Document:

Exhibit 4.24

 

NOTE

 

	
  $75,000,000

  	
   

  	
   

  	
  Date: December 18,
  2003

  

 

FOR VALUE RECEIVED, on December 19,
2005 (the “Maturity Date”) the undersigned, KENTUCKY UTILITIES COMPANY,
a Kentucky and Virginia corporation (the “Borrower”), unconditionally
promises to pay to FIDELIA CORPORATION (the “Lender”), at the Lender’s
office at 919 North Market Street, Suite 504, Wilmington, Delaware  19801, or at such other place as the holder
of this Note may from time to time designate in writing, in lawful money of the
United States of America and immediately available funds, the principal sum of
$75,000,000.  This Note is referred to in
and was executed and delivered under the Loan and Security Agreement dated as
of August 15, 2003 (the “Loan Agreement”) between the Borrower and
the Lender, to which reference is made for a more complete statement of the
terms and conditions under which the loan evidenced by this Note was made and
is to be repaid.  Capitalized terms used
in this Note and not otherwise defined have the meanings assigned to such terms
in the Loan Agreement.

 

Unless otherwise paid
sooner under the provisions of Section 2.6(c) or 7.1 of
the Loan Agreement, the principal indebtedness represented by this Note is
payable on the Maturity Date.  The
Borrower further promises to pay interest on the outstanding principal amount
of the indebtedness represented by this Note from the date of this Note until
payment in full at the applicable rates determined in accordance with Section 2.3(A) of
the Loan Agreement.  Except as otherwise
provided in the Loan Agreement, interest is payable at the fixed rate of 2.29%
semi-annually in arrears and is computed on the basis of a 360-day year
consisting of twelve 30-day months. 
Interest payment dates are June 18th and December 18th
during the term of the Note.

 

If payment under this
Note becomes due and payable on a day that is not a Business Day, the
due date of such payment is extended to the next succeeding Business Day.  In no contingency or event whatsoever will
interest charged under this Note, however such interest may be characterized or
computed, exceed the highest rate permissible under any law which a court of
competent jurisdiction, in a final determination, deems applicable to this
Note.  In the event that such a court
determines that the Lender has received interest under this Note in excess of
the highest rate applicable to this Note, any such excess interest collected by
the Lender is deemed to have been a repayment of principal and be so applied.

 

The obligations of the
Borrower under this Note is secured by certain collateral as and to the extent
set forth in the Loan Agreement.  This
Note is subject to prepayment at the option of the Borrower as provided in the
Loan Agreement.

 

 

DEMAND,
PRESENTMENT, PROTEST AND NOTICE OF NONPAYMENT AND PROTEST ARE WAIVED BY THE
BORROWER.

 

This Note has been
delivered and is deemed to have been made, at Wilmington, Delaware and will be
interpreted in accordance with the internal law as (as opposed to conflicts of
law provisions) and decisions of the State of Delaware.  Whenever possible each provision of this Note
will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Note is prohibited by or invalid
under applicable law, such provision will be ineffective to the extent of such
prohibition or invalidity, without invalidating the remainder of such provision
or the remaining provisions of this Note. 
Whenever in this Note reference is made to the Lender or the Borrower,
such reference is deemed to include, as applicable, a reference to their
respective successors and assigns.  The
provisions of this Note are binding upon and inure to the benefit of said
successors and assigns.  The Borrower’s
successors and assigns include, without limitation, a receiver, trustee or
debtor-in-possession of or for the Borrower.

 

	
   

  	
  KENTUCKY UTILITIES COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:Exhibit 4.25

 

January 15, 2004

 

 

Kentucky Utilities Company

            (as Borrower)

 

 

Fidelia Corporation

          (as Lender)

 

 

LOAN AGREEMENT

 

 

Contents

 

Clause

 

	
  1.

  	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  TERM LOAN

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  AVAILABILITY OF REQUESTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  INTEREST

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  REPAYMENT AND PREPAYMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  PAYMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  TERMINATION EVENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  OPERATIONAL BREAKDOWN

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
  NOTICES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
  ASSIGNMENT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
  SEVERABILITY

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
  COUNTERPARTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
  LAW

  	
   

  	
   

  

 

 

THIS AGREEMENT
made on January 15, 2004

 

Between

 

KENTUCKY UTILITIES COMPANY,
a Kentucky corporation, as borrower (the Borrower);
and

 

FIDELIA CORPORATION,
a Delaware corporation, as lender (the Lender).

