Document:

Purchase and Sale Agreement

 Exhibit 10.1 
  
 EXECUTION COPY 
  
 PURCHASE AND SALE AGREEMENT 
  
 BY AND BETWEEN 
  
 ATLANTIC CITY ELECTRIC COMPANY 
  
 and 
  
 DUQUESNE LIGHT
HOLDINGS, INC. 
  
 Dated as of November 14, 2005

  
 Jointly Owned Stations 

 LIST OF EXHIBITS AND SCHEDULES 
  

			
	EXHIBITS	  	 
		
	 Exhibit A
	  	Form of Assignment and Assumption Agreement
		
	 Exhibit B
	  	Form of Bill of Sale
		
	 Exhibit C
	  	Form of FIRPTA Affidavit
		
	 Exhibit D
	  	Form of Deed- Conemaugh
		
	 Exhibit E
	  	Form of Deed- Keystone
		
	 Exhibit F
	  	Form of Seller’s Legal Opinion
		
	 Exhibit G
	  	Form of Buyer’s Legal Opinion
		
	SCHEDULES	  	 
		
	 1.1(28)
	  	Description of Conemaugh Station
		
	 1.1(63)
	  	Description of Keystone Station
		
	 1.1(77)
	  	Permitted Encumbrances
		
	 2.1(d)
	  	Electrical Transmission Facilities
		
	 2.1(f)
	  	Emission Allowances to be Transferred to Buyer
		
	 2.6
	  	Inventories
		
	 4.3(a)
	  	Seller’s Defaults and Violations
		
	 4.3(b)
	  	Seller’s Required Regulatory Approvals
		
	 4.6
	  	Environmental Matters
		
	 4.7
	  	Real Property
		
	 4.9(a)
	  	Seller’s Agreements
		
	 4.9(b)
	  	Seller’s Agreements Exceptions
		
	 4.9(c)
	  	Seller’s Agreements Defaults and Violations
		
	 4.10
	  	Legal Proceedings

  

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	 4.12
	  	Brokers; Finders
		
	 5.3(a)
	  	Buyer’s Defaults and Violations
		
	 5.3(b)
	  	Buyer’s Required Regulatory Approvals
		
	 5.9
	  	Environmental Site Assessments
		
	 7.1(c)
	  	Certain Buyer’s Required Regulatory Approvals
		
	 7.2(c)
	  	Certain Seller’s Required Regulatory Approvals

  

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 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 	  	ARTICLE I	  	 
	 	  	DEFINITIONS	  	 
			
	1.1.	  	Definitions	  	1
	1.2.	  	Construction	  	12
	1.3.	  	U.S. Dollars	  	13
	1.4.	  	Seller’s Interests in Jointly Owned Stations	  	13
			
	 	  	ARTICLE II	  	 
	 	  	PURCHASE AND SALE	  	 
			
	2.1.	  	Transfer of Assets	  	13
	2.2.	  	Excluded Assets	  	14
	2.3.	  	Assumed Liabilities	  	16
	2.4.	  	Excluded Liabilities	  	17
	2.5.	  	Control of Litigation	  	18
	2.6.	  	Inventories	  	18
			
	 	  	ARTICLE III	  	 
	 	  	THE CLOSING	  	 
			
	3.1.	  	Closing	  	18
	3.2.	  	Payment of Purchase Price	  	18
	3.3.	  	Adjustment to Purchase Price	  	19
	3.4.	  	Tax Reporting and Allocation of Purchase Price	  	20
	3.5.	  	Prorations	  	21
	3.6.	  	Deliveries by Seller	  	22
	3.7.	  	Deliveries by Buyer	  	23
	3.8.	  	Post-Closing Excluded Asset Deliveries	  	23
			
	 	  	ARTICLE IV	  	 
	 	  	REPRESENTATIONS AND WARRANTIES OF SELLER	  	 
			
	4.1.	  	Organization; Qualification	  	24
	4.2.	  	Authority	  	24
	4.3.	  	Consents and Approvals; No Violation	  	24
	4.4.	  	Insurance	  	25
	4.5.	  	Title and Related Matters	  	25
	4.6.	  	Environmental Matters	  	25
	4.7.	  	Real Property	  	26
	4.8.	  	Condemnation	  	26
	4.9.	  	Contracts and Leases	  	26

  

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	4.10.	  	Legal Proceedings	  	26
	4.11.	  	Seller’s Permits	  	27
	4.12.	  	Brokers; Finders	  	27
	4.13.	  	Special Purpose Financial Statements	  	27
	4.14.	  	Employees	  	27
	4.15.	  	Disclosures	  	27
	4.16.	  	Taxes	  	27
			
	 	  	ARTICLE V	  	 
	 	  	REPRESENTATIONS AND WARRANTIES OF BUYER	  	 
			
	5.1.	  	Organization; Qualification	  	28
	5.2.	  	Authority	  	28
	5.3.	  	Consents and Approvals; No Violation	  	28
	5.4.	  	Buyer’s Permits	  	29
	5.5.	  	Availability of Funds	  	29
	5.6.	  	Financial Statements	  	29
	5.7.	  	Legal Proceedings	  	29
	5.8.	  	No Knowledge of Seller’s Breach	  	30
	5.9.	  	Inspections	  	30
	5.10.	  	Regulation as a Utility	  	30
	5.11.	  	Brokers; Finders	  	30
			
	 	  	ARTICLE VI	  	 
	 	  	COVENANTS OF THE PARTIES	  	 
			
	6.1.	  	Access to Information	  	30
	6.2.	  	Public Statements	  	32
	6.3.	  	Further Assurances	  	32
	6.4.	  	Consents and Approvals	  	33
	6.5.	  	Certain Tax Matters	  	34
	6.6.	  	Advice of Changes	  	35
	6.7.	  	Risk of Loss	  	36
	6.8.	  	PJM; MAAC	  	36
	6.9.	  	Emission Allowances	  	36
	6.10.	  	Certain Covenants	  	37
	6.11.	  	Exclusivity	  	37
			
	 	  	ARTICLE VII	  	 
	 	  	CONDITIONS	  	 
			
	7.1.	  	Conditions to Obligation of Buyer	  	38
	7.2.	  	Conditions to Obligation of Seller	  	39
	7.3.	  	Separate Closings	  	40

  

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	 	  	ARTICLE VIII	  	 
	 	  	INDEMNIFICATION AND ARBITRATION	  	 
			
	8.1.	  	Indemnification	  	41
	8.2.	  	Defense of Claims	  	43
	8.3.	  	Arbitration	  	44
			
	 	  	ARTICLE IX	  	 
	 	  	TERMINATION	  	 
			
	9.1.	  	Termination	  	45
	9.2.	  	Effect of Termination	  	46
			
	 	  	ARTICLE X	  	 
	 	  	MISCELLANEOUS PROVISIONS	  	 
			
	10.1.	  	Amendment and Modification	  	47
	10.2.	  	Expenses	  	47
	10.3.	  	Fees and Commissions	  	47
	10.4.	  	Bulk Sales Laws	  	47
	10.5.	  	Waiver of Compliance; Consents	  	47
	10.6.	  	Survival	  	47
	10.7.	  	Disclaimers	  	48
	10.8.	  	Notices	  	49
	10.9.	  	Assignment	  	50
	10.10.	  	Governing Law; Forum; Service of Process	  	50
	10.11.	  	Counterparts	  	51
	10.12.	  	Interpretation	  	51
	10.13.	  	Schedules and Exhibits	  	51
	10.14.	  	Disclosure	  	51
	10.15.	  	Entire Agreement	  	51

  

 v 

 PURCHASE AND SALE AGREEMENT 
  
 PURCHASE AND SALE AGREEMENT, dated as of November 14, 2005 (this “Agreement”), by and between Atlantic
City Electric Company, a New Jersey corporation (“ACE” or “Seller”), and Duquesne Light Holdings, Inc., a Pennsylvania corporation (“Buyer”). Seller and Buyer may each be referred to herein
individually as a “Party,” and together as the “Parties.” 
  
 WITNESSETH 
  
 WHEREAS, Seller owns minority interests in two fossil fuel-fired electric generating stations, and certain properties and assets associated therewith and ancillary thereto; and 
  
 WHEREAS, Seller possesses certain Emission Allowances (as defined below); and 
  
 WHEREAS, Buyer desires to purchase and assume, and Seller desires to sell and
assign, or cause to be sold and assigned, the Purchased Assets (as defined below) and certain associated Liabilities (as defined below), upon the terms and conditions hereinafter set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants, representations, warranties and agreements set forth herein, and intending to be legally bound hereby, the Parties hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 1.1. Definitions. As used in this Agreement, the following capitalized terms have the meanings specified in this Section 1.1. 
  
 (1) “ACE” has the meaning set forth in the preamble to this Agreement. 
  
 (2) “Additional Agreements” means the Special Warranty
Deeds, the Assignment and Assumption Agreements and the Bills of Sale. 
  
 (3) “Affiliate” has the meaning set forth in Rule 12b-2 of the General Rules and Regulations promulgated under the Exchange Act. 
  
 (4) “Agreement” means this Purchase and Sale Agreement together with the Schedules and Exhibits hereto. 
  
 (5) “Assignment and Assumption Agreements” means the
assignment and assumption agreements between Seller and Buyer, to be delivered at the Closing, substantially in the form of Exhibit A hereto, pursuant to which Seller shall assign the Seller’s Agreements, 

 
certain intangible assets and certain other Purchased Assets to Buyer, and Buyer shall accept such assignment and assume the Assumed Liabilities. 

 
 (6) “Assumed Liabilities” has the meaning set forth in
Section 2.3. 
  
 (7) “Authorized Agent” has
the meaning set forth in Section 10.10. 
  
 (8)
“Bills of Sale” means the bills of sale of Seller, to be delivered at the Closing, substantially in the form of Exhibit B hereto. 
  
 (9) “Book Value” means, as of any date, original cost (including related capital improvements, freight, commodity and handling (other
than on-site handling) less applicable depreciation and amortization, as reflected on Seller’s books and records or the books and records of Conemaugh Fuels, LLC or Keystone Fuels, LLC, in each case, through such date. 
  
 (10) “Business Day” means any day other than Saturday,
Sunday and any day on which banking institutions in the State of New York are authorized or required by Law to close. 
  
 (11) “Buyer” has the meaning set forth in the preamble to this Agreement. 
  
 (12) “Buyer Material Adverse Effect” has the meaning set forth in Section 5.3(a). 
  
 (13) “Buyer’s Financial Statements” has the meaning set
forth in Section 5.6. 
  
 (14) “Buyer’s
Indemnitee” has the meaning set forth in Section 8.1(b). 
  
 (15) “Buyer’s Permits” has the meaning set forth in Section 5.4. 
  
 (16) “Buyer’s Required Regulatory Approvals” has the meaning set forth in Section 5.3(b). 
  
 (17) “Capital Expenditures” means the total amount of funds
paid by Seller, or Liabilities incurred and subsequently paid by Seller, in a manner consistent with the Jointly Owned Stations Operating Agreements, in respect of the period commencing on September 1, 2005 and ending on the Closing Date for
those capital projects identified from time to time in (a) the General Ledger for each of Conemaugh Station and Keystone Station and (b) the Monthly Work Order Status Reports for each of Conemaugh Station and Keystone Station. 

 
 (18) “CERCLA” means the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended. 
  
 (19) “Closing” has the meaning set forth in Section 3.1. 
  
 (20) “Closing Adjustment Amount” means an amount equal to the amount by which (a) the sum of (i) the Book Value of Seller’s right, title and interest in and to the Inventories 

  

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(which, for purposes of clarity, the Parties acknowledge to include, for purposes of this definition, Inventories of Conemaugh Fuels, LLC and Keystone Fuels,
LLC, to the extent of the Seller’s Interests therein), as of the Closing Date, determined in a manner consistent with the determination of the Target Adjustment Amount, plus (ii) Capital Expenditures exceeds (b) the Electricity Sales
Reimbursement Amount. 
  
 (21) “Closing Date” has
the meaning set forth in Section 3.1. 
  
 (22)
“Closing Payment” has the meaning set forth in Section 3.2(d). 
  
 (23) “Closing Statement” has the meaning set forth in Section 3.3(a). 
  
 (24) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (25) “Commercial Arbitration Rules” has the meaning set forth in Section 8.3(c). 
  
 (26) “Commercially Reasonable Efforts” means efforts which
are reasonably within the contemplation of the Parties at the time of entering into this Agreement and which do not require the performing Party to expend funds other than expenditures which are customary and reasonable in transactions of the kind
and nature contemplated by this Agreement in order for the performing Party to satisfy its obligations hereunder. 
  
 (27) “Conemaugh Interest” means Seller’s 3.83% undivided interest as tenant in common in Conemaugh Station. 
  
 (28) “Conemaugh Station” means the generating station known
as Conemaugh Station, located in the County of Indiana, Commonwealth of Pennsylvania, and related properties and assets, all as more fully identified on Schedule 1.1(28) attached hereto. 
  
 (29) “Confidentiality Agreement” means the Confidentiality Agreement, dated May 11, 2005, between
Seller and Duquesne Power, LP. 
  
 (30) “Courts”
has the meaning set forth in Section 10.10. 
  
 (31)
“Direct Claim” has the meaning set forth in Section 8.2(c). 
  
 (32) “Easements” means, collectively, all easements, licenses, rights of way and other access rights reserved by Seller, or any Affiliate thereof, in the Special Warranty Deeds, including those that
authorize access, use, maintenance, construction, repair, replacement and other activities by Seller, or any Affiliate thereof, or are otherwise necessary for Seller, or any Affiliate thereof, to operate and maintain its electrical and gas
transmission and distribution facilities, or information technology and telecommunications assets, or fulfill legal requirements applicable thereto. 
  

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 (33) “Electricity Sales Reimbursement Amount” means an amount equal to the sum of all
amounts actually paid to and received by Seller in respect of (a) electric energy and capacity produced by the Jointly Owned Stations and sold into the applicable PJM markets from the Closing Date through, but not including, the PJM Transfer
Date; and (b) any revenue in respect of ancillary charges paid to and received by Seller less any applicable ancillary charges incurred by Seller during the period from the Closing Date through, but not including, the PJM Transfer Date and
attributable to the Jointly Owned Stations. 
  
 (34)
“Emission Allowances” means, collectively, NOx Allowances and SO2 Allowances. 
  
 (35) “Emission Budget Program” means, together, the NOx Budget Program and the SO2
Budget Program. 
  
 (36) “Encumbrances” means any
and all mortgages, pledges, liens, claims, security interests, agreements, easements, activity and use limitations, restrictions, defects of title or encumbrances of any kind. 
  
 (37) “Environmental Claims” has the meaning set forth in Section 8.1(c). 
  
 (38) “Environmental Condition” means the presence or Release
to the environment, including air, surface and subsurface water, groundwater, soil and sediments, whether at the Sites or otherwise, of Hazardous Substances, including any migration of Hazardous Substances through air, surface and subsurface water,
groundwater, soil and sediments at, to or from the Sites or at, to or from any Off-Site Location, regardless of when such presence or Release occurred or is discovered. 
  
 (39) “Environmental Laws” means all Laws, and judgments, orders and decrees of any Government Authority, in
each case, as amended from time to time, (a) relating to pollution or protection of the environment, natural resources or human health and safety, including Laws relating to Releases or threatened Releases of Hazardous Substances or otherwise
relating to the manufacture, formulation, generation, processing, distribution, use, treatment, storage, disposal, Release, transport, arrangement for transport for disposal or treatment, arrangement for disposal or treatment, Remediation,
abatement, cleanup or handling of Hazardous Substances, (b) with regard to recordkeeping, notification, disclosure and reporting requirements respecting Hazardous Substances and (c) relating to the management, use, restoration, or
compensation for lost use of or damage to natural resources. 
  
 (40) “Environmental Permits” means all permits, certificates, licenses and authorizations of all Governmental Authorities under Environmental Laws. 
  
 (41) “Estimated Adjustment Amount” has the meaning set forth in Section 3.2(c). 
  
 (42) “Exchange Act” means the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder. 
  

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 (43) “Excluded Assets” has the meaning set forth in Section 2.2. 
  
 (44) “Excluded Liabilities” has the meaning set forth in
Section 2.4. 
  
 (45) “Federal Power Act”
means the Federal Power Act, as amended, and the rules and regulations promulgated thereunder. 
  
 (46) “FERC” means the U.S. Federal Energy Regulatory Commission, and any successor agency thereto. 
  
 (47) “FIRPTA Affidavit” means the Foreign Investment in Real Property Tax Act Certification and Affidavit of Seller, to be delivered at
the Closing, substantially in the form of Exhibit C hereto. 
  
 (48) “Fuels Working Funds” has the meaning set forth in Section 2.1(i). 
  
 (49) “Governmental Authority” means any executive, legislative, judicial, regulatory, tribal or administrative agency, body, commission,
department, board, court, tribunal or authority of the U.S. or any foreign country, or any state, local or other governmental subdivision thereof. 
  
 (50) “Hazardous Substances” means (a) any petrochemical or petroleum products, oil or coal ash, coal slag, radioactive materials,
radon gas, lead paint, asbestos in any form that is or could become friable, urea formaldehyde foam insulation and transformers or other equipment that contain dielectric fluid which may contain polychlorinated biphenyls, (b) any chemicals,
materials or substances defined as or included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “hazardous constituents,” “restricted hazardous materials,”
“extremely hazardous substances,” “toxic substances,” “contaminants,” “pollutants,” “toxic pollutants” or words of similar meaning and regulatory effect under any applicable Environmental Law and
(c) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any applicable Environmental Law. 
  
 (51) “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. 
  
 (52) “Income Tax” means any Tax imposed by any Governmental
Authority (a) based upon, measured by or calculated with respect to net income, profits or receipts (including capital gains Taxes and minimum Taxes) or (b) based upon, measured by or calculated with respect to multiple bases (including
corporate franchise taxes) if one or more of such bases is described in clause (a), in each case, together with any interest, penalties or additions attributable thereto. 
  
 (53) “Indemnifiable Loss” has the meaning set forth in Section 8.1(a). 
  
 (54) “Indemnifying Party” has the meaning set forth in
Section 8.1(e). 
  
 (55) “Indemnitee” has
the meaning set forth in Section 8.1(b). 
  

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 (56) “Independent Accounting Firm” means such nationally recognized, independent
accounting firm as is mutually appointed by Seller and Buyer for purposes of this Agreement. 
  
 (57) “Initial Amount” has the meaning set forth in Section 3.2(a). 
  
 (58) “Inspection” means all tests, reviews, examinations, inspections, investigations, verifications, samplings and similar activities
conducted by Buyer or its Representatives. 
  
 (59)
“Inventories” means coal, oil and other fuel inventories, limestone, gypsum, materials, spare parts, capital spare parts, consumable supplies, and chemical and gas inventories (together with related freight, commodity and handling
(other than on-site handling)) which are located at or in transit to the Jointly Owned Stations for use in the operation of the Jointly Owned Stations. 
  
 (60) “Jointly Owned Stations” means, together, Conemaugh Station and Keystone Station. 
  
