 

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Section 4.04 Noncontravention. Except as to matters which would not reasonably be expected to
have, individually or in the aggregate, a Buyer Material Adverse Effect, the execution, delivery
and performance by Buyer of the Transaction Agreements to which it is a party and the consummation
of the Transactions do not and will not (a) result in a violation of the articles of incorporation
or the code of regulations of Buyer, (b) violate any applicable Law or (c) require any consent or
other action by any Person under, constitute a default under or give rise to any right of
termination, cancellation or acceleration of any Material right or obligation or to a loss of any
Material benefit to which Buyer is entitled under any provision of any agreement or other
instrument binding upon Buyer.

Section 4.05 Finders’ Fees. There is no investment banker, broker, finder or other intermediary
which has been retained by or is authorized to act on behalf of Buyer or any of its Affiliates who
might be entitled to any fee or commission from Seller or any of its Affiliates upon consummation
of the Transactions.

Section 4.06 Litigation. Except as set forth in Section 4.06 of Buyer Disclosure Schedule, there
is no action, suit, investigation or proceeding pending against or to the Knowledge of Buyer,
threatened against or affecting, Buyer or any of Buyer’s Affiliates before any court or arbitrator
or any Governmental Body which, individually or in the aggregate, would reasonably be expected to
have a Buyer Material Adverse Effect or which in any manner challenges or seeks to prevent, enjoin,
alter or Materially delay the Transactions contemplated by the Transaction Agreements.

Section 4.07 No Other Representations. Buyer has inspected and investigated the Purchased Assets
and knowingly and voluntarily accepts such Purchased Assets on an “AS IS, WHERE IS” basis, subject
only to the express representations and warranties and other terms and conditions of this
Agreement.

Section 4.08 Representations Complete. Except as and to the extent set forth in this Agreement,
Buyer makes no representations or warranties whatsoever to Seller and hereby disclaims all
liability and responsibility for any representation, warranty, statement, or information not
included herein that was made, communicated, or furnished (orally or in writing) to Seller or its
representatives (including any opinion, information, projection, or advice
that may have been or may be provided to Seller by any director, officer, employee, agent,
consultant, or representative of Buyer or Affiliate thereof).

 

30

 

Section 4.09 Buyer’s Acknowledgement. Buyer acknowledges and agrees that any Claims arising under
Seller’s or Buyer’s representations and warranties shall be subject to the limitations on
liabilities and other provisions set out in ARTICLE 10.

ARTICLE 5

Covenants of Seller

Section 5.01 Conduct Through the Closing. Seller covenants and agrees that, between the date
hereof and the Closing Date, Seller shall, except as set forth on Section 5.01 of the Seller
Disclosure Schedule or as otherwise contemplated by this Agreement or as required by Law or by
Assigned Contracts or any other Contracts listed on Section 5.01 of the Seller Disclosure Schedule,
conduct the operations of the Generating Facility in the ordinary course or consistent with prior
practice or plans for achieving Mechanical Completion and will continue to provide the necessary
personnel to continue construction of the Generating Facility through the Closing Date in the
manner currently planned, scheduled and budgeted, and previously disclosed to Buyer, provided,
however, that Seller agrees to reasonably cooperate with Buyer and Buyer’s commissioning contractor
regarding commissioning requirements for the Generating Facility.

Section 5.02 Access to Information.

(a) Between the Execution Date and the Closing Date, Seller will:

(i) make available to Buyer and its agents reasonable access to the Generating
Facility, employees and contractors as well as all documents reasonably requested by Buyer
regarding the Generating Facility design, construction, procurement, testing, environmental
compliance and expected operations (and, without limiting the foregoing, Seller shall
provide Buyer and its agents with access to Seller’s software and communications platform in
connection with the Generating Facility);

 

31

 

(ii) authorize relevant regulatory agencies to discuss the Generating Facility Permits
and status with Buyer and provide Buyer with access to documents in the
same manner as if Buyer were Seller, provided Seller will be given reasonable advance
notice of such discussions and provided the opportunity to participate in all discussions
with such agencies; and

(iii) make available to Buyer (if reasonably within Seller’s control) reasonable access
to counterparties to the Assigned Contracts and Assumed Liabilities.

Any investigation pursuant to this Section 5.02 shall be conducted in such manner as not to
interfere unreasonably with the conduct of the ownership and operation (including development and
construction) of the Generating Facility. Notwithstanding the foregoing, Buyer shall not have
access to (i) personnel records of Seller or any of its Affiliates relating to individual
performance or evaluation records, medical histories or other information which in Seller’s good
faith opinion is sensitive or the disclosure of which could subject Seller or such Affiliate to
risk of liability, (ii) any information which is subject of any attorney-client or other privilege
in favor of Seller or any confidentiality obligation by which Seller is bound or (iii) any
information the provision of which Seller in good faith believes may cause Seller to violate
applicable Law.

(b) After the Closing Date, Seller will promptly afford Buyer and its agents reasonable access
to its properties, books, records, and employees to the extent necessary to permit Buyer to
determine any matter relating to any period ending on or before the Closing Date (for example, for
purposes of any tax or accounting audit or any claim or litigation matter not being actively
litigated between Buyer and Seller); provided that any such access by Buyer shall not
unreasonably interfere with the conduct of the business of Seller. Buyer will hold, and will cause
its officers, directors, employees, accountants, counsel, consultants, advisors and agents to hold,
in confidence, unless Buyer is compelled to disclose by judicial or administrative process or
obligated to disclose by other requirements of Law, all confidential documents and information
concerning Seller or the Purchased Assets reasonably deemed as such by Seller and provided to Buyer
pursuant to this Section 5.02(b). Buyer shall bear all out-of-pocket costs and expenses (but
excluding Seller’s general overhead, salaries and employee benefits) reasonably incurred by Seller
in providing such access.

 

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(c) Seller shall, by the Closing Date, provide to Buyer such reasonably available documents as
Buyer reasonably requests at least ten (10) Business Days prior to Closing Date regarding the
Generating Facility design, construction, procurement, testing and operations, including testing
related to the capacity of the Generating Facility, which are in possession of Seller and which are
included as part of the Purchased Assets pursuant to Section 2.01(i).

Section 5.03 Further Assurances. At any time and from time to time after the Closing, Seller
shall, at the request of Buyer, use all commercially reasonable efforts to execute and deliver such
further instruments of conveyance, sale, transfer and assignment, and take such other actions as
may be necessary or appropriate to effectuate and consummate any of the Transactions contemplated
hereby or in connection with the other Transaction Agreements.

Section 5.04 Emissions Allowances. From and after the Closing until the fifth (5th)
anniversary thereof, if Seller plans to offer Emissions Allowances for sale on the open market to
third parties and if requested by Buyer, Seller shall use commercially reasonable efforts to
provide Buyer with a right of first offer (at market prices) to purchase such Emission Allowances
as are necessary to cover all operations of the Generating Facility; provided that Buyer shall be
entitled to up to five (5) one-year extensions of such period if reasonably necessary for Buyer’s
operations (and Buyer shall provide Seller with written notice of its exercise of any such
extension no less than 30 days prior to the end of any year).

Section 5.05 Exclusivity. During the period commencing on the Execution Date and ending on the
earlier of (i) the Closing Date or (ii) the date this Agreement is terminated as provided in
ARTICLE 11, Seller will not, nor will it permit any of its Affiliates or anyone acting behalf of
any of them to, solicit or enter into any discussions or negotiations with, or furnish or cause to
be furnished any information concerning the Purchased Assets to, any Person (other than Buyer or
its representatives) in connection with an acquisition of the Purchased Assets, directly or
indirectly whether by merger, purchase of equity interests, sale of
assets or any other means, other than extraordinary transactions (including a merger or sale of
sale of all or substantially all of the assets) involving Seller or its Affiliates, or the sale or
transfer of securities of Seller or its Affiliates; provided that under no circumstances shall
Seller be released or discharged from its obligations under this Agreement in connection with any
such transaction.

 

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ARTICLE 6

Covenants of Buyer

Section 6.01 Access. After the Closing Date, Buyer will promptly afford Seller and its agents
reasonable access to its properties, books, records, and employees to the extent necessary to
permit Seller to determine any matter relating to any period ending on or before the Closing Date
(for example, for purposes of any tax or accounting audit or any claim or litigation matter not
being actively litigated between Buyer and Seller); provided that any such access by Seller
shall not unreasonably interfere with the conduct of the business of Buyer. Seller will hold, and
will cause its officers, directors, employees, accountants, counsel, consultants, advisors and
agents to hold, in confidence, unless Seller is compelled to disclose by judicial or administrative
process or obligated to disclose by other requirements of Law, all confidential documents and
information concerning Buyer or the Purchased Assets reasonably deemed as such by Buyer and
provided to Seller pursuant to this Section 6.01. Seller shall bear all out-of-pocket costs and
expenses reasonably incurred by Buyer (but excluding Buyer’s general overhead, salaries and
employee benefits) in providing such access.

Section 6.02 Transition Proceedings. Upon completion of good faith discussions between the Parties
that address the various related issues in a mutually satisfactory manner, Buyer covenants and
agrees with Seller that it will (i) withdraw its opposition to (but may remain in support of)
proceedings related to Seller’s and its Affiliates’ transition from the MISO to PJM (including with
respect to dockets ER09-1589, EL10-6, ER11-2814 and ER11-2815) (the “Transition Proceedings”) as
soon as practicable after the Closing and further agrees not to intervene, except in support, in
any new proceedings similar to the Transition Proceeding and (ii) release any claims against Seller
or its Affiliates related to the Transition Proceedings;
provided, however, that the foregoing shall not apply to any proceeding after the Closing related
to rates and charges in Seller’s or its Affiliates’ territory.

 

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ARTICLE 7

Covenants of Buyer and Seller

Section 7.01 Reasonable Best Efforts. Subject to the terms and conditions of this Agreement, Buyer
and Seller will use their reasonable best efforts to take, or cause to be taken, all actions and to
do, or cause to be done, all things necessary or desirable under applicable Laws to consummate the
Transactions contemplated by this Agreement (including, by Buyer, to obtain the Subscription
Milestone). If commercially practicable, for a reasonable period not to exceed six (6) months
after the Closing Date, Seller shall provide Buyer with access to Seller’s software and
communications platform in connection with the Generating Facility to the extent required to
communicate with PJM and to any computer software or systems not included in the Purchased Assets
pursuant to Section 2.01(h), but necessary, in Buyer’s reasonable judgment, for the operation of
the Generating Facility, but further subject in all respects to the terms of any Contract
applicable to such software or systems.

Section 7.02 Certain Actions. Seller and Buyer shall cooperate with one another (i) in determining
whether any action by or in respect of, or filing with, any Governmental Body is required, or any
actions, consents, approvals or waivers are required to be obtained from parties to any Material
Contracts, in connection with the consummation of the Transactions contemplated by this Agreement
and (ii) in taking such actions or making any such filings, furnishing information required in
connection therewith and seeking timely to obtain any such actions, consents, approvals or waivers.

Section 7.03 Public Announcements. Neither Party will issue any press release or make any public
statement (but not including any statements or representations to Employees, provided the same are
also communicated to Buyer on a more or less contemporaneous basis) with respect to this Agreement
or the Transactions contemplated hereby without the prior written consent of the other Party,
except for (i) any press releases or public statements the making of which are required by
applicable Law, regulation or any listing agreement with any national securities exchange or in
connection with investor relations
activities or (ii) Buyer’s statements made in presentations to its members, including presentations
to public bodies.

 

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Section 7.04 Supplements to Seller Disclosure Schedule. Seller may, from time to time prior to the
Closing by written notice to Buyer supplement the Seller Disclosure Schedule or add a schedule or
section to the Seller Disclosure Schedule with a corresponding reference to be added in this
Agreement (such added Schedule to be deemed a supplement hereunder) to disclose any matter which,
if occurring prior to the date hereof, would have been required to be set forth or described on the
Seller Disclosure Schedule or to correct any inaccuracy or breach in the warranties made by Seller
in this Agreement (whether or not the matter occurred prior to, on or after the date hereof). None
of such supplements of the Seller Disclosure Schedule shall be deemed to cure the representations
or warranties to which such matters relate with respect to rights to indemnification pursuant to
ARTICLE 10 or conditions set forth in ARTICLE 9, or otherwise affect any other term or condition
contained in this Agreement; provided, however, that unless Buyer shall have
delivered a notice of breach pursuant to Section 11.01(d) (to the extent Buyer is entitled to
deliver such notice pursuant to such Section) within ten (10) Business Days of the receipt by Buyer
of any supplement to the Seller Disclosure Schedule pursuant to this Section 7.04 (together with
disclosure to Buyer of information reasonably requested by Buyer to enable Buyer to understand, and
evaluate the effects of, such supplement), then Buyer shall have waived any and all rights to
terminate this Agreement, pursuant to ARTICLE 11 or otherwise, or to consider any condition to
Closing not to be satisfied, arising out of or relating to the contents of such supplement.

Section 7.05 Antitrust Clearance(a). Notwithstanding any provision to the contrary in this
Agreement:

(a) Each of Seller and Buyer shall take all actions necessary to prepare and to make any
required filings for the Antitrust Clearance (if applicable) without undue delay after the
Execution Date (to the extent not already made as of the date of this Agreement) and to furnish all
information required in connection therewith. The Parties shall cooperate with each other with
respect to any antitrust filing in connection with the Antitrust Clearance and any other antitrust
filing in connection with the Transaction contemplated under this Agreement in providing all
reasonably required information concerning the Purchased Assets and to assist in such filings,
and shall use reasonable best efforts to obtain the Antitrust Clearance as promptly as practicable.

 

36

 

(b) To the extent practical, the Parties shall give each other reasonable advance notice of
any notification, submission or other communication which it proposes to make or submit to any
antitrust authority and provide the other with copies of such draft notification, submission or
correspondence and any supporting documentation or information reasonably requested by the other.
The Parties shall give due consideration to any comments of each other in relation to any such
draft notification, submission or communication. The Parties agree to keep each other fully
informed as to the progress of any notification made in order to obtain the Antitrust Clearance.
Each Party and its external counsel shall be entitled to attend all meetings with any antitrust
authority or other persons or bodies (unless prohibited by the authority or other person or unless
it is otherwise not practical), except for the respective parts of meetings in which a Party’s
confidential business information will be disclosed, in which case external counsel for the other
Party, but not the Party itself, shall be entitled to attend.

Section 7.06 Approvals. Other than with respect to matters covered by Section 7.05 of this
Agreement, each Party shall use reasonable best efforts to obtain all authorizations, consents,
actions, orders, and approvals of, and to give all notices to and make all filings with, all
Governmental Bodies and third parties that are, may be or become necessary for its execution and
delivery of, and the performance of its obligations under, this Agreement and the consummation of
the Transactions, and will cooperate fully with the other Party in promptly seeking to obtain all
such authorizations, consents, actions, orders and responding to requests for any additional
information from Governmental Bodies, approvals, giving such notices, making such filings and
contesting or opposing any legal challenges or objections to such filings. Seller and Buyer shall
jointly file for Federal Communications Commission consent for the assignment of the wireless
license set forth on Section 7.06 of the Seller Disclosure Schedule.

 

37

 

Section 7.07 Notices of Certain Events. Without limiting either Party’s representations or
warranties in this Agreement, each of Seller and Buyer shall promptly notify the other Party of:

(a) any notice or other communication received from any Person alleging that the consent of
such Person is or may be required in connection with the Transactions;

(b) any notice or other communication received from any Governmental Body in connection with
the Transactions;

(c) any actions, suits, claims, investigations or proceedings commenced relating to the
Purchased Assets of which it receives notice and which, in any manner challenges or seeks to
prevent, enjoin, alter or Materially delay the Transactions; and

(d) the discovery of any fact or circumstance that, or the occurrence or non-occurrence of any
event the occurrence or non-occurrence of which, would cause or result in any of the conditions set
forth in Article IX not being satisfied by the relevant expiration date set forth in Section
11.01(b); provided, however, that the delivery of any notice pursuant to this
Section 7.07(d) shall not (x) cure any breach of, or non-compliance with, any other provision of
this Agreement or (y) limit the remedies available to the party receiving such notice.

Section 7.08 Certain Employee Matters.

(a) This transaction involves the sale of assets only and does not involve the transfer of any
Employees from Seller to any operation of Buyer or its Affiliates and thus nothing herein shall be
construed as obligating Buyer to offer employment to or hire any of the Seller’s Employees.

(b) At any time prior to or after the Closing (but if prior to the Closing, contingent upon
the Closing), Buyer may offer employment, in its sole discretion and in accordance with its
particular staffing needs, to any Employees, including CBA Employees subject to the Collective
Bargaining Agreement, other than the Employee set forth on Section 7.08 of the Seller Disclosure
Schedule.

(c) If Buyer or its Affiliates hire any such CBA Employees, Buyer shall, but only if and then
to the extent required by Law, (i) become a successor employer under the Collective Bargaining
Agreement and (ii) assume its terms and conditions as required by the Collective Bargaining
Agreement, provided that Seller shall remain responsible, as provided elsewhere in
this Agreement, for any liabilities related to such CBA Employees which were owed or accrued
through but not including the Closing Date.

 

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(d) Neither Buyer nor any of its Affiliates shall take any action (including with respect to
the CBA Employees) which Buyer reasonably believes is likely to have the effect of (or that does
have the effect of) causing Seller or its Affiliates to suffer liabilities or Damages (excluding,
for purposes of this subparagraph only, attorneys fees) (i) for obligations arising after the
Closing under or pursuant to the Collective Bargaining Agreement or applicable Law related thereto
or (ii) because of any offers of employment or similar status to any CBA Employees before or after
the Closing or (iii) any binding findings (by settlement or otherwise) that any actions of Buyer or
its Affiliates, before or after the Closing, resulted in a breach of the Collective Bargaining
Agreement or applicable Law by Buyer, Seller or their respective Affiliates.

(e) In the event Seller becomes a party to an unfair labor practice charge, an arbitration or
other proceeding which relates in any way to the rights of CBA Employees under the Collective
Bargaining Agreement arising out of the Transaction, Seller shall promptly notify Buyer of any such
proceeding and consult with Buyer regarding the same. Seller shall be precluded, without Buyer’s
specific consent, from resolving any such proceeding in a manner that would be deemed binding upon
Buyer or that would be reasonably likely to cause liabilities or obligations to Buyer.

(f) Should any Other Employee wish to accept an offer of employment extended by Buyer, the
Other Employee must voluntarily sever his/her employment relationship with Seller before commencing
employment with Buyer. Should that occur, Seller will be responsible for any obligation owed to
the Other Employee pursuant to the terms of Seller’s plans and agreements, including any of
Seller’s benefit plans.

(g) Buyer may not offer employment to the Employee set forth on Section 7.08 of the Seller
Disclosure Schedule, and, for a period ending two (2) years after the Closing Date, neither Buyer
not any of its Affiliates shall hire, induce, solicit or encourage, or attempt to induce, solicit
or encourage, whether directly or indirectly, the Employee set forth on Section 7.08 of the Seller
Disclosure Schedule; provided that a general advertisement or other disclosure of a general
search that is not targeted or directed to such individual will not violate the covenants
contained in this Section 7.08(g).

 

39

 

(h) Seller shall be responsible for the payment of all wages, accrued but unused vacation,
paid time off and other remuneration or compensation due to all Other Employees, with respect to
their services as employees of Seller through the Closing Date, including (i) the payment of any
termination, severance or similar payments under applicable Law or pursuant to the terms of any
applicable severance plan, policy, agreement or arrangement of Seller to any Other Employees and
(ii) the cost of workers’ compensation claims, both medical and disability, for any Other Employee
that relate to loss events occurring on or before the Closing Date. Buyer shall assume and be
responsible for all obligations, liabilities and commitments with respect to employment, employee
benefits, and related matters with respect to all Other Employees hired by Buyer that are accrued
and owing from and after the Closing Date.