 

Whereas

 

(A)                              The
Lender and the Borrower hereby enter into an agreement for the provision by the
Lender to the Borrower of a loan in the amount of  $50,000,000 (the Loan Amount).

 

Now it is hereby agreed
as follows:

 

1.                                      Definitions

 

1.1                                 In
this Agreement

 

Business
Day means a day on which banks in New York are generally
open

 

Default
Interest Rate means: the rate, as determined by the
Lender, applying to the principal element of an overdue amount under Clause
6.3, calculated as the sum of the interest rate in effect immediately before
the due date of such amount, plus 1%;

 

Effective
Date shall have the meaning given to it in Clause 2.1;

 

Final
Repayment Date means January 16, 2012;

 

Interest
Payment Date means January 15th and July 15th
of each year during the term of this agreement, provided, that:

 

any Interest Payment Date
which  is not a Business Day shall be
extended to the next succeeding Business Day;

 

Loan
Amount means $50,000,000;

 

Maturity
Date means the Final Repayment Date;

 

1

 

Request
means a request for the Loan Amount from the Borrower to the Lender under the
terms of clause 3.1;

 

Termination
Event means an event specified as such in Clause 7;

 

Value
Date means the date upon which cleared funds are made
available to the Borrower by the Lender pursuant to a Request made in
accordance with Clause 3.1. Such date shall be a Business Day as defined
herein.

 

2.                                      Term
Loan

 

2.1                                 This Agreement shall come into effect on January 15,
2004 (the “Effective Date”).

 

2.2                                 The Lender grants to the Borrower upon the terms
and conditions of this Agreement a term loan in an amount of $50,000,000.

 

2.3                                 The new indebtedness shall be evidenced by a
note in substantially the form of Exhibit “A” attached hereto.

 

3.                                      Availability
of Requests

 

3.1                                 On the Effective Date, the Borrower will submit
a request (the “Request”) to the Lender for the Loan Amount, such Request
specifying the Value Date, the Maturity Date and the bank account to which
payment is to be made. The Request shall be submitted to the Lender by the
Borrower and delivered in accordance with Clause 9.3.

 

4.                                      Interest

 

4.1                                 The rate of interest on the Loan Amount is 4.39%.

 

4.2                                 Interest shall accrue on the basis of a 360-day
year consisting of twelve 30 day months upon the Loan Amount.

 

4.3                                 Interest shall be payable in arrears on each
Interest Payment Date.

 

2

 

5.                                      Repayment
and Prepayment

 

5.1                                 The Borrower shall repay the Loan Amount
together with all interest accrued thereon and all other amounts due from the
Borrower hereunder on the Final Repayment Date, whereupon this Agreement shall
be terminated.

 

5.2                                 On any Interest Payment Date, and with at least
three business day’s prior written notice, the Borrower shall be entitled to
prepay any amount of the loan outstanding, provided such payment is not less
than $1,000,000 and, provided further, the Borrower shall pay a prepayment
charge equal to the present value of the difference between (i) the
interest payable provided in this loan agreement and (ii) the interest
payable at the prevailing interest rate at the time of prepayment, for the
period from the date of prepayment through the Maturity Date, which difference,
if negative, shall be deemed to be zero. The present value will be determined
using the prevailing interest rate at the time of the prepayment as the
discount rate.

 

5.3                                 A certificate from the Lender as to the amount
due at any time from the Borrower to the Lender under this Agreement shall, in
the absence of manifest error, be conclusive.

 

6.                                      Payments

 

6.1                                 All payments of principal to be made to the
Lender by the Borrower shall be made on the Final Repayment Date, or on an
Interest Payment Date under Clause (5.2) to such account as the Lender shall
have specified.

 

6.2                                 Interest shall be payable in arrears on each
Interest Payment Date.

 

6.3                                 If and to the extent that full payment of any
amount due hereunder is not made by the Borrower on the due date then, interest
shall be charged at the Default Interest Rate on such overdue amount from the
date of such default to the date payment is received by the Lender.

 

3

 

7.             Termination Events

 

7.1           The Borrower shall notify the Lender of any Event of Default
(and the steps, if any, being taken to remedy it) promptly upon becoming aware
of it.

 

7.2           The following shall constitute an Event of Default
hereunder:

 

7.2.1        Default is made by the Borrower in the payment
of any sum due under this Agreement and such default continues for a period of
10 Business Days;

 

7.2.2        Bankruptcy proceedings are initiated against the
Borrower;

 

7.2.3        The Borrower leaves the