 (61) “Jointly Owned Stations Operating Agreements” means,
together, (a) the Operation and Maintenance Agreement, dated as of December 1, 2002, by and among Reliant Energy Northeast Management Company, Atlantic City Electric Company, Conemaugh Power LLC, Constellation Power Source Generation,
Inc., Exelon Generation Company, LLC, PPL Montour LLC, Allegheny Energy Supply Conemaugh, LLC, PSEG Fossil LLC, Reliant Energy Mid-Atlantic Power Holdings, LLC and UGI Development Company, with respect to the ownership and operation of Conemaugh
Station, and (b) the Operation and Maintenance Agreement, dated as of December 1, 2002, by and among Reliant Energy Northeast Management Company, Atlantic City Electric Company, Constellation Power Source Generation, Inc., Exelon
Generation Company, LLC, Keystone Power LLC, PPL Montour LLC, PSEG Fossil LLC and Reliant Energy Mid-Atlantic Power Holdings, LLC, with respect to the ownership and operation of Keystone Station. 
  
 (62) “Keystone Interest” means Seller’s 2.47% undivided
interest as tenant in common in Keystone Station. 
  
 (63)
“Keystone Station” means the generating station known as Keystone Station located in Plumcreek Township, County of Armstrong, Commonwealth of Pennsylvania, and related properties and assets, all as more fully identified on Schedule
1.1(63) attached hereto. 
  
 (64) “Knowledge”
means the actual knowledge, after due inquiry, of James Becker, John Miller, Stuart Widom, Roland Miller, Randall Griffin and Betty Mincer. 
  
 (65) “Laws” means all laws, statutes, rules, regulations and ordinances of any Governmental Authority. 
  
 (66) “Liability” or “Liabilities” means any
liability or obligation (whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or 

  

 6 

 
unaccrued, whether liquidated or unliquidated and whether due or to become due), including any liability for Taxes. 
  
 (67) “MAAC” means the Mid-Atlantic Area Council of the North
American Electric Reliability Council, and any successor entity thereto. 
  
 (68) “Material Adverse Effect” means any change in or effect on the Purchased Assets, taken as a whole, or either of the Jointly Owned Stations or the operation of the Purchased Assets, taken as a
whole, or either of the Jointly Owned Stations after the date hereof that is materially adverse to the properties, results of operations or financial condition of the Purchased Assets, taken as a whole, or either of the Jointly Owned Stations, in
each case, other than (a) any change or effect affecting the international, national, regional or local electric industry as a whole and not specific and exclusive to the Purchased Assets, (b) any change or effect resulting from changes in
the international, national, regional or local wholesale or retail markets for electricity, including any change in or effect on the structure, operating agreements, operations or procedures of PJM or its control area, (c) any change or effect
resulting from changes in the international, national, regional or local markets for any fuel type that may be used at each of the Jointly Owned Stations, (d) any change or effect resulting from changes in the international, national, regional
or local electricity transmission or distribution systems or operations thereof, (e) changes in general economic conditions, interest rates or securities markets in the U.S. or worldwide, (f) changes in Law, or any judgments, orders or
decrees that apply generally to similarly situated Persons, (g) any change or effect to the extent constituting or involving an Excluded Asset or an Excluded Liability, (h) any change or effect resulting from any condition imposed on any
Party or the Purchased Assets by a Governmental Authority in connection with the grant of such Governmental Authority’s consent or approval of the transactions contemplated hereby and by the Additional Agreements, (i) any acts of war or
terrorist activities, (j) strikes, work stoppages or other labor disturbances that are not specific to the Jointly Owned Stations or Seller, (k) any matter to the extent that (i) it is disclosed in reasonable detail in any Schedule
delivered by Seller on the date hereof and (ii) such disclosed matter does not worsen in a material manner, (l) any change or effect arising solely by reason of or relating to the announcement of the transactions provided for in this
Agreement, and (m) any change in or effect on the Purchased Assets which is cured (including by payment of money) before the earlier of the Closing and the termination of this Agreement pursuant to Section 9.1. 
  
 (69) “NJBPU” means the New Jersey Board of Public Utilities,
and any successor agency thereto. 
  
 (70) “NOx” means oxides of nitrogen. 
  
 (71) “NOx Allowance” means an allowance or authorization used to comply with a NOx Budget Program, including: (a) a NOx Allowance as that term is defined in 25 Pa. Code § 145.2 as of the date hereof; (b) a NOx allowance or authorization (or similar term) as set forth in the U.S. federal Clean Air Interstate Rule published in the Federal Register on May 12, 2005, including allowances or authorizations
relating to NOx emissions during the ozone season and during a calendar year; (c) a NOx allowance or authorization (or similar term) as set forth in Laws that may be promulgated by the Commonwealth of Pennsylvania
or the PaDEP after the 

  

 7 

 
date hereof to implement such Clean Air Interstate Rule; and (d) a NOx allowance or authorization (or similar term) promulgated pursuant to any future U.S. federal or state Laws that amends or supersedes any of the foregoing.

  
 (72) “NOx Budget Program” means a statutory or regulatory program promulgated by the U.S. or a
state pursuant to which the U.S. or state provides for a limit on the NOx that can be emitted by all sources covered
by the program and establishes tradable allowances or authorizations as the means for ensuring compliance with the limit. 
  
 (73) “Off-Site Location” means any real property other than the Sites. 
  
 (74) “PaDEP” means the Pennsylvania Department of Environmental Protection, and any successor agency
thereto. 
  
 (75) “PaPUC” means the Pennsylvania
Public Utility Commission, and any successor agency thereto. 
  
 (76) “Party” and “Parties” have the respective meanings set forth in the preamble to this Agreement. 
  
 (77) “Permitted Encumbrances” means: (a) the Easements; (b) those exceptions to title to the Purchased Assets listed on
Schedule 1.1(77); (c) statutory liens for Taxes or other charges or assessments of Governmental Authorities not yet due or delinquent, or which are being contested in good faith by appropriate proceedings; (d) mechanics’,
carriers’, workers’, repairers’ and other similar liens arising or incurred in the ordinary course of business; (e) zoning, entitlement, conservation restriction and other land use and environmental restrictions and regulations
of Governmental Authorities; (f) Encumbrances created by Buyer, or its successors and assigns; and (g) such other Encumbrances as do not materially detract from the value of either the Jointly Owned Stations or the Purchased Assets, taken
as a whole, as currently used, or materially interfere with the present use of either the Jointly Owned Stations or the Purchased Assets, taken as a whole. 
  
 (78) “Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated
organization, other entity, business association or Governmental Authority. 
  
 (79) “PJM” means PJM Interconnection, L.L.C., and any successor entity thereto. 
  
 (80) “PJM Agreement” means the Amended and Restated Operating Agreement of PJM Interconnection, L.L.C., on file and effective at FERC as
of June 22, 2005, as it may be amended from time to time. 
  
 (81) “PJM Transfer Date” means such date as the transfer of the Jointly Owned Stations from Seller to Buyer is reflected in all applicable PJM systems and databases. 
  
 (82) “Prime Rate” has the meaning set forth in
Section 3.3(c). 
  

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 (83) “Proprietary Information” of a Party means all information about any Party or its
properties or operations furnished to the other Party or its Representatives by such Party or its Representatives, from and after the date hereof, regardless of the manner or medium in which it is furnished. Proprietary Information does not include
information that: (a) is or becomes generally available to the public, other than as a result of a disclosure by the other Party or its Representatives; (b) was available to the other Party on a non-confidential basis prior to its
disclosure by the Party or its Representatives; (c) is or becomes available to the other Party on a non-confidential basis from a source other than such Party, provided that the source of such information was not known by such Party or its
Representatives, after reasonable investigation, to be bound by a confidentiality agreement with or other contractual, legal or fiduciary obligation of confidentiality to such Party or any of its Representatives with respect to such material;
(d) is independently developed by the other Party; or (e) was disclosed pursuant to the Confidentiality Agreement and remains subject to the terms and conditions of the Confidentiality Agreement. 
  
 (84) “PUHCA” means the Public Utility Holding Company Act of
1935, as amended, and the rules and regulations promulgated thereunder. 
  
 (85) “Purchase Price” has the meaning set forth in Section 3.2(a). 
  
 (86) “Purchased Assets” has the meaning set forth in Section 2.1. 
  
 (87) “Real Property” has the meaning set forth in Section 2.1(a). 
  
 (88) “Regulatory Material Adverse Effect” means, with
respect to any Party, any change in or effect resulting from any condition imposed by any Governmental Authority in connection with the grant of such Governmental Authority’s consent or approval of the transactions contemplated hereby or by the
Additional Agreements that either (a) is materially adverse to such Party, or its results of operations, financial condition, business, properties, assets or liabilities, (b) materially impairs such Party’s ability to operate its
business, properties or assets substantially in the manner operated on the date hereof, (c) materially detracts from the value of such Party’s business, properties or assets, or (d) materially affects the value of the transactions
contemplated hereby or by the Additional Agreements to such Party. 
  
 (89) “Release” means any release, spill, leak, discharge, disposal of, pumping, pouring, emitting, emptying, injecting, leaching, dumping or allowing to escape into or through the environment, whether air, surface or
subsurface water, groundwater, soil or sediment. 
  
 (90)
“Remediation” means an action of any kind to address an Environmental Condition or a Release of Hazardous Substances, including the following activities: (a) monitoring, investigation, assessment, treatment, cleanup,
containment, removal, mitigation, response or restoration work; (b) obtaining any permits, consents, approvals or authorizations of any Governmental Authority necessary to conduct any such activity; (c) preparing and implementing any plans
or studies for any such activity; (d) obtaining a written notice from a Governmental Authority with jurisdiction over the Jointly Owned Stations or the Sites or an Off Site Location under Environmental Laws that no material additional work is
required by such Governmental Authority; (e) the use, implementation, application, installation, operation or 

  

 9 

 
maintenance of removal actions, remedial technologies applied to the surface or subsurface soils, excavation and treatment or disposal of soils at an Off
Site Location, systems for long term treatment of surface water or groundwater, engineering controls or institutional controls; and (f) any other activities reasonably determined by a party to be necessary or appropriate or required under
Environmental Laws to address an Environmental Condition or a Release of Hazardous Substances. 
  
 (91) “Representatives” of a Person means, collectively, such Person’s Affiliates and its and their respective directors, officers, partners, members, employees, representatives, agents, advisors
(including accountants, legal counsel, environmental consultants, engineering consultants and financial advisors), parent entities and other controlling Persons. 
  
 (92) “SEC” means the U.S. Securities and Exchange Commission, and any successor agency thereto. 

 
 (93) “Securities Act” means the Securities Act of 1933,
as amended, and the rules and regulations promulgated thereunder. 
  
 (94) “Seller” has the meaning set forth in the preamble to this Agreement. 
  
 (95) “Seller’s Agreements” means, collectively, (a) the contracts, agreements, arrangements, licenses and leases of any nature
to which, as of the date hereof, Seller is a party, or by or to which Seller or the Purchased Assets is bound or subject, in each case, relating to the ownership, lease, maintenance or operation of the Purchased Assets, (b) those contracts,
agreements, arrangements, licenses and leases of any nature entered into by Seller on or after the date of this Agreement consistent with the terms of this Agreement, in each case, relating to the ownership, lease, maintenance or operation of the
Purchased Assets, and (c) those contracts, agreements, arrangements, licenses and leases entered into by any party to the Jointly Owned Stations Operating Agreements, for and on behalf of Seller, with or without Seller’s Knowledge, and by
or to which Seller or the Purchased Assets are bound or subject as of the date hereof, or by or to which Seller or the Purchased Assets become bound or subject after the date hereof, in each case, relating to the ownership, lease, maintenance or
operation of the Purchased Assets. 
  
 (96) “Seller’s
Indemnitee” has the meaning set forth in Section 8.1(a). 
  
 (97) “Seller’s Interests” means, together, the Conemaugh Interest and the Keystone Interest. 
  
 (98) “Seller’s Permits” has the meaning set forth in Section 4.11. 
  
 (99) “Seller’s Required Regulatory Approvals” has the
meaning set forth in Section 4.3(b). 
  
 (100)
“Sites” means the real property forming a part, or used or usable in connection with the operation, of the Jointly Owned Stations, including any real property used for the disposal of solid waste or Hazardous Substances that is
included in the Real Property. Any 

  

 10 

 
reference to the Sites shall include the surface and subsurface elements, including the soil, surface water and groundwater present at the Sites. 

 
 (101) “SO2” means sulfur dioxide. 
  
 (102) “SO2 Allowance” means an allowance or authorization used to comply with a SO2 Budget Program, including: (a) an Allowance as that term is defined in 40 CFR § 72.2; (b) a SO2 allowance or authorization (or similar term) as set forth in the U.S. federal Clean Air Interstate Rule published in the
Federal Register on May 12, 2005; (c) a SO2 allowance or authorization (or similar term) as set forth in
Laws that may be promulgated by the Commonwealth of Pennsylvania or the PaDEP after the date hereof to implement such Clean Air Interstate Rule; and (d) a SO2 allowance or authorization (or similar term) promulgated pursuant to any future U.S. federal or state Law that amends or supersedes any of the foregoing. 
  
 (103) “SO2 Budget Program” means a statutory or regulatory program, promulgated by the U.S. or a
state pursuant to which the U.S. or state provides for a limit on the SO2 that can be emitted by all sources covered
by the program and establishes tradable allowances or authorizations as the means for ensuring compliance with the limit. 
  
 (104) “Special Purpose Financial Statements” means, collectively, (a) the audited special purpose statements of owners’ assets,
liabilities, and investments in each of the Keystone Station and the Conemaugh Station for each of their respective fiscal years ended December 31, 2004 and 2003, together with the related reports of their independent accountants, KPMG LLP, as
furnished by the Keystone-Conemaugh Project Office, (b) the audited balance sheets, statements of operations, statements of members’ equity and statements of cash flow of each of Keystone Fuels, LLC and Conemaugh Fuels, LLC for each of
their respective fiscal years ended December 31, 2004 and 2003, together with the related reports of their independent accountants, KPMG LLP, as furnished by the Keystone-Conemaugh Project Office, and (c) the unaudited General Ledger for
each of the Keystone Station, Conemaugh Station, Keystone Fuels, LLC and Conemaugh Fuels, LLC for each month during the period beginning January 1, 2005 and ending September 30, 2005, as prepared by the Keystone-Conemaugh Project Office.

  
 (105) “Special Warranty Deeds” means the
special warranty deeds, to be delivered at the Closing, substantially in the form of Exhibit D and Exhibit E hereto, pursuant to which Seller will convey the Real Property to Buyer. 
  
 (106) “Station Working Funds” means, as of the date
immediately preceding the Closing Date, the amount of working funds, as reflected in the respective General Ledgers of the Jointly Owned Stations, to the extent of the Seller’s Interests. 
  
 (107) “Subsidiary”, when used in reference to any Person,
means any entity of which outstanding securities or interests having ordinary voting power to elect a majority of the board of directors or other governing body performing similar functions of such entity are owned directly or indirectly by such
Person. 
  
 (108) “Tangible Personal Property”
has the meaning set forth in Section 2.1(d). 
  

 11 

 (109) “Target Adjustment Amount” means $2,151,869, which amount represents the Book
Value, as of August 31, 2005, of Seller’s right, title and interest in and to the Inventories (which, for purposes of clarity, the Parties acknowledge to include for purposes of this definition Inventories of Conemaugh Fuels, LLC and
Keystone Fuels, LLC, to the extent of the Seller’s Interests therein), as determined by the Keystone-Conemaugh Project Office in accordance with the terms of the Jointly Owned Stations Operating Agreements. 
  
 (110) “Tax” or “Taxes” means all taxes,
charges, fees, levies, penalties and other assessments imposed by any Governmental Authority, including income, gross receipts, excise, property, sales, transfer, use, franchise, payroll, withholding, social security and other taxes, together with
any interest, penalties or additions attributable thereto. 
  
 (111) “Tax Return” means any return, report, information return or other document, together with all amendments and supplements thereto (including any related or supporting information), required to be supplied to any
Governmental Authority responsible for the administration of Laws governing Taxes. 
  
 (112) “Third-Party Claim” has the meaning set forth in Section 8.2(a). 
  
 (113) “Transfer Taxes” has the meaning set forth in Section 6.5(a). 
  
 (114) “Transmission Assets” has the meaning set forth in Section 2.2(a). 
  
 (115) “U.S.” means the United States of America. 

 
 (116) “USEPA” means the U.S. Environmental Protection
Agency, and any successor agency thereto. 
  
 1.2.
Construction. In construing this Agreement, together with the Schedules and Exhibits hereto, the following principles shall be followed: 
  
 (a) the terms “herein,” “hereof,” “hereby,” “hereunder” and other similar terms refer to this
Agreement as a whole and not only to the particular Article, Section or other subdivision in which any such terms may be employed; 
  
 (b) except as otherwise set forth herein, references to Articles, Sections, Schedules, Exhibits and other subdivisions refer to the
Articles, Sections, Schedules, Exhibits and other subdivisions of this Agreement; 
  
 (c) a reference to any Person shall include such Person’s predecessors; 
  
 (d) all accounting terms not otherwise defined herein have
the meanings assigned to them in accordance with U.S. generally accepted accounting principles; 
  

 12 

 (e) no consideration shall be given to the captions of the Articles, Sections, Schedules,
Exhibits, subdivisions, subsections or clauses, which are inserted for convenience in locating the provisions of this Agreement and not as an aid in its construction; 
  
 (f) examples shall not be construed to limit, expressly or by implication, the matter they illustrate;

  
 (g) the word “includes” and
“including” and their syntactical variants mean “includes, but is not limited to” and “including, without limitation,” and corresponding syntactical variant expressions; 
  
 (h) a defined term has its defined meaning throughout this
Agreement, regardless of whether it appears before or after the place in this Agreement where it is defined; and 
  
 (i) the plural shall be deemed to include the singular and vice versa. 
  
 1.3. U.S. Dollars. When used herein, the term “dollars” and the symbol “$” refer to the lawful
currency of the U.S. 
  
 1.4. Seller’s Interests in
Jointly Owned Stations. The Parties acknowledge and agree that Seller owns and holds (a) an undivided three and eighty-three hundredths percent (3.83%) interest as tenant in common in the Conemaugh Station and (b) an undivided two
and forty-seven hundredths percent (2.47%) interest as tenant in common in the Keystone Station. All references in this Agreement to Seller’s right, title and interest in, to and under the Purchased Assets, and, in each case, the rights,
liabilities and obligations in connection therewith, shall be construed in this context. 
  