Section 7.09 Confidentiality. Seller acknowledges that information concerning the Purchased
Assets has competitive value to Buyer, and Seller agrees that after the Closing, all information
that prior to Closing would have been “Confidential Information” under the Confidentiality
Agreement shall become confidential information of Buyer (“Confidential Information”), and Seller
and each of Seller’s Affiliates shall maintain the confidentiality of such Confidential Information
in accordance with the terms of the Confidentiality Agreement as if it were the party to whom the
Confidential Information was disclosed under the Confidentiality Agreement.

Section 7.10 Transfer of Capacity Rights.

(a) The Parties acknowledge and agree that Seller has certain capacity supply obligations in
connection with Seller’s offering of the Generating Facility capacity into certain capacity
procurement auctions. Specifically, Seller offered capacity associated with the Generating
Facility into the ATSI FRR Program for the 2012-13 Delivery Year and Seller’s offer was accepted in
the amount of 653 MW. Moreover, Seller offered capacity associated with the Generating Facility
into PJM’s Reliability Pricing Model Base Residual Auction (“RPM Auction”) for the 2013-14 Delivery
Year and Seller’s offer was accepted in the amount of 653MW. Moreover, Seller will offer capacity
associated with the Generating Facility into PJM’s
RPM Auction for the 2014-15 Delivery Year (scheduled to take place in May, 2011) and some or
all of Seller’s offer may be accepted, and Seller will reasonably consult with Buyer in connection
therewith, to the extent permitted by applicable Law.

 

40

 

(b) Seller will at Closing transfer and assign its capacity supply obligations and its rights
to payment in satisfaction of contract capacity obligations associated with the Generating Facility
in the capacity amounts for each of the respective Delivery Years described in subparagraph (a) of
this section (“Contract Capacity”) and Buyer hereby unconditionally accepts and assumes each and
all of Seller’s obligations to supply the Contract Capacity for each and all such Delivery Years in
accordance with the ATSI FRR Program and Capacity Purchase and Sale Agreement, and the PJM RPM
Auction requirements, as applicable. Buyer will satisfy its obligations by following the processes
and procedures described Attachment DD of PJM’s Tariff, and in Article 2 of the ATSI Utilities FRR
Program Capacity Purchase and Sale Agreement, and in PJM’s manuals and processes that implement
such capacity programs. All such transfer of the Contract Capacity obligations will be documented
and implemented in the manner specified by PJM or the purchasers under the ATSI Utilities FRR
Program Capacity Purchase and Sale Agreement (the “ATSI Utilities”) (as the case may be), and
Seller and Buyer will exchange such additional information, documentation, contracts, assignment
and assumption agreements, or other instruments as may be required by PJM or the ATSI Utilities (as
the case may be) such that Buyer will be able to perform its Contract Capacity obligations under
this Agreement.

(c) Seller shall provide such additional information, documentation, contracts, assignment and
assumption agreements, or other instruments as may be required or requested by PJM or the ATSI
Utilities (as the case may be) in order to permit Buyer to receive all payments and rights to
payment for the Contract Capacity and Buyer will perform all actions reasonably required or
requested by PJM or the ATSI Utilities in order to make payment directly to Buyer in association
with Buyer’s rights to such payment as described herein.

 

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Section 7.11 Technical Arbitration. Notwithstanding anything else in this Agreement, the
following provisions shall apply with respect to the definition of “Mechanically Complete” and the
concomitant satisfaction of the corresponding conditions to Closing set forth in Section
9.02(d)(ii):

(a) At any time prior to the Closing, Seller may notify Buyer in writing that in Seller’s view
the condition set forth in clause (vi) of the definition of “Mechanically Complete” has been
satisfied (a “Seller Notification”).

(b) Buyer shall have seven (7) Business Days to respond to the Seller Notification (“Buyer’s
Response”), and, unless the Buyer’s Response states that Buyer objects to the Seller Notification
(and sets forth reasonably specific reasons for such objection), clause (vi) of the definition of
“Mechanically Complete” and the corresponding condition to Closing set forth in Section 9.02(d)(ii)
shall be deemed to be satisfied and met (but, for the avoidance of doubt, such Buyer’s Response
shall have no effect on any other covenants or agreements of Seller pursuant to this Agreement).

(c) If Buyer’s Response states that Buyer objects to the Seller Notification (and sets forth
reasonably specific reasons for such objection), the matters addressed in the Buyer’s Response
shall be immediately referred to binding arbitration by an independent engineer or engineering firm
of favorable reputation that has not worked for either Party or their Affiliates for a period of
one (1) year prior to such dispute and which is reasonably acceptable to Buyer and Seller (the
“Technical Arbitrator”). If the Parties cannot decide on a Technical Arbitrator within five (5)
Business Days of the delivery of a Buyer’s Response, the matter shall be referred to the New York
office of the American Arbitration Association, who shall be instructed to select a Technical
Arbitrator within five (5) Business Days of such instruction. The Technical Arbitrator shall be
instructed by Buyer and Seller to render a final decision as to whether the reasons set forth in
the Buyer’s Response are correct within twenty (20) days of its instruction, which final decision
shall be final, absolute, and non-appealable by Buyer and Seller.

(d) The fees and expenses of the Technical Arbitrator shall be paid by the non-prevailing
Party. If the Buyer is the non-prevailing Party, clause (B) of Section 2.06(a) shall apply at the
Closing regardless of whether Buyer has provided Seller with the notice contemplated by Section
11.01(b).

(e) From and after the delivery of a Seller Notification pursuant to clause (a) above until
the rendering of the final decision set forth in clause (c) above, the then-applicable termination
date provided for in Section 11.01(b) shall be tolled (provided that time periods
applicable to the second sentence of Section 7.11(d) shall not be tolled). Section 7.11 of
the Seller Disclosure Schedule sets forth an example of such tolling.

 

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ARTICLE 8

Tax Matters

Section 8.01 Tax Definitions. The following terms, as used herein, have the following meanings:

(a) “Pre-Closing Tax Period” means (i) any tax period ending on or including the Closing Date
and (ii) with respect to a tax period that commences before but ends after the Closing Date, the
portion of such period up to and including the Closing Date.

(b) “Tax” means any tax, governmental fee or other like assessment or charge of any kind
whatsoever (including, without limitation, withholding on amounts paid to or by any Person),
together with any interest, penalty, addition to tax or additional amount imposed by any
Governmental Body (a “Taxing Authority”) responsible for the imposition of any such tax (domestic
or foreign).

Section 8.02 Tax Cooperation; Allocation of Taxes.

(a) Buyer and Seller agree to furnish or cause to be furnished to each other, upon request, as
promptly as practicable, such information and assistance relating to the Purchased Assets
(including, without limitation, access to books and records) as is reasonably necessary for the
filing of all Tax Returns, the making of any election relating to Taxes, the preparation for any
audit by any Taxing Authority, and the prosecution or defense of any claim, suit or proceeding
relating to any Tax. Buyer and Seller shall retain all books and records with respect to Taxes
pertaining to the Purchased Assets for a period of at least six (6) years following the Closing
Date. At the end of such period, Buyer and Seller shall provide the other with at least ten (10)
days prior written notice before destroying any such books and records, during which period the
other party can elect to take possession, at its own expense, of such books and records. Seller
and Buyer shall cooperate with each other in the conduct of any audit or other proceeding relating
to Taxes involving the Purchased Assets. Notwithstanding anything herein to the
contrary, the Parties agree, to the extent consistent with applicable Law, to treat all
machinery and equipment included in the Purchased Assets as personal property for purposes of any
Tax filings or elections.

 

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(b) All real property taxes, personal property taxes and similar ad valorem obligations levied
with respect to the Purchased Assets for a taxable period which includes (but does not end on) the
Closing Date (collectively, the “Apportioned Obligations”) shall be apportioned between Seller and
Buyer based on the number of days of such taxable period for each Taxing Authority included in the
Pre-Closing Tax Period and the number of days of such taxable period after the Closing Date (with
respect to any such taxable period, the “Post-Closing Tax Period”) (i.e., in accordance with the
fiscal year method of tax proration). Seller shall be liable for the proportionate amount of such
taxes that is attributable to the Pre-Closing Tax Period, and Buyer shall be liable for the
proportionate amount of such taxes that is attributable to the Post-Closing Tax Period.

(c) All excise, sales, use, value added, VAT, stamp duty, registration stamp, recording,
documentary, conveyancing, franchise, property, transfer and similar Taxes, levies, charges and
fees (collectively, “Transfer Taxes”) incurred in connection with the Transactions contemplated by
this Agreement shall be borne one-half by Seller and one-half by Buyer. Buyer and Seller shall
cooperate in providing each other with any appropriate resale exemption certifications and other
similar documentation. Seller shall be solely responsible for all income, franchise, gross income,
gross receipts, business occupation, Single Business, Commercial Activity and similar Taxes it
incurs in connection with the Transactions.

(d) Apportioned Obligations and Transfer Taxes shall be timely paid, and all applicable
filings, reports and returns shall be filed, as provided by applicable Law. The paying party shall
be entitled to reimbursement from the non-paying party to the extent provided in Section 8.02(b) or
(c), as the case may be. Upon payment of any such Apportioned Obligation or Transfer Tax, the
paying party shall present a statement to the non-paying party setting forth the amount of
reimbursement to which the paying party is entitled under Section 8.02(b) or (c), as the case may
be, together with such supporting evidence as is reasonably necessary to calculate the amount to be
reimbursed. The non-paying party shall make such reimbursement promptly but in no event later than
thirty (30) days after the presentation of such statement. Any payment
not made within such time shall bear interest at the annual rate of LIBOR + 6% for each day
until paid.

 

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ARTICLE 9

Conditions to Closing 

Section 9.01 Conditions to Obligations of Buyer and Seller. The obligations of each of Buyer and
Seller to consummate the Closing are subject to the satisfaction, on or before the Closing, of each
of the following conditions unless waived in writing by each of the Parties:

(a) There must not be issued and in effect any Order restraining or prohibiting the
Transactions.

(b) (i) Early termination shall have been granted or the applicable waiting period shall have
expired under the HSR Act, if applicable, and (ii) the consents, approvals, orders, authorizations
or actions of or by any Governmental Body set forth on Section 9.01(b) of the Seller Disclosure
Schedule shall have been obtained.

(c) Seller and Buyer must have received the consents set forth on 9.01(c) of the Seller
Disclosure Schedule.

Section 9.02 Conditions to Obligation of Buyer. The obligation of Buyer to consummate the Closing
is subject to the satisfaction, on or before the Closing, of each of the following further
conditions unless waived in writing by Buyer:

(a) Seller shall have performed in all material respects the covenants and agreements
contained in this Agreement that are required to be performed by it on or prior to the Closing
Date.

(b) The representations and warranties of Seller set forth in this Agreement shall be true and
correct (i) on and as of the date hereof and (ii) on and as of the Closing Date with the same
effect as though such representations and warranties had been made on and as of the Closing Date
(except for representations and warranties that expressly speak only as of a specific date or time
which need only be true and correct as of such date or time), except in each of cases
(i) and (ii) for such failures of representations and warranties to be true and correct
(without giving effect to any materiality qualification or standard contained in any such
representations and warranties) which would not have a Seller Material Adverse Effect.

 

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(c) Since the Execution Date there shall not have occurred and be continuing a Seller Material
Adverse Effect.

(d) The Generating Facility shall:

(i) be Mechanically Complete;

(ii) be reasonably expected to be, prior to January 1, 2012, capable of sustained
production of (a) 675 MW (@ 90°F dry bulb and 71.8°F wet bulb) at a net plant heat rate, on
a Higher Heating Valve (“HHV”) basis of 7,169 BTU/kWh or lower (including 163 MW (net) of
duct firing) and (b) 703 MW (@ 90°F dry bulb and 71.8°F wet bulb) at a net plant heat rate,
on a HHV basis of 7,347 BTU/kWh or lower (including CT steam power augmentation and duct
firing), with a transmission export capacity of at least 685 MW;

(iii) have, or shall be reasonably expected to have, all Permits reasonably necessary
to achieve commercial operation prior to January 1, 2012 (except any Permits which are
customarily or expected to be granted on, near or after commencement of commercial
operations); and

(iv) be reasonably expected to comply with applicable NERC regulations and
requirements.

(e) Buyer shall have obtained from its members binding power purchase agreements committing,
pursuant to the terms thereof, the counterparties to purchase, in the aggregate, not less than
ninety percent (90%) of the Generating Facility’s expected summer unfired capacity of approximately
512 MW (the “Subscription Milestone”).

 

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Section 9.03 Conditions to Obligation of Seller. The obligation of Seller to consummate the
Closing is subject to the satisfaction, on or before the Closing, of each of the following further
conditions unless waived in writing by Seller:

(a) Buyer shall have performed in all material respects the covenants and agreements contained
in this Agreement that are required to be performed by it on or prior to the Closing Date.

(b) The representations and warranties of Buyer set forth in this Agreement shall be true and
correct (i) on and as of the date hereof and (ii) on and as of the Closing Date with the same
effect as though such representations and warranties had been made on and as of the Closing Date
(except for representations and warranties that expressly speak only as of a specific date or time
which need only be true and correct as of such date or time), except in each of cases (i) and (ii)
for such failures of representations and warranties to be true and correct (without giving effect
to any materiality qualification or standard contained in any such representations and warranties)
which would not have a Buyer Material Adverse Effect.

(c) Since the Execution Date there shall not have occurred and be continuing a Buyer Material
Adverse Effect.

(d) If, in Seller’s reasonable judgment, the Closing and consummation of the Transaction would
be reasonably likely to cause Seller or any of its Affiliates to be in breach (or to be in imminent
danger of such breach) of any covenant or other agreement restricting the sale, lease, transfer or
other disposition of assets under any currently outstanding agreement for indebtedness binding upon
Seller or any of its Affiliates, including any letter of credit reimbursement, revolving credit or
term loan agreement, Seller or any of its Affiliates shall have obtained any required or prudent
prior written consent or written waiver of the required lenders under such agreement and such
consent or waiver shall be in full force and effective to cure or otherwise avoid such actual or
prospective breach; provided that neither Seller or any of its Affiliates shall be required to pay
any charges, premiums, penalties or fees for any such consent or waiver.

(e) The Real Property, the Generating Facility and any other Purchased Assets, to the extent
the same or any portion thereof shall be subject to any Lien of, under or pursuant to (i) the
Mortgage Indenture or (ii) any other mortgage indenture, supplemental indenture or other instrument
binding on Seller or any of its Affiliates, shall be fully released from any such Lien in
accordance with the applicable provisions of, as applicable, Article 8 of the Mortgage Indenture
or the similar provisions of any such other mortgage indenture, supplemental indenture or
other instrument; provided that neither Seller or any of its Affiliates shall be required to pay
any charges, premiums, penalties or fees for any such release.

 

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ARTICLE 10

Survival; Indemnification

Section 10.01 Survival. The representations and warranties of the Parties contained in this
Agreement shall survive the Closing Date for a period of twenty four (24) months following the date
thereof. All covenants and agreements contained in this Agreement that contemplate or provide for
any rights, obligations or actions of any Party after the Closing shall survive the Closing until
they are fully performed or terminated in accordance with their terms. Any and all Claims for
Damages arising out of, relating to or in connection with the Excluded Liabilities or Assumed
Liabilities pursuant to Section 10.02 shall survive the Closing indefinitely. No Claim or cause of
action for indemnification under ARTICLE 10 arising out of the inaccuracy or breach of any
representation or warranty of Seller or Buyer may be made following the termination of the survival
period; it being understood that in the event notice of any Claim for indemnification under Section
10.02 shall have been given within the applicable survival period, the representations and
warranties that are subject of such indemnification claim shall survive until such time as such
Claim is fully resolved.

Section 10.02 Indemnification.

(a) From and after the Closing, subject to the limitations set forth in this Agreement, Seller
shall indemnify Buyer and its Affiliates against and agrees to hold each of them harmless from any
and all Damages incurred or suffered by Buyer or any of its Affiliates arising out of:

(i) the breach or inaccuracy of any representation or warranty made by Seller in this
Agreement;

(ii) the breach or violation of, or default under, any covenant, agreement or
undertaking of Seller contained in this Agreement; and

 

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(iii) any Excluded Liability and any and all Claims and expenses arising from the
failure of Seller or its Affiliates to pay, perform or discharge, when due, any of the
Excluded Liabilities; and

(iv) any event arising from the operation and ownership of, or conditions occurring
with respect to, the ownership and operation (including development and construction) of the
Generating Facility or any of the Purchased Assets by Seller or its Affiliates prior to the
Closing Date (but if arising only in part, then only to the extent of such part);

provided that, with respect to indemnification by Seller for any breach or inaccuracy of
any representation or warranty pursuant to Section 10.02(a)(i), (A) Seller shall not be liable
unless the aggregate amount of Damages with respect to such misrepresentations or breaches exceeds
$1,500,000.00 in which event Seller shall be liable for the full amount of Damages, and (B)
Seller’s maximum liability for Damages with respect to such misrepresentations or breaches shall
not exceed the 15% of the Purchase Price in the aggregate and (C) any individual Indemnification
Claim and/or series of related Indemnification Claims arising from the same event or occurrence or
series thereof resulting in Damages of less than $10,000.00 will be disregarded for all purposes
and not be indemnified by Seller.

(b) From and after the Closing, subject to the limitations set forth in this Agreement, Buyer
shall indemnify Seller and its Affiliates against and agrees to hold each of them harmless from any
and all Damages incurred or suffered by Seller or any of its Affiliates arising out of:

(i) the breach or inaccuracy of any representation or warranty made by Buyer in this
Agreement;

(ii) the breach or violation of, or default under, any covenant, agreement or
undertaking of Buyer contained in this Agreement;

(iii) any Assumed Liability and any and all claims and expenses arising from the
failure of Buyer or its Affiliates to pay, perform or discharge, when due, any of the
Assumed Liabilities; and

 

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(iv) any event arising from the operation and ownership of, or conditions occurring
with respect to the ownership and operation (including development and construction) of the
Generating Facility or any of the Purchased Assets from and after 12:01 a.m. on the Closing
Date (but if arising only in part, then only to the extent of such part).

provided that, with respect to indemnification by Buyer for any breach or inaccuracy of any
representation or warranty pursuant to Section 10.02(b)(i), (A) Buyer shall not be liable unless
the aggregate amount of Damages with respect to such misrepresentations or breaches exceeds
$1,500,000.00 in which event Buyer shall be liable for the full amount of Damages, (B) Buyer’s
maximum liability for Damages with respect to such misrepresentations or breaches shall not exceed
15% of the Purchase Price in the aggregate and (C) any individual Indemnification Claim and/or
series of related Indemnification Claims arising from the same event or occurrence or series
thereof resulting in Damages of less than $10,000.00 will be disregarded for all purposes and not
be indemnified by Buyer.

Section 10.03 Procedures.

(a) A party making a Claim for indemnification under Section 10.02 shall be, for the purposes
of this Agreement referred to as an “Indemnified Party” and a party against whom such claims are
asserted under Section 10.02 shall be, for the purposes of this Agreement, referred to as an
“Indemnifying Party”. All claims by any Indemnified Party under Section 10.02 shall be asserted
and resolved as follows:

(b) In the event that (i) any action, application, suit, demand, claim or legal,
administrative, arbitration or other alternative dispute resolution proceeding, hearing or
investigation (each a “Proceeding”) is asserted or instituted by any Person other than the Parties
or their Affiliates which could give rise to Damages for which an Indemnifying Party could be
liable to an Indemnified Party under this Agreement (such Proceeding, a “Third Party Claim”) or
(ii) any Indemnified Party under this Agreement shall have a claim to be indemnified by any
Indemnifying Party under this Agreement which does not involve a Third Party Claim (such claim, a
“Direct Claim” and, together with Third Party Claims, “Indemnification Claims”), the
Indemnified Party shall, promptly after it becomes aware of a Third Party Claim (and in any
event, within ten (10) Business Days), or facts supporting a Direct Claim, send to the Indemnifying
Party a written notice specifying the nature of such Proceeding, and the amount or estimated amount
thereof and the section of this Agreement such Third Party Claim or Direct Claim is being made
under (a “Claim Notice”), together with copies of all notices and documents (including court
papers) served on or received by the Indemnified Party in the case of a Third Party Claim,
provided that a delay in notifying the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations under Section 10.02 except to the extent that the
Indemnifying Party shall have been prejudiced by such failure to give such notice, in which case
the Indemnifying Party shall be relieved of its obligations under Section 10.02 to the extent of
such prejudice.

 

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(c) In the event of a Third Party Claim the Indemnifying Party shall have the right to defend
the Indemnified Party against such Third Party Claim and be entitled to appoint counsel of the
Indemnifying Party’s choice at the expense of the Indemnifying Party to represent the Indemnified
Party in connection with such Proceeding (in which case the Indemnifying Party shall not thereafter
be responsible for the fees and expenses of any separate counsel retained by any Indemnified Party
or any other costs or expenses with respect to the defense of a Third Party Claim except as set
forth below); provided that, notwithstanding such failure to engage counsel within
reasonable time, the Indemnifying Party shall have the right to assume the defense of such Third
Party Claim by appointment of counsel and shall thereafter cease to be responsible for the fees and
expenses of separate counsel appointed by the Indemnified Party. Nothing in this Section 10.03
shall require the Indemnifying Party to be responsible for the fees and expenses of more than one
counsel at any time in connection with the defense against a Third Party Claim. If requested by
the Indemnifying Party, the Indemnified Party agrees to cooperate with the Indemnifying Party and
its counsel in defending and contesting any Proceeding which the Indemnifying Party defends in
making any counterclaim against the Person asserting the Third Party Claim, or any cross-complaint
against any Person. No Third Party Claim may be settled or compromised, or the entry of any
judgment related thereto consented to (i) by the Indemnified Party without the prior written
consent of the Indemnifying Party in its sole discretion or (ii) by the Indemnifying Party without
the prior written consent of the Indemnified Party (which consent shall not be unreasonably
withheld, conditioned or delayed), unless, in the case of this
clause (ii), the sole relief provided is monetary damages that are paid in full by the
Indemnifying Party (if such claim by the Indemnified Party for indemnification is successful).
Notwithstanding the foregoing, the Indemnified Party shall have the right to settle, compromise or
consent to the entry of any judgment with respect to any Third Party Claim without such consent,
provided that in such event the Indemnified Party shall waive any right to indemnification under
this Section 10.03 with respect to such Third Party Claim.

 

51

 

(d) In the event of Direct Claim, the Indemnifying Party shall notify the Indemnified Party
within thirty (30) days of receipt of a Claim Notice whether or not the Indemnifying Party disputes
such Indemnification Claim. From and after the delivery of a Claim Notice under this Agreement, at
the reasonable request of the Indemnifying Party, each Indemnified Party shall grant the
Indemnifying Party and its representatives reasonable access to the books, records, employees,
representatives and properties of such Indemnified Party, and in the case of a claim relating to
environmental matters, copies of sampling data, environmental reports, proposals and any other
correspondence in the possession of the Indemnified Party to the extent reasonably related to the
matters to which the Claim Notice relates. All such access shall be granted during normal business
hours and shall be granted under conditions which will not unreasonably interfere with the business
and operations of such Indemnified Party. The Indemnifying Party will not, and shall use its
reasonable best efforts to cause its representatives not to, use (except in connection with such
Claim Notice) or disclose to any third person other than the Indemnifying Party’s representatives
(except as may be required by applicable Law) any information obtained pursuant to this Section
10.03(d) which is designated as confidential by the Indemnified Party.

Section 10.04 Calculation of Damages.

(a) The amount of any Damages payable under this ARTICLE 10 by the Indemnifying Party shall be
(i) net of any amounts recovered by the Indemnified Party under applicable insurance policies
(which the Indemnified Party shall use commercially reasonable efforts to obtain) and (ii) net of
any Tax benefit realized by the Indemnified Party arising from the incurrence or payment of any
such Damages and the receipt of indemnification payments from or on behalf of the Indemnifying
Party. In computing the amount of any such Tax benefit or cost, the Indemnified Party shall be
deemed to fully utilize, at the highest marginal tax rate then in effect and applicable to such
Party with respect to such payment, all Tax items arising
from the receipt of any indemnity payment hereunder or the incurrence or payment of any
indemnified Damages.

 

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(b) The Indemnifying Party shall not be liable under Section 10.02 (and no Party shall be
liable under Section 11.02 or otherwise under this Agreement) for any (i) special, incidental,
indirect, consequential, punitive or exemplary Damages or (ii) Damages for lost profits. For
purposes of clarity, the payment of Damages to a Person making a Third Party Claim in satisfaction
of such Third Party Claim shall not be deemed consequential Damages.

(c) The Indemnifying Party shall promptly, and in any event within thirty (30) days, pay or
reimburse to the Indemnified Party the amount of all Indemnification Claims after the Indemnifying
Party’s liability therefor is established (a) by agreement in writing between Indemnifying Party
and Indemnified Party or (b) by a final, non-appealable judgment of a court of competent
jurisdiction (any amount so determined is referred to herein as an “Established Loss”).

(d) All amounts paid by Seller to Buyer pursuant to this ARTICLE 10 shall, to the extent
permitted by applicable Law, be treated as adjustments to the Purchase Price for all Tax purposes.

Section 10.05 Assignment of Claims. If the Indemnified Party receives any payment from an
Indemnifying Party in respect of any Damages pursuant to ARTICLE 10 and the Indemnified Party could
have recovered all or a part of such Damages from a third party (a “Potential Contributor”) based
on the underlying claim asserted against the Indemnifying Party, the Indemnified Party shall assign
such of its rights to proceed against the Potential Contributor as are necessary to permit the
Indemnifying Party to seek to recover from the Potential Contributor the amount of such payment.

Section 10.06 Exclusive Remedy; Mitigation. Except as specifically set forth in this Agreement,
each Party waives any rights and claims it may have against the other Party, whether in Law or in
equity, relating to the Purchased Assets or the Transactions after the Closing. Such rights and
claims waived by each Party include, claims for contribution or other rights of recovery arising
out of or relating to claims for breach of contract, breach of representation or warranty,
negligent misrepresentation and all other claims for breach of duty.
After the Closing, ARTICLE 10 will provide the exclusive remedy for any misrepresentation, breach
of warranty, covenant or other agreement or other claim arising out of this Agreement or the
Transactions contemplated hereby. Notwithstanding the foregoing, Buyer and Seller agree that each
Party shall retain all remedies at Law or in equity with respect to actual fraud or willful or
intentional breaches of a representation, warranty, covenant or agreement contained in this
Agreement. Each of Buyer and Seller has an obligation to use reasonable best efforts to mitigate
Damages for which they are or may be entitled to indemnification pursuant to this ARTICLE 10.

 

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ARTICLE 11

Termination

Section 11.01 Grounds for Termination. This Agreement may be terminated at any time prior to the
Closing;

(a) by mutual written agreement of Seller and Buyer;

(b) by either Buyer or Seller if (i) the Closing has not occurred on or before July 1, 2011
(A) provided that if Buyer notifies Seller (or Seller notifies Buyer) on or before June 15, 2011,
then July 1, 2011 shall be changed to July 15, 2011 and (B) provided that if Buyer notifies Seller
before July 1 or July 15, as applicable, then July 1, 2011 or July 15, 2011, as then applicable,
shall be changed to on or before September 30, 2011, and (ii) the terminating Party shall not have
breached in any material respect any of its obligations under this Agreement in any manner that
shall have proximately caused the failure of the Closing to occur on or before such date (provided
that this clause (b) may be modified by Section 7.11);

(c) by either Buyer or Seller if (i) a statute, rule, regulation or executive order shall have
been enacted, entered or promulgated prohibiting the consummation of the Transactions and the Party
seeking to terminate this Agreement pursuant to this Section 11.01(c)(i) shall have used reasonable
best efforts to prevent the passage or implementation of such statute, rule, regulation or
executive order or (ii) an Order shall have been entered permanently restraining, enjoining or
otherwise prohibiting the consummation of the Transactions, and such Order shall have become final
and non-appealable and the Party seeking to terminate this Agreement pursuant to this Section
11.01(c)(ii) shall have used reasonable best efforts to remove such Order;

 

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(d) by Buyer, so long as Buyer is not then in material breach of any of its representations,
warranties, covenants or agreements hereunder, by written notice to Seller, if there shall have
been a material breach of any representation or warranty of Seller, or a material breach of any
covenant or agreement of Seller hereunder, which breach would be reasonably expected to have,
individually or in the aggregate, a Seller Material Adverse Effect, and such breach shall not have
been remedied within thirty (30) days after receipt by Seller of notice in writing (a “Breach
Notice”) from Buyer, specifying the nature of such breach and requesting that it be remedied or
Buyer shall not have received adequate assurance of a cure of such breach within such thirty (30)
day period (or which breach cannot by its nature be so cured);

(e) by Seller, so long as Seller is not then in material breach of any of its representations
and warranties, covenants or agreements hereunder, by written notice to Buyer, if there shall have
been a material breach of any representation or warranty of Buyer, or a material breach of any
covenant or agreement of Seller hereunder, which breach would be reasonably expected to have,
individually or in the aggregate, a Buyer Material Adverse Effect, and such breach shall not have
been remedied within thirty (30) days after receipt by Buyer of Breach Notice, specifying the
nature of such breach and requesting that it be remedied or Seller shall not have received adequate
assurance of a cure of such breach within such thirty (30) day period (or which breach cannot by
its nature be so cured);

(f) (i) by Buyer, if the satisfaction of any of the conditions set forth in Sections 9.01 or
9.02 (other than Section 9.02(e)) is or becomes impossible (other than through the failure by Buyer
to comply with its obligations under this Agreement) or (ii) by Seller, if the satisfaction of any
of the conditions set forth in Sections 9.01 or 9.03 is or becomes impossible (other than through
the failure of Seller to comply with its obligations under this Agreement); or

(g) by Seller if the Site Visit Milestone or the Subscription Period Milestone shall not have
been met, and in each case Seller has reasonable basis to believe that the Closing will not occur
by July 1, 2011 (as may be extended pursuant to Section 11.01(b)).

Notwithstanding anything else set forth in this Agreement, including the foregoing, if Buyer makes
the notification to Seller set forth in clause (B) of Section 11.01(b) above, the conditions to
Buyer’s obligations to effect the Closing set forth in Section 9.02(b), (c), and (d) shall be
deemed permanently satisfied and irrevocably waived, and Buyer shall not have any right to
terminate this Agreement or fail to effect the Closing based on such conditions not being satisfied
or pursuant to Section 11.01(d) or (f), and Buyer and its Affiliates shall have no right to receive
indemnification pursuant to this Agreement the breach or inaccuracy of any representation or
warranty made by Seller in this Agreement that occurs from July 15 to the Closing Date.

 

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The Party desiring to terminate this Agreement pursuant to Section 11.01(d) or (e) shall give five
(5) Business Days written notice of such termination to the other Party.

Section 11.02 Effect of Termination.

(a) Except as provided in clauses (b), (c) or (d) below, if this Agreement is terminated as
permitted by Section 11.01, such termination shall be without liability of either Party (or any
stockholder, Affiliate, director, officer, employee, agent, consultant or representative of such
Party) to the other Party to this Agreement; provided that if such termination shall result
from the (i) willful failure of either Party to fulfill a condition to the performance of the
obligations of the other Party, or (ii) willful failure to perform a material covenant of this
Agreement or failure of a Party to effect the Closing as set forth in this Agreement, such Party
shall be fully liable for any and all Damages incurred or suffered by the other Party as a result
of such failure or breach.

(b) If this Agreement is terminated (i) pursuant to Section 11.01(b) and all conditions to the
obligations of Buyer to effect the Closing set forth in ARTICLE 9 have been satisfied or waived
with the exception of the condition in Section 9.02(e) and any conditions that are by their nature
to be satisfied at Closing, (ii) pursuant to Section 11.01(e), (iii) pursuant to Section
11.01(f)(i) because the satisfaction of the condition in Section 9.02(e) is or becomes impossible,
(iv) pursuant to Section 11.01 (f)(ii) (other than because the satisfaction of the conditions set
forth in Section 9.01 or 9.03(d) and (e) becomes impossible) or (v) pursuant to Section 11.01(g),
then in each case the Break-Up Fee will be forfeited in favor of Seller and Buyer shall immediately
pay an additional $125,000.00 per day from July 15, 2011 to such date of termination (if such date
occurs after July 15, 2011), all as liquidated damages in full
compensation regarding any and all of Seller’s claimed Damages in connection with such
termination.

 

56

 

(c) If this Agreement is terminated by (i) Buyer pursuant to Section 11.01(d), (ii) Buyer
pursuant to Section 11.01(f)(i) because the satisfaction of the conditions in Section 9.02(a), (b),
(c) or (d) is or becomes impossible or (iii) Seller pursuant to Section 11.01(f)(ii) because the
satisfaction of either of the conditions in Section 9.03(d) or (e) is or becomes impossible, then
in each case the Break-Up Fee will be repaid by Seller to Buyer and $375,000.00 will be promptly
paid by Seller to Buyer in full compensation regarding any and all of Buyer’s fees and expenses or
claimed Damages in connection with such termination.

(d) If this Agreement is terminated other than in the circumstances set forth in clauses (b)
and (c) above, the Break-Up Fee will be promptly repaid by Seller to Buyer following such
termination.

ARTICLE 12

Miscellaneous

Section 12.01 Notices. Any notice or other communication from any Party to the other Party shall
be made in writing in the English language and shall be (a) delivered by hand or sent by a
nationally or internationally recognized courier to the address of the Party set forth below, (b)
sent by facsimile to the facsimile number of the Party set forth below and shall be marked for the
attention of the person therein referred to or (c) sent by electronic mail (“e-mail”) transmission
to the e-mail address set forth below, which e-mail transmission shall request receipt of such
e-mail transmission. All notices and communications shall be deemed received upon: (a) actual
receipt thereof by the addressee or actual delivery thereof to the appropriate address (b) in the
case of a facsimile transmission, upon transmission thereof by the sender and the issuance by the
transmitting machine of a confirmation slip confirming that the number of pages constituting the
notice have been transmitted without error; or (c) in the case of an e-mail transmission, the
sender receiving receipt of such e-mail transmission:

if to Buyer, to:

American Municipal Power, Inc.

1111 Schrock Road, Suite 100

Columbus, OH 43229

Attention: Marc S. Gerken

Tel: 614-540-1111

Fax: 614-540-1113

e-mail: mgerken@amppartners.org

with a copy to (such copy not to constitute notice):

 

57

 

Chester Willcox & Saxbe, LLP

65 East State St., Suite 1000

Columbus, OH 43215

Attention: John W. Bentine

Tel: 614-221-4000

Fax: 614-221-4012

e-mail: jbentine@cwslaw.com

if to Seller, to:

FirstEnergy Services Company

76 South Main Street

Akron, OH 44308

Attention: Gary D. Benz

Tel: (330) 384-5802

Fax: (330) 315-9227

e-mail: benzg@firstenergycorp.com

and

Attention: Leila Vespoli

Tel: (330) 384-5800

Fax: (330) 384-3875

e-mail: vespolil@firstenergycorp.com

with a copy to (such copy not to constitute notice):

Akin Gump Strauss Hauer & Feld LLP

1333 New Hampshire Avenue, N.W.

Washington, DC 20036-1564

Attention: Daniel I. Fisher

Tel: (202) 887-4121

Fax: (202) 955-7792

e-mail: dfisher@akingump.com

 

58

 

Section 12.02 Amendments and Waivers.

(a) Any provision of this Agreement or of any other Transaction Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an
amendment, by each Party to this Agreement or such other Transaction Agreement, as the case may be,
or in the case of a waiver, by the Party against whom the waiver is to be effective.

(b) No failure or delay by any Party in exercising any right, power or privilege hereunder or
under any of the other Transaction Agreements shall operate as a waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. The rights and remedies herein provided or provided in any
of the other Transaction Agreements shall be cumulative and not exclusive of any rights or remedies
provided by Law.

Section 12.03 Expenses. Except as otherwise provided herein, all costs and expenses incurred in
connection with negotiating, preparing and executing the Transaction Agreements shall be paid by
the Party incurring such cost or expense. Notwithstanding the previous sentence, the Parties shall
split equally any filing expenses incurred pursuant to any filings under the HSR Act.

Section 12.04 Successors and Assigns. The provisions of the Transaction Agreements shall be
binding upon and inure to the benefit of the Parties hereto and thereto and their respective
successors and assigns; provided that no Party may assign, delegate or otherwise transfer any of
its rights or obligations under this Agreement or under any of the other Transaction Agreements
without the consent of each other Party hereto and thereto (other than (i) any assignment by a
Party to one of its Affiliates or (ii) an assignment by Buyer to a joint action agency similar to
Buyer; provided that such assignment shall not relieve Buyer of its liabilities or obligations
hereunder or thereunder.

Section 12.05 Governing Law; Attorneys’ Fees. THIS AGREEMENT SHALL BE CONSTRUED, PERFORMED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF OHIO. The prevailing party in any action or
proceeding relating to this Agreement or any Transaction Agreement shall be entitled to recover
reasonable attorneys’
fees and other costs from the non-prevailing party, in addition to any other relief to which such
prevailing party may be entitled.

 

59

 

Section 12.06 Jurisdiction. Except as otherwise expressly provided in this Agreement (including
Section 7.11) or any of the other Transaction Agreements, the Parties hereto agree that any suit,
action or proceeding seeking to enforce any provision of, or based on any matter arising out of or
in connection with, this Agreement, the other Transaction Agreements or the Transactions shall be
brought in a state or federal court located in the State of Ohio and that any cause of action
arising out of this Agreement or any of the other Transaction Agreements shall be deemed to have
arisen from a transaction of business in the State of Ohio, and each of the Parties hereby
irrevocably consents to the nonexclusive jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the
fullest extent permitted by Law, any objection that it may now or hereafter have to the laying of
the venue of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an inconvenient forum. Process
in any such suit, action or proceeding may be served on any Party anywhere in the world, whether
within or without the jurisdiction of any such court.

Section 12.07 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE
OTHER TRANSACTION AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

Section 12.08 Counterparts; Third Party Beneficiaries. This Agreement and the other Transaction
Agreements may be signed in any number of counterparts, each of which shall be an original, with
the same effect as if the signatures hereto and thereto were upon the same instrument. This
Agreement and the other Transaction Agreements shall become effective when each Party hereto or
thereto shall have received a counterpart hereof or thereof signed by the other Party hereto or
thereto. Except as explicitly provided herein or therein, no provision of this Agreement or of any
of the other Transaction Agreements is intended to confer upon any Person other than the Parties
hereto or thereto any rights or remedies hereunder or thereunder.