 ARTICLE II  
  
 PURCHASE AND SALE 
  
 2.1. Transfer of
Assets. Upon the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller shall sell, assign, convey, transfer and deliver to Buyer, and Buyer shall purchase, assume and acquire from Seller, free and clear of all
Encumbrances, except for the Permitted Encumbrances, all of Seller’s right, title and interest in, to and under the following assets and properties, except as otherwise provided in Section 2.2, each as of the Closing Date, but only to the
extent of the Seller’s Interests (collectively, the “Purchased Assets”): 
  
 (a) The real property (including all buildings and other improvements thereon and all appurtenances thereto) described on Schedule 4.7
(the “Real Property”); 
  
 (b)
The Inventories; 
  
 (c) The machinery,
equipment, vehicles, furniture and other personal property owned by Seller, in each case, located on the Real Property on the Closing Date, other than the Transmission Assets; 
  

 13 

 (d) The electrical transmission facilities set forth on Schedule 2.1(d) (together with
the Inventories and the personal property described in Section 2.1(c), “Tangible Personal Property”); 
  
 (e) Subject to the receipt of necessary consents and approvals, the Seller’s Agreements, including Seller’s rights to the
Station Working Funds; 
  
 (f) The Emission
Allowances set forth on Schedule 2.1(f); 
  
 (g)
The names “Conemaugh Generating Station” and “Keystone Generating Station”; provided, however, that Buyer expressly acknowledges and agrees that the Purchased Assets do not include any right, title or interest in or to the names
“Atlantic City Electric Company”, “Atlantic Energy”, “ACE”, “Conectiv”, “Pepco”, “Pepco Holdings” or any derivation thereof, as well as any related or similar name, or any other trade
names, trademarks, service marks, corporate names and logos or any part, derivation, colorable imitation or combination thereof; 
  
 (h) All books, operating records, operating, safety and maintenance manuals, engineering design plans, blueprints and as-built plans,
specifications, procedures and similar items relating specifically to the Jointly Owned Stations (subject to the right of Seller to retain copies of same for its use), other than such items as are proprietary to third parties and accounting records;
and 
  
 (i) Seller’s membership interests in
each of Conemaugh Fuels, LLC and Keystone Fuels, LLC (it being understood that the sale, assignment, conveyance, transfer and delivery by Seller to Buyer of such membership interests as Purchased Assets shall, by operation of law, result in Buyer
purchasing, acquiring and assuming all assets, properties and Liabilities of Conemaugh Fuels, LLC and Keystone Fuels, LLC, to the extent of the Seller’s Interests, including the amount of any working funds, as reflected in the General Ledger of
such entities on the date immediately preceding the Closing Date (“Fuels Working Funds”)). 
  
 2.2. Excluded Assets. Notwithstanding any provision to the contrary in this Agreement, nothing in this Agreement shall constitute or be construed
as requiring Seller to sell, assign, convey, transfer or deliver, and Buyer shall not be entitled to purchase, assume or acquire, any right, title or interest in, to or under any property, asset, business, operation or division of Seller, or any
Affiliate thereof, not expressly set forth in Section 2.1, including the following assets and properties which are hereby specifically excluded from the definition of Purchased Assets (collectively, the “Excluded Assets”):

  
 (a) The right, title and interest of Seller
and its successors, assigns and Representatives in, to and under all electrical transmission or distribution facilities (as opposed to generation facilities) or information technology and telecommunications assets of Seller or any of its Affiliates
located at or forming a part of either of the Jointly Owned Stations (whether or not regarded as a “transmission” or “generation” asset for regulatory or accounting purposes), including all switchyard facilities, substation
facilities and support equipment, as well as all permits, contracts and warranties, to the extent they relate to such transmission and distribution assets or information technology and telecommunications assets (other than the electrical 

  

 14 

 
transmission facilities set forth on Schedule 2.1(d), all of which are included as Purchased Assets) (collectively, the “Transmission
Assets”); 
  
 (b) All certificates of
deposit, shares of stock, securities, bonds, debentures, evidences of indebtedness, and interests (other than Seller’s membership interests in Conemaugh Fuels, LLC and Keystone Fuels, LLC) in partnerships and other entities; 
  
 (c) All cash (other than the Station Working Funds), cash
equivalents, bank deposits, accounts and notes receivable (trade or otherwise), and prepaid expenses, including such as relate to any Excluded Assets or the operation of the Purchased Assets, and any income, sales, payroll or other Tax receivables
(in each case, whether held by Seller or any third party, including under any Jointly Owned Stations Operating Agreement); 
  
 (d) The right, title and interest of Seller and its successors, assigns and Representatives in, to and under all intellectual property,
including the names “Atlantic City Electric Company”, “Atlantic Energy”, “ACE”, “Conectiv”, “Pepco”, “Pepco Holdings” or any derivation thereof, as well as any related or similar name, or
any other trade names, trademarks, service marks, corporate names and logos, or any part, derivation, colorable imitation or combination thereof (other than “Conemaugh Generating Station” and “Keystone Generating Station”);

  
 (e) All tariffs, agreements and arrangements
to which Seller or its Representatives is a party for the purchase or sale of electric capacity or energy, or for the purchase of transmission, distribution or ancillary services; 
  
 (f) The right, title and interest of Seller and its successors, assigns and Representatives in, to and under
all claims against third parties, if any, relating to the ownership, lease, maintenance or operation of any Purchased Assets by Seller prior to the Closing Date, whether accruing prior to, on or after the Closing Date, including all claims for
refunds, prepayments, offsets, recoupment, insurance proceeds, insurance distributions, dividends or other proceeds, condemnation awards, judgments and the like, whether received as payment or credit against future Liabilities; 
  
 (g) All Tax refunds or credits (including refunds or credits
of real property Taxes paid or due with respect to the Jointly Owned Stations or any related real property), which refunds or credits are with respect to periods prior to the Closing Date, whether directly or indirectly, under the Jointly Owned
Stations Operating Agreements or otherwise, regardless of when actually paid; 
  
 (h) All employment agreements and personnel records of Seller and its successors, assigns and Representatives; 
  
 (i) The minute books, stock transfer books, corporate seal and other corporate records of Seller and its successors, assigns and
Representatives; 
  
 (j) The right, title and
interest of Seller and its successors, assigns and Representatives in, to and under all contracts, agreements, arrangements, licenses and leases of any nature, other than the Seller’s Agreements; 
  

 15 

 (k) All insurance policies relating to the ownership, lease, maintenance or operation of
the Purchased Assets; 
  
 (l) All other assets
and properties owned or leased by Seller or its successors, assigns and Representatives which are not used in the operation of the Jointly Owned Stations; 
  
 (m) The right, title and interest of Seller and its successors, assigns and Representatives under this Agreement and the Additional
Agreements; and 
  
 (n) The right, title and
interest of Seller and its successors, assigns and Representatives in, to and under all Emission Allowances of Seller or any of its Affiliates (other than the Emission Allowances set forth on Schedule 2.1(f)). 
  
 2.3. Assumed Liabilities. On the Closing Date, Buyer shall assume and
agree to pay, perform and otherwise discharge when due, without recourse to Seller or its Affiliates, all of the Liabilities of Seller and its Affiliates, successors, assigns or Representatives, which relate, directly or indirectly, to the Purchased
Assets, the Jointly Owned Stations or the Sites (collectively, the “Assumed Liabilities”), including the following such Liabilities: 
  
 (a) All Liabilities of Seller under the Seller’s Agreements, including the Jointly Owned Stations Operating Agreements in accordance
with the respective terms thereof, including (i) the contracts, agreements, arrangements, licenses and leases of any nature entered into by Seller with respect to the Purchased Assets, the Jointly Owned Stations or the Sites on or after the
date hereof consistent with the terms of this Agreement and (ii) those contracts, agreements, arrangements, licenses and leases entered into by any party to the Jointly Owned Stations Operating Agreements, for and on behalf of Seller, with or
without Seller’s Knowledge, and by or to which Seller or the Purchased Assets are bound or subject as of the date hereof, or by or to which Seller or the Purchased Assets become bound or subject after the date hereof, in each case, relating to
the ownership, lease, maintenance or operation of the Purchased Assets, except, in each case, to the extent such Liabilities, but for a breach or default by Seller, would have been paid, performed or otherwise discharged prior to the Closing Date;

  
 (b) All Liabilities of Seller which relate to
the Purchased Assets, the Jointly Owned Stations and the Sites in respect of Taxes for which Buyer is liable pursuant to Section 3.5 or 6.5; 
  
 (c) All Liabilities relating to or resulting from the following: (i) any violation of or alleged violation, or non-compliance with,
Environmental Laws or Environmental Permits whether prior to, on or after the Closing Date, with respect to the ownership, lease, maintenance, construction, modification or operation of the Purchased Assets, the Jointly Owned Stations or the Sites,
including the cost of correcting any such violations or non-compliance, but excluding any fines or penalties arising out of the ownership, maintenance, lease, construction, modification or operation of the Purchased Assets, Jointly Owned Stations or
the Sites prior to the Closing Date; (ii) Environmental Conditions or exposure to Hazardous Substances at, on, in, under or adjacent to, or migrating or discharged to or from, the Purchased Assets, the Jointly Owned Stations or the Sites prior
to, on or after the Closing Date, including loss of life, injury to persons or property (including from exposure to asbestos-containing materials) and damage to 

  

 16 

 
natural resources (whether or not such loss, injury or damage arose or was made manifest before the Closing Date or arises or becomes manifest after the
Closing Date) and Remediation of Environmental Conditions (whether or not such Remediation commenced before or after the Closing Date); and (iii) Remediation, loss of life, injury to persons or property and damage to natural resources arising
from the storage, transportation, treatment, disposal, discharge recycling or Release, at any Off-Site Location, or arising from the arrangement for such activities, on or after the Closing Date, of Hazardous Substances generated in connection with
the ownership, lease, maintenance, construction, modification or operation of the Purchased Assets, the Jointly Owned Stations or the Sites; and 
  
 (d) All Taxes that may be imposed by any federal, state or local government on the ownership, lease, maintenance, operations, use or sale
of the Purchased Assets, the Jointly Owned Stations or the Sites for tax periods commencing on or after the Closing Date, except for any Income Taxes attributable to income received by Seller. 
  
 2.4. Excluded Liabilities. Notwithstanding Section 2.3, other
than, to the extent of the Seller’s Interests, Liabilities of Conemaugh Fuels, LLC and Keystone Fuels, LLC, Buyer shall not assume or be obligated to pay, perform or otherwise discharge the following Liabilities of Seller (the “Excluded
Liabilities”): 
  
 (a) Any Liabilities
of Seller in respect of any Excluded Assets or other assets of Seller which are not Purchased Assets, except to the extent caused by the acts or omissions of Buyer or its Representatives or Buyer’s ownership, lease, maintenance or operation of
the Purchased Assets; 
  
 (b) Any Liabilities of
Seller in respect of Taxes attributable to the Purchased Assets for taxable periods ending before the Closing Date, except for Taxes for which Buyer is liable pursuant to Section 3.5 or 6.5; 
  
 (c) Any Liabilities of Seller arising from the breach prior
to the Closing Date by Seller of any of the Seller’s Agreements; 
  
 (d) Any Liabilities of Seller to third parties for personal injury or tort, or similar causes of action to the extent arising out of the ownership, lease, maintenance or operation of the Purchased Assets prior to the
Closing Date, other than the Liabilities assumed by Buyer under Section 2.3(c); 
  
 (e) Any fines or penalties imposed by any Governmental Authority resulting from any violation of Law by Seller that occurred prior to the
Closing Date, it being understood that costs associated with correcting such violations shall not be deemed to be fines or penalties for purposes hereof; 
  
 (f) Any payment obligations of Seller for services rendered prior to the Closing Date; 
  
 (g) Any Liabilities of Seller relating to Remediation, loss
of life, injury to persons or property and damage to natural resources arising from the storage, transportation, treatment, disposal, discharge recycling or Release of Hazardous Substances at any Off-Site 

  

 17 

 
Location, or arising from the arrangement for such activities, prior to the Closing Date, which Hazardous Substances were generated in connection with the
ownership, lease, maintenance, construction, modification or operation of the Purchased Assets, the Jointly Owned Stations or the Sites, provided, for purposes of this Section, “Off-Site Location” does not include any adjacent or nearby
location to which Hazardous Substances, disposed, discharged or Released at the Purchased Assets, the Jointly Owned Stations or the Sites have migrated or come to be located; and 
  
 (h) Any Liability under or related to Environmental Laws arising as a result of the operation by Seller or
its Affiliates of the Transmission Assets, except to the extent arising out of or relating to Buyer’s ownership, lease, maintenance, construction, modification or operation of any Purchased Asset. 
  
 2.5. Control of Litigation. Seller shall be entitled exclusively to
control, defend and settle any suit, action or proceeding, and any investigation solely arising out of or relating to any Excluded Assets or Excluded Liabilities, and Buyer shall reasonably cooperate with Seller in connection therewith. 

 
 2.6. Inventories. Schedule 2.6 sets forth the categories of
Inventories relating to the Jointly Owned Stations that will be transferred to Buyer at the Closing (which, for purposes of clarity, the Parties acknowledge to include for purposes of this Section 2.6 Inventories of Conemaugh Fuels, LLC and
Keystone Fuels, LLC), to the extent located at or in transit to any Jointly Owned Station on the Closing Date, and only to the extent of the Seller’s Interest, together with the Book Value of such Inventories, in each case, as of
August 31, 2005. 
  
 ARTICLE III  
  
 THE CLOSING 
  
 3.1. Closing. The sale, assignment, conveyance, transfer and delivery
of the Purchased Assets by Seller to Buyer, and the purchase, assumption and acquisition by Buyer of the Purchased Assets and the Assumed Liabilities, and the consummation of the other transactions contemplated hereby, shall take place at a closing
(the “Closing”) to be held at the offices of Blank Rome LLP, Chase Manhattan Centre, 1201 Market Street, Suite 800, Wilmington, DE 19801, within five (5) Business Days after the date on which the last of the conditions
precedent to the Closing set forth in Sections 7.1(a) and (c), and Sections 7.2(a) and (c) of this Agreement shall have been satisfied or, to the extent permitted by applicable Law, waived by the Party for whose benefit such conditions
precedent exist, or at such other date, time and location as may be agreed upon in writing between Buyer and Seller. The date on which the Closing actually occurs is hereinafter called the “Closing Date.” The Closing shall be
effective for all purposes as of 12:01 a.m., New York City time, on the Closing Date. 
  
 3.2. Payment of Purchase Price. 
  
 (a) Upon the terms and subject to the conditions set forth in this Agreement, in consideration of the aforesaid sale, assignment, conveyance, transfer and delivery of the Purchased Assets, Buyer shall (i) pay to
Seller cash in an aggregate amount equal to 

  

 18 

 
(A) $173,100,000 (as may be adjusted pursuant to Section 3.2(b), the “Initial Amount”) plus (B) the amount, if any, by which the
Closing Adjustment Amount exceeds the Target Adjustment Amount, or minus (C) the amount, if any, by which the Target Adjustment Amount exceeds the Closing Adjustment Amount (the “Purchase Price”), and (ii) assume and agree
to pay, perform and otherwise discharge the Assumed Liabilities. For the avoidance of doubt, Buyer acknowledges that its assumption of, and agreement to pay, perform or otherwise discharge, the Assumed Liabilities constitutes an integral part of the
consideration to be received by Seller in respect of the sale, assignment, conveyance, transfer and deliver of the Purchased Assets hereunder, and that, in the absence of such assumption and agreement by Buyer, Seller would not enter into this
Agreement. 
  
 (b) Notwithstanding any provision
hereof to the contrary, the Initial Amount shall be (i) increased at the rate of $32,877 per day for each day that the Closing Date occurs before September 1, 2006 and (ii) decreased at the rate of $32,877 per day for each day that
the Closing Date occurs after September 1, 2006. 
  
 (c) At least three (3) Business Days prior to the Closing Date, Seller shall provide to Buyer its good faith estimate of the Closing Adjustment Amount, which estimate shall be certified in writing by an appropriate officer of Seller
(the “Estimated Adjustment Amount”). 
  
 (d) At the Closing, in furtherance but not in duplication of Section 3.2(a), Buyer shall pay to Seller cash in an aggregate amount equal to (A) the Initial Amount plus (B) the amount, if any, by which the Estimated Adjustment
Amount exceeds the Target Adjustment Amount, or minus (C) the amount, if any, by which the Target Adjustment Amount exceeds the Estimated Adjustment Amount (the “Closing Payment”). The Closing Payment shall be paid to Seller by
Buyer at the Closing by wire transfer of immediately available funds to the account designated by Seller to Buyer at least two (2) Business Days prior to the Closing Date. 
  
 3.3. Adjustment to Purchase Price. 
  
 (a) Within sixty (60) days after the Closing Date, Seller shall deliver to Buyer, at Seller’s sole
cost and expense, a statement setting forth the Closing Adjustment Amount (the “Closing Statement”). Contemporaneously, Seller shall deliver to Buyer a schedule setting forth a calculation of the Purchase Price and the amount of any
payment to be made, and by whom, pursuant to Section 3.3(c). 
  
 (b) In the event that Buyer is in disagreement with the Closing Statement, Buyer shall, within ten (10) Business Days after receipt of the Closing Statement, notify Seller of such disagreements setting forth with
specificity the nature and amounts thereof. In the event that Buyer is in disagreement with only a portion of the Closing Statement, Buyer or Seller, as the case may be, shall pay all undisputed amounts in the manner set forth in
Section 3.3(c); and all other amounts shall be paid at such time as all disagreements are resolved in accordance with this Section 3.3(b). If Buyer is in disagreement with the Closing Statement, and Buyer notifies Seller within such ten
(10) Business Day period in accordance with this Agreement, then the Parties shall promptly attempt to resolve such disagreements by negotiation. If the Parties are unable to resolve such disagreements within thirty (30) days following
such notice of disagreement by Buyer, then the Parties shall appoint an Independent Accounting Firm within 

  

 19 

 
forty-five (45) days following such notice, which shall review the Closing Statement and determine the Closing Adjustment Amount. In the event that
Buyer and Seller cannot promptly agree on the selection of an accounting firm to act as the Independent Accounting Firm, either Party may request the American Arbitration Association to appoint a nationally recognized independent accounting firm,
and such appointment shall be final, binding and conclusive on Buyer and Seller. Resolution of any disagreements shall be made by the Independent Accounting Firm in a writing addressed to all Parties within thirty (30) days following referral
to it by the Parties of such disagreements in accordance with this Agreement. The findings of such Independent Accounting Firm shall be final, binding and conclusive on the Parties. All costs, fees and expenses of the Independent Accounting Firm in
resolving the disagreement shall be split equally between Seller and Buyer. 
  
 (c) No later than the fifth (5th) Business Day following the determination of the Closing Adjustment Amount pursuant to Section 3.3(b), either (i) Seller shall pay Buyer the amount, if any, by which the
Closing Payment exceeds the Purchase Price, or (ii) Buyer shall pay Seller the amount, if any, by which the Purchase Price exceeds the Closing Payment, in either case, together with simple interest accruing on such payment at the Prime Rate
from and after the Closing Date through but not including the date of payment, by wire transfer of immediately available funds to an account designated by the receiving Party. As used herein, “Prime Rate” means, as of any date, the
prime rate as published in The Wall Street Journal on such date or, if not published on such date, on the most recent date of publication. 
  
 3.4. Tax Reporting and Allocation of Purchase Price. 
  
 (a) Buyer and Seller hereby acknowledge and agree that: (i) $110,600,000 of the Initial Amount shall be attributable to the Purchased
Assets relating to the Conemaugh Station, including the Emission Allowances relating thereto and the membership interests in Conemaugh Fuels, LLC; and (ii) $62,500,000 of the Initial Amount shall be attributable to the Purchased Assets relating
to the Keystone Station, including the Emission Allowances relating thereto and the membership interests in Keystone Fuels, LLC, it being understood that each of the attributions set forth in clauses (i) and (ii) of this
Section 3.4(a) shall be adjusted in a manner consistent with the determination of the Purchase Price pursuant to Section 3.3. 
  