 

60

 

Section 12.09 Entire Agreement. This Agreement and the other Transaction Agreements constitute the
entire agreement between the Parties with respect to the subject matter of this Agreement and
supersede all prior agreements and understandings, both oral and written, between the Parties with
respect to the subject matter of this Agreement (including the Memorandum of Understanding dated as
of February 3, 2011 by and between Seller and Buyer), except for the Confidentiality Agreement,
which remains in full force and effect in accordance with its terms and which applies to this
Agreement, the Transaction Agreements and the Transactions.

Section 12.10 Captions. The captions herein and in the other Transaction Agreements are included
for convenience of reference only and shall be ignored in the construction or interpretation hereof
or thereof.

Section 12.11 Severability. The provisions of this Agreement will be deemed severable and the
invalidity or unenforceability of any provision will not affect the validity or enforceability of
the other provisions hereof; provided that if any provision of this Agreement, as applied
to any Party or to any circumstance, is adjudged by a Governmental Body or arbitrator not to be
enforceable in accordance with its terms, the Parties agree that such Governmental Body or
arbitrator making such determination will have the power to modify the provision in a manner
consistent with its objectives such that it is enforceable, or to delete specific words or phrases,
and in its reduced form, such provision will then be enforceable and will be enforced.

Section 12.12 Specific Performance. Each Party acknowledges and agrees that the other Party would
be damaged irreparably if any provision of this Agreement is not performed in accordance with its
specific terms or is otherwise breached. Accordingly, each Party agrees that the other Party will
be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement
and to enforce specifically this Agreement and its terms and provisions in any action instituted in
any court of the United States or any state thereof having jurisdiction over the Party and the
matter, subject to Section 12.05, Section 12.06 and Section 12.07, in addition to any other remedy
to which it may be entitled, at Law or in equity.

[Signature Page Follows]

 

61

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	FIRSTENERGY GENERATION CORP.

 	 
	 	By:  	/s/ Mark T. Clark
 	 
	 	 	Mark T. Clark 	 
	 	 	Executive Vice President and Chief Financial Officer 	 
	 
	 	AMERICAN MUNICIPAL POWER, INC.

 	 
	 	By:  	/s/ Marc S. Gerken, P.E.
 	 
	 	 	Marc S. Gerken, P.E. 	 
	 	 	President/CEO 	 
	 
	 	Approved as to Form and Attest:

 	 
	 	By:  	/s/ John W. Bentine
 	 
	 	 	John W. Bentine 	 
	 	 	General Counsel 	 
	 

 

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION AGREEMENT

This Assignment and Assumption Agreement, dated as of [Ÿ], 2011 (this “Agreement”), is
by and between FirstEnergy Generation Corp., an Ohio corporation (the “Assignor”) and American
Municipal Power, Inc., an Ohio nonprofit corporation (“Assignee” and, together with Assignor, the
“Parties”).

RECITALS

A. Assignor and Assignee are parties to that certain Asset Purchase Agreement dated as of
March 11, 2011 (the “Asset Purchase Agreement”), pursuant to which Assignee has agreed to purchase
the Purchased Assets and assume the Assumed Liabilities.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises herein made and the mutual benefits to
be derived therefrom, and in consideration of the representations, warranties and covenants
contained herein, the parties agree as follows:

1. Definitions. Undefined capitalized terms herein are defined in the Asset Purchase
Agreement.

2. Assignment. Assignor hereby assigns, sells, transfers, and sets over (collectively, the
“Assignment”) to Assignee all of the legal, beneficial, and other right, title, benefit,
privileges, and interest in and to the Assumed Liabilities in accordance with the terms and
conditions of the Asset Purchase Agreement.

3. Assumption. Assignee hereby accepts the Assignment, and assumes and agrees to observe,
perform, pay, and otherwise discharge when due such Assumed Liabilities assigned hereunder.

4. Terms of Asset Purchase Agreement. The scope, nature, and extent of the Assumed
Liabilities are expressly set forth in the Asset Purchase Agreement. Nothing contained herein will
itself change, amend, extend, or alter (nor should it be deemed or construed as changing, amending,
extending, or altering) the terms or conditions of the Asset Purchase Agreement in any manner
whatsoever. This instrument does not create or establish rights, liabilities or obligations not
otherwise created or existing under or pursuant to the Asset Purchase Agreement. In the event of
any conflict or inconsistency between the terms of the Asset Purchase Agreement and the terms of
this Agreement, the terms of the Asset Purchase Agreement will govern.

5. Governing Law; Attorneys’ Fees. THIS AGREEMENT SHALL BE CONSTRUED, PERFORMED AND ENFORCED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF OHIO. The prevailing party in any action or proceeding
relating to this Agreement shall be entitled to recover reasonable attorneys’ fees and other costs
from the non-prevailing party, in addition to any other relief to which such prevailing party may
be entitled.

 

 

6. Jurisdiction. Except as otherwise expressly provided in this Agreement, the Parties hereto
agree that any suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement, shall be brought in a state or federal
court located in the State of Ohio and that any cause of action arising out of this Agreement shall
be deemed to have arisen from a transaction of business in the State of Ohio, and each of the
Parties hereby irrevocably consents to the nonexclusive jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably
waives, to the fullest extent permitted by Law, any objection that it may now or hereafter have to
the laying of the venue of any such suit, action or proceeding in any such court or that any such
suit, action or proceeding which is brought in any such court has been brought in an inconvenient
forum. Process in any such suit, action or proceeding may be served on any Party anywhere in the
world, whether within or without the jurisdiction of any such court.

7. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT.

8. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to
the benefit of the Parties hereto and thereto and their respective successors and assigns; provided
that no party may assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the consent of the other Party hereto.

9. Further Assurances. Each party hereby agrees to execute and deliver, or cause to be
executed and delivered, such other documents, certificates, agreements and other writings as may be
reasonably necessary after the Closing to implement expeditiously the transactions contemplated by
this Agreement.

10. Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures hereto and thereto were upon the
same instrument. This Agreement shall become effective when each Party hereto or thereto shall
have received a counterpart hereof or thereof signed by the other Party hereto or thereto.

11. Severability. The provisions of this Agreement will be deemed severable and the
invalidity or unenforceability of any provision will not affect the validity or enforceability of
the other provisions hereof; provided that if any provision of this Agreement, as applied
to any Party or to any circumstance, is adjudged by a Governmental Body or arbitrator not to be
enforceable in accordance with its terms, the Parties agree that such Governmental Body or
arbitrator making such determination will have the power to modify the provision in a manner
consistent with its objectives such that it is enforceable, or to delete specific words or phrases,
and in its reduced form, such provision will then be enforceable and will be enforced.

12. Specific Performance. Each Party acknowledges and agrees that the other Party would be
damaged irreparably if any provision of this Agreement is not performed in accordance with its
specific terms or is otherwise breached. Accordingly, each Party agrees that the other Party will
be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement
and to enforce specifically this Agreement and its terms and provisions in any action
instituted in any court of the United States or any state thereof having jurisdiction over the
Party and the matter, subject to paragraphs 5, 6 and 7, in addition to any other remedy to which it
may be entitled, at Law or in equity.

[Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above
written.

	 	 	 	 	 	 	 	 	 
	 	 	FIRSTENERGY GENERATION CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	AMERICAN MUNICIPAL POWER, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

EXHIBIT B

BILL OF SALE

For good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and pursuant to that certain Asset Purchase Agreement (the “Agreement”), dated as of
March 11, 2011 (the “Execution Date”) by and between FirstEnergy Generation Corp., an Ohio
corporation (the “Seller”) and American Municipal Power, Inc., an Ohio nonprofit corporation
(“Buyer” and, together with Seller, the “Parties”), the Seller hereby unconditionally and
irrevocably grants, bargains, transfers, sells, assigns, conveys, and delivers to Buyer, its
successors and assigns forever, all of the Seller’s right, title, and interest, legal or equitable,
in, to and under the Purchased Assets, subject to the terms of the Agreement (the “Transferred
Items”).

TO HAVE AND TO HOLD the Transferred Items unto Buyer and its successors and assigns forever.

Undefined capitalized terms herein are defined in the Agreement.

Subject to the terms and conditions of the Agreement, the Seller hereby sells, conveys,
transfers, assigns and delivers to Buyer all of Seller’s right, title and interest in, to and under
the Transferred Items.

THE TRANSFERRED ITEMS ARE BEING SOLD AND CONVEYED BY SELLER TO (AND ACCEPTED BY) BUYER IN
THEIR THEN-EXISTING CONDITION, AS IS, WHERE IS, WITH ALL FAULTS (KNOWN OR UNKNOWN, LATENT,
DISCOVERABLE OR UNDISCOVERABLE), AND WITHOUT ANY WRITTEN OR VERBAL REPRESENTATIONS OR WARRANTIES
WHATSOEVER, WHETHER EXPRESS OR IMPLIED OR ARISING BY OPERATION OF LAW, INCLUDING ANY IMPLIED OR
EXPRESS WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, SUITABILITY FOR HABITATION,
NON-INFRINGEMENT OR CONFORMITY TO MODELS OR SAMPLES OR MATERIALS, IN EACH CASE OTHER THAN AS
EXPRESSLY SET FORTH IN THE AGREEMENT.

The scope, nature and extent of the Transferred Items are expressly set forth in the
Agreement. Nothing herein contained will itself change, amend, extend, or alter (nor should it be
deemed or construed as changing, amending, extending, or altering) the terms or conditions of the
Agreement in any manner whatsoever. This instrument does not create or establish rights,
liabilities, or obligations not otherwise created or existing under or pursuant to the Agreement.
Seller acknowledges and agrees that the representations, warranties, covenants, agreements, and
indemnities contained in the Agreement will not be superseded hereby but will remain in full force
and effect to the full extent provided therein. In the event of any conflict or inconsistency
between the terms of the Agreement and the terms of this instrument, the terms of the Agreement
will govern.

Nothing in this instrument, express or implied, is intended or shall be construed to confer upon or
give to, any person, firm or corporation other than Buyer and its successors and
assigns any remedy or claim under or by reason of this instrument or any term, covenant or
condition hereof, and all of the terms, covenants, conditions, promises, and agreements in this
instrument shall be for the sole and exclusive benefit of Buyer and its successors and assigns.

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, this Bill of Sale is being executed and delivered by Seller on
[Ÿ], 2011.

	 	 	 	 	 	 	 	 	 
	 	 	FIRSTENERGY GENERATION CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

EXHIBIT C

LIMITED WARRANTY DEED

STATUTORY FORM: See O.R.C. Sections 5302.07 and 5302.08

KNOW ALL MEN BY THESE PRESENTS, that FIRSTENERGY GENERATION CORP., an Ohio corporation, whose
address is 76 South Main Street, Akron, Ohio 44308, for valuable consideration paid, grants, with
limited warranty covenants, to AMERICAN MUNICIPAL POWER, INC., whose address is 1111 Schrock Road,
Suite 100, Columbus, Ohio 43229, the following described real property:

[See description on Exhibit A attached hereto]

Prior instrument reference: OR Book 71, page 88 and OR Book 61, page 1735

Tax Parcel Numbers 13-20-00-0005-02, 13-19-00-0009-01, 34-60-00-0421-00, 34-60-00-0422-00. PIN No.
(abatement/pilot parcel) 34-60-94-0422-00

The foregoing real property is conveyed subject to the matters set forth on Exhibit B
attached hereto.

Executed this
 _____ 

day of ____, 2011.

	 	 	 	 	 	 	 	 	 
	 	 	FIRST ENERGY GENERATION CORP., an Ohio corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

	 	 	 
	STATE OF                                         

	 	§
	 

	 	§
	COUNTY OF                                         

	 	§

BEFORE ME, the undersigned authority, on this day personally appeared
 _____ , _____ of FIRSTENERGY GENERATION CORP., an Ohio corporation, known to me to be the
person whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed, in the capacity therein
stated, and as the act and deed of said corporation.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the
 _____ day of  _____, 2011.

	 	 	 
	 

	 	 
	 

	 	Notary Public in and for the State of                     
	 
	 	 
	My Commission Expires:
	 	 
	 
	 	 
	 

	 	 
	 

	 	Notary’s Printed Name
	 

	 	 

	 	 	 
	After recording this documents

should be returned to:

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 

 

2

 

Exhibit A to Limited Warranty Deed

Legal Description of Real Property

Parcel No. 1

Situated in the Township of Sandusky, County of Sandusky, State of Ohio, described as follows:

Being a parcel of land situated in part of the Southwest Quarter (SW 1/4) of Section Twenty (20),
Town-Five (5) North, Range-Fifteen (15) East, Sandusky Township, Sandusky County, Ohio described as
follows:

	 	1.	 	Commencing at a found Sandusky County monument box marking the West Quarter (W 1/4)
post of Section Twenty (20), said point being on the centerline of County Road One Hundred
Thirty-eight (138);

	 	2.	 	Thence, S 01 degree 22 minutes 48 seconds E Nine Hundred Fifty-nine and Forty-three
Hundredths (959.43) feet along the centerline of County Road One Hundred Thirty-eight (138)
to a set PK nail marking the POINT OF BEGINNING; .

	 	3.	 	Thence N 88 degrees 38 minutes 53 seconds E Two Hundred Five (205.00) feet to a set
iron rod, passing at Twenty (20.00) feet a set iron rod on the East right-of-way of County
Road One Hundred Thirty-eight (138);

	 	4.	 	Thence S 01 degree 22 minutes 48 seconds E Five Hundred Fifty (550.00) feet to a set
iron rod;

	 	5.	 	Thence S 88 degrees 38 minutes 53 seconds W Two Hundred Five (205.00) feet along the
North line of a parcel of land now or formerly owned by Joyce Myers (Vol. 411, Pg. 262) to
a set PK nail on the centerline of County Road One Hundred Thirty-eight (138), passing at
One Hundred Eighty-five (185.00) feet a set iron rod on the East right-of-way of County
Road One Hundred Thirty-eight (138);

	 	6.	 	Thence N 01 degree 22 minutes 48 seconds W Five Hundred Fifty (550.00) feet along the
centerline of County Road One Hundred Thirty-eight (138) to the POINT OF BEGINNING.

Containing in all 2.5884 acres of land, more or less.

The bearings are assumed and for angular measurements only.

This legal description is based upon a survey done for S. Shannon Smith by Kusmer & Associates,
Inc., in February, 2000.

 

 

 

Parcel No. 2 

TRACT I:

Being part of the East Half (E1/2) of Section Nineteen (19), Township Five (5) North Range Fifteen
(15) East, Sandusky Township, Sandusky County, Ohio, and being more particularly described as
follows:

Beginning at a Monument Box found marking the East Quarter (1/4) Post of said Section Nineteen
(19);

Thence, North 01 degree 38 minutes 33 seconds West, in the East line of said Section Nineteen (19)
and in the centerline of Township Road 138, a distance of 92.62 feet to the Southeast corner of
lands acquired by Gilbert F. Overmyer through Deed Volume 376, Page 632, referenced by a Railroad
Spike found 0.00 feet North and 0.16 feet East;

Thence, South 87 degrees 26 minutes 27 seconds West, in the South line of said Overmyer lands,
360.11 feet to an iron rod set to mark the southwest corner of said Overmyer lands and in the North
line of lands acquired by Sandusky County Park District through Deed Volume 399, Page 001;

Thence South 46 degrees 49 minutes 15 seconds East, in the North line of said Sandusky County Park
District lands, 505.81 feet to a Parker-Kalon nail found in the East line of said Section Nineteen
(19);

Thence, North 01 degree 22 minutes 03 seconds West, in the East line of said Section Nineteen (19),
a distance of 269.69 feet to the Place of Beginning containing 1.4987 acres of land, more or less,
but subject to all easements and restrictions of record;

Bearings in the above description are based on a meridian assumed for the purpose of indicating
angles only.

Grantor herein acquired title thru Deed Volume 294, Page 895, and Volume 422, Page 513 of the Deed
Records of Sandusky County, Ohio.

This description was prepared by Roy E. Yeager, Registered Surveyor No. 6262, and was taken from an
actual survey performed in May, 2001.

Sandusky County Auditors Permanent Parcel No.: 13-19-00-0009-01.

Prior Deed References: Volume 270, Pg. 745, Volume 283, Page 547, Volume 293, Page 621, Volume 294,
Page 327, Volume 294, Page 895 and Volume 422, Page 513.

TRACT II:

A parcel of land being Outlot No. 421 in the City of Fremont, County of Sandusky, Ohio, and being
more particularly described as follows;

Commencing at a found iron rod marking the West Quarter corner of Section Twenty (20):

Thence on a measured bearing of South 01 degree 22 minutes 03 seconds East on the West line of the
Southwest Quarter (SW 1/4) of Section (20), a distance of 409.98 feet to a point, reference
a found PK nail 0.05’ South, said point being the True Point of Beginning of the Parcel herein
described;

 

2

 

Thence on a measured bearing of South 46 degrees 48 minutes 12 seconds East on the Southwesterly
line of a parcel of land recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records, a
measured distance of 1568.54 feet to a found capped iron;

Thence on a measured bearing of South 88 degrees 39 minutes 39 seconds West on the North line of a
parcel of land recorded in Volume 412, Pages 681 through 684, Sandusky County Deed Records, a
measured distance of 912.52 feet to a found capped iron;

Thence on a measured bearing of North 01 degree 22 minutes 19 seconds West on the East line of a
parcel of land recorded in Volume 415, Pages 183 through 186, Sandusky County Deed Records, a
measured distance of 550.79 feet to a found capped iron;

Thence on a measured bearing of South 88 degrees 37 minutes 22 seconds West on the North line of a
parcel of land recorded in Volume 415, Pages 183 through 186, Sandusky County Deed Records, a
measured distance of 204.97 feet to a point on the West line of the Southwest Quarter (SW 1/4) of
Section Twenty (20);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the West line of the
Southwest Quarter (SW 1/4) of Section Twenty (20) a distance of 549.45 feet to the True Point of
Beginning of the parcel herein described, said parcel containing 11.519 acres of land, more or
less, subject to all easements, zoning restrictions of record and legal highways.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

Sandusky County Auditors Permanent Parcel No.: 34-60-00-0421-00.

TRACT III:

A parcel of land being Outlot No. 422 in the City of Freemont, County of Sandusky, Ohio, and being
more particularly described as follows:

Commencing at a found iron rod marking the West Quarter Post of Section Twenty (20);

Thence on a measured bearing of South 01 degree 22 minutes 03 seconds East a measured distance of
213.48 feet to a point, said point being the True Point of Beginning of the parcel herein
described;

Thence on a measured bearing of South 46 degrees 48 minutes 12 seconds East on the Southwesterly
line of a parcel of land recorded in Volume 223, Page 561, Sandusky County Records, a measured
distance of 701.79 feet to a point (reference found capped iron 0.30’ North & 0.07’ West);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the East line of a
parcel of land recorded in Volume 223, Page 561, Sandusky County Deed Records, a measured distance of 705.50 feet to a point on the North line of the Southwest Quarter (SW 1/4) of
Section Twenty (20);

 

3

 

Thence on a measured bearing of North 88 degrees 40 minutes 55 seconds East on the East & West
centerline of Section Twenty (20), a measured distance of 2152.40 feet to a found capped iron
marking the center of Section Twenty (20);

Thence on a measured bearing of South 01 degree 23 minutes 27 seconds East on the West line of a
parcel of land recorded in Volume 379, Pages 868 through 870, Sandusky County Deed Records, a
measured distance of 1508.91 feet to an iron rod;

Thence on a measured bearing of South 88 degrees 39 minutes 17 seconds West on the Northerly line
of a parcel of land recorded in Volume 393, Page 952 through 956, Sandusky County Deed Records, a
measured distance of 1392.95 feet to a found stone on the Northeasterly line of a parcel of land
recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records;

Thence on a measured bearing of North 46 degrees 48 minutes 12 seconds West on the Northeasterly
line of a parcel of land recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records, a
measured distance of 1768.60 feet to a found PK nail on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the West line of the
Southwest Quarter (SW 1/4) of Section Twenty (20), a measured distance of 56.14 feet to the True
Point of Beginning of the parcel herein described, said parcel containing 68.711 acres of land,
more or less, subject to all easements, zoning restrictions of record and legal highways.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

Sandusky County Auditors Permanent Parcel No.: 34-60-00-0422-00. PIN No.: (abatement/pilot parcel)
34-60-94-0422-00.

EXCEPTING FROM PARCEL NO. 4 THE FOLLOWING DESCRIBED PARCEL:

A parcel of land being part of Outlot 422, City of Fremont, Sandusky County, Ohio and being more
particularly described as follows:

Commencing at a found 5/8 inch iron rod at the West Quarter Post of said Section Twenty (20);

Thence, South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of said Section Twenty (20), also being the centerline of County Road 138 (40 foot wide
right-of-way), a distance of 213.48 feet to a point;

Thence, South 46 degrees 48 minutes 12 seconds East, on a line being 40.00 feet Northerly of and
parallel to the Former New York Central Railroad, and on the Northerly line of Outlot 422, also
being the existing corporation line, a distance of 701.79 feet to a set iron pin;

 

4

 

Thence, North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly of and
parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and on the
Westerly line of Outlot 422, a distance of 34.30 feet to a set iron pin, said iron pin marking the
TRUE POINT OF BEGINNING of the parcel herein described;

Thence continuing North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly
of and parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and
on the Westerly line of Outlot 422, a distance of 351.02 feet to a set iron pin;

Thence North 88 degrees 05 minutes 21 seconds East, a distance of 293.35 feet to a set iron pin;

Thence South 01 degree 54 minutes 39 seconds East, a distance of 351.00 feet to a set iron pin;

Thence South 88 degrees 05 minutes 21 seconds West, a distance of 296.68 feet to the set iron pin
marking the TRUE POINT OF BEGINNING of the parcel herein described, said parcel containing 2.377
acres of land, more or less, subject to all easements, zoning restrictions of record and legal
highways.

Parcel No. 4 contains, after the exception, 66.334 acres of land, more or less.

Any and all of Grantor’s right, title and interest in and to the following easement tracts:

Easement No. 1 

Grant of easements by the Board of Park Commissioners of the Sandusky County Park District to
Fremont Energy Center, LLC, filed August 8, 2001 in Deed Vol. 422, Page 268 and affecting the
following described property:

A parcel of land being part of the Southwest Quarter (SW 1/4) of Section Twenty (20), Town Five (5)
North, Range Fifteen (15) East, Sandusky Township, City of Fremont, Sandusky County, Ohio, and
being more particularly described as follows:

Commencing at the West Quarter Post of Section Twenty (20);

Thence South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20), a distance of 269.64 feet to a point, said point being the TRUE POINT
OF BEGINNING of the parcel herein described;

Thence South 46 degrees 48 minutes 12 seconds East, on the Northeasterly line of the former New
York Central Railroad right-of-way (100 feet wide), a distance of 1768.58 feet to a point;

Thence South 88 degrees 38 minutes 36 seconds West, a distance of 142.58 feet to a point;

Thence North 46 degrees 48 minutes 12 seconds West, on the Southwesterly line of the former New
York Central Railroad right-of-way (100 feet wide), a distance of 1568.51 feet to a point on the
West line of the Southwest Quarter (SW 1/4) of Section Twenty (20);

 

5

 

Thence North 01 degree 22 minutes 03 seconds West, on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20), a distance of 140.34 feet to the TRUE POINT OF BEGINNING of the parcel
herein described.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true of magnetic North.

Easement No. 2 

Grant Temporary Easement by the Board of Park Commissioners of the Sandusky County Park District to
Fremont Energy Center L.L.C., filed on August 8, 2001 in Deed Volume 422, Page 260 and affecting
the following described property:

Being part of Outlot 420, in the City of Fremont, Sandusky County, Ohio, and being more
particularly described as follows:

Commencing at the intersection of the centerline of United States Route 20 (By-pass) with the
centerline of the Norfolk-Southern Railroad;

Thence, North 46 degrees 49 minutes 15 seconds West in the centerline of the Norfolk—Southern
Railroad, 345.000 feet to said point in the South line of Outlot 420 and the Place of Beginning of
the easement herein described;

Thence, South 43 degrees 10 minutes 45 seconds West in the South line of said Outlot 420, a
distance of 50.00 feet to a point in the East line of lands acquired by Toledo Edison Company thru
Deed Volume 322, Page 662;

Thence, North 46 degrees 49 minutes 15 seconds West in the East line of said Toledo Edison lands,
in the East line of lands acquired by Chemi Trol Company thru Deed Volume 297, Page 107, in the
East line of lands acquired by Jack H. Balsizer thru Deed Volume 420, Page 091 and in the East line
of lands acquired by Ralph N. & Joyce E. Myers thru Deed Volume 412, Page 681, a distance of
2,686.30 feet to an iron rod found marking the Southwest corner of Outlot 421;

Thence, North 88 degrees 39 minutes 38 seconds East, 142.63 feet to a stone found marking the
Southwest corner of Outlot 422;

Thence, South 46 degrees 49 minutes 15 seconds East, in the West line of lands acquired by Earl J.
& Karen S. Wammes thru Deed Volume 393, Page 952, a distance of 2,584.60 feet to the Northwest
corner of Outlot 419;

Thence, South 43 degrees 10 minutes 45 seconds West, in the West line of Outlot 419, a distance of
50.00 feet to the Place of Beginning.

Bearings in the above description are based on a meridian assumed for the purpose of indicating
angles only.

 

6

 

Easement No. 3 

Easement for the purpose of erecting and maintaining electric lines and appurtenant facilities
reserved in that certain Limited Warranty Deed dated November 24, 2004, and filed in the Sandusky
County Public Records under Book 7, Page 1896, from Calpine Corporation to American Transmission
Systems, Inc., such reserved easement covering the following described land:

A parcel of land being part of Outlot 422, City of Fremont, Sandusky County, Ohio and being more
particularly described as follows:

Commencing at a found 5/8 inch iron rod at the West Quarter Post of said Section Twenty (20);

Thence, South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of said Section Twenty (20), also being the centerline of County Road 138 (40 foot wide
right-of-way), a distance of 213.48 feet to a point;

Thence, South 46 degrees 48 minutes 12 seconds East, on a line being 40.00 feet Northerly of and
parallel to the Former New York Central Railroad, and on the Northerly line of Outlot 422, also
being the existing corporation line, a distance of 701.79 feet to a set iron pin;

Thence, North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly of and
parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and on the
Westerly line of Outlot 422, a distance of 34.30 feet to a set iron pin (Note: all iron pins
indicated as being set are 5/8 inch diameter by 30 inch long iron pins with reference caps), said
iron pin marking the TRUE POINT OF BEGINNING of the parcel herein described;

Thence continuing North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly
of and parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and
on the Westerly line of Outlot 422, a distance of 351.02 feet to a set iron pin;

Thence North 88 degrees 05 minutes 21 seconds East, a distance of 293.35 feet to a set iron pin;

Thence South 01 degree 54 minutes 39 seconds East, a distance of 351.00 feet to a set iron pin;

Thence South 88 degrees 05 minutes 21 seconds West, a distance of 296.68 feet to the set iron pin
marking the TRUE POINT OF BEGINNING of the parcel herein described, said parcel containing 2.377
acres of land, more or less, subject to all easements, zoning restrictions of record and legal
highways.

The above described legal description is based on a survey performed by Joseph D. Fenicle,
Professional Surveyor #8210, of J. C. Andrus & Associates, Inc. in August, 2004.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

 

7

 

Easement No. 4 

Easement for the purpose of constructing and maintaining a sanitary sewer line granted under that
certain Easement Agreement dated January 13, 2005, and filed in the Sandusky County Public Records under Book 7, Page 1899, from The Toledo Edison Company to Calpine Corporation, such
easement covering the following described land:

A parcel of land being part of the Southwest quarter of Section 20, Town 5 North, Range 15 East,
City of Fremont, Sandusky County, Ohio, and being more particularly described as follows:

Commencing at a found iron rod at the West quarter post of said Section 20;

Thence South 01° 22’ 03” East, on the West line of the Southwest quarter of said
Section 20, also being the centerline of County Road 138 (40 foot wide right-of-way), a distance of
213.48 feet to a point;

Thence South 46° 48’ 12” East, on a line being 40.00 feet Northerly of and parallel to
the Former New York Central Railroad, a distance of 701.79 feet to a found capped iron pin, said
iron pin marking the TRUE POINT OF BEGINNING of the parcel herein described;

Thence North 46° 48’ 12” West, a distance of 48.42 feet to a point;

Thence North 88° 05’ 21” East, a distance of 34.50 feet to a point on the Easterly line
of the Toledo Edison parcel of land as recorded in Volume 223, Page 561, Sandusky County Records;

Thence South 01° 22’03” East, along the Easterly line of said Toledo Edison property, a
distance of 34.30 feet to the found capped iron pin marking the TRUE POINT OF THE BEGINNING of
parcel herein described, said parcel containing 0.014 acres of land, more or less, subject to all
easements, zoning restrictions of record and legal highways.

The above described legal description is based on survey performed by Joseph D. Fenicie,
Professional Surveyor # 8210, of J.C. Andrus & Associates, Inc. in September 2004.

The bearings used herein are for the purpose of describing angels only and are not referenced to
true magnetic North.

Easement No. 5 

Temporary easement for construction traffic granted under that certain unrecorded Grant of
Temporary Easements dated May 12, 2004, by and between Ronald L. Root and Nancy F. Root, husband
and wife, as Grantors, and Calpine Fremont Energy Center, a Delaware limited liability company, as
Grantee.

 

8

 

Exhibit B to Limited Warranty Deed

Permitted Encumbrances

	1.	 	Taxes for the year 2011, and subsequent years not yet due or payable.

	2.	 	Oil and Gas Lease between Amelia Miarer, as lessor, and The Rich Oil Company, as
lessee, recorded June 13, 1905, in Lease Volume 14, Page 473, and any subsequent
instruments pertinent thereto. (Parcel No. 1; Month-to-Month) Affidavit of Non-Production
recorded May 10, 2000, in Book 42, Page 640.

	3.	 	Oil and Gas Lease between Henry Miarer, as lessor, and The Rick Oil Co., as lessee,
recorded June 13, 1095, in Lease volume 14, Page 475, and any subsequent instruments
pertinent thereto. (Parcel No. 1; Month-to-Month) Affidavit of Non-Production recorded
May 10, 2000 in Book 42, Page 640.

	4.	 	Easement granted to The Lake Erie Power and Light Division The Ohio Public Service Co.
disclosed by instrument recorded in Deed Volume 148, Page 264 on April 25, 1938. (Parcel
No. 1)

	5.	 	Rights of the public in and to that portion of the land lying within County Road 138.
(Parcel No. 1)

	6.	 	Terms and conditions of Easement for drain tile from Ronald L. and Nancy F. Root to
James R. Topel dated the 30th day of January 1967 and recorded January 31, 1967 at 8:45
a.m. in Volume 270, Page 943. (Parcel No. 2)

	7.	 	Easement for transmission lines from Richard C. Krueger and Judith recorded October 18,
1973 at 2:22 p.m. in Volume 300, Page 821, Sandusky County Recorder’s Office. (Parcel No.
2, Tract I)

	8.	 	Easement from Calpine Corporation to Toledo Edison Company dated May 18, 2004 and
recorded June 1, 2004 at 1:15 p.m. in Volume 438, page 326, assigned Book 7, page 1929.
(Parcel No. 2, Tract I)

	9.	 	Easement from Owen C. Smith and Evelyn M. Smith, husband and wife, to The Toledo Edison
Company dated February 14, 1956 and recorded February 20, 1956 at 10:34 a.m. in Volume 223
at Page 561. (Parcel No. 2 Tracts II and III)

	10.	 	Easement for the purpose of providing natural gas for the facility from William A.
Amor, et al. to East Ohio Gas Company dated June 7, 2001 and recorded June 15, 2001 at
10:46 a.m. in Volume 421 at Page 303. (Pt of SW 1/4 of Section 20, Sandusky Township).
(Parcel No. 2 Tracts II and III)

 

 

 

	11.	 	Easement for pump station and sanitary sewer easement from Fremont Energy Center to the
City of Fremont, Ohio dated January 2, 2002 and recorded May 10, 2002 at 2:07 p.m. in Book
426 at Page 815 (.3948 acres/Part of Outlot 421). (Parcel No. 2 Tracts II and III)

	12.	 	Easement from Calpine Corporation to Toledo Edison Company dated May 18, 2004 and
recorded June 1, 2004 at 1:15 p.m. in Volume 438 at Page 326. (Pt of SW 1/4 of Section 20,
Sandusky Township). Assigned in Volume 7, Page 1929. (Parcel No. 2 Tracts II and III)

	13.	 	Easement from Calpine Corporation to American Transmission Systems, Inc., dated January
13, 2005 and recorded February 15, 2005 at 2:13 p.m. in Official Record Book 7 at Page
1911. (Parcel No. 2 Tracts II and III)

	14.	 	Terms and Conditions of Easement at Volume 422, Page 408 Quit Claim Deed, dated August
16, 2001, recorded August 16, 2001 at 2:41 p.m., from Fremont Energy Center, L.L.C. to the
Board of Park Commissioners of the Sandusky County Park District, 3.831 acres, being part
of Outlot 420 in the city of Fremont, Ohio, reserving to Fremont Energy Center, L.L.C.
prior easements Volume 422 at Page 260 and Volume 422 at Page 268.

	15.	 	Terms and Conditions of Easement at Volume 422, Page 260 Board of Park Commissioners of
the Sandusky County Park District to Fremont Energy Center, L.L.C., dated August 8, 2001,
recorded August 8, 2001 at 11 :45 a.m. Part of Outlot 420.

	16.	 	Terms and Conditions of Easement at Official Record Book 7, Page 1896 A limited
warranty deed from Calpine Corporation to American Transmission Systems, Inc., 2.377 acres
out of Fremont, Ohio Outlot 422, reserving to Calpine Corporation easements as described
therein.

	17.	 	Terms and Conditions of Easement at Official Record Book 7, Page 1899. An easement
agreement between the Toledo Edison Company and Calpine Corporation, dated January 13,
2005, recorded February 15, 2005, at 2:13 p.m. (Pt of SW 1/4. of Section 20, Sandusky
Township).

	18.	 	Easement to The East Ohio Gas Company, D/B/A Dominion East Ohio of record in OR Book
86, Page 2810, Recorder’s Office, Sandusky Ohio. (Parcel 2, Tracts II and III)

	19.	 	Terms and conditions of that certain unrecorded Grant of Temporary Easements dated May
12, 2004, by and between Ronald L. Root and Nancy F. Root, husband and wife, as Grantors,
and Calpine Fremont Energy Center, a Delaware limited liability company, as Grantee.

 

2

 

Seller Disclosure Schedule to Asset Purchase Agreement

Dated as of March 11, 2011

This Seller Disclosure Schedule is being delivered by FirstEnergy Generation Corp., an Ohio
corporation (“Seller”) pursuant to that certain Asset Purchase Agreement, dated as of March 11,
2011 (the “Asset Purchase Agreement”), by and between American Municipal Power, Inc. and Seller.
Capitalized terms used herein shall have the meanings set forth in the Asset Purchase Agreement
unless otherwise defined herein.

This Seller Disclosure Schedule is qualified in its entirety by reference to the Asset
Purchase Agreement and is not intended to constitute, and shall not be construed as constituting,
representations, warranties, covenants or agreements of Seller, except as and to the extent
provided in the Asset Purchase Agreement. Items disclosed on one particular section of this Seller
Disclosure Schedule shall be deemed constructively disclosed or listed in all other sections of
this Seller Disclosure Schedule to the extent it is reasonably apparent that such disclosure is
applicable to such other sections of this Seller Disclosure Schedule. All references in this
Seller Disclosure Schedule to the enforceability of agreements with third parties, the existence or
non-existence of third-party rights, the absence of breaches or defaults by third parties or
similar matters or statements, are intended only to allocate rights and risks among the Parties and
are not intended to be admissions against interests, give rise to any inference or proof of
accuracy, be admissible against any party to the Asset Purchase Agreement by any Person who is not
a party to the Asset Purchase Agreement, or give rise to any Claim or benefit to any Person who is
not a party to the Asset Purchase Agreement. The fact that any item of information is contained in
this Seller Disclosure Schedule shall not be construed as an admission of liability under any
applicable Law, or to mean that such information is required to be disclosed in or by the Asset
Purchase Agreement or this Seller Disclosure Schedule, or to mean that such information is
Material. Such information shall not be used as a basis for interpreting the term “material,”
“materially,” “materiality,” “Seller Material Adverse Effect” or any similar qualification in the
Asset Purchase Agreement.

The information disclosed herein is subject to the Confidentiality Agreement and may not be
used for any purpose other than those contemplated by the Confidentiality Agreement or the Asset
Purchase Agreement.

 

 

 

Section 1.01(b)

Permitted Liens

	20.	 	Taxes for the year 2011, and subsequent years not yet due or payable.

	21.	 	Oil and Gas Lease between Amelia Miarer, as lessor, and The Rich Oil Company, as
lessee, recorded June 13, 1905, in Lease Volume 14, Page 473, and any subsequent
instruments pertinent thereto. (Parcel No. 1; Month-to-Month) Affidavit of Non-Production
recorded May 10, 2000, in Book 42, Page 640.

	22.	 	Oil and Gas Lease between Henry Miarer, as lessor, and The Rick Oil Co., as lessee,
recorded June 13, 1095, in Lease volume 14, Page 475, and any subsequent instruments
pertinent thereto. (Parcel No. 1; Month-to-Month) Affidavit of Non-Production recorded
May 10, 2000 in Book 42, Page 640.

	23.	 	Easement granted to The Lake Erie Power and Light Division The Ohio Public Service Co.
disclosed by instrument recorded in Deed Volume 148, Page 264 on April 25, 1938. (Parcel
No. 1)

	24.	 	Rights of the public in and to that portion of the land lying within County Road 138.
(Parcel No. 1)

	25.	 	Terms and conditions of Easement for drain tile from Ronald L. and Nancy F. Root to
James R. Topel dated the 30th day of January 1967 and recorded January 31, 1967 at 8:45
a.m. in Volume 270, Page 943. (Parcel No. 2)

	26.	 	Easement for transmission lines from Richard C. Krueger and Judith recorded October 18,
1973 at 2:22 p.m. in Volume 300, Page 821, Sandusky County Recorder’s Office. (Parcel No.
2, Tract I)

	27.	 	Easement from Calpine Corporation to Toledo Edison Company dated May 18, 2004 and
recorded June 1, 2004 at 1:15 p.m. in Volume 438, page 326, assigned Book 7, page 1929.
(Parcel No. 2, Tract I)

	28.	 	Easement from Owen C. Smith and Evelyn M. Smith, husband and wife, to The Toledo Edison
Company dated February 14, 1956 and recorded February 20, 1956 at 10:34 a.m. in Volume 223
at Page 561. (Parcel No. 2 Tracts II and III)

	29.	 	Easement for the purpose of providing natural gas for the facility from William A.
Amor, et al. to East Ohio Gas Company dated June 7, 2001 and recorded June 15, 2001 at
10:46 a.m. in Volume 421 at Page 303. (Pt of SW 1/4 of Section 20, Sandusky Township).
(Parcel No. 2 Tracts II and III)

 

 

 

	30.	 	Easement for pump station and sanitary sewer easement from Fremont Energy Center to the
City of Fremont, Ohio dated January 2, 2002 and recorded May 10, 2002 at 2:07 p.m. in Book
426 at Page 815 (.3948 acres/Part of Outlot 421). (Parcel No. 2 Tracts II and III)

	31.	 	Easement from Calpine Corporation to Toledo Edison Company dated May 18, 2004 and
recorded June 1, 2004 at 1:15 p.m. in Volume 438 at Page 326. (Pt of SW 1/4 of Section 20,
Sandusky Township). Assigned in Volume 7, Page 1929. (Parcel No. 2 Tracts II and III)

	32.	 	Easement from Calpine Corporation to American Transmission Systems, Inc., dated January
13, 2005 and recorded February 15, 2005 at 2:13 p.m. in Official Record Book 7 at Page
1911. (Parcel No. 2 Tracts II and III)

	33.	 	Terms and Conditions of Easement at Volume 422, Page 408 Quit Claim Deed, dated August
16, 2001, recorded August 16, 2001 at 2:41 p.m., from Fremont Energy Center, L.L.C. to the
Board of Park Commissioners of the Sandusky County Park District, 3.831 acres, being part
of Outlot 420 in the city of Fremont, Ohio, reserving to Fremont Energy Center, L.L.C.
prior easements Volume 422 at Page 260 and Volume 422 at Page 268.