 (b) Buyer and Seller shall use their respective reasonable best efforts to agree in good faith upon an allocation among the Purchased
Assets of the sum of the Purchase Price and the Assumed Liabilities consistent with Section 1060 of the Code and the Treasury Regulations thereunder within sixty (60) days after the determination of the Closing Adjustment Amount pursuant
to Section 3.3(b). In the event that the Parties cannot agree on a mutually satisfactory allocation within such sixty (60) day period, the Parties shall appoint an Independent Accounting Firm that shall, at Seller’s and Buyer’s
joint expense, determine the appropriate allocation. In the event that Buyer and Seller cannot promptly agree on the selection of an accounting firm to act as the Independent Accounting Firm, either Party may request the American Arbitration
Association to appoint a nationally recognized independent accounting firm, and such appointment shall be final, binding and conclusive on Buyer and Seller. Resolution of any disagreements shall be made by the Independent Accounting Firm in a
writing addressed to all Parties within thirty (30) days following referral to it by the Parties of such disagreements in accordance with this Agreement. The finding of such Independent Accounting 

  

 20 

 
Firm shall be final, binding and conclusive on the Parties. After determination of the allocation by agreement of the Parties or by binding determination of
the Independent Accounting Firm, Buyer and Seller shall file, for the tax year in which the Closing occurs, Internal Revenue Service Form 8594, and all Tax Returns, in accordance with such allocation. Buyer and Seller shall report the transactions
contemplated by this Agreement for U.S. federal Income Tax and all other Tax purposes in a manner consistent with the allocation determined pursuant to this Section 3.4. Buyer and Seller shall provide the other promptly with any information
required to complete Form 8594. Buyer and Seller shall notify and provide the other with reasonable assistance in the event of an examination, audit or other proceeding regarding the agreed-upon allocation of the Purchase Price and the Assumed
Liabilities. 
  
 3.5. Prorations. 
  
 (a) Except as otherwise provided in this Agreement, all of
the items customarily prorated relating to the ownership, lease, maintenance or operation of the Purchased Assets, including those listed below (but expressly excluding Income Taxes), shall be prorated as of the Closing Date, with Seller liable to
the extent such items relate to any period prior to the Closing Date, and Buyer liable to the extent such items relate to any period on or after the Closing Date (measured in the same units used to compute the item in question, and otherwise
measured by calendar days): 
  
 (i) Personal
property, real estate and occupancy Taxes, assessments and other charges, if any, on or with respect to the ownership, lease, maintenance or operation of the Purchased Assets; 
  
 (ii) Rent, Taxes (other than those governed by clause (i) above) and all other items (including prepaid
services and goods not included in Inventory), in each case, payable by or to Seller under any of the Seller’s Agreements; 
  
 (iii) Any permit, license, registration, compliance assurance fees or other fees with respect to any Seller’s Permit; 
  
 (iv) Sewer rents and charges for water, telephone,
electricity and other utilities; 
  
 (v)
Insurance premiums paid on or with respect to the ownership, lease, maintenance or operation of the Purchased Assets to the extent payable under any policy or other arrangement included among the Seller’s Agreements; and 
  
 (vi) Prepaid operating and maintenance expenses, whether
arising under the Jointly Owned Stations Operating Agreements or otherwise. 
  
 (b) Seller or Buyer, as the case may be, shall promptly reimburse the other Party that portion of any amount paid by such other Party to the extent relating to the period for which Seller or Buyer, as the case may be,
is liable under Section 3.5(a), in each case, upon presentation of a statement setting forth in reasonable detail the nature and amount of any such payment. In connection with the prorations set forth in Section 3.5(a), if actual figures
are not available on the Closing Date, the proration shall be calculated based upon the respective 

  

 21 

 
amounts accrued through the Closing Date or paid for the most recent year or other appropriate period for which such amounts paid are available. All prorated
amounts shall be recalculated and paid to the appropriate Party within sixty (60) days after the date that the previously unavailable actual figures become available. Seller and Buyer shall furnish each other with such documents and other
records as may be reasonably requested in order to confirm all proration calculations made pursuant to this Section 3.5. Notwithstanding anything to the contrary herein, no proration shall be made under this Section 3.5 with respect to
(i) real property Tax refunds that are Excluded Assets under Section 2.2(g) or (ii) Taxes payable by Buyer pursuant to Section 6.5(a). 
  
 3.6. Deliveries by Seller. At the Closing, Seller shall deliver, or cause to be delivered, the following to Buyer: 
  
 (a) One or more Special Warranty Deeds, duly executed by
Seller and in recordable form; 
  
 (b) The Bills
of Sale, duly executed by Seller; 
  
 (c) The
Assignment and Assumption Agreements, duly executed by Seller; 
  
 (d) Evidence, in form and substance reasonably satisfactory to Buyer, demonstrating that Seller has obtained the Seller’s Required Regulatory Approvals set forth on Schedule 7.2(c); 
  
 (e) A FIRPTA Affidavit, duly executed by Seller; 

 
 (f) Copies, certified by the Secretary or Assistant
Secretary of Seller, of resolutions authorizing the execution, delivery and performance of this Agreement, each Additional Agreement to which Seller is a party and all of the other agreements and instruments, in each case, to be executed, delivered
and performed by Seller in connection herewith; 
  
 (g) A certificate of the Secretary or Assistant Secretary of Seller identifying the name and title and bearing the signatures of the officers of Seller authorized to execute and deliver this Agreement, each Additional Agreement to which
Seller is a party and the other agreements and instruments contemplated hereby; 
  
 (h) All such other agreements, documents, instruments and writings as shall, in the reasonable opinion of Buyer and its counsel, be
necessary to sell, assign, convey, transfer and deliver to Buyer the Purchased Assets, in accordance with this Agreement and, where necessary or desirable, in recordable form, provided that Seller shall not be required to prepare or obtain any
survey, abstract, title opinion or title insurance policy with respect to the Real Property; and 
  
 (i) Such other agreements, documents, instruments and writings as are reasonably required to be delivered by Seller at or prior to the
Closing Date pursuant to this Agreement or otherwise reasonably required in connection herewith. 
  

 22 

 3.7. Deliveries by Buyer. At the Closing, Buyer shall deliver, or cause to be delivered, the
following to Seller: 
  
 (a) The Closing Payment,
by wire transfer of immediately available funds in accordance with Seller’s instructions to the account of Seller as designated by Seller at least two (2) Business Days prior to the Closing Date; 
  
 (b) Cash in an amount equal to the lesser of
(i) $100,000 and (ii) the amount of all out-of-pocket costs and expenses incurred by Seller for the title reports and surveys in connection with the transactions contemplated hereby or surveys relating to the Real Property, by wire
transfer of immediately available funds in accordance with Seller’s instructions to the account of Seller to be designated by Seller at least two (2) Business Days prior to the Closing Date; 
  
 (c) Cash in an amount equal to the sum of (i) the
Station Working Funds and (ii) the Fuels Working Funds, by wire transfer of immediately available funds in accordance with Seller’s instructions to the account of Seller to be designated by Seller at least two (2) Business Days prior
to the Closing Date; 
  
 (d) The Assignment and
Assumption Agreements, duly executed by Buyer; 
  
 (e) Evidence, in form and substance reasonably satisfactory to Seller, demonstrating that Buyer has obtained the Buyer’s Required Regulatory Approvals set forth on Schedule 7.1(c); 
  
 (f) Copies certified by the Secretary or Assistant Secretary
of Buyer, of resolutions authorizing the execution, delivery and performance of this Agreement, each Additional Agreement to which Buyer is a party, and all of the other agreements and instruments, in each case, to be executed, delivered and
performed by Buyer in connection herewith; 
  
 (g) A certificate of the Secretary or Assistant Secretary of Buyer identifying the name and title and bearing the signatures of the officers of Buyer authorized to execute and deliver this Agreement, each Additional Agreement to which Buyer
is a party and the other agreements contemplated hereby; 
  
 (h) All such other permits, agreements, documents, instruments and writings as shall, in the reasonable opinion of Seller and its counsel, be necessary for Buyer to purchase and acquire the Purchased Assets, and to
assume the Assumed Liabilities, in each case, in accordance with this Agreement and, where necessary or desirable, in recordable form; and 
  
 (i) Such other permits, agreements, documents, instruments and writings as are reasonably required to be delivered by Buyer at or prior to
the Closing Date pursuant to this Agreement or otherwise reasonably required in connection herewith. 
  
 3.8. Post-Closing Excluded Asset Deliveries. In the event that Seller or Buyer, or any of their respective Representatives, shall determine after
the Closing that any Excluded Asset is in the possession of Buyer or any of its Representatives, Buyer shall, or shall cause any such 

  

 23 

 
Representative to, promptly, but in no event later than five (5) Business Days following such determination, pay or deliver, or cause to be paid or
delivered, to Seller such Excluded Asset, at Seller’s sole cost and expense. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 As an inducement to Buyer to enter into this Agreement and consummate the transactions contemplated hereby, Seller hereby represents and warrants to Buyer as follows (all such representations and warranties, except those set forth in
Sections 4.1, 4.2 and 4.5, being made to the Knowledge of the Seller): 
  
 4.1. Organization; Qualification. Seller is a corporation validly existing and in good standing under the laws of the State of New Jersey and has all requisite corporate power and authority to own, lease and operate its properties
and to carry on its business as it is now being conducted. Seller is duly qualified to do business as a foreign corporation and is in good standing under the laws of each jurisdiction in which its business as now being conducted requires it to be so
qualified, except to the extent that the failure to be so qualified would not, individually or in the aggregate, have a Material Adverse Effect. 
  
 4.2. Authority. Seller has full corporate power and authority to execute and deliver this Agreement and each Additional Agreement to which it is a
party and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Seller of this Agreement and each Additional Agreement to which it is a party and the consummation by Seller of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate action required on the part of Seller. This Agreement has been duly executed and delivered by Seller; and this Agreement constitutes, and upon the execution and delivery by
Seller of each Additional Agreement to which it is a party, each such Additional Agreement will constitute, the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, except that (a) such enforceability
may be subject to any bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other Laws now or hereafter in effect affecting or relating to enforcement of creditors’ rights generally and (b) the remedy of specific
performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. 
  
 4.3. Consents and Approvals; No Violation. 
  
 (a) Except as set forth on Schedule 4.3(a), subject to obtaining or making all Seller’s Required
Regulatory Approvals, neither the execution and delivery by Seller of this Agreement and the Additional Agreements to which it is a party nor the consummation by Seller of the transactions contemplated hereby and thereby will (i) conflict with
or result in any breach of any provision of the certificate of incorporation or bylaws of Seller; (ii) result in a default (or give rise to any right of termination, cancellation or acceleration) under any of the terms, conditions or provisions
of any note, bond, mortgage, indenture, material agreement or other instrument or obligation to which Seller is a party or by which it, or any of the Purchased Assets, 

  

 24 

 
may be bound, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite consents, approvals or waivers have
been, or will be prior to the Closing obtained, or which would not, individually or in the aggregate, have a Material Adverse Effect; or (iii) constitute a violation of any Law, order, judgment or decree applicable to Seller which violation,
individually or in the aggregate, would have a Material Adverse Effect. 
  
 (b) Except for consents, approvals, filings and notices (i) required under the HSR Act or (ii) set forth on Schedule 4.3(b) (the consents, approvals, filings and notices referred to in clause (ii) of
this sentence are collectively referred to herein as the “Seller’s Required Regulatory Approvals”), no consent or approval of, filing with, or notice to, any Governmental Authority is necessary for the execution and delivery by
Seller of this Agreement and the Additional Agreements to which it is a party or the consummation by Seller of the transactions contemplated hereby or thereby, other than (i) such consents, approvals, filings and notices which, if not obtained
or made, would not materially impair Seller’s ability to perform its material obligations under this Agreement or such Additional Agreements or to own the Purchased Assets; (ii) such consents, approvals, filings and notices which become
applicable to Seller or the Purchased Assets as a result of the status of Buyer (or any of its Affiliates) or as a result of any other facts that specifically relate to the business or activities in which Buyer (or any of its Affiliates) is or
proposes to be engaged; and (iii) such consents, approvals, filings and notices, the failure of which to obtain or make would not, individually or in the aggregate, have a Material Adverse Effect. 
  
 4.4. Insurance. All material policies of fire, liability,
workers’ compensation and other forms of insurance owned or held by, or on behalf of, Seller and insuring any Purchased Assets are in full force and effect, all premiums with respect thereto covering all periods up to and including the date
hereof have been paid (other than retroactive premiums which may be payable with respect to comprehensive general liability and workers’ compensation insurance policies), and no written notice of cancellation or termination has been received by
Seller with respect to any such policy which was not replaced on substantially similar terms prior to the date of such cancellation or termination. Since January 1, 2003, Seller has not been refused any such insurance with respect to any
Purchased Assets. 
  
 4.5. Title and Related Matters.
Except for Permitted Encumbrances, Seller has good, valid and marketable title to the Real Property included in the Purchased Assets and has good and valid title to all other Purchased Assets, free and clear of all Encumbrances. 
  
 4.6. Environmental Matters. Except as set forth on Schedule 4.6:

  
 (a) All Environmental Permits that Seller
requires in order to own, lease, maintain and operate the Purchased Assets are held by or on behalf of Seller, and Seller is otherwise in compliance with applicable Environmental Laws with respect to the ownership, lease, maintenance or operation of
the Purchased Assets, except for such failures to hold or comply with required Environmental Permits, and such failures to be in compliance with applicable Environmental Laws, as would not, individually or in the aggregate, have a Material Adverse
Effect. 
  

 25 

 (b) Since January 1, 2003, Seller has not received any written request for
information, or been notified in writing that it is a potentially responsible party under CERCLA or any similar state law, with respect to any of the Sites, or any written notice relating to any Governmental Authority’s allegation or
investigation of any violations by Seller of any Environmental Laws relating to the Purchased Assets or the Jointly Owned Stations. 
  
 (c) Since January 1, 2003, Seller has not entered into or agreed to any decree, order or judgment under any Environmental Law
relating to the Purchased Assets or the Jointly Owned Stations, and Seller is not subject to any outstanding decrees, orders or judgments relating to compliance with any Environmental Law or to the Remediation of Hazardous Substances under any
Environmental Law, in each case, relating to the Purchased Assets or the Jointly Owned Stations. 
  
 (d) Notwithstanding any provision to the contrary in this Agreement, including Sections 4.6(a), (b) and (c) hereof, Seller makes
no representation or warranty with respect to Seller’s compliance with Environmental Laws relating to the construction of new, or modification of existing, sources of air emissions. 
  
 4.7. Real Property. Schedule 4.7 sets forth a description of the Real Property. True and correct copies of all
current surveys, abstracts, title opinions and policies of title insurance currently in force, in each case, in Seller’s possession and relating to the Real Property, have been previously delivered or otherwise made available to Buyer.

  
 4.8. Condemnation. Since January 1, 2003, Seller
has not received any written notice of any pending or threatened proceedings or actions by any Governmental Authority to condemn or take by power of eminent domain all or any material part of the Purchased Assets. 
  
 4.9. Contracts and Leases. 
  
 (a) Schedule 4.9(a) sets forth a list of all written
Seller’s Agreements, other than such contracts, licenses, agreements, arrangements and leases as (i) constitute Excluded Assets or Excluded Liabilities, (ii) may be terminated after the Closing by Buyer upon notice of no more than
ninety (90) days, (iii) involve future annual expenditures by Buyer after the Closing of $50,000 or less, (iv) are expected to expire or terminate prior to the Closing or (v) are entered into by or on behalf of Seller after the
date hereof consistent with the terms of this Agreement. 
  
 (b) Except as set forth on Schedule 4.9(b), each Seller’s Agreement set forth on Schedule 4.9(a) constitutes the valid and binding obligation of Seller and the other parties thereto. 
  
 (c) Except as set forth on Schedule 4.9(c), there is not
under any Seller’s Agreement set forth on Schedule 4.9(a) any default or event which, with notice or lapse of time or both, would constitute a material default on the part of Seller or any other party thereto. 
  
 4.10. Legal Proceedings. There are no suits, actions or proceedings
pending or threatened against Seller by or before any Governmental Authority, which would, individually or in the aggregate, impair Seller’s ability to consummate the transactions contemplated hereby or 

  

 26 

 
by any Additional Agreement to which it is a party. Seller is not subject to any judgment, order or decree of any Governmental Authority which would,
individually or in the aggregate, impair Seller’s ability to consummate the transactions contemplated hereby or by any Additional Agreement to which it is a party. Except as set forth on Schedule 4.10, there are no suits, actions or proceedings
pending or threatened as of the date hereof against Seller by or before any Governmental Authority relating to the Purchased Assets or the Jointly Owned Stations, other than such as would not, individually or in the aggregate, have a Material
Adverse Effect if adversely determined. 
  
 4.11. Seller’s
Permits. All material permits, certificates, licenses and other authorizations of all Governmental Authorities (collectively, “Seller’s Permits”) that Seller requires in order to own, lease, maintain and operate the
Purchased Assets, are held by or on behalf of Seller except for Environmental Permits (which are governed by Section 4.6). 
  
 4.12. Brokers; Finders. Except as set forth on Schedule 4.12, Seller has not, and none of Seller’s Affiliates have, retained any financial
advisor, broker, agent, or finder or paid or agreed to pay any financial advisor, broker, agent, or finder on account of this Agreement or the transactions contemplated hereby. Buyer shall not have any responsibility or liability with respect to any
Person set forth on Schedule 4.12. 
  
 4.13. Special Purpose
Financial Statements. The audited Special Purpose Financial Statements present fairly, in all material respects, (i) in the case of Conemaugh Fuels, LLC and Keystone Fuels, LLC, the financial position of such entities as of the dates of the
respective balance sheets included therein, and the results of operations and cash flows of such entities for the respective periods ended on such dates in conformity with accounting principles generally accepted in the U.S. and (ii) in the
case of the Jointly Owned Stations, the owners’ assets, liabilities, and investment in such Jointly Owned Stations as of the dates of such statements included therein, and the charges to such Jointly Owned Stations’ operations for the
periods ended on such dates, on the basis of accounting described in note 1 to each thereof. Seller has provided or made available to Buyer true and correct copies of the Special Purpose Financial Statements. 
  
 4.14. Employees. Seller has no employees employed at either the
Conemaugh Station or the Keystone Station, and the Seller is not transferring to Buyer any employees of the Conemaugh Station or the Keystone Station. 
  
 4.15. Disclosures. To the extent relating to Seller’s Interests in the respective membership interests of Keystone Fuels, LLC and Conemaugh
Fuels, LLC, none of the representations and warranties of Seller contained herein and none of the information contained in the Schedules hereto is false or misleading in any material respect or omits to state a fact herein or therein necessary to
make the statements herein or therein not misleading in any material respect. 
  
 4.16. Taxes. Seller has timely filed all Tax Returns required to be filed by Seller with respect to the conduct of the Jointly Owned Stations and ownership of the Purchased Assets, including Tax Returns for all
applicable federal, state and local income, franchise, sales, use, property, excise and other Taxes, and such Tax Returns are accurate, complete and correct. The 

  

 27 

 
Seller has paid all Taxes required to be paid pursuant to such Tax Returns or otherwise required by Law to be paid by it, and there are no other Taxes
payable on account of the ownership of the Purchased Assets from the date of the inception of the Seller’s investment in the Purchased Assets to the date hereof, except for Taxes not yet due in the ordinary course of business (for which
adequate reserves have been established). All other federal, state and local Taxes which the Seller was or is required by Law to withhold or collect have been and are being withheld or collected by it and have been and are being paid over to the
proper Governmental Authorities or are being held by the Seller in accordance with Law for such payment. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES OF BUYER 
  
 As an inducement to Seller to enter into this Agreement and consummate the transactions contemplated hereby, Buyer hereby represents and warrants to Seller as follows: all such representations and warranties, except those set forth in
Sections 5.1, 5.2 and 5.5, being made to the actual knowledge of the Buyer. 
  
 5.1. Organization; Qualification. Buyer is a corporation, validly existing and in good standing under the laws of the Commonwealth of Pennsylvania and has all requisite corporate power and authority to own,
lease and operate its properties and to carry on its business as it is now being conducted. Buyer has heretofore delivered to Seller true and correct copies of its articles of incorporation and bylaws as currently in effect. 
  
 5.2. Authority. Buyer has full corporate power and authority to
execute and deliver this Agreement and each Additional Agreement to which it is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and each such Additional Agreement by Buyer and
the consummation by Buyer of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action required on the part of Buyer. This Agreement has been duly executed and delivered by Buyer; and this Agreement
constitutes, and upon the execution and delivery by Buyer of each Additional Agreement to which it is a party, each such Additional Agreement will constitute, the valid and binding obligation of Buyer, enforceable against Buyer in accordance with
its terms, except that (a) such enforceability may be subject to any bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other Laws now or hereafter in effect affecting or relating to enforcement of creditors’
rights generally and (b) the remedy of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

  
 5.3. Consents and Approvals; No Violation. 

 
 (a) Except as set forth on Schedule 5.3(a), and subject
to obtaining or making all Buyer’s Required Regulatory Approvals, neither the execution and delivery by Buyer of this Agreement and the Additional Agreements to which it is a party nor the consummation by Buyer of the transactions contemplated
hereby and thereby will (i) conflict with or result in any breach of any provision of the articles of incorporation or bylaws of Buyer or any of its Subsidiaries; (ii) result in a default (or give rise to any right of termination,
cancellation or acceleration) under any 

  

 28 

 
of the terms, conditions or provisions of any note, bond, mortgage, indenture, material agreement or other instrument or obligation to which Buyer or any of
its Subsidiaries is a party or by which Buyer, any such Subsidiary or any of their respective properties and assets may be bound, except for such defaults (or rights of termination, cancellation or acceleration) as to which requisite consents,
approvals or waivers have been or will be prior to the Closing obtained, or which would not, individually or in the aggregate, have a Material Adverse Effect or materially impair Buyer’s ability to consummate the transactions contemplated
hereby or by any Additional Agreement, or to perform its material obligations hereunder or thereunder (a “Buyer Material Adverse Effect”); or (iii) constitute a violation of any Law, order, judgment or decree applicable to
Buyer or any of its Subsidiaries, which violation, individually or in the aggregate, would have a Material Adverse Effect or a Buyer Material Adverse Effect. 
  

(b) Except for consents, approvals, filings and notices (i) required under the HSR Act or (ii) set forth on Schedule 5.3(b)
(the consents, approvals, filings and notices referred to in clause (ii) of this sentence are collectively referred to herein as the “Buyer’s Required Regulatory Approvals”), no consent or approval of, filing with, or
notice to, any Governmental Authority is necessary for the execution and delivery by Buyer of this Agreement and the Additional Agreements to which it is a party or the consummation by Buyer of the transactions contemplated hereby or thereby, other
than such consents, approvals, filings or notices, which, if not obtained or made, would not have a Material Adverse Effect or a Buyer Material Adverse Effect. 
  

5.4. Buyer’s Permits. All permits, certificates, licenses and other authorizations of all Governmental Authorities that Buyer requires in
order to own, lease, maintain and operate the Purchased Assets (collectively, “Buyer’s Permits”) are, or will be at or prior to the Closing, held by or on behalf of Buyer. Buyer is qualified to obtain and, after the Closing,
shall retain all Buyer Permits, including Environmental Permits, necessary for Buyer to own, lease, maintain and operate the Purchased Assets. 
  
 5.5. Availability of Funds. Buyer has sufficient funds on hand or available to it pursuant to existing lines of credit to permit Buyer on the
Closing Date to pay the Purchase Price, all other amounts payable by Buyer hereunder or under any Additional Agreement, and all fees and expenses incurred by Buyer in connection with the transactions contemplated hereby and by the Additional
Agreements, and to permit Buyer to timely pay or perform all of its other obligations under this Agreement and the Additional Agreements. 
  
 5.6. Financial Statements. Buyer has provided Seller with true and correct copies of its balance sheet, income statement and statement of changes
in cash flows for each of its fiscal years ended December 31, 2004 and 2003, together with the related reports of its independent accountants, Deloitte & Touche, LLP, and for its most recently completed fiscal quarter (collectively,
“Buyer’s Financial Statements”). Buyer’s Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles consistently applied and fairly reflect, in all material respects, the
financial position, results of operations and cash flows of Buyer at and for the periods stated therein. 
  
 5.7. Legal Proceedings. There are no suits, actions or proceedings pending or threatened against Buyer by or before any Governmental Authority,
which would, individually or 

  

 29 

 
in the aggregate, have a Buyer Material Adverse Effect or would materially impair Buyer’s ability to consummate the transactions contemplated hereby or
by any Additional Agreement to which it is a party. Buyer is not subject to any judgments, orders or decrees of any Governmental Authority which would, individually or in the aggregate, have a Material Adverse Effect or a Buyer Material Adverse
Effect. 
  
 5.8. No Knowledge of Seller’s Breach. On
the date hereof, Buyer has no actual knowledge, without duty of inquiry, of any breach by Seller of any representation or warranty made by Seller in this Agreement or in any form of Additional Agreement attached hereto as an Exhibit that would
excuse Buyer from the timely performance of its obligations hereunder or under the Additional Agreements. 
  
 5.9. Inspections. Buyer has, prior to the execution and delivery of this Agreement, (a) reviewed the environmental site assessments prepared
for Seller and set forth on Schedule 5.9, (b) had full opportunity to conduct to its satisfaction Inspections of the Purchased Assets, including the Sites, and (c) fully completed and approved the results of all Inspections of the
Purchased Assets. Buyer acknowledges, after such review and Inspections, that no further investigation of the Sites is necessary for purposes of acquiring the Purchased Assets for Buyer’s intended use, and Buyer hereby irrevocably and
unconditionally waives any and all objections to or claims with respect to all physical characteristics and existing conditions at the Sites, including existing Environmental Conditions and the presence of any Hazardous Substances at the Sites.

  
 5.10. Regulation as a Utility. Buyer is not subject to
regulation as a public utility or public service company (or similar designation) by any Governmental Authority. Buyer is a holding company exempt from registration under PUHCA. 
  
 5.11. Brokers; Finders. Buyer has not, and none of Buyer’s Affiliates have, retained any financial advisor,
broker, agent, or finder or paid or agreed to pay any financial advisor, broker, agent, or finder on account of this Agreement or the transactions contemplated hereby. 
  
 ARTICLE VI 
  
 COVENANTS OF THE PARTIES 
  
 6.1. Access to Information. 
  
 (a) Between the date of this Agreement and the Closing Date, Seller shall: (i) give Buyer and its Representatives, during normal
business hours and upon reasonable notice, reasonable access to all books, records, plans, offices and other facilities and properties in the possession of Seller included in the Purchased Assets (it being understood that Seller shall have the right
to have a Representative present at all times during any such access); (ii) furnish Buyer with such financial and operating data and other information in the possession of Seller with respect to the Purchased Assets as Buyer may from time to
time reasonably request; and (iii) furnish Buyer with all such other information in the possession of Seller as shall be reasonably necessary to enable Buyer, at its request, to verify the accuracy of the representations and warranties of
Seller contained in this Agreement; provided, however, that (A) any such 

  

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access or requests shall be conducted in such manner as not to interfere unreasonably with the operation of the Purchased Assets, (B) Seller shall not
be required to take any action which would constitute a waiver of the attorney-client or other privilege, (C) Seller need not supply Buyer with any information which Seller is under a legal or contractual obligation not to supply, and
(D) Seller shall not be required to supply Buyer with any information with respect to the Jointly Owned Stations to which Seller is not entitled pursuant to the terms of the Jointly Owned Stations Operating Agreements. Notwithstanding anything
herein to the contrary, prior to the Closing Date, Buyer shall not have the right to perform or conduct, or cause to be performed or conducted, any environmental sampling or testing at, in, on or underneath the Jointly Owned Stations. 
  
 (b) All information furnished to or obtained by Buyer and
Buyer’s Representatives pursuant to this Section 6.1 shall be Proprietary Information and shall be kept confidential in accordance with the terms of the Confidentiality Agreement. Nothing in this Section 6.1 is intended to or shall be
deemed to amend, supplement or otherwise modify the obligations of Buyer, its Representatives or its Affiliates under the Confidentiality Agreement, all of which remain in effect until termination of such agreement in accordance with its terms.
Buyer shall be subject to and bound by all obligations of Duquesne Power, LP under the Confidentiality Agreement as though Buyer were a party thereto. 
  
 (c) For a period of seven (7) years from and after the Closing Date, each Party and its Representatives shall have reasonable access
during normal business hours to all of the books and records of the Purchased Assets in the possession of the other Party to the extent that such access may reasonably be required by such Party in connection with the Assumed Liabilities or the
Excluded Liabilities, or other matters relating to or affected by the ownership, lease, maintenance or operation of the Purchased Assets or the Excluded Assets. Such access shall be afforded by the Party in possession of any such books and records
upon receipt of reasonable advance notice and during normal business hours. The Party exercising this right of access shall be solely responsible for any costs or expenses incurred by it or the other Party with respect to such access pursuant to
this Section 6.1(c). If the Party in possession of such books and records shall desire to dispose of any books and records upon or prior to the expiration of such seven-year period, such Party shall, prior to such disposition, give the other
Party a reasonable opportunity, at such other Party’s cost and expense, to segregate and remove such books and records as such other Party may select. 
  
 (d) Buyer shall not, prior to the Closing Date, contact any customer, vendor, supplier of, or director, officer, partner, member or
employee of (other than as contemplated by Section 6.10(c)), or any other Person having business dealings with, Seller or its Affiliates with respect to any aspect of the Purchased Assets or the transactions contemplated hereby or by any
Additional Agreement, including any Governmental Authority, without the prior written consent of Seller, which shall not be unreasonably withheld or delayed. Other than the NJBPU and PaPUC, Seller shall not, prior to the Closing Date, contact any
director, officer, partner, member or employee of (other than as contemplated by Section 6.10(c)), or any other Person having business dealings with, Buyer or its Affiliates with respect to any aspect of the transactions contemplated hereby or
by any Additional Agreement, including any Governmental Authority, without the prior written consent of Buyer, which shall not be unreasonably withheld or delayed. Without limiting the generality of the foregoing, (i) prior to Closing, Buyer
shall not investigate 

  

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or inquire as to any matter with any Governmental Authority having jurisdiction over any aspect of the Purchased Assets, unless and until the written consent
of Seller (not to be unreasonably withheld or delayed) to the making of such investigation or inquiry has been received by Buyer and after consultation with Seller as to the scope and manner of the investigation or inquiry, and
(ii) Buyer’s right of examination and access pending the Closing with respect to environmental matters relating to the Purchased Assets shall be limited to an examination of existing records and interviews with personnel as authorized in
writing by Seller, and in no event shall include physical testing of or collection of samples from the Real Property or the Purchased Assets or contacting staff or officials of any Governmental Authority or any other third party. 
  
 6.2. Public Statements. Subject to Section 6.1(d), except as
required by applicable Law or by applicable rules of any national securities exchange, the Parties shall consult with each other in advance, in the manner contemplated by Section 10.8, prior to the Closing Date, with respect to any press
release or other public announcement, statement or comment relating to the transactions contemplated by this Agreement; provided, however, that, notwithstanding the provisions of Section 6.1(d) relating to any other Person having business
dealings with any Party, the Parties shall be permitted, subject to applicable Law and the Confidentiality Agreement, to discuss with members of the investment and financing community the transactions contemplated hereby, and the financial and
operational effects of consummating such transactions, in connection with bona fide financing and credit-related endeavors. 
  
 6.3. Further Assurances. 
  
 (a) Subject to the terms and conditions of this Agreement, each of the Parties hereto shall use its reasonable best efforts to take, or
cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to consummate and make effective the purchase and sale of the Purchased Assets pursuant to this Agreement and the
assumption of the Assumed Liabilities, including using its reasonable best efforts to ensure satisfaction of the conditions precedent to each Party’s obligations hereunder, including obtaining all necessary consents, approvals and
authorizations of, and making all required notices or filings with, third parties required to be obtained or made in order to consummate the transactions hereunder. Without limiting the generality of the foregoing, Seller shall use its reasonable
best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws to release the Purchased Assets from the Encumbrance under the Indenture, dated January 15,
1937, by and between ACE and The Bank of New York, as Trustee, as amended. Seller shall use Commercially Reasonable Efforts to cooperate with Buyer in its efforts to obtain all Buyer’s Permits, Environmental Permits and Buyer’s Required
Regulatory Approvals necessary for Buyer to operate the Purchased Assets substantially in the manner operated by Seller prior to the Closing Date. Buyer shall use Commercially Reasonable Efforts to cooperate with Seller in its efforts to obtain all
of Seller’s Required Regulatory Approvals. No Party shall, without prior written consent of the other Party, take or fail to take any action which might reasonably be expected to prevent or materially impede, interfere with or delay the
transactions contemplated by this Agreement or any Additional Agreement. 
  

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 (b) Without limiting the generality of Section 6.3(a): 
  
 (i) In the event that any Purchased Asset shall not have
been conveyed to Buyer at the Closing, Seller shall, subject to Section 6.3(b)(ii), use Commercially Reasonable Efforts after the Closing to convey such asset to Buyer as promptly as practicable. 
  
 (ii) To the extent that Seller’s right, title and
interest in, to and under any material Seller’s Agreement may not be assigned without the consent, approval or authorization of any third party which consent, approval or authorization has not been obtained by the Closing Date, this Agreement
shall not constitute an agreement to assign such right, title and interest if an attempted assignment would constitute a breach of such Seller’s Agreement or violate any applicable Law. If any consent, approval or authorization to such
assignment of any material Seller’s Agreement shall not be obtained, or if any attempted assignment would be ineffective or would materially impair Buyer’s rights and obligations under such Seller’s Agreement, such that Buyer would
not acquire and assume the benefit and detriment of all such rights and obligations, Seller, at its option and to the fullest extent permitted by applicable Law and such Seller’s Agreement, shall, from and after the Closing Date, appoint Buyer
to be Seller’s agent with respect to such Seller’s Agreement, or, to the fullest extent permitted by applicable Law and such Seller’s Agreement, enter into such reasonable arrangements with Buyer or take such other actions as are
necessary to provide Buyer with the same or substantially similar rights and obligations under such Seller’s Agreement. 
  
 6.4. Consents and Approvals. Without limiting the generality of Section 6.3(a): 
  
 (a) As promptly as practicable, but in no event later than forty-five (45) days after the date of this
Agreement, Seller and Buyer shall each file or cause to be filed with the Federal Trade Commission and the U.S. Department of Justice all notifications required to be filed under the HSR Act and the rules and regulations promulgated thereunder, as
amended, with respect to the transactions contemplated hereby and by the Additional Agreements. The Parties shall use their respective Commercially Reasonable Efforts to respond promptly to any requests for additional information made by such
agencies, and to cause the applicable waiting period under the HSR Act to terminate or expire at the earliest possible date after the date of filing. Buyer shall pay all filing fees payable under the HSR Act but each Party shall bear its own costs
and expenses of the preparation of any such filing and any such response. 
  
 (b) As promptly as practicable, but in no event later than forty-five (45) days after the date of this Agreement, Seller and Buyer shall take, or cause to be taken, all actions, and do, or cause to be done, all
things necessary, proper or advisable under applicable Laws to obtain all required consents and approvals of all other Governmental Authorities, including the NJBPU and the PaPUC, and make all other filings and give all other notices required to be
made prior to the Closing with respect to the transactions contemplated hereby and by the Additional Agreements, including with respect to the Seller’s Required Regulatory Approvals and Buyer’s Required Regulatory Approvals. The Parties
shall respond promptly to any requests for additional information made by such Persons, and use their respective Commercially Reasonable Efforts to cause all such consents and approvals, without conditions, to be obtained or waived at the earliest
possible date after the date of filing. Each Party shall bear its own costs and expenses of the preparation of any such filing or notice. 
  

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 (c) Without limiting the generality of Section 6.4(b), as promptly as practicable,
but in no event later than forty-five (45) days after the date of this Agreement, each Party shall make all filings required by such Party under the Federal Power Act. Prior to filing any application with the FERC, both Parties shall prepare
such application and shall incorporate into such application all revisions reasonably requested by the other Party. Each Party shall be solely responsible for its own cost of preparing and filing such application, as well as all petitions for
rehearing and all reapplications, provided, however, that Buyer shall bear all costs and expenses associated with experts and consultants reasonably necessary for the preparation of any required market power study or report. If any filing is
rejected by the FERC, the Parties shall petition the FERC for rehearing or permission to re-submit an application with the FERC. 
  
 6.5. Certain Tax Matters. 
  
 (a) All transfer, sales and similar Taxes (“Transfer Taxes”) incurred in connection with this Agreement and the
Additional Agreements, and the transactions contemplated hereby and thereby (including (i) sales and use Tax on the sale or purchase of the Purchased Assets imposed by Pennsylvania and (ii) transfer Tax on conveyances of interests in real
property imposed by Pennsylvania or any political subdivision thereof) shall be borne by Buyer (and, to the extent paid by Seller, Buyer shall reimburse Seller upon request). Buyer, at its expense, shall prepare and file, to the extent required by,
or permissible under, applicable Law, all necessary Tax Returns and other documentation with respect to all such Transfer Taxes, and, if required by applicable Law, Seller shall join in the execution of all such Tax Returns and other documentation;
provided, however, that prior to the Closing Date, to the extent applicable, Buyer shall provide to Seller appropriate certificates of Tax exemption from each applicable Governmental Authority. 
  
 (b) With respect to Taxes to be prorated in accordance with
Section 3.5, Buyer shall prepare and timely file all Tax Returns required to be filed after the Closing Date with respect to the Purchased Assets, if any, and shall timely pay all Taxes shown to be due on such Tax Returns. Buyer’s
preparation of such Tax Returns shall be subject to Seller’s approval, which approval shall not be unreasonably withheld or delayed. Buyer shall make each such Tax Return available for Seller’s review and approval no later than fifteen
(15) Business Days prior to the due date for filing such Tax Return, it being understood that Seller’s failure to approve any such Tax Return shall not limit Buyer’s obligation to timely file such Tax Return and timely pay all Taxes
shown to be due thereon. 
  