	34.	 	Terms and Conditions of Easement at Volume 422, Page 260 Board of Park Commissioners of
the Sandusky County Park District to Fremont Energy Center, L.L.C., dated August 8, 2001,
recorded August 8, 2001 at 11 :45 a.m. Part of Outlot 420.

	35.	 	Terms and Conditions of Easement at Official Record Book 7, Page 1896 A limited
warranty deed from Calpine Corporation to American Transmission Systems, Inc., 2.377 acres
out of Fremont, Ohio Outlot 422, reserving to Calpine Corporation easements as described
therein.

	36.	 	Terms and Conditions of Easement at Official Record Book 7, Page 1899. An easement
agreement between the Toledo Edison Company and Calpine Corporation, dated January 13,
2005, recorded February 15, 2005, at 2:13 p.m. (Pt of SW 1/4. of Section 20, Sandusky
Township).

	37.	 	Easement to The East Ohio Gas Company, D/B/A Dominion East Ohio of record in OR Book
86, Page 2810, Recorder’s Office, Sandusky Ohio. (Parcel 2, Tracts II and III)

	38.	 	Terms and conditions of that certain unrecorded Grant of Temporary Easements dated May
12, 2004, by and between Ronald L. Root and Nancy F. Root, husband and wife, as Grantors,
and Calpine Fremont Energy Center, a Delaware limited liability company, as Grantee.

	39.	 	Official record Book 14, Page 2468 is the 55th Supplemental Indenture, dated April 1,
2005 from the Toledo Edison Company to J.P. Morgan Chase Bank, NA, recorded June 23, 2005
at 10:32 a.m. which is supplemental to Indenture of Mortgage and Deed of Trust dated as of
April 1, 1947. Book 791, Page 832 54th Supplemental Indenture, dated as of September 1,
2004, recorded September 28, 2004 at 3:59 p.m. (to be released at Closing).

 

 

 

	40.	 	Book 739, Page 174 53rd Supplemental Indenture, dated April 1, 2003, recorded August 8,
2003 at 3:27 p.m. (to be released at Closing).

	41.	 	There are supplemental Indentures of record since the instrument dated April 1, 1947
all of which may encumber the interests in land of the Toledo Edison Company (to be
released at Closing).

	42.	 	Liens under or pursuant to the Mortgage Indenture (to be released at Closing).

	43.	 	Liens under or pursuant to any letter of credit, reimbursement, revolving credit or term loan
agreement (to be released at Closing).

 

 

 

Section 2.01(a)

Owned Real Property

Parcel No. 1

Situated in the Township of Sandusky, County of Sandusky, State of Ohio, described as follows:

Being a parcel of land situated in part of the Southwest Quarter (SW 1/4) of Section Twenty (20),
Town-Five (5) North, Range-Fifteen (15) East, Sandusky Township, Sandusky County, Ohio described as
follows:

	 	7.	 	Commencing at a found Sandusky County monument box marking the West Quarter (W 1/4)
post of Section Twenty (20), said point being on the centerline of County Road One Hundred
Thirty-eight (138);

	 	8.	 	Thence, S 01 degree 22 minutes 48 seconds E Nine Hundred Fifty-nine and Forty-three
Hundredths (959.43) feet along the centerline of County Road One Hundred Thirty-eight (138)
to a set PK nail marking the POINT OF BEGINNING; .

	 	9.	 	Thence N 88 degrees 38 minutes 53 seconds E Two Hundred Five (205.00) feet to a set
iron rod, passing at Twenty (20.00) feet a set iron rod on the East right-of-way of County
Road One Hundred Thirty-eight (138);

	 	10.	 	Thence S 01 degree 22 minutes 48 seconds E Five Hundred Fifty (550.00) feet to a set
iron rod;

	 	11.	 	Thence S 88 degrees 38 minutes 53 seconds W Two Hundred Five (205.00) feet along the
North line of a parcel of land now or formerly owned by Joyce Myers (Vol. 411, Pg. 262) to
a set PK nail on the centerline of County Road One Hundred Thirty-eight (138), passing at
One Hundred Eighty-five (185.00) feet a set iron rod on the East right-of-way of County
Road One Hundred Thirty-eight (138);

	 	12.	 	Thence N 01 degree 22 minutes 48 seconds W Five Hundred Fifty (550.00) feet along the
centerline of County Road One Hundred Thirty-eight (138) to the POINT OF BEGINNING.

Containing in all 2.5884 acres of land, more or less.

The bearings are assumed and for angular measurements only.

This legal description is based upon a survey done for S. Shannon Smith by Kusmer & Associates,
Inc., in February, 2000.

 

 

 

Parcel No. 2 

TRACT I:

Being part of the East Half (E1/2) of Section Nineteen (19), Township Five (5) North Range Fifteen
(15) East, Sandusky Township, Sandusky County, Ohio, and being more particularly described as
follows:

Beginning at a Monument Box found marking the East Quarter (1/4) Post of said Section Nineteen
(19);

Thence, North 01 degree 38 minutes 33 seconds West, in the East line of said Section Nineteen (19)
and in the centerline of Township Road 138, a distance of 92.62 feet to the Southeast corner of
lands acquired by Gilbert F. Overmyer through Deed Volume 376, Page 632, referenced by a Railroad
Spike found 0.00 feet North and 0.16 feet East;

Thence, South 87 degrees 26 minutes 27 seconds West, in the South line of said Overmyer lands,
360.11 feet to an iron rod set to mark the southwest corner of said Overmyer lands and in the North
line of lands acquired by Sandusky County Park District through Deed Volume 399, Page 001;

Thence South 46 degrees 49 minutes 15 seconds East, in the North line of said Sandusky County Park
District lands, 505.81 feet to a Parker-Kalon nail found in the East line of said Section Nineteen
(19);

Thence, North 01 degree 22 minutes 03 seconds West, in the East line of said Section Nineteen (19),
a distance of 269.69 feet to the Place of Beginning containing 1.4987 acres of land, more or less,
but subject to all easements and restrictions of record;

Bearings in the above description are based on a meridian assumed for the purpose of indicating
angles only.

Grantor herein acquired title thru Deed Volume 294, Page 895, and Volume 422, Page 513 of the Deed
Records of Sandusky County, Ohio.

This description was prepared by Roy E. Yeager, Registered Surveyor No. 6262, and was taken from an
actual survey performed in May, 2001.

Sandusky County Auditors Permanent Parcel No.: 13-19-00-0009-01.

Prior Deed References: Volume 270, Pg. 745, Volume 283, Page 547, Volume 293, Page 621, Volume 294,
Page 327, Volume 294, Page 895 and Volume 422, Page 513.

TRACT II:

A parcel of land being Outlot No. 421 in the City of Fremont, County of Sandusky, Ohio, and being
more particularly described as follows;

Commencing at a found iron rod marking the West Quarter corner of Section Twenty (20):

Thence on a measured bearing of South 01 degree 22 minutes 03 seconds East on the West line of the
Southwest Quarter (SW 1/4) of Section (20), a distance of 409.98 feet to a point, reference a found PK nail 0.05’ South, said point being the True Point of Beginning of the Parcel herein
described;

 

2

 

Thence on a measured bearing of South 46 degrees 48 minutes 12 seconds East on the Southwesterly
line of a parcel of land recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records, a
measured distance of 1568.54 feet to a found capped iron;

Thence on a measured bearing of South 88 degrees 39 minutes 39 seconds West on the North line of a
parcel of land recorded in Volume 412, Pages 681 through 684, Sandusky County Deed Records, a
measured distance of 912.52 feet to a found capped iron;

Thence on a measured bearing of North 01 degree 22 minutes 19 seconds West on the East line of a
parcel of land recorded in Volume 415, Pages 183 through 186, Sandusky County Deed Records, a
measured distance of 550.79 feet to a found capped iron;

Thence on a measured bearing of South 88 degrees 37 minutes 22 seconds West on the North line of a
parcel of land recorded in Volume 415, Pages 183 through 186, Sandusky County Deed Records, a
measured distance of 204.97 feet to a point on the West line of the Southwest Quarter (SW 1/4) of
Section Twenty (20);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the West line of the
Southwest Quarter (SW 1/4) of Section Twenty (20) a distance of 549.45 feet to the True Point of
Beginning of the parcel herein described, said parcel containing 11.519 acres of land, more or
less, subject to all easements, zoning restrictions of record and legal highways.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

Sandusky County Auditors Permanent Parcel No.: 34-60-00-0421-00.

TRACT III:

A parcel of land being Outlot No. 422 in the City of Freemont, County of Sandusky, Ohio, and being
more particularly described as follows:

Commencing at a found iron rod marking the West Quarter Post of Section Twenty (20);

Thence on a measured bearing of South 01 degree 22 minutes 03 seconds East a measured distance of
213.48 feet to a point, said point being the True Point of Beginning of the parcel herein
described;

Thence on a measured bearing of South 46 degrees 48 minutes 12 seconds East on the Southwesterly
line of a parcel of land recorded in Volume 223, Page 561, Sandusky County Records, a measured
distance of 701.79 feet to a point (reference found capped iron 0.30’ North & 0.07’ West);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the East line of a
parcel of land recorded in Volume 223, Page 561, Sandusky County Deed Records, a measured distance of 705.50 feet to a point on the North line of the Southwest Quarter (SW 1/4) of
Section Twenty (20);

 

 

 

Thence on a measured bearing of North 88 degrees 40 minutes 55 seconds East on the East & West
centerline of Section Twenty (20), a measured distance of 2152.40 feet to a found capped iron
marking the center of Section Twenty (20);

Thence on a measured bearing of South 01 degree 23 minutes 27 seconds East on the West line of a
parcel of land recorded in Volume 379, Pages 868 through 870, Sandusky County Deed Records, a
measured distance of 1508.91 feet to an iron rod;

Thence on a measured bearing of South 88 degrees 39 minutes 17 seconds West on the Northerly line
of a parcel of land recorded in Volume 393, Page 952 through 956, Sandusky County Deed Records, a
measured distance of 1392.95 feet to a found stone on the Northeasterly line of a parcel of land
recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records;

Thence on a measured bearing of North 46 degrees 48 minutes 12 seconds West on the Northeasterly
line of a parcel of land recorded in Volume 399, Pages 1 through 3, Sandusky County Deed Records, a
measured distance of 1768.60 feet to a found PK nail on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20);

Thence on a measured bearing of North 01 degree 22 minutes 03 seconds West on the West line of the
Southwest Quarter (SW 1/4) of Section Twenty (20), a measured distance of 56.14 feet to the True
Point of Beginning of the parcel herein described, said parcel containing 68.711 acres of land,
more or less, subject to all easements, zoning restrictions of record and legal highways.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

Sandusky County Auditors Permanent Parcel No.: 34-60-00-0422-00. PIN No.: (abatement/pilot parcel)
34-60-94-0422-00.

EXCEPTING FROM PARCEL NO. 4 THE FOLLOWING DESCRIBED PARCEL:

A parcel of land being part of Outlot 422, City of Fremont, Sandusky County, Ohio and being more
particularly described as follows:

Commencing at a found 5/8 inch iron rod at the West Quarter Post of said Section Twenty (20);

Thence, South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of said Section Twenty (20), also being the centerline of County Road 138 (40 foot wide
right-of-way), a distance of 213.48 feet to a point;

Thence, South 46 degrees 48 minutes 12 seconds East, on a line being 40.00 feet Northerly of and
parallel to the Former New York Central Railroad, and on the Northerly line of Outlot 422, also
being the existing corporation line, a distance of 701.79 feet to a set iron pin;

 

 

 

Thence, North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly of and
parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and on the
Westerly line of Outlot 422, a distance of 34.30 feet to a set iron pin, said iron pin marking the
TRUE POINT OF BEGINNING of the parcel herein described;

Thence continuing North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly
of and parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and
on the Westerly line of Outlot 422, a distance of 351.02 feet to a set iron pin;

Thence North 88 degrees 05 minutes 21 seconds East, a distance of 293.35 feet to a set iron pin;

Thence South 01 degree 54 minutes 39 seconds East, a distance of 351.00 feet to a set iron pin;

Thence South 88 degrees 05 minutes 21 seconds West, a distance of 296.68 feet to the set iron pin
marking the TRUE POINT OF BEGINNING of the parcel herein described, said parcel containing 2.377
acres of land, more or less, subject to all easements, zoning restrictions of record and legal
highways.

Parcel No. 4 contains, after the exception, 66.334 acres of land, more or less.

 

 

 

Section 2.01(b)

Real Estate Leases

	1.	 	Lease dated November 12, 2008, by and between FirstEnergy Generation Corp., as lessor,
and Robert R. Krueger and Katherine M. Krueger, collectively as lessee.

	2.	 	Lease dated November 25, 2008, by and between FirstEnergy Generation Corp., as lessor,
and Jay Thompson and Carrie Thompson, collectively as lessee.

 

 

 

Section 2.01(c)

Entitled Real Property

Easement No. 1 

Grant of easements by the Board of Park Commissioners of the Sandusky County Park District to
Fremont Energy Center, LLC, filed August 8, 2001 in Deed Vol. 422, Page 268 and affecting the
following described property:

A parcel of land being part of the Southwest Quarter (SW 1/4) of Section Twenty (20), Town Five (5)
North, Range Fifteen (15) East, Sandusky Township, City of Fremont, Sandusky County, Ohio, and
being more particularly described as follows:

Commencing at the West Quarter Post of Section Twenty (20);

Thence South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20), a distance of 269.64 feet to a point, said point being the TRUE POINT
OF BEGINNING of the parcel herein described;

Thence South 46 degrees 48 minutes 12 seconds East, on the Northeasterly line of the former New
York Central Railroad right-of-way (100 feet wide), a distance of 1768.58 feet to a point;

Thence South 88 degrees 38 minutes 36 seconds West, a distance of 142.58 feet to a point;

Thence North 46 degrees 48 minutes 12 seconds West, on the Southwesterly line of the former New
York Central Railroad right-of-way (100 feet wide), a distance of 1568.51 feet to a point on the
West line of the Southwest Quarter (SW 1/4) of Section Twenty (20);

Thence North 01 degree 22 minutes 03 seconds West, on the West line of the Southwest Quarter (SW
1/4) of Section Twenty (20), a distance of 140.34 feet to the TRUE POINT OF BEGINNING of the parcel
herein described.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true of magnetic North.

Easement No. 2 

Grant Temporary Easement by the Board of Park Commissioners of the Sandusky County Park District to
Fremont Energy Center L.L.C., filed on August 8, 2001 in Deed Volume 422, Page 260 and affecting
the following described property:

Being part of Outlot 420, in the City of Fremont, Sandusky County, Ohio, and being more
particularly described as follows:

Commencing at the intersection of the centerline of United States Route 20 (By-pass) with the
centerline of the Norfolk-Southern Railroad;

 

 

 

Thence, North 46 degrees 49 minutes 15 seconds West in the centerline of the Norfolk—Southern
Railroad, 345.000 feet to said point in the South line of Outlot 420 and the Place of Beginning of
the easement herein described;

Thence, South 43 degrees 10 minutes 45 seconds West in the South line of said Outlot 420, a
distance of 50.00 feet to a point in the East line of lands acquired by Toledo Edison Company thru
Deed Volume 322, Page 662;

Thence, North 46 degrees 49 minutes 15 seconds West in the East line of said Toledo Edison lands,
in the East line of lands acquired by Chemi Trol Company thru Deed Volume 297, Page 107, in the
East line of lands acquired by Jack H. Balsizer thru Deed Volume 420, Page 091 and in the East line
of lands acquired by Ralph N. & Joyce E. Myers thru Deed Volume 412, Page 681, a distance of
2,686.30 feet to an iron rod found marking the Southwest corner of Outlot 421;

Thence, North 88 degrees 39 minutes 38 seconds East, 142.63 feet to a stone found marking the
Southwest corner of Outlot 422;

Thence, South 46 degrees 49 minutes 15 seconds East, in the West line of lands acquired by Earl J.
& Karen S. Wammes thru Deed Volume 393, Page 952, a distance of 2,584.60 feet to the Northwest
corner of Outlot 419;

Thence, South 43 degrees 10 minutes 45 seconds West, in the West line of Outlot 419, a distance of
50.00 feet to the Place of Beginning.

Bearings in the above description are based on a meridian assumed for the purpose of indicating
angles only.

Easement No. 3 

A parcel of land being part of Outlot 422, City of Fremont, Sandusky County, Ohio and being more
particularly described as follows:

Commencing at a found 5/8 inch iron rod at the West Quarter Post of said Section Twenty (20);

Thence, South 01 degree 22 minutes 03 seconds East, on the West line of the Southwest Quarter (SW
1/4) of said Section Twenty (20), also being the centerline of County Road 138 (40 foot wide
right-of-way), a distance of 213.48 feet to a point;

Thence, South 46 degrees 48 minutes 12 seconds East, on a line being 40.00 feet Northerly of and
parallel to the Former New York Central Railroad, and on the Northerly line of Outlot 422, also
being the existing corporation line, a distance of 701.79 feet to a set iron pin;

Thence, North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly of and
parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and on the
Westerly line of Outlot 422, a distance of 34.30 feet to a set iron pin (Note: all iron pins
indicated as being set are 5/8 inch diameter by 30 inch long iron pins with reference caps), said
iron pin marking the TRUE POINT OF BEGINNING of the parcel herein described;

 

 

 

Thence continuing North 01 degree 22 minutes 03 seconds West, on a line being 500.00 feet Easterly
of and parallel to the West line of the Southwest Quarter (SW 1/4) of said Section Twenty (20), and
on the Westerly line of Outlot 422, a distance of 351.02 feet to a set iron pin;

Thence North 88 degrees 05 minutes 21 seconds East, a distance of 293.35 feet to a set iron pin;

Thence South 01 degree 54 minutes 39 seconds East, a distance of 351.00 feet to a set iron pin;

Thence South 88 degrees 05 minutes 21 seconds West, a distance of 296.68 feet to the set iron pin
marking the TRUE POINT OF BEGINNING of the parcel herein described, said parcel containing 2.377
acres of land, more or less, subject to all easements, zoning restrictions of record and legal
highways.

The above described legal description is based on a survey performed by Joseph D. Fenicle,
Professional Surveyor #8210, of J. C. Andrus & Associates, Inc. in August, 2004.

The bearings used herein are for the purpose of describing angles only and are not referenced to
true or magnetic North.