 (c) Buyer and Seller
shall provide the other with such assistance as may reasonably be requested by the other Party in connection with the preparation of any Tax Return, audit or other examination, or any proceeding, by or before any Governmental Authority relating to
Liability for Taxes, and each Party shall retain and provide the requesting Party with all books and records or other information which may be relevant to such Tax Return, audit, examination or proceeding. All books, records and information obtained
pursuant to this Section 6.5(c) or pursuant to any other Section that provides for the sharing of books, records and information or review of any Tax Return or other instrument relating to Taxes shall be kept confidential by the parties hereto
in accordance with the terms and conditions set forth in the Confidentiality Agreement. 
  

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 (d) In the event that a dispute arises between Seller and Buyer regarding Taxes or any
amount due under this Section 6.5, the Parties shall attempt in good faith to resolve such dispute and any agreed-upon amount shall be promptly paid to the appropriate Party. If any such dispute is not resolved within thirty (30) days
after notice thereof is given to any Party, the Parties shall submit the dispute to an Independent Accounting Firm for resolution, which resolution shall be final, binding and conclusive on the Parties. In the event that Buyer and Seller cannot
promptly agree on the selection of an accounting firm to act as the Independent Accounting Firm, either Party may request the American Arbitration Association to appoint a nationally recognized independent accounting firm, and such appointment shall
be final, binding and conclusive on Buyer and Seller. Notwithstanding anything in this Agreement to the contrary, the costs, fees and expenses of the Independent Accounting Firm in resolving the dispute shall be borne equally by Seller and Buyer.
Any payment required to be made as a result of the resolution by the Independent Accounting Firm of any such dispute shall be made within five (5) Business Days after such resolution, together with any interest determined by the Independent
Accounting Firm to be appropriate. 
  
 (e) To the
extent that any Party receives a Tax refund or credit with respect to a Tax that was paid or incurred, in whole or in part, by the other Party, such receiving Party shall promptly pay the allocable portion of the amount of such Tax refund or credit
to the other Party. 
  
 6.6. Advice of Changes. Prior to
the Closing, each Party shall advise the other in writing with respect to any matter arising after the date of this Agreement of which that Party obtains Knowledge and which, if existing or occurring on or prior to the date of this Agreement, would
have been required to be set forth in this Agreement, including any of the Schedules hereto. Seller shall promptly notify Buyer of any fact, event, circumstance or condition that constitutes or results in a breach of any of its representations and
warranties in Article IV. Seller may, from time to time prior to the Closing, promptly supplement or amend the Schedules to this Agreement with respect to (a) any matter that existed as of the date of this Agreement and should have been set
forth in any of the Schedules hereto and (b) any matter hereafter arising which, if existing as of the date of this Agreement, would have been required to be set forth in any of the Schedules hereto in order to make any representation or
warranty set forth in this Agreement true and correct as of such date; provided, however, that, with respect to clause (a) above, any such supplemental or amended disclosure shall not be deemed to have been disclosed as of the date of this
Agreement unless expressly consented to in writing by Buyer in Buyer’s sole and absolute discretion; and provided further, that, with respect to clause (b) above, any such supplemental or amended disclosure shall be deemed to have been
disclosed as of the date of this Agreement other than for purposes of Section 7.1(f) or (g). Buyer shall promptly notify Seller of (i) any breach by Seller of any representation or warranty of Seller, and (ii) any other event,
fact, circumstance or condition that would excuse Buyer from the timely performance of its obligations hereunder. In the event that Buyer fails to so notify Seller within ninety (90) days of such information coming to Buyer’s attention,
then Buyer shall be deemed to have irrevocably and unconditionally waived the breach of such representation and warranty or the performance of such obligations, as the case may be. 
  

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 6.7. Risk of Loss. 
  
 (a) From the date hereof to but not including the Closing Date, all risk of loss or damage to the Tangible
Personal Property included in the Purchased Assets shall be borne by Seller, other than loss or damage caused by the negligent acts or omissions of Buyer or any Buyer Representative, which loss or damage shall be the responsibility of Buyer.

  
 (b) Notwithstanding any provision hereof to
the contrary, subject to Section 9.1(g), if, before the Closing Date, all or any portion of the Purchased Assets at any Jointly Owned Station is (i) condemned or taken by eminent domain or is the subject of a pending or threatened
condemnation or taking which has not been consummated, or (ii) materially damaged or destroyed by fire or other casualty, Seller shall notify Buyer promptly in writing of such fact, and (x) in the case of a condemnation or taking, Seller
shall assign or pay, as the case may be, any net proceeds thereof to Buyer at the Closing relating to such Purchased Assets and (y) in the case of a fire or other casualty, Seller shall either restore such damage or assign the insurance
proceeds therefor to Buyer at such Closing. Notwithstanding the foregoing, if such condemnation, taking, damage or destruction results in a Material Adverse Effect, Buyer and Seller shall negotiate to resolve the loss resulting from such
condemnation, taking, damage or destruction (and such negotiation shall include the negotiation of a fair and equitable adjustment to the Purchase Price for such Purchased Assets). If no such resolution can be agreed upon prior to the earlier to
occur of (i) the date that is ninety (90) days after Seller has notified Buyer of such loss, and (ii) the date on which the Closing, pursuant to Section 3.1, would otherwise occur, then Buyer, on the one hand, or Seller, on the
other hand, may terminate this Agreement with respect to such Purchased Assets pursuant to Section 9.1(g). 
  
 6.8. PJM; MAAC. From and after the Closing Date, Buyer shall maintain membership in good standing in PJM and MAAC, and shall submit to the
governance of the independent system operator established and administered under the PJM Agreement and related agreements entered into among PJM and its members. Seller and Buyer shall cooperate to prepare applications to PJM to obtain PJM approval
of the establishment of all settlement accounts and other authorizations necessary for Buyer to become a member of PJM. Such applications shall be filed with PJM as promptly as practicable, but in no event later than sixty (60) days after the
date of this Agreement. 
  
 6.9. Emission Allowances.

  
 (a) Prior to, on and after the Closing Date,
Buyer and Seller shall take all necessary actions, including executing any required forms or providing appropriate notices to Governmental Authorities, in a timely fashion, to ensure that (i) Buyer will obtain all, or the rights to all,
Emission Allowances that are to be transferred to it pursuant to Section 2.1(f) and as set forth on Schedule 2.1(f), including the right to receive such Emission Allowances that are to be allocated or issued by any Governmental Authority in the
future and (ii) Seller will retain or obtain all, or the rights to all, Emission Allowances that are defined as Excluded Assets pursuant to Section 2.2(n), including the right to receive such Emission Allowances that are to be allocated or
issued by any Governmental Authority in the future. 
  

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 (b) For purposes of compliance with the NOx Budget Program and SO2
Budget Program during the year in which the Closing Date occurs, the Party owning the Seller’s Interests as of the date that an owner of the Seller’s Interests is obligated to transfer additional NOx Allowances or SO2
Allowances (which date shall be as set forth in any requests for Emissions Allowances by the authorized representative or the designated representative of the Keystone Station and the Conemaugh Station) shall be responsible for transferring such
Emission Allowances to the authorized representative or the designated representative. 
  
 6.10. Certain Covenants. 
  
 (a) From and after the date hereof and until the Closing Date, unless Buyer shall otherwise consent in writing (which consent shall not be unreasonably withheld or delayed), other than the periodic revision and
adoption of Keystone-Conemaugh Owners Committee Administrative Procedures in the ordinary course of business consistent with past practice, Seller shall not enter into any contract, agreement, commitment or arrangement relating to the Purchased
Assets or the Jointly Owned Stations that provides for future annual payments by Seller in excess of $50,000 unless such contract, agreement, commitment or arrangement is (i) terminable by Seller prior to the Closing or by Buyer at or after the
Closing, without payment of penalty or premium, upon no more than ninety (90) days’ notice, (ii) constitutes an Excluded Asset and Excluded Liability or (iii) has been executed by all co-owners of any Jointly Owned Station (other
than Seller), it being understood that this Section 6.10(a) is not intended to, and shall not, restrict in any manner the ability of Keystone Fuels, LLC, Conemaugh Fuels, LLC or the operator of any Jointly Owned Station from entering into any
contract, agreement, commitment or arrangement without such consent. 
  
 (b) From and after the date hereof and until the Closing Date, except to the extent prohibited by applicable Law or any contract, agreement, commitment or arrangement relating to the Purchased Assets to which Seller
is a party or by or to which the Purchased Assets are bound or subject, Seller shall (i) keep Buyer reasonably informed of the status and progress of meetings and actions by the Keystone-Conemaugh Owners, Operations and Administrative
Committees, including providing to Buyer, if practicable in advance of any such meeting, copies of agendas for such meetings, and (ii) prior to casting its vote with respect to any action of any such Keystone-Conemaugh Committee, use
Commercially Reasonable Efforts to inform Buyer of the pendency of such action, consult with Buyer with respect to such action and take into account the views of Buyer stated during such consultation in determining whether to approve such action, it
being understood that, subject to Section 6.10(a), Seller may make such determination in its sole and absolute discretion. 
  
 (c) All communications and consultations contemplated by Sections 6.1(a), 6.3, 6.4 and 6.10(b) shall take place between the respective
designated representatives of Seller and Buyer, as may be designated from time to time by Seller and Buyer in the manner contemplated by Section 10.8. Seller’s initial designated representatives shall be James P. Becker and Leslie Zimberg,
and Buyer’s initial designated representatives shall be James E. Wilson and Gary A. Jack. 
  
 6.11. Exclusivity. From the date hereof through the earlier to occur of the Closing and the termination of this Agreement pursuant to Article IX, Seller shall immediately cease, and 

  

 37 

 
shall take such actions, if any, necessary to terminate, any existing solicitation, initiation, encouragement, activity, discussion or negotiation with any
parties conducted heretofore by Seller or its Representatives with respect to the sale of the Jointly Owned Stations and the Purchased Assets, and Seller shall not accept any proposed acquisition of the Jointly Owned Stations and the Purchased
Assets. 
  
 ARTICLE VII 
  
 CONDITIONS 
  
 7.1. Conditions to Obligation of Buyer. The obligation of Buyer to
effect the transactions contemplated by this Agreement with respect to the Purchased Assets at any Jointly Owned Station shall be subject to the satisfaction (or the waiver, to the extent permitted by applicable Law, by Buyer) at or prior to the
Closing of the following conditions: 
  
 (a) The
waiting period with respect to such Purchased Assets under the HSR Act applicable to the consummation of the transactions contemplated hereby shall have expired or been terminated; 
  
 (b) No preliminary or permanent injunction, order or decree by any Governmental Authority which prevents the
consummation of the transactions contemplated hereby or by the Additional Agreements with respect to such Purchased Assets shall have been issued and remain in effect (Buyer agreeing to use Commercially Reasonable Efforts to have any such
injunction, order or decree lifted), and no applicable Law shall be in effect which prohibits the consummation of the transactions contemplated hereby or thereby with respect to such Purchased Assets; 
  
 (c) Buyer shall have obtained the Buyer’s Required
Regulatory Approvals set forth on Schedule 7.1(c) to the extent relating to such Purchased Assets, which shall be final and non-appealable, and Buyer shall have received evidence thereof, in form and substance reasonably satisfactory to Buyer, and
all conditions to the effectiveness thereof prescribed therein or otherwise by Law shall have been satisfied or waived, it being understood that the imposition by any Governmental Authority of any such condition to the grant or issuance of any such
consent or approval requiring any action or omission by Buyer shall not affect Buyer’s obligation to consummate the transactions contemplated hereby or by the Additional Agreements unless such condition would, individually or in the aggregate,
have a Regulatory Material Adverse Effect on Buyer; 
  
 (d) Seller shall have obtained the Seller’s Required Regulatory Approvals set forth in Schedule 7.2(c) to the extent relating to such Purchased Assets, which shall be final and non-appealable, and which shall not include any condition
requiring any action or omission by Buyer which condition would, individually or in the aggregate, have a Regulatory Material Adverse Effect on Buyer; and Buyer shall have received evidence thereof; 
  
 (e) Seller shall have performed and complied with the
covenants and agreements contained in this Agreement which are required to be performed and complied with by Seller at or prior to the Closing and which relate to such Purchased Assets; 
  

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 (f) The representations and warranties of Seller set forth in this Agreement which relate
to such Purchased Assets shall be true and correct in all material respects as though made at and as of the Closing Date (other than such (i) representations and warranties that are made as of a specific date which shall have been true and
correct as of such date and (ii) representations and warranties that are qualified by reference to materiality or Material Adverse Effect which shall be true and correct in all respects); 
  
 (g) Between the date hereof and the Closing Date, no
Material Adverse Effect with respect to such Purchased Assets or such Jointly Owned Station shall have occurred and be continuing; 
  
 (h) Buyer shall have received a certificate from an authorized officer of Seller, dated the Closing Date, to the effect that, to
Seller’s Knowledge, the conditions set forth in Sections 7.1(e), (f) and (g) have been satisfied; and 
  
 (i) Buyer shall have received an opinion from Seller’s counsel, which counsel shall be reasonably acceptable to Buyer, dated the
Closing Date, substantially in the form of Exhibit F hereto. 
  
 7.2. Conditions to Obligation of Seller. The obligation of Seller to effect the transactions contemplated by this Agreement with respect to the Purchased Assets at any Jointly Owned Station shall be subject to the satisfaction (or
the waiver, to the extent permitted by applicable Law, by Seller) at or prior to the Closing of the following conditions: 
  
 (a) The waiting period with respect to such Purchased Assets under the HSR Act applicable to the consummation of the transactions
contemplated hereby shall have expired or been terminated; 
  
 (b) No preliminary or permanent injunction or other order or decree by any Governmental Authority which prevents the consummation of the transactions contemplated hereby or by the Additional Agreements with respect to
such Purchased Assets shall have been issued and remain in effect (Seller agreeing to use its reasonable best efforts to have any such injunction, order or decree lifted), and no applicable Law shall be in effect which prohibits the consummation of
the transactions contemplated hereby or thereby with respect to such Purchased Assets; 
  
 (c) Seller shall have obtained the Seller’s Required Regulatory Approvals set forth on Schedule 7.2(c) to the extent relating to such
Purchased Assets, which shall be final and non-appealable, and Seller shall have received evidence thereof, in form and substance reasonably satisfactory to Seller, and all conditions to the effectiveness thereof prescribed therein or otherwise by
Law shall have been satisfied or waived, it being understood that the imposition by any Governmental Authority of any such condition to the grant or issuance of any such consent or approval requiring any action or omission by Seller shall not affect
Seller’s obligation to consummate the transactions contemplated hereby or by the Additional Agreements unless such condition would, individually or in the aggregate, have a Regulatory Material Adverse Effect on Seller; 
  

 39 

 (d) Buyer shall have obtained the Buyer’s Required Regulatory Approvals set forth in
Schedule 7.1(c) to the extent relating to such Purchased Assets, which shall be final and non-appealable, and which shall not include any condition requiring any action or omission by Seller which condition would, individually or in the aggregate,
have a Regulatory Material Adverse Effect on Seller; and Seller shall have received evidence thereof; 
  
 (e) Buyer shall have performed and complied with the covenants and agreements contained in this Agreement which are required to be
performed and complied with by Buyer at or prior to the Closing and which relate to such Purchased Assets; 
  
 (f) The representations and warranties of Buyer set forth in this Agreement which relate to such Purchased Assets shall be true and
correct in all material respects as though made at and as of the Closing Date (other than such (i) representations and warranties that are made as of a specific date which shall have been true and correct as of such date and
(ii) representations and warranties that are qualified by reference to materiality, Material Adverse Effect or Buyer Material Adverse Effect which shall be true and correct in all respects); 
  
 (g) Seller shall have received a certificate from an
authorized officer of Buyer, dated the Closing Date, to the effect that, to Buyer’s knowledge, the conditions set forth in Sections 7.2(e) and (f) have been satisfied; 
  
 (h) Buyer shall have executed and delivered to Seller a joinder to the Jointly Owned Stations Operating
Agreement relating to such Purchased Assets; 
  
 (i) Seller shall have received an opinion from Buyer’s counsel, which counsel shall be reasonably acceptable to Seller, dated the Closing Date, substantially in the form of Exhibit G hereto; and 
  
 (j) Seller shall have received a certificate of the Chief
Financial Officer of Buyer to the effect that (i) after giving effect to the consummation of the transactions contemplated by this Agreement and the Additional Agreements, including any assignment by Buyer to any of its direct or indirect
wholly owned subsidiaries of all or any portion of its rights, interests, obligations or remedies hereunder pursuant to Section 10.9, (A) the debts of Buyer, and of each such wholly owned subsidiary of Buyer, will not be greater than the
assets of such Person, at a fair valuation, and (B) Buyer and each such subsidiary will be able to pay its debts as they become due, and (ii) no such transaction was effected with the intent to hinder, delay or defraud current or future
creditors of Buyer. 
  
 7.3. Separate Closings. For the
avoidance of doubt, it is the intention of the Parties that, notwithstanding any provision hereof to the contrary, provided that the conditions to the obligations of both Parties to effect the transactions contemplated by this Agreement are
satisfied or waived with respect to all of the Purchased Assets at any Jointly Owned Station, Seller shall sell, assign, convey, transfer and deliver such Purchased Assets to Buyer, Buyer shall purchase, assume and acquire such Purchased Assets, and
Buyer shall assume and agree to pay, perform or otherwise discharge when due the Assumed Liabilities relating to such Purchased Assets, all in the manner contemplated by Articles II and III. 
  

 40 

 ARTICLE VIII  
  
 INDEMNIFICATION AND ARBITRATION 
  
 8.1. Indemnification. 
  
 (a) From and after the Closing Date, Buyer shall indemnify, defend and hold harmless Seller and its Representatives (each, a
“Seller’s Indemnitee”), from and against any and all claims, demands, suits, losses, liabilities, penalties, damages, obligations, payments, costs and expenses (including reasonable attorneys’ fees and expenses in
connection therewith) (each, an “Indemnifiable Loss”), asserted against or suffered by any Seller’s Indemnitee relating to, resulting from or arising out of (i) any breach by Buyer of any (A) representation and
warranty set forth in Article V, or (B) covenant or agreement of Buyer contained in this Agreement, (ii) the Assumed Liabilities, (iii) any Inspection, (iv) the failure by Buyer to comply with any Law, with respect to the Purchased
Assets that are subject thereto or (v) any Third-Party Claim against any Seller’s Indemnitee in connection with Buyer’s ownership, lease, maintenance, construction, modification or operation of any of the Purchased Assets on or after
the Closing Date (other than to the extent such Third-Party Claim constitutes an Excluded Liability); provided, however, that Buyer shall be liable to the Seller’s Indemnitees pursuant to clause (i) of this Section 8.1(a) only
for Indemnifiable Losses for which any Seller’s Indemnitee gives written notice to Buyer (setting forth with reasonable specificity the nature and amount of the Indemnifiable Loss) during the period for which such representations, warranties,
covenants or agreements survive the Closing in accordance with Section 10.6; and provided further that Buyer shall be liable to the Seller’s Indemnitees pursuant to clause (i)(A) of this Section 8.1(a) for breaches of
representations and warranties (y) only after Indemnifiable Losses for such breaches, in the aggregate, exceed $2,000,000 (provided, however, that once such threshold amount is exceeded, Seller’s Indemnitees may recover all Indemnifiable
Losses for such breaches incurred from and after the Closing Date without regard to such threshold amount), and (z) only for Indemnifiable Losses for such breaches, in the aggregate, up to, but not in excess of, $17,500,000 (other than for
breaches of the representations and warranties set forth in Sections 5.1, 5.2 and 5.5, as to which no such limitations shall be applicable). 
  