Deed Reference: Volume 7, Page 1896.

Easement No. 4 

A parcel of land being part of the Southwest quarter of Section 20, Town 5 North, Range 15 East,
City of Fremont, Sandusky County, Ohio, and being more particularly described as follows:

Commencing at a found iron rod at the West quarter post of said Section 20;

Thence South 01° 22’ 03” East, on the West line of the Southwest quarter of said
Section 20, also being the centerline of County Road 138 (40 foot wide right-of-way), a distance of
213.48 feet to a point;

Thence South 46° 48’ 12” East, on a line being 40.00 feet Northerly of and parallel to
the Former New York Central Railroad, a distance of 701.79 feet to a found capped iron pin, said
iron pin marking the TRUE POINT OF BEGINNING of the parcel herein described;

Thence North 46° 48’ 12” West, a distance of 48.42 feet to a point;

Thence North 88° 05’ 21” East, a distance of 34.50 feet to a point on the Easterly line
of the Toledo Edison parcel of land as recorded in Volume 223, Page 561, Sandusky County Records;

Thence South 01° 22’03” East, along the Easterly line of said Toledo Edison property, a
distance of 34.30 feet to the found capped iron pin marking the TRUE POINT OF THE BEGINNING of
parcel herein described, said parcel containing 0.014 acres of land, more or less, subject to all
easements, zoning restrictions of record and legal highways.

 

 

 

The above described legal description is based on survey performed by Joseph D. Fenicie,
Professional Surveyor # 8210, of J.C. Andrus & Associates, Inc. in September 2004.

The bearings used herein are for the purpose of describing angels only and are not referenced to
true magnetic North.

Deed Reference Book 7, page 1899.

Easement No. 5 

Temporary easement for construction traffic granted under that certain unrecorded Grant of
Temporary Easements dated May 12, 2004, by and between Ronald L. Root and Nancy F. Root, husband
and wife, as Grantors, and Calpine Fremont Energy Center, a Delaware limited liability company, as
Grantee.

 

 

 

Section 2.01(d)

Equipment

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	013-AEX-EX-001

	 	HOGGING EJECTOR
	013-AEX-SL-002

	 	SILENCER
	013-AEX-EX-004

	 	VACUUM DEAERATOR HOLDING EJECTOR
	013-AEX-EX-005

	 	SECOND STAGE HOLDING EJECTOR
	013-AEX-EX-006

	 	SECOND STAGE HOLDING EJECTOR
	013-AEX-EX-007

	 	FIRST STAGE HOLDING EJECTOR
	013-AEX-EX-008

	 	FIRST STAGE HOLDING EJECTOR
	013-AEX-CD-016

	 	AFTER-CONDENSER
	010-AST-TK-001

	 	AQUEOUS AMMONIA STORAGE TANK
	010-AST-PP-002

	 	AMMONIA FORWARDING PUMP
	010-AST-TK-002

	 	AQUEOUS AMMONIA STORAGE TANK
	010-AST-PP-003

	 	AMMONIA FORWARDING PUMP
	013-AXB-DH-007

	 	AUX SP STEAM DESUPERHEATER
	013-AXB-DH-008

	 	AUX CR STEAM DESUPERHEATER
	013-AXB-DH-009

	 	SPARGING STEAM DESUPERHEATER
	011-BBS-TK-001

	 	HRSG BLOWDOWN TANK #1
	012-BBS-TK-002

	 	HRSG BLOWDOWN TANK #2
	010-BBS-PP-004

	 	BLOWDOWN DRAIN PUMP
	010-BBS-PP-005

	 	BLOWDOWN DRAIN PUMP
	011-BFW-PP-014

	 	FEEDWATER PUMP
	011-BFW-PP-015

	 	FEEDWATER PUMP
	012-BFW-PP-016

	 	FEEDWATER PUMP
	012-BFW-PP-017

	 	FEEDWATER PUMP
	010-CCF-TK-002

	 	UP BLEND TANK
	010-CCF-TK-003

	 	DOWN BLEND TANK
	010-CCF-TK-004

	 	IP PHOSPHATE TANK
	010-CCF-TK-005

	 	PHOSPHATE FEED TANK
	010-CCF-TK-006

	 	PHOSPHATE FEED TANK
	010-CCF-PP-007

	 	PHOSPHATE METERING PUMP
	010-CCF-PP-008

	 	PHOSPHATE METERING PUMP
	010-CCF-PP-009

	 	PHOSPHATE METERING PUMP
	010-CCF-PP-010

	 	PHOSPHATE METERING PUMP
	010-CCF-PP-011

	 	PHOSPHATE METERING PUMP
	013-CCF-PP-012

	 	PHOSPHATE METERING PUMP
	010-CCF-PP-013

	 	HRSG 1 PHOSPHATE FEED PUMP
	010-CCF-PP-014

	 	SPARE PHOSPHATE FEED PUMP
	010-CCF-PP-015

	 	HRSG 2 PHOSPHATE FEED PUMP
	010-CCF-PP-016

	 	HRSG #1 IP PHOSPHATE FEED PUMP
	010-CCF-PP-017

	 	SPARE IP PHOSPHATE FEED PUMP
	010-CCF-PP-018

	 	HRSG #2 IP PHOSPHATE FEED PUMP
	 

	 	SODIUM BISULFITE TOTE
	 

	 	SULFURIC ACID TOTE
	 

	 	ANITISCALANT TOTE

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	010-CCF-TK-020

	 	OXYGEN SCAVENGER TANK
	010-CCF-PP-021

	 	OXYGEN SCAVENGER METERING PUMP
	010-CCF-PP-022

	 	OXYGEN SCAVENGER METERING PUMP
	010-CCF-TK-024

	 	NEUTRALIZING AMINE TANK
	010-CCF-PP-025

	 	NEUTRALIZING AMINE METERING PUMP
	010-CCF-PP-026

	 	NEUTRALIZING AMINE METERING PUMP
	 

	 	SODIUM HYPOCHLORITE TOTE
	 

	 	POLYMER TOTE
	013-CCW-HX-001

	 	CLOSED CYCLE CW HEAT EXCHANGER
	013-CCW-HX-002

	 	CLOSED CYCLE CW HEAT EXCHANGER
	010-CCW-PP-001

	 	CLOSED CYCLE CW PUMP
	010-CCW-TK-001

	 	CLOSED CYCLE COOLING WATER HEAD TANK
	010-CCW-PP-002

	 	CLOSED CYCLE CW PUMP
	010-CCW-TK-002

	 	CHEMICAL FEED TANK
	013-STG-HX-001

	 	STG LUBE OIL COOLER A
	013-STG-HX-002

	 	STG LUBE OIL COOLER B
	013-STG-HX-003

	 	STG GEN COOLER
	013-STG-HX-004

	 	STG GEN COOLER
	013-STG-HX-005

	 	SEAL OIL COOLER (AIR SIDE)
	013-STG-HX-006

	 	SEAL OIL COOLER (AIR SIDE)
	013-STG-HX-007

	 	SEAL OIL COOLER (H2 SIDE)
	013-STG-HX-008

	 	SEAL OIL COOLER (H2 SIDE)
	013-STG-HX-010

	 	STG GEN COOLER
	013-STG-HX-011

	 	STG GEN COOLER
	012-CTG-HX-001

	 	CTG 2 LUBE OIL COOLER
	012-CTG-HX-003

	 	CTG 2 GEN COOLER
	012-CTG-HX-004

	 	CTG 2 GEN COOLER
	012-CTG-HX-005

	 	CTG 2 GEN COOLER
	012-CTG-HX-006

	 	CTG 2 GEN COOLER
	011-CTG-HX-001

	 	CTG 1 GEN COOLER
	011-CTG-HX-003

	 	CTG 1 GEN COOLER
	011-CTG-HX-004

	 	CTG 1 GEN COOLER
	011-CTG-HX-005

	 	CTG 1 GEN COOLER
	011-CTG-HX-006

	 	CTG 1 GEN COOLER
	013-CNS-CD-001

	 	CONDENSER
	013-CNS-DA-002

	 	VACUUM DEAERATOR
	013-CNS-PP-005

	 	CONDENSATE PUMP
	013-CNS-PP-006

	 	CONDENSATE PUMP
	013-CNS-PP-007

	 	CONDENSATE PUMP
	013-CNS-CD-003

	 	GLAND STEAM CONDENSER
	013-CNS-TK-010

	 	CONDENSATE STORAGE TANK
	013-CNS-PP-020

	 	CONDENSATE FORWARDING PUMP
	013-CNS-PP-021

	 	CONDENSATE FORWARDING PUMP
	013-CWS-CT-001

	 	COOLING TOWER

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	013-ACW-PP-001

	 	AUXILIARY COOLING WATER PUMP
	013-CWS-PP-001

	 	CIRCULATING WATER PUMP 1
	013-CWS-PP-002

	 	CIRCULATING WATER PUMP 2
	013-CWS-FN-001

	 	COOLING TOWER FAN 1
	013-CWS-FN-002

	 	COOLING TOWER FAN 2
	013-CWS-FN-003

	 	COOLING TOWER FAN 3
	013-CWS-FN-004

	 	COOLING TOWER FAN 4
	013-CWS-FN-005

	 	COOLING TOWER FAN 5
	013-CWS-FN-006

	 	COOLING TOWER FAN 6
	013-CWS-FN-007

	 	COOLING TOWER FAN 7
	013-CWS-FN-008

	 	COOLING TOWER FAN 8
	013-CWS-FN-009

	 	COOLING TOWER FAN 9
	013-CWS-FN-010

	 	COOLING TOWER FAN 10
	013-CWS-FN-011

	 	COOLING TOWER FAN 11
	013-CWS-FN-012

	 	COOLING TOWER FAN 12
	010-DMN-TK-001

	 	DEMINERALIZED WATER STORAGE TANK
	010-DMN-HA-002

	 	TANK HEATER
	010-DMN-TK-002

	 	CT 1 WASH WATER TANK
	010-DMN-PP-003

	 	DEMINERALIZED WATER PUMP
	010-DMN-TK-003

	 	CT 2 WASH WATER TANK
	010-DMN-PP-004

	 	DEMINERALIZED WATER PUMP
	010-DMN-SD-001

	 	DEMINERALIZED WATER SKID
	010-FGS-CR-001

	 	FUEL GAS COMPRESSOR
	010-FGS-CR-002

	 	FUEL GAS COMPRESSOR
	010-FGS-HX-002

	 	GAS COMPRESSOR BY-PASS AIR COOLER
	010-FGS-HX-014

	 	GAS COMPRESSOR BY-PASS AIR COOLER
	011-FGS-HX-005

	 	PILOT GAS COOLER
	011-FGS-SR-007

	 	PILOT GAS FILTER SEPARATOR
	011-FGS-SR-008

	 	PILOT GAS FILTER SEPARATOR
	010-FGS-HX-009

	 	DEW POINT HEATER
	011-FGS-HX-011

	 	FUEL GAS HEATER #1
	011-FGS-TK-012

	 	MAIN KO DRUM #1
	011-FGS-SR-013

	 	MAIN FUEL GAS FILTER SEPARATOR
	011-FGS-SR-014

	 	MAIN FUEL GAS FILTER SEPARATOR
	011-FGS-TK-017

	 	DRAIN TANK
	012-FGS-HX-015

	 	PILOT GAS COOLER
	012-FGS-SR-016

	 	MAIN FUEL GAS FILTER SEPARATOR
	012-FGS-SR-017

	 	MAIN FUEL GAS FILTER SEPARATOR
	012-FGS-SR-018

	 	PILOT GAS FILTER SEPARATOR
	012-FGS-SR-019

	 	PILOT GAS FILTER SEPARATOR
	012-FGS-HX-020

	 	DEW POINT HEATER
	012-FGS-HX-021

	 	MAIN FUEL GAS HTR. #2
	012-FGS-TK-022

	 	MAIN KNOCKOUT DRUM #2

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	012-FGS-TK-026

	 	DRAIN TANK
	 

	 	DUCT BURNER SKID
	 

	 	DUCT BURNER SKID
	010-FWS-PP-001

	 	MOTOR DRIVEN FIRE PUMP
	010-FWS-PP-002

	 	JOCKEY PUMP
	010-FWS-PP-004

	 	ENGINE DRIVEN FIRE PUMP
	010-FWS-TK-001

	 	DIESEL TANK
	 

	 	HYDROGEN AUTOMATIC MANIFOLD
	 

	 	CO2 SUPPLY SKID
	010-IAS-CL-001

	 	BLEED AIR COOLER
	010-IAS-SR-005

	 	AIR/WATER SEPARATOR
	010-IAS-FL-007

	 	COALESCING FILTER
	010-IAS-CR-008

	 	AIR COMPRESSOR
	010-IAS-FL-010

	 	PREFILTER
	010-IAS-FL-011

	 	PREFILTER
	010-IAS-AD-012

	 	INSTRUMENT AIR DRYER
	010-IAS-AD-013

	 	INSTRUMENT AIR DRYER
	010-IAS-FL-014

	 	AFTER FILTER
	010-IAS-FL-015

	 	AFTER FILTER
	010-IAS-TK-016

	 	INSTRUMENT AIR RECEIVER
	011-SCR-??-001

	 	SCR SYSTEM 1
	011-HRF-HR-001

	 	HEAT RECOVERY STEAM GENERATOR 1
	012-SCR-??-002

	 	SCR SYSTEM 2
	012-HRF-HR-002

	 	HEAT RECOVERY STEAM GENERATOR 2
	011-NIT-SKD-001

	 	UNIT 1 NITROGEN SKID
	012-NIT-SKD-002

	 	UNIT 2 NITROGEN SKID
	010-PWS-PP-001

	 	SAFETY SHOWER LOOP CIRC PUMP
	010-PWS-VS-002

	 	POTABLE WATER TANK
	010-PWS-NX-003

	 	POTABLE WATER HEATER
	010-PWS-NX-004

	 	SAFETY SHOWER LOOP HEATER
	010-PWS-PP-006

	 	POTABLE WATER BOOSTER PUMP
	010-PWS-PP-007

	 	POTABLE WATER BOOSTER PUMP
	010-PWS-PP-008

	 	POTABLE WATER PUMP
	011-HR-BO-001

	 	KETTLE BOILER 1
	012-HR-BO-002

	 	KETTLE BOILER 2
	011-CTG-FL-001

	 	LUBE OIL FILTER 1
	011-CTG-FL-001

	 	CT INLET AIR FILTER 1
	011-CTG-FL-001

	 	FUEL GAS FILTER SEPARATOR 1
	010-STG-GN-001

	 	STEAM TURBINE GENERATOR
	011-CTG-GN-001

	 	CT GENERATOR
	011-CTG-HX-001

	 	LUBE OIL HEAT EXCHANGER 1
	011-CTG-PP-001

	 	AC LUBE OIL PUMP 1
	011-CTG-PP-001

	 	CONTROL OIL PUMP 1
	011-CTG-SK-001

	 	CT FOGGING SKID
	011-CTG-SK-001

	 	CT STARTING PACKAGE

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	011-CTG-SK-001

	 	CT CONTROL OIL POWER UNIT
	010-STG-ST-001

	 	STEAM TURBINE
	010-STG-ST-001

	 	IP STEAM TURBINE
	010-STG-ST-001

	 	HP STEAM TURBINE
	010-STG-ST-001

	 	GLAND STEAM CONDENSER
	010-STG-ST-001

	 	LUBE OIL RESERVOIR
	010-STG-ST-001

	 	HYDRAULIC SUPPLY UNIT
	011-CTG-TG-001

	 	CT TURNING GEAR
	011-CTG-WK-001

	 	WATER WASH SKID 1
	011-CTG-XM-001

	 	COMBUSTION TURBINE
	011-CTG-FL-002

	 	LUBE OIL FILTER 2
	011-CTG-FL-002

	 	FUEL GAS FILTER SEPARATOR 2
	012-CTG-FL-002

	 	CT INLET AIR FILTER 2
	012-CTG-GN-002

	 	CT GENERATOR
	011-CTG-HX-002

	 	LUBE OIL HEAT EXCHANGER 2
	011-CTG-PP-002

	 	AC LUBE OIL PUMP 2
	011-CTG-PP-002

	 	CONTROL OIL PUMP 2
	012-CTG-SK-002

	 	CT FOGGING SKID
	012-CTG-SK-002

	 	CT STARTING PACKAGE
	012-CTG-SK-002

	 	CT CONTROL OIL POWER UNIT
	012-CTG-TG-002

	 	CT TURNING GEAR
	012-CTG-WK-002

	 	WATER WASH SKID 2
	012-CTG-XM-002

	 	COMBUSTION TURBINE
	012-CTG-FL-003

	 	LUBE OIL FILTER 3
	012-CTG-FL-003

	 	FUEL GAS FILTER SEPARATOR 3
	012-CTG-HX-003

	 	LUBE OIL HEAT EXCHANGER 3
	011-CTG-PP-003

	 	DC LUBE OIL PUMP 3
	012-CTG-PP-003

	 	CONTROL OIL PUMP 3
	012-CTG-FL-004

	 	LUBE OIL FILTER 4
	012-CTG-FL-004

	 	FUEL GAS FILTER SEPARATOR 4
	012-CTG-HX-004

	 	LUBE OIL HEAT EXCHANGER 4
	012-CTG-PP-004

	 	AC LUBE OIL PUMP 4
	012-CTG-PP-004

	 	CONTROL OIL PUMP 4
	012-CTG-PP-005

	 	AC LUBE OIL PUMP 5
	012-CTG-PP-006

	 	DC LUBE OIL PUMP 6
	 

	 	CT 1 OIL MIST ELIMINATOR
	 

	 	CT 2 OIL MIST ELIMINATOR
	013-STG-GN-013

	 	LOOP SEAL TANK
	013-STG-GN-013

	 	VAPOR EXTRACTOR ASSEMBLY
	013-STG-GN-013

	 	EMERGENCY SPRAY SKID
	013-STG-GN-013

	 	GENERATOR AUX CONTROL UNIT
	010-SAP-SK-001

	 	SAMPLE ANALYSIS PANEL
	010-SAP-SK-002

	 	CIRC WATER ANALYSIS PANEL
	013-SIP-SC-001

	 	SAMPLE COOLER
	013-SLP-SC-003

	 	SAMPLE COOLER

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	013-SHP-SC-004

	 	SAMPLE COOLER
	013-SLP-SC-004

	 	SAMPLE COOLER
	013-SLP-SC-004

	 	SAMPLE COOLER
	011-BFW-SC-019

	 	SAMPLE COOLER
	013-SLP-SC-XXX

	 	SAMPLE COOLER
	013-SHP-SC-002

	 	SAMPLE COOLER
	013-SHP-SC-002

	 	SAMPLE COOLER
	013-CNS-SC-008

	 	SAMPLE COOLER
	013-CNS-SC-009

	 	SAMPLE COOLER
	012-BFW-SC-020

	 	SAMPLE COOLER
	010-SDN-TK-001

	 	STEAM TURBINE DRAIN TANK
	010-SSW-PP-002

	 	SEWAGE GRINDER PUMP
	010-SSW-PP-003

	 	SEWAGE GRINDER PUMP
	010-SSW-TK-002

	 	ONSITE SANITARY LIFT STATION SUMP
	010-SSW-PP-004

	 	SEWAGE GRINDER PUMP
	010-SSW-PP-005

	 	SEWAGE GRINDER PUMP
	010-SWS-HA-100

	 	RAW/FIREWATER TANK HEATER
	010-SWS-PP-001

	 	SERVICE WATER PUMP
	010-SWS-TK-001

	 	RAW/FIREWATER STORAGE TANK
	010-SWS-PP-002

	 	SERVICE WATER PUMP
	010-SWS-PP-003

	 	SERVICE WATER BOOSTER PUMP
	010-SWS-PP-004

	 	SERVICE WATER BOOSTER PUMP
	013-TCF-TK-001

	 	ACID STORAGE TANK
	013-TCF-PP-003

	 	ACID METERING PUMP
	013-TCF-PP-004

	 	ACID METERING PUMP
	013-TCF-TK-006

	 	SODIUM HYPOCHLORITE TANK
	013-TCF-PP-007

	 	HYPOCHLORITE METERING PUMP
	013-TCF-PP-008

	 	HYPOCHLORITE METERING PUMP
	013-TCF-TK-009

	 	INHIBITOR MEASURING TANK
	013-TCF-TK-010

	 	INHIBITOR TANK
	013-TCF-MX-011

	 	INHIBITOR MIXER
	013-TCF-PP-012

	 	INHIBITOR METERING PUMP
	013-TCF-PP-013

	 	INHIBITOR METERING PUMP
	013-TCF-TK-015

	 	DISPERSANT MEASURING TANK
	013-TCF-TK-016

	 	DISPERSANT TANK
	013-TCF-PP-017

	 	DISPERSANT METERING PUMP
	013-TCF-PP-018

	 	DISPERSANT METERING PUMP

 

 

 

	 	 	 
	Equip. Tag No.	 	Equipment Name / Description
	013-TCF-MX-19

	 	DISPERSANT MIXER
	010-WWC-PP-002

	 	CT #2 AREA SUMP PUMP
	010-WWC-PP-003

	 	CT #2 AREA SUMP PUMP
	010-WWC-PP-005

	 	CT #1 AREA SUMP PUMP
	010-WWC-PP-006

	 	CT #1 AREA SUMP PUMP
	010-WWC-SR-007

	 	OIL/WATER SEPARATOR
	010-WWC-PP-010

	 	PLANT WASTE WATER PUMP
	010-WWC-PP-011

	 	PLANT WASTE WATER PUMP
	010-WWC-PP-014

	 	COOLING TWR CHEM FEED BLDG SUMP PUMP
	010-WWC-PP-015

	 	COOLING TWR CHEM FEED BLDG SUMP PUMP
	010-WWC-PP-017

	 	FILTER BACKWASH SUMP PUMP
	010-WWC-PP-018

	 	FILTER BACKWASH SUMP PUMP
	010-WWC-PP-019

	 	CORROSIVE DRAINS SUMP PUMP
	010-WWC-PP-020

	 	CORROSIVE DRAINS SUMP PUMP
	 
	 

	 	AEROPAC AIR COOLED GENERATOR
	 

	 	HYDROGEN INNER-COOLED GENERATOR

 

 

 

Section 2.01(f)

Assigned Contracts

	1.	 	Large Generator Interconnection Agreement by and between FirstEnergy Generation Corp.
and American Transmission Systems Incorporated dated as of September 25, 2008.

	2.	 	Water Supply and Wastewater Treatment Agreement by and between Fremont Energy Center,
LLC and The City of Fremont, Sandusky County, Ohio dated as of August 17, 2001.

	3.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of July 26, 2005.

	4.	 	Enhanced Firm Transportation Service Agreement by and between Panhandle Eastern Pipe
Line Company, LP and FirstEnergy Solutions Corp. dated as of October 30, 2006.

	5.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of November 19, 2008.

	6.	 	Firm Transportation Service Agreement by and between Trunkline Gas Company, LLC and
FirstEnergy Solutions Corp. dated as of November 19, 2008.

	7.	 	Service Agreement (DTS Rate Schedule) by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 10, 2010.

	8.	 	Purchase Order 239 by and between Airgas Specialty Products and FirstEnergy Generation
Corp. dated as of September 2, 2010.

	9.	 	Interruptible Transportation Agreement by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 1, 2010.

	10.	 	Enterprise Zone Agreement by and between Fremont Energy Center, LLC and the City of
Fremont dated as of June 7, 2001 (amended by the First Amendment to the Fremont Energy
Center LLC Enterprise Zone Agreement dated as of May 2, 2006 and amended by the Second
Amendment to the Fremont Energy Center LLC Enterprise Zone Agreement by and between City of
Fremont and Calpine Corporation dated as of April 30, 2007).

	11.	 	Amended Facilities Agreement by and between Ohio Power Company and Fremont Energy
Center, LLC dated as of November 6, 2001.

	12.	 	Aqua Ammonia Supply Agreement by and between Airgas Specialty Products and FirstEnergy
Generation Corp. dated as of September 2, 2010.

 

 

 

Section 2.01(g)

Inventory

	1.	 	Inventories of chemicals and gases, supplies, materials and spares located at the Real
Property.

 

 

 

Section 2.01(h)

Computer Software, Systems and Licenses

	 	 	 	 	 
	Quantity	 	 	Description
	Siemens DCS

	 	6600	 	 	Plant I/O License

	 	7	 	 	Runtime License for XX3000

	 	7	 	 	Operating Session

	 	2	 	 	Engineering Session

	 	10	 	 	Dynamic Function View

	 	5	 	 	Runtime License for Singular Modbus

	 	500	 	 	Data Exchange I/O License

	 	1	 	 	SPPA-T3000 3rd Party Application Software

	 	5000	 	 	OPC Server I/O License

	 	7	 	 	Thin Client Windows License

	 	1	 	 	FT Server Windows License

	 	6600	 	 	EQ-DCM Config Software

	 	7	 	 	Matrikon OPC Tunneler

	PLC — Allen Bradley

	 	1	 	 	RSView32 Runtime

	 	1	 	 	RSView32 Development

	 	2	 	 	RSLogix 500

	 	1	 	 	PanelBuilder32

	 	2	 	 	FT View Studio for Machine Edition

	Automation Direct

	 	1	 	 	HMI Config Software

	PI System

	 	10,0000	 	 	Enterprise Server 2008

	 	1	 	 	ComboPack

	Alarm Management System — LogMate Suite

	 	1	 	 	TCP/IP Ports

	TiPSView Suite

	 	100	 	 	netView Client

	 	100	 	 	ACE Client

	Miscellaneous

	 	 	 	 	Bentley Nevada 3500 Config Software

	 	 	 	 	Building Automation Software

 

 

 

Section 2.01(i)

Transferrable Permits

	1.	 	Ohio Environmental Protection Agency, Permit-to-Install, August 9, 2001

	2.	 	Ohio Environmental Protection Agency, Permit-to-Install Administrative Modification,
June 7, 2010

	3.	 	Ohio Environmental Protection Agency, Title IV Acid Rain Permit, issued September 20,
2001, renewed June 29, 2010

	4.	 	Permit-by-Rule, Electrical Generator, April 14, 2010

	5.	 	Permit-by-Rule, Firefighting Water Pump, April 14, 2010

	6.	 	Ohio Environmental Protection Agency, Permit-to-Install (Wastewater Permit), August 17,
2001

	7.	 	Water Supply and Wastewater Treatment Agreement by and between Fremont Energy Center,
LLC and The City of Fremont, Sandusky County, Ohio, dated as of August 17, 2001

	8.	 	NPDES Stormwater General Permit Associated with Industrial Activities, April 26, 2010

	9.	 	Ohio Power Siting Board, Certificate of Environmental Compatibility and Public Need,
May 21, 2001

	10.	 	Federal Communications Commission wireless license number WQNF469

 

 

 

Section 2.02(i)

Excluded Assets

	1.	 	The credit referred to in Section 3.2(d) of the Amended Facilities Agreement by
and between Ohio Power Company and Fremont Energy Center, LLC, dated as of November 6,
2001

	2.	 	Construction Trailer Communication Equipment
	 
	3.	 	Temporary Construction Gate
	 
	4.	 	Light Duty Truck
	 
	5.	 	Global Mark Industrial Label Maker
	 
	6.	 	Vision Engraving System — Series 3
	 
	7.	 	Vision Engraving System — 1612 Engraving table
	 
	8.	 	Magnifier Lamp — Model LM749-90
	 
	9.	 	2 Motorola 6 stall radio base with radios
	 
	10.	 	Individual Motorola Portable Radios and Bases
	 
	11.	 	Burton L-2000 — Optical Examination Machine

 

 

 

Section 3.03

Section 12.13 Governmental Authorization

	1.	 	The granting of early termination or the expiration of the applicable waiting period
under the HSR Act, if applicable.

	2.	 	Federal Energy Regulatory Commission authorization pursuant to Section 203 of the
Federal Power Act

	3.	 	Ohio Power Siting Board with respect to the Certificate of Environmental Compatibility
and Public Need, May 21, 2001

	4.	 	Approval of Governmental Bodies for the transfer of the Permits set forth on Section
2.01(i) of the Seller Disclosure Schedules

 

 

 

Section 3.04

Noncontravention

	1.	 	The matters set forth in Section 9.03(d) of the Asset Purchase Agreement.

	 
	2.	 	The matters set forth in Section 9.03(e) of the Asset Purchase Agreement.

	3.	 	The matters set forth on Section 3.03 of the Seller Disclosure Schedules.

 

 

 

Section 3.06

Required Consents

	1.	 	Aqua Ammonia Supply Agreement by and between Airgas Specialty Products and FirstEnergy
Generation Corp. dated as of September 2, 2010.

	2.	 	Enhanced Firm Transportation Service Agreement by and between Panhandle Eastern Pipe
Line Company, LP and FirstEnergy Solutions Corp. dated as of October 30, 2006.

	3.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of July 26, 2005.

	4.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of November 19, 2008.

	5.	 	Firm Transportation Service Agreement by and between Trunkline Gas Company, LLC and
FirstEnergy Solutions Corp. dated as of November 19, 2008.

	6.	 	Water Supply and Wastewater Treatment Agreement by and between Fremont Energy Center,
LLC and The City of Fremont, Sandusky County, Ohio dated as of August 17, 2001.

	7.	 	Service Agreement (DTS Rate Schedule) by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 10, 2010.

	8.	 	Large Generator Interconnection Agreement by and between FirstEnergy Generation Corp.
and American Transmission Systems Incorporated dated as of September 25, 2008.

	9.	 	Interruptible Transportation Agreement by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 1, 2010.

	10.	 	Amended Facilities Agreement by and between Ohio Power Company and Fremont Energy
Center, LLC dated as of November 6, 2001.

	11.	 	Enterprise Zone Agreement by and between Fremont Energy Center, LLC and the City of
Fremont dated as of June 7, 2001 (amended by the First Amendment to the Fremont Energy
Center LLC Enterprise Zone Agreement dated as of May 2, 2006 and amended by the Second
Amendment to the Fremont Energy Center LLC Enterprise Zone Agreement by and between City of
Fremont and Calpine Corporation dated as of April 30, 2007).

	12.	 	The matters set forth in Section 3.04 of the Seller Disclosure Schedule.

 

 

 

Section 3.07

Litigation

None.

 

 

 

Section 3.10(a)

Permits

	1.	 	Ohio Environmental Protection Agency, Permit-to-Install, August 9, 2001

	2.	 	Ohio Environmental Protection Agency, Permit-to-Install Administrative Modification,
June 7, 2010

	3.	 	Ohio Environmental Protection Agency, Title IV Acid Rain Permit, issued September 20,
2001, renewed June 29, 2010

	4.	 	Permit-by-Rule, Electrical Generator, April 14, 2010

	5.	 	Permit-by-Rule, Firefighting Water Pump, April 14, 2010

	6.	 	Ohio Environmental Protection Agency, Permit-to-Install (Wastewater Permit), August 17,
2001

	7.	 	City of Fremont, Wastewater Contribution Permit (in draft), September 1, 2010

	8.	 	Water Supply and Wastewater Treatment Agreement by and between Fremont Energy Center,
LLC and The City of Fremont, Sandusky County, Ohio, dated as of August 17, 2001

	9.	 	NPDES Stormwater General Permit Associated with Industrial Activities, April 26, 2010

	10.	 	Ohio Power Siting Board, Certificate of Environmental Compatibility and Public Need,
May 21, 2001

	11.	 	Federal Aviation Administration, Notice to Construct, Determination of No Hazard issued
March 6, 2001 for stacks and July 31, 2001 for cranes

	12.	 	Army Corps of Engineers, Clean Water Act Section 404 Permit, Determination of No
Jurisdiction issued March 1, 2001

	13.	 	U.S. Department of Agriculture Natural Resources Conservation Service, Prior Converted
Cropland Determination, August 22, 2000

	14.	 	U.S. Fish and Wildlife Service, Protected Species Review, September 14, 2000

	15.	 	Ohio Department of Transportation — Aviation, Construction/Alteration Permit,
Determination of No Jurisdiction issued February 15, 2001

	16.	 	Ohio Historic Preservation Office, Section 106 Historic Preservation Approval, April
26, 2001

 

 

 

	17.	 	Ohio Department of Natural Resources, Protected Species Approval, April 4, 2000

	18.	 	Conditionally-Exempt Small Quantity Generator ID # OHR000136713

	19.	 	Spill Prevention Control and Countermeasure Plan, April 2003, Updated September 2006

	20.	 	It has been requested from the United States Environmental Protection Agency that the
180-calendar-day requirement for CEMS certification tests, pursuant to 40 CFR 75(b)(2), be
waived with regard to the October 2010 synchronization events and that the Generating
Facility be allowed to complete certification tests 90 operating days after the “initial
startup” after completing construction of both CT01 and CT02.

	21.	 	Federal Communications Commission wireless license number WQNF469

 

 

 

Section 3.11

Environmental Matters

	1.	 	Hydraulic fluid spill from a ruptured hose on the large ringer crane in 2003.

	2.	 	It has been requested from the United States Environmental Protection Agency that the
180-calendar-day requirement for CEMS certification tests, pursuant to 40 CFR 75(b)(2), be
waived with regard to the October 2010 synchronization events and that the Generating
Facility be allowed to complete certification tests 90 operating days after the “initial
startup” after completing construction of both CT01 and CT02.

 

 

 

Section 5.01

Section 12.14 Covenants of Seller — Conduct of Business Through the Closing

	1.	 	General Terms and Conditions for Procurement and Construction of Fremont Energy Center
by and between FirstEnergy Generation Corp. and Aker Construction, Inc. dated as of July
31, 2008.

	2.	 	General Terms and Conditions for Procurement and Construction of Fremont Energy Center
by and between FirstEnergy Generation Corp. and Dunbar Mechanical, Inc. dated as of July
31, 2008.

	3.	 	General Terms and Conditions for Procurement and Construction of Fremont Energy Center
by and between FirstEnergy Generation Corp. and Lake Erie Electric of Toledo, Inc. dated as
of July 31, 2008.

	4.	 	Amended and Restated Construction and Reimbursement Agreement by and among Fremont
Energy Center, LLC, Calpine Corporation and The East Ohio Gas Company dba Dominion East
Ohio dated as of November 14, 2003.

	5.	 	Preliminary Services Agreement by and between FirstEnergy Generation Corp. and AKER
Construction, Inc.

	6.	 	Purchase Order 45276242 by and between Siemens Power Generation, Inc. and FirstEnergy
Service Company dated as of August 1, 2008.

	7.	 	Purchase Order 45286209 by and between Pic Group Incorporated and FirstEnergy Service
Company dated as of November 10, 2008.

	8.	 	Change to Purchase Order 45286209 by and between Pic Group Incorporated and FirstEnergy
Service Company dated as of November 10, 2008.

	9.	 	Work Order Ticket 910619 by and between Air Technologies and Seller dated as of June 6,
2008.

	10.	 	Condenser Inspection Ticket 01-6130 by and between SPX Heat Transfer and Seller dated
as of March 1, 2010.

	11.	 	Fire Pump Assessment by and between Fire-Tech, Inc. and Seller dated as of July 11,
2008.

	12.	 	Service order R041847C by and between UE Compression and Seller dated as of August 29,
2008.

 

 

 

	13.	 	Quote and Order Form GPIQ1882 by and between UE Compression and Seller dated as of
August 4, 2008.

	14.	 	Agreement by and among The Toledo Edison Company, FirstEnergy Nuclear Operating
Company, and FirstEnergy Generation Corp. and LOCAL UNION NO. 245 of the International
Brotherhood of Electrical Workers dated as of November 8, 2007.

	15.	 	Stipulation of Contract Extension by and among The Toledo Edison Company, FirstEnergy
Nuclear Operating Company, FirstEnergy Generation Corp., and First Energy Service Company
and LOCAL UNION NO. 245 of the International Brotherhood of Electrical Workers, A.F.L.- CIO
dated as of July 1, 2009.

	16.	 	Memorandum of Understanding by and between FirstEnergy Generation Corp. and LOCAL 245
of the International Brotherhood of Electrical Workers dated as of January 25, 2010.

	17.	 	Memorandum of Understanding by and between FirstEnergy Generation Corp. and UWUA Local
351 dated as of May 4, 2010.

	18.	 	The Water Supply and Wastewater Treatment Agreement by and between Fremont Energy
Center, LLC and The City of Fremont, Sandusky County, Ohio, dated as of August 17, 2001,
may be amended prior to Closing to address matters including water use charges and
wastewater charges.

 

 

 

Section 7.06

Federal Communications Commission Consent

	 	1.	 	Federal Communications Commission wireless license number WQNF469.

 

 

 

Section 7.08

Employee

None

 

 

 

Section 7.11

If:

	 	(i)	 	On June 15, 2011 Buyer notifies Seller that the relevant date pursuant to Section
11.01(b) shall be changed to July 15, 2011;

	 	(ii)	 	On June 25th, 2011 Seller delivers a Seller Notification to Buyer; and

	 	(iii)	 	On August 1, 2011 the Technical Arbitrator renders a final decision, then the earliest
date any Party could deliver a notice of termination (if otherwise entitled) pursuant to
Section 11.01(b) would be August 20, 2011 (with the 20 days between the date of delivery of
Seller Notification and the then-applicable date pursuant to Section 11.01(b) being added
to the date that the Technical Arbitrator rendered a final decision).

 

 

 

Section 9.01(b)

	1.	 	Federal Energy Regulatory Commission authorization pursuant to Section 203 of the
Federal Power Act

	2.	 	Ohio Power Siting Board with respect to the Certificate of Environmental Compatibility
and Public Need, May 21, 2001.

 

 

 

Section 9.01(c)

	1.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of July 26, 2005.

	2.	 	Firm Transportation Service Agreement by and between Panhandle Eastern Pipe Line
Company, LP and FirstEnergy Solutions Corp. dated as of November 19, 2008.

	3.	 	Firm Transportation Service Agreement by and between Trunkline Gas Company, LLC and
FirstEnergy Solutions Corp. dated as of November 19, 2008.

	4.	 	Water Supply and Wastewater Treatment Agreement by and between Fremont Energy Center,
LLC and The City of Fremont, Sandusky County, Ohio dated as of August 17, 2001.

	5.	 	Service Agreement (DTS Rate Schedule) by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 10, 2010.

	6.	 	Large Generator Interconnection Agreement by and between FirstEnergy Generation Corp.
and American Transmission Systems Incorporated dated as of September 25, 2008.

	7.	 	Interruptible Transportation Agreement by and between The East Ohio Gas Company dba
Dominion East Ohio and FirstEnergy Solutions Corp. dated as of July 1, 2010.

	8.	 	Enterprise Zone Agreement by and between Fremont Energy Center, LLC and the City of
Fremont dated as of June 7, 2001 (amended by the First Amendment to the Fremont Energy
Center LLC Enterprise Zone Agreement dated as of May 2, 2006 and amended by the Second
Amendment to the Fremont Energy Center LLC Enterprise Zone Agreement by and between City of
Fremont and Calpine Corporation dated as of April 30, 2007).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]