 (b) From and after the Closing, Seller shall indemnify, defend and hold harmless Buyer and its Representatives (each, a
“Buyer’s Indemnitee” and, together with Seller’s Indemnitees, an “Indemnitee”), from and against any and all Indemnifiable Losses asserted against or suffered by any Buyer’s Indemnitee relating to,
resulting from or arising out of (i) any breach by Seller of any (A) representation and warranty set forth in Article IV, or (B) covenant or agreement of Seller set forth in this Agreement, (ii) the Excluded Assets and the
Excluded Liabilities or (iii) any Third-Party Claim against any Buyer’s Indemnitee in connection with Seller’s ownership, lease, maintenance, construction, modification or operation of any of the Purchased Assets prior to the Closing
Date (other than to the extent such Third-Party Claim constitutes an Assumed Liability); provided, however, that Seller shall be liable to the Buyer’s Indemnitees pursuant to clause (i) of this Section 8.1(b) only for
Indemnifiable Losses for which any Buyer’s Indemnitee gives written notice to Seller (setting forth with reasonable specificity the nature and amount of the Indemnifiable Loss) during the period for which such representations, warranties,
covenants or agreements survive the Closing in accordance with Section 10.6; and provided further that Seller shall be liable to the Buyer’s Indemnitees pursuant 

  

 41 

 
to clause (i)(A) of this Section 8.1(b) for breaches of representations and warranties (y) only after Indemnifiable Losses for such breaches, in
the aggregate, exceed $2,000,000 (provided, however, that once such threshold amount is exceeded, Buyer’s Indemnitees may recover all Indemnifiable Losses for such breaches incurred from and after the Closing Date without regard to such
threshold amount), and (z) only for Indemnifiable Losses for such breaches, in the aggregate, up to, but not in excess of, $17,500,000 (other than for breaches of the representations and warranties set forth in Sections 4.1, 4.2 and 4.5, as to
which no such limitations shall be applicable). 
  
 (c) In furtherance, and not in limitation, of the provisions set forth in Section 8.1(a), Buyer, for itself and on behalf of its Representatives, hereby irrevocably releases, holds harmless and forever discharges Seller from any and
all Indemnifiable Losses of any kind or character, whether known or unknown, contingent or accrued, arising under or relating to Environmental Laws, or relating to any claim in respect of any Environmental Condition or Hazardous Substance, whether
based on common law or Environmental Laws, relating to the Purchased Assets, other than Excluded Liabilities (collectively, “Environmental Claims”). In furtherance of the foregoing, Buyer, for itself and on behalf of its
Representatives, hereby irrevocably waives any and all rights and benefits with respect to such Environmental Claims that it now has, or in the future may have conferred upon it by virtue of any Law or common law principle, which provides that a
general release does not extend to claims which a party does not know or suspect to exist in its favor at the time of executing the release, if knowledge of such claims would have materially affected such party’s settlement with the obligor. In
this connection, Buyer hereby acknowledges that it is aware that factual matters now unknown to it may have given, or hereafter may give, rise to Environmental Claims that have not been made prior to the date of this Agreement, and will not be made
prior to the Closing Date, and Buyer further agrees that this release set forth in this Section 8.1(c) has been negotiated and agreed upon in light of that awareness, and Buyer, for itself and on behalf of its Representatives, nevertheless
hereby intends irrevocably to release, hold harmless and forever discharge Seller from all such Environmental Claims. 
  
 (d) The rights and remedies of Seller and Buyer set forth in this Article VIII are exclusive and in lieu of any and all other rights and
remedies which Seller and Buyer may have under this Agreement, under applicable Law, whether at common law or in equity, including for declaratory, injunctive or monetary relief, in each case, with respect to any Indemnifiable Loss. 
  
 (e) Notwithstanding anything to the contrary herein, no
Person (including an Indemnitee) shall be entitled to recover from any other Person (including any Party required to provide indemnification under this Agreement (an “Indemnifying Party”)) any amount in excess of the actual
compensatory damages, court costs and reasonable attorneys’ fees suffered by such Party. In furtherance of the foregoing, Buyer and Seller hereby irrevocably waive any right to recover punitive, indirect, special, exemplary and consequential
damages arising in connection with or with respect to this Agreement (other than with respect to indemnification for a Third- Party Claim). 
  
 (f) Any Indemnitee shall use Commercially Reasonable Efforts to mitigate all losses, damages and the like relating to a claim under the
indemnification provisions in this 

  

 42 

 
Section 8.1, including availing itself of any defenses, limitations, rights of contribution, claims against third Persons and other rights at law or
equity. For purposes of this Section 8.1(f), the Indemnitee’s Commercially Reasonable Efforts shall include the reasonable expenditure of money to mitigate or otherwise reduce or eliminate any Indemnifiable Loss for which indemnification
would otherwise be due, and, in addition to its other obligations hereunder, provided that the Indemnifying Party shall reimburse the Indemnitee for the Indemnitee’s reasonable costs and expenses incurred in undertaking such mitigation,
reduction or elimination. 
  
 8.2. Defense of Claims.

  
 (a) If any Indemnitee receives notice of the
assertion of any Indemnifiable Loss or of the commencement of any suit, action or proceeding made or brought by any Person who is not an Indemnitee (a “Third-Party Claim”) with respect to which indemnification is to be sought from
an Indemnifying Party, the Indemnitee shall give such Indemnifying Party reasonably prompt written notice thereof, but in no event later than twenty (20) Business Days after the Indemnitee’s receipt of notice of such Third-Party Claim.
Such notice shall describe the nature of the Third-Party Claim in reasonable detail and shall indicate the estimated amount, if practicable, of the Indemnifiable Loss that has been or may be incurred by the Indemnitee. The Indemnifying Party shall
have the right to participate in or, by giving written notice to the Indemnitee, to elect to assume the defense of any Third-Party Claim at such Indemnifying Party’s expense and by such Indemnifying Party’s own counsel. If an Indemnifying
Party elects not to assume the defense of any Third-Party Claim, the Indemnitee may defend, compromise or settle such Third-Party Claim with counsel selected by it, provided that, without the prior written consent of the Indemnifying Party, the
Indemnitee shall not agree to the entry of any judgment with respect to, or any compromise or settlement of, any Third-Party Claim. 
  
 (b) If the Indemnifying Party undertakes, conducts and controls the conduct and settlement of such action or suit, (i) the
Indemnifying Party shall not thereby permit to exist any Encumbrance upon any asset of the Indemnitee; (ii) the Indemnifying Party shall not consent to any settlement that does not include as an unconditional term thereof the giving of a
complete release from Liability with respect to such action or suit to the Indemnitee; and (iii) the Indemnifying Party shall permit the Indemnitee to participate in such conduct or settlement at such Indemnitee’s expense and by such
Indemnitee’s counsel. 
  
 (c) Subject to
Section 8.3, any claim by an Indemnitee on account of an Indemnifiable Loss which does not constitute a Third-Party Claim (a “Direct Claim”) shall be asserted by giving the Indemnifying Party reasonably prompt written notice
thereof, in no event later than forty (40) Business Days after the Indemnitee becomes aware of such Direct Claim, stating the nature of such claim in reasonable detail and indicating the estimated amount, if practicable, of such Indemnifiable
Loss. The Indemnifying Party shall have a period of forty (40) Business Days within which to respond to such Direct Claim. If the Indemnifying Party fails to respond during such forty (40) Business Day period, the Indemnifying Party shall
be deemed to have accepted such claim and, subject to this Article VIII, shall promptly reimburse the Indemnitee for the Indemnifiable Losses set forth in the Indemnitee’s notice. 
  

 43 

 (d) A failure to give timely notice as provided in this Section 8.2 shall not affect
the rights or obligations of any Party hereunder except to the extent that the Party which was entitled to receive such notice was actually prejudiced as a result of such failure. 
  
 8.3. Arbitration. 
  
 (a) Notwithstanding any provision hereof to the contrary, in the event of any dispute between Seller and Buyer arising after the Closing
(whether relating to facts, events or circumstances occurring or existing prior to, on or after the Closing Date) and relating to, resulting from or arising out of any provision of this Agreement (other than disputes arising under Article II or
Section 3.2, 3.3, 3.4, 6.5, 8.1(a)(ii) or 8.1(b)(ii)), including with respect to Direct Claims and Third Party Claims, the Party asserting such dispute shall give written notice to the other of the fact that a dispute has arisen pursuant
hereto. Such notice shall include (i) a statement setting forth in reasonable detail the facts, events, circumstances, evidence and arguments underlying such dispute and (ii) proposed arrangements for a meeting to attempt to resolve the
dispute to be held within sixty (60) days after such notice is given. Within thirty (30) days after such notice is given, the other Party hereto shall submit to the Party giving such notice a written summary responding to such statement of
facts, events, circumstances, evidence and arguments contained in the notice and an acceptance of or proposed alternative to the meeting arrangements set forth in the initial notice. 
  
 (b) The chief executive officers (or any other executive officer or officers directly reporting to, or duly
designated by, such chief executive officers) of each of the Parties shall meet at a mutually acceptable time and place to attempt to settle any dispute in good faith; provided, however, that such meeting shall be held at the principal offices of
the Party receiving the notice of dispute unless otherwise agreed; and provided further, that any such meeting shall be held no later than sixty (60) days after the written notice of dispute is given pursuant to Section 8.3(a). Each Party
shall bear its own costs and expenses with respect to preparation for, attendance at and participation in such meeting. 
  
 (c) In the event that (i) a meeting has been held in accordance with Section 8.3(b), (ii) any such dispute of the kind
referred to in Section 8.3(a) shall not have been resolved at such meeting and (iii) the aggregate amount in dispute exceeds $100,000, then either Party may submit such dispute to binding arbitration pursuant to the Commercial Arbitration
Rules of the American Arbitration Association (the “Commercial Arbitration Rules”). In the event that such dispute is submitted to arbitration pursuant to the Commercial Arbitration Rules, then the arbitration tribunal shall be
composed of three arbitrators (one arbitrator selected by each Party within thirty (30) days after the meeting held in accordance with Section 8.3(b) with the third selected by the other two arbitrators or, in the absence of agreement
between them, the American Arbitration Association), the venue of the arbitration shall be Wilmington, Delaware, the language of the arbitration shall be English and the arbitration shall commence no later than sixty (60) days after the meeting
held in accordance with Section 8.3(b). The decision, judgment and order of the arbitration tribunal shall be final, binding and conclusive as to the Parties and their respective Representatives, and may be entered in any court of competent
jurisdiction. Other than the fees and expenses of the arbitrators, which shall be shared equally by the Parties, each Party shall bear its own costs and expenses (including attorneys’ fees and expenses) relating to the arbitration. 

 

 44 

 ARTICLE IX  
  
 TERMINATION 
  
 9.1. Termination. 
  
 (a) This Agreement may be terminated at any time prior to the Closing by mutual written consent of the Parties. 
  
 (b) This Agreement may be terminated by Seller, on the one
hand, or Buyer, on the other hand, with respect to the Purchased Assets at any Jointly Owned Station upon written notice to the other Party, (i) at any time prior to the Closing if any court of competent jurisdiction shall have issued an order,
judgment or decree permanently restraining, enjoining or otherwise prohibiting the Closing with respect to such Purchased Assets, and such order, judgment or decree shall have become final and non-appealable; provided that the Party seeking to
terminate this Agreement pursuant to this Section 9.1(b)(i) shall have used its Commercially Reasonable Efforts to seek relief from such order, judgment or decree; (ii) at any time prior to the Closing if any Law shall have been enacted or
issued by any Governmental Authority which prohibits the consummation of the transactions contemplated by this Agreement or by any Additional Agreement with respect to such Purchased Assets; or (iii) at any time after the first anniversary of
the date of this Agreement if the Closing with respect to such Purchased Assets shall not have occurred on or before such date; provided, however, that the right to so terminate this Agreement under this Section 9.1(b)(iii) shall not be
available to any Party whose breach of this Agreement has caused, or resulted in, the failure of the Closing to occur on or before such date; and provided, further, that if on such date, any Buyer’s Required Regulatory Approval set forth in
Schedule 7.1(c) or any Seller’s Required Regulatory Approval set forth in Schedule 7.2(c), in each case, with respect to such Purchased Assets shall not have been obtained, or shall not be then final and non-appealable, but all other conditions
to the Closing with respect to such Purchased Assets shall be satisfied or shall be capable of being satisfied, then no Party shall be entitled to terminate this Agreement pursuant to this Section 9.1(b)(iii) prior to the date that is 180 days
after such date. 
  
 (c) This Agreement may be
terminated by Buyer with respect to the Purchased Assets at any Jointly Owned Station, upon written notice to Seller, if any of Buyer’s Required Regulatory Approvals to the extent relating to such Purchased Assets , the receipt of which is a
condition to the obligation of Buyer to consummate the Closing with respect to such Purchased Assets as set forth in Section 7.1(c), shall have been denied and a petition for rehearing or refiling of an application initially denied without
prejudice shall also have been denied, and such denial was not caused by or the result of a breach of this Agreement by Buyer. 
  
 (d) This Agreement may be terminated by Seller with respect to the Purchased Assets at any Jointly Owned Station, upon written notice to
Buyer, if any of the Seller’s Required Regulatory Approvals to the extent relating to such Purchased Assets, the receipt of which is a condition to the obligation of Seller to consummate the Closing as set forth in Section 7.2(c) with
respect to such Purchased Assets, shall have been denied and a petition for rehearing or refiling of an application initially denied without prejudice shall also have been denied, and such denial was not caused by or the result of a breach of this
Agreement by Seller. 
  

 45 

 (e) This Agreement may be terminated by Buyer with respect to the Purchased Assets at any
Jointly Owned Station, upon written notice to Seller, if there has been a material breach by Seller of any covenant, agreement, representation or warranty contained in this Agreement which relates to such Purchased Assets, which breach has had a
Material Adverse Effect and such breach is not cured by the earlier of the Closing Date or the date that is thirty (30) days after receipt by Seller of notice specifying in reasonable detail the nature of such breach, unless Buyer shall have
previously waived such breach. 
  
 (f) This
Agreement may be terminated by Seller with respect to the Purchased Assets at any Jointly Owned Station, upon written notice to Buyer, if there has been a material breach by Buyer of any covenant, agreement, representation or warranty contained in
this Agreement which relates to such Purchased Assets, which breach has had a Material Adverse Effect or a Buyer Material Adverse Effect, and such breach is not cured by the earlier of the Closing Date or the date that is thirty (30) days after
receipt by Buyer of notice specifying in reasonable detail the nature of such breach, unless Seller shall have previously waived such breach. 
  
 (g) This Agreement may be terminated by Seller, on the one hand, or Buyer, on the other hand, with respect to the Purchased Assets at any
Jointly Owned Station upon written notice to the other Party, in accordance with the provisions of Section 6.7(b), provided that the Party seeking to so terminate shall have complied with its obligations under Section 6.7. 
  
 (h) This Agreement may be terminated by either Party with
respect to the Purchased Assets at any Jointly Owned Station, upon written notice to the other Party, if any final and non-appealable injunction, order or decree by any Governmental Authority, which prohibits the consummation of the transactions
contemplated hereby or by the Additional Agreements to the extent relating to such Purchased Assets, shall have been issued and remain in effect, provided that the Party seeking to terminate this Agreement pursuant to this Section 9.1(h) shall
have used its Commercially Reasonable Efforts to have any such injunction, order or decree lifted. 
  
 9.2. Effect of Termination. 
  
 (a) Upon termination of this Agreement prior to the Closing in accordance with and pursuant to Section 9.1 with respect to the
Purchased Assets at any Jointly Owned Station, this Agreement shall be of no further force or effect with respect to such Purchased Assets (except that the provisions set forth in Section 6.1(b), Section 6.2, this Section 9.2 and
Article X, and the Confidentiality Agreement, shall remain in full force and effect in accordance with their respective terms); and no Party shall have any further Liability under this Agreement (other than for any breach of any of its covenants and
agreements set forth herein). 
  
 (b) In the
event that Buyer terminates this Agreement pursuant to Section 9.1(b)(iii) solely by reason of Seller’s inability to obtain the release of the Purchased Assets from the Encumbrance under the Indenture, dated January 15, 1937, by and
between ACE and the Bank of New York, as Trustee, as amended, then, upon delivery by Buyer of statements setting forth with reasonable specificity the nature and amount of out-of-pocket costs and expenses (including reasonable attorneys’ fees
and expenses) actually incurred by Buyer in connection 

  

 46 

 
with the transactions contemplated by this Agreement, Seller shall promptly reimburse the amount of such costs and expenses up to, but not in excess of,
$500,000. 
  
 ARTICLE X  
  
 MISCELLANEOUS PROVISIONS 
  
 10.1. Amendment and Modification. This Agreement may be amended,
supplemented or otherwise modified only by written agreement entered into by both Parties. 
  
 10.2. Expenses. Except to the extent provided herein, whether or not the transactions contemplated hereby are consummated, all costs, fees and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be borne by the Party incurring such costs, fees and expenses, including the fees and commissions referred to in Section 10.3. 
  
 10.3. Fees and Commissions. Seller, on the one hand, and Buyer, on the other hand, represent and warrant to the other
that, except for Concentric Energy Advisors, Inc., which is acting for and at the expense of Seller, no broker, finder or other Person is entitled to any brokerage fees, commissions or finder’s fees in connection with the transactions
contemplated hereby by reason of any action taken by such Party or its Representatives. Seller shall pay or otherwise discharge all such brokerage fees. 
  
 10.4. Bulk Sales Laws. Notwithstanding any provision in this Agreement to the contrary, neither Buyer nor Seller shall have any obligation to
comply with the provisions of the bulk sales laws of any jurisdiction in connection with the transactions contemplated by this Agreement; and Buyer hereby irrevocably waives compliance by Seller with the provisions of the bulk sales laws of all
applicable jurisdictions. 
  
 10.5. Waiver of Compliance;
Consents. To the extent permitted by applicable Law, any failure of any of the Parties to comply with any representation, warranty, covenant, agreement or condition set forth herein may be waived by the Party entitled to the benefit thereof only
by a written instrument signed by such Party, but any such waiver shall not operate as a waiver of, or estoppel with respect to, any prior or subsequent failure to comply therewith or of any other provision set forth herein. 
  
 10.6. Survival. Other than (a) the representations and warranties
of Seller set forth in Sections 4.1, 4.2 and 4.5, and the representations and warranties of Buyer set forth in Sections 5.1, 5.2 and 5.5, each of which shall survive the delivery of the Special Warranty Deeds and the Closing indefinitely, and
(b) the representations and warranties of Seller set forth in Section 4.16, each of which shall survive the delivery of the Special Warranty Deeds and the Closing until expiration of the applicable statutes of limitations, the
representations and warranties of Seller set forth in Article IV and the representations and warranties of Buyer set forth in Article V shall survive the delivery of the Special Warranty Deeds and the Closing until the first anniversary of the
Closing Date. The covenants and agreements of the Parties set forth in this Agreement shall survive the Closing in accordance with their respective terms. 
  

 47 

 10.7. Disclaimers. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES, COVENANTS AND AGREEMENTS SET
FORTH HEREIN AND IN THE ADDITIONAL AGREEMENTS, THE PURCHASED ASSETS ARE SOLD “AS IS, WHERE IS”, AND SELLER EXPRESSLY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO SELLER AND THE
PURCHASED ASSETS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT AND IN THE ADDITIONAL AGREEMENTS: SELLER EXPRESSLY DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES
REGARDING LIABILITIES, OWNERSHIP, LEASE, MAINTENANCE OR OPERATION OF THE PURCHASED ASSETS, THE TITLE, CONDITION, VALUE OR QUALITY OF THE PURCHASED ASSETS OR THE PROSPECTS (FINANCIAL AND OTHERWISE), RISKS AND OTHER INCIDENTS OF THE PURCHASED ASSETS;
AND SELLER EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES OF MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE PURCHASED ASSETS, OR ANY PART THEREOF, OR AS TO THE WORKMANSHIP THEREOF, OR THE
ABSENCE OF ANY DEFECTS THEREIN, WHETHER LATENT OR PATENT, OR COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS, OR THE APPLICABILITY OF ANY GOVERNMENTAL AUTHORITY, INCLUDING ANY ENVIRONMENTAL LAWS, OR WHETHER SELLER POSSESSES SUFFICIENT REAL PROPERTY OR
PERSONAL PROPERTY TO OPERATE THE PURCHASED ASSETS. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN AND IN THE ADDITIONAL AGREEMENTS, SELLER FURTHER EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES REGARDING THE ABSENCE OF HAZARDOUS SUBSTANCES OR
LIABILITY OR POTENTIAL LIABILITY ARISING UNDER ENVIRONMENTAL LAWS WITH RESPECT TO THE PURCHASED ASSETS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS OTHERWISE EXPRESSLY PROVIDED HEREIN AND IN THE ADDITIONAL AGREEMENTS, SELLER
EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES OF ANY KIND REGARDING THE CONDITION OF THE PURCHASED ASSETS OR THE SUITABILITY OF THE PURCHASED ASSETS FOR OPERATION AS A POWER PLANT OR AS A FUEL PROCESSING FACILITY, AS APPLICABLE, AND NO
SCHEDULE OR EXHIBIT TO THIS AGREEMENT, NOR ANY OTHER MATERIAL OR INFORMATION PROVIDED, OR COMMUNICATIONS MADE, BY SELLER OR ITS REPRESENTATIVES, INCLUDING ANY BROKER OR INVESTMENT BANKER, SHALL CONSTITUTE OR CREATE ANY SUCH REPRESENTATION OR
WARRANTY, EXPRESS OR IMPLIED, AS TO THE TITLE, CONDITION, VALUE OR QUALITY OF THE PURCHASED ASSETS. 
  
 SELLER EXPRESSLY DISCLAIMS ALL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE NAMES “CONEMAUGH STATION” AND “KEYSTONE STATION”,
INCLUDING ALL REPRESENTATIONS AND WARRANTIES OF (1) TITLE; (2) LENGTH, NATURE, EXCLUSIVITY AND CONTINUITY OF USE; (3) STRENGTH OR FAME; AND (4) NONINFRINGEMENT AND NONDILUTION OF TRADEMARK, SERVICE MARK, TRADE NAME OR OTHER
PROPRIETARY RIGHTS OF ANY THIRD PARTY. BUYER HEREBY ACKNOWLEDGES THAT THE NAMES 

  

 48 

 
“CONEMAUGH STATION” AND “KEYSTONE STATION” EACH HAS A GEOGRAPHIC CONNOTATION ASSOCIATED WITH THE LOCATION OF THE PURCHASED ASSETS.

  
 10.8. Notices. All notices and other communications
hereunder shall be in writing and shall be deemed given on the day when delivered personally or by facsimile transmission (with confirmation), on the next Business Day when delivered to a nationally recognized overnight courier or five
(5) Business Days after deposited as registered or certified U.S. mail (return receipt requested), in each case, postage prepaid, addressed to the recipient Party at its address set forth below (or at such other address or facsimile number for
a Party as shall be specified by like notice; provided, however, that any such notice of a change of address or facsimile number shall be effective only upon receipt thereof): 
  

	 	(a)	If to Seller, to: 

  
 Atlantic City Electric Company 
 800 King
Street 
 P.O. Box 231 
 Wilmington, Delaware 19899 
 Attention: President 
 Facsimile: (302) 429-3367 
  
 with a copy (which shall not constitute notice) to: 
  
 Pepco Holdings, Inc. 
 Suite 1100, 10th Floor 
 701 Ninth Street, NW 
 Washington, D.C. 20068 
 Attention: Vice
President, Legal Services 
 Facsimile: (202) 872-3281 
  
 and a copy (which shall not constitute notice) to: 
  
 Blank Rome LLP 
 One Logan Square 
 Philadelphia, Pennsylvania 19103 
 Attention: Ronald Fisher, Esquire 
 Facsimile: (215) 832-5479 
  

	 	(b)	If to Buyer, to: 

  
 Duquesne Light Holdings, Inc. 
 411 Seventh
Avenue 
 Pittsburgh, PA 15219 
 Attention: James E. Wilson, Vice President 
 Facsimile: 412-393-1070 
  

 49 

 with a copy (which shall not constitute notice) to: 
  
 Duquesne Light Company 
 411 Seventh Avenue 
 Pittsburgh, PA 15219

 Attention: Gary A. Jack, Assistant General Counsel 
 Facsimile: 412-393-1418 
  
 10.9.
Assignment. This Agreement shall be binding upon and inure solely to the benefit of the Parties and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests, obligations or remedies
hereunder shall be assigned by any Party hereto, including by operation of law, without the prior written consent of the other Party, nor is this Agreement intended to confer upon any other Person any rights, interests, obligations or remedies
hereunder. Without limiting the generality of the foregoing, no provision of this Agreement shall create any third-party beneficiary rights in any Employee or former employee of Seller (including any beneficiary or dependent thereof), including with
respect to continued employment or resumed employment, and no provision of this Agreement shall create any rights in any such Persons in respect of any benefits that may be provided, directly or indirectly, under any employee benefit plan or
arrangement except as expressly provided for thereunder. Notwithstanding the foregoing, either Party may, without the prior written consent of the other Party, assign all or any portion of its rights, interests, obligations and remedies hereunder,
pursuant to instruments of transfer in form and substance reasonably satisfactory to the other Party, to one or more direct or indirect wholly owned subsidiaries of such Party; provided, however, that (i) no such assignment shall relieve such
Party of any of its Liabilities hereunder, (ii) Buyer shall guarantee the obligations of its assignee, which guarantee shall be in form and substance reasonably satisfactory to Seller, (iii) no such assignment shall result in any Party
requiring any additional consent, approval, filing, or notice of, with or to, any third party, including any Governmental Authority, to consummate the transactions contemplated by this Agreement or any Additional Agreement, and (iv) such
assignment does not otherwise prevent or materially impede, interfere with or delay the transactions contemplated by this Agreement or any Additional Agreement. 
  

10.10. Governing Law; Forum; Service of Process. This Agreement shall be governed by and construed in accordance with the laws of the State of
Delaware (without giving effect to conflicts of law principles) as to all matters, including validity, construction, effect, performance and remedies. Venue in any and all suits, actions and proceedings related to the subject matter of this
Agreement shall be in the state and federal courts located in and for the State of Delaware (the “Courts”), which shall have exclusive jurisdiction for such purpose, and the Parties hereby irrevocably submit to the exclusive
jurisdiction of such courts and irrevocably waive the defense of an inconvenient forum to the maintenance of any such suit, action or proceeding. Service of process may be made in any manner recognized by such Courts. Each of the Parties hereby
irrevocably waives its right to a jury trial arising out of any dispute in connection with this Agreement or the transactions contemplated hereby. Buyer has irrevocably appointed Corporation Service Company, 2711 Centerville Road, Suite 400,
Wilmington, DE 19808, as its authorized agent (the “Authorized Agent”) upon which process may be served in any suit, action or proceeding based on this Agreement which may be instituted in the Courts by Seller, and Buyer expressly
accepts the jurisdiction of any such Court in respect of any such suit, action or 

  

 50 

 
proceeding. Buyer represents and warrants that the Authorized Agent has agreed to act as such agent for service of process, and Buyer shall take any and all
actions, including the filing of any and all documents and instruments, which may be necessary or appropriate to continue such appointment in full force and effect. Service of process upon the Authorized Agent and written notice of such service to
Buyer shall be deemed, in every respect, effective service of process upon Buyer. 
  
 10.11. Counterparts. This Agreement may be executed by facsimile transmission (with confirmation) and in counterparts, each of which shall be deemed an original, but all of which together shall constitute one
and the same instrument. 
  
 10.12. Interpretation. The
Article and Section headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the parties and shall not in any way affect the meaning or construction of this Agreement. Ambiguities and
uncertainties in the wording of this Agreement shall not be construed for or against any Party, but shall be construed in the manner that most accurately reflects the Parties’ intent as of the date of this Agreement. Each Party acknowledges
that it has been represented by counsel in connection with the review and execution of this Agreement, and, accordingly, there shall be no presumption that this Agreement or any provision hereof be construed against the Party that drafted this
Agreement. Notwithstanding any provision of any Additional Agreement to the contrary, the provisions of this Agreement shall govern and control any conflict or inconsistency between or among the provisions of this Agreement and the provisions of any
such Additional Agreement. 
  
 10.13. Schedules and
Exhibits. Except as otherwise provided in this Agreement, all Exhibits and Schedules referred to herein are intended to be and hereby are made a part of this Agreement. 
  
 10.14. Disclosure. Each Schedule to this Agreement shall be deemed to include and incorporate all information set
forth on the other Schedules. Information disclosed in documents set forth on a Schedule shall be deemed to be disclosed on the Schedules. Certain information set forth on the Schedules is included solely for informational purposes, is not an
admission of liability or materiality with respect to the matters covered by the information, and may not be required to be disclosed pursuant to this Agreement. The specification of any Dollar amount in the representations and warranties contained
in this Agreement or the inclusion of any specific item in the Schedules is not intended to imply that such amounts (or higher or lower amounts) or such items are or are not material, and no Party shall use the fact of the setting of such amounts or
the fact of the inclusion of any such item in the Schedules in any dispute or controversy among the Parties as to whether any obligation, item or matter not described herein or included in a Schedule is or is not material for purposes of this
Agreement. 
  
 10.15. Entire Agreement. This Agreement
(including the Schedules and Exhibits), together with the Additional Agreements (when executed and delivered by the Parties) and the Confidentiality Agreement, constitute a single integrated agreement between the Parties and, together, embody the
entire agreement and understanding of the Parties hereto in respect of the transactions contemplated hereby and thereby, and supersede all prior agreements and understandings between the Parties with respect to such transactions. There are no
representations, warranties, covenants or agreements between the Parties with respect to the 

  

 51 

 
subject matter set forth in such agreements, other than those expressly set forth or referred to herein or therein. Without limiting the generality of the
foregoing, Buyer hereby acknowledges and agrees that there are no representations, warranties, covenants or agreements between the Parties with respect to the subject matter set forth in such agreements contained in any material made available to
Buyer pursuant to the terms of the Confidentiality Agreement (including the Offering Memorandum dated June 15, 2005, previously provided to Buyer by or on behalf of Seller and Concentric Energy Advisors, Inc.). 
  
 SIGNATURE PAGE FOLLOWS 
  

 52 

 IN WITNESS WHEREOF, Seller and Buyer have caused this Purchase and Sale Agreement to be duly executed and
delivered by their respective duly authorized officers as of the date first above written. 
  

			
	 ATLANTIC CITY ELECTRIC COMPANY

		
	 By:
	 	/s/    JOSEPH M. RIGBY        
	 Name:
	 	Joseph M. Rigby
	 Title:
	 	Chief Financial Officer

  

			
	 DUQUESNE LIGHT HOLDINGS, INC.

		
	 By:
	 	/s/    JAMES E. WILSON        
	 Name:
	 	James E. Wilson
	 Title:
	 	Vice PresidentResignment No. 4 of Receivables, dated as of November 15, 2005

 Exhibit 10.1 
  
 REASSIGNMENT OF RECEIVABLES 
  

REASSIGNMENT NO. 4 OF RECEIVABLES, dated as of November 15, 2005, by and between Chase Bank USA, National Association, a banking corporation
organized and existing under the laws of the United States (the “Bank”), and The Bank of New York, a banking corporation organized under the laws of the State of New York (the “Trustee”) pursuant to the Pooling and Servicing
Agreement referred to below. 
  
 WITNESSETH: 
  
 WHEREAS, the Bank, as Transferor and Servicer, and the Trustee are parties to
the Third Amended and Restated Pooling and Servicing Agreement, dated as of November 15, 1999, as amended by the First Amendment thereto dated as of March 31, 2001, the Second Amendment thereto dated as of March 1, 2002, the Third
Amendment thereto, dated as of July 15, 2004, and the Fourth Amendment thereto, dated as of October 15, 2004 (as amended, the “Pooling and Servicing Agreement”); 
  
 WHEREAS, pursuant to the Pooling and Servicing Agreement, the Bank wishes to remove all Receivables from certain designated
Accounts of the Bank (the “Removed Accounts”) and to cause the Trustee to reconvey the Receivables of such Removed Accounts, whether now existing or hereafter created, from the Trust to the Bank (as each such term is defined in the Pooling
and Servicing Agreement); and 
  
 WHEREAS, the Trustee is willing
to accept such designation and to reconvey the Receivables in the Removed Accounts subject to the terms and conditions hereof; 
  
 NOW, THEREFORE, the Bank and the Trustee hereby agree as follows: 
  
 1. Defined Terms. All terms defined in the Pooling and Servicing Agreement and used herein shall have such defined
meanings when used herein, unless otherwise defined herein. 
  
 “Removal Cut Off Date” shall mean, with respect to the Removed Accounts designated hereby, September 30, 2005. 
  
 “Removal Date” shall mean, with respect to the Removed Accounts designated hereby, November 15, 2005. 
  
 “Removal Notice Date” shall mean, with respect to the
Removed Accounts designated hereby, November 4, 2005 (which shall be a date on or prior to the fifth Business Day prior to the Removal Date). 
  
 2. Designation of Removed Accounts. The Bank shall deliver to the Trustee, not later than five Business Days after the Removal Date, a computer
file or microfiche list containing a true and complete list of each MasterCard and VISA account which as of the Removal Date shall be deemed to be a Removed Account, such accounts 
  

 1 

 being identified by account number and by the aggregate amount of Receivables in such accounts as of the close of
business on the Removal Date. Such list shall be marked as Schedule 1 to this Reassignment and shall be incorporated into and made a part of this Reassignment as of the Removal Date. 
  
 3. Conveyance of Receivables. 
  
 (a) The Bank does hereby reconvey to the Bank, without recourse on and after the Removal Date, all right, title and interest
of the Trust in and to the Receivables now existing and hereafter created in the Removed Accounts designated hereby, all monies due or to become due with respect thereto (including all Finance Charge Receivables), all proceeds (as defined in
Section 9-306 of the UCC as in effect in the State of Delaware) of such Receivables, Insurance Proceeds relating to such Receivables and the proceeds thereof. 
  
 (b) In connection with such transfer, the Trustee agrees to execute and deliver to the Bank on or prior to the date of this
Reassignment, a termination statement with respect to the Receivables now existing and hereafter created in the Removed Accounts designated hereby (which may be a single termination statement with respect to all such Receivables) evidencing the
release by the Trust of its Lien on the Receivables in the Removed Accounts, and meeting the requirements of applicable state law, in such manner and such jurisdictions as are necessary to remove such Lien. 
  
 4. Representations and Warranties of the Bank. The Bank hereby
represents and warrants to the Trust as of the Removal Date: 
  
 (a) Legal Valid and Binding Obligation. This Reassignment constitutes a legal, valid and binding obligation of the Bank enforceable against the Bank in accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors’ rights in general and the rights of creditors of banking associations and except as such
enforceability may be limited by general principles of equity (whether considered in a suit at law or in equity). 
  
 (b) Selection Procedures. No selection procedures believed by the Bank to be materially adverse to the interests of the Investor Certificateholders
were utilized in selecting the Removed Accounts designated hereby. 
  
 5. Conditions Precedent. The amendment of the Pooling and Servicing Agreement set forth in Section 6 hereof is subject to the satisfaction, on or prior to the Removal Date, of the following condition precedent: 
  
 The Bank shall have delivered to the Trustee an
Officer’s Certificate certifying that (i) as of the Removal Date, all requirements set forth in Section 2.7 of the Pooling and Servicing Agreement for designating Removed Accounts and reconveying the Receivables of such Removed
Accounts, whether now existing or hereafter created, have been satisfied and (ii) each of the representations and warranties made by the Bank in Section 4 hereof is true and correct as of the 

 Removal Date. The Trustee may conclusively rely on such Officer’s Certificate, shall have no duty to
make inquiries with regard to the matters set forth therein, and shall incur no liability in so relying. 
  
 6. Amendment of the Pooling and Servicing Agreement. The Pooling and Servicing Agreement is hereby amended to provide that all references therein
to the “Pooling and Servicing Agreement,” to “this Agreement” and “herein” shall be deemed from and after the Removal Date to be a dual reference to the Pooling and Servicing Agreement as supplemented by this
Reassignment. Except as expressly amended hereby, all of the representations, warranties, terms, covenants and conditions to the Pooling and Servicing Agreement shall remain unamended and shall continue to be, and shall remain, in full force and
effect in accordance with its terms and except as expressly provided herein shall not constitute or be deemed to constitute a waiver of compliance with or a consent to non-compliance with any term or provision of the Pooling and Servicing Agreement.

  
 7. Counterparts. This Reassignment may be executed
in-two or more counterparts (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 
  
 8. GOVERNING LAW. THIS REASSIGNMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, AND WITHOUT, LIMITING THE
GENERALITY OF THE FOREGOING, THE IMMUNITY AND STANDARD OF CARE OF THE TRUSTEE IN THE ADMINISTRATION OF THE TRUST HEREUNDER. SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE. 

 IN WITNESS WHEREOF, the undersigned have caused this Reassignment of Receivables to be duly executed and
delivered by their respective duly authorized officers on the day and year first above written. 
  

			
	 THE BANK OF NEW YORK,
as Trustee

		
	By:	 	 /s/ Ryan Bittner

	Name:	 	Ryan Bittner
	Title:	 	Assistant Treasurer
	
	 CHASE BANK USA, NATIONAL ASSOCIATION,
as Transferor and as Servicer

		
	By:	 	 /s/ Keith W. Schuck

	Name:	 	Keith W. Schuck
	Title:	 	President

  
 Chase Credit Card
Master Trust 
 Reassignment No. 4 of Receivables 

					
	 	 	 	 	Schedule I
	 	 	 	 	 to Reassignment
 of Receivables

  
 REMOVED ACCOUNTS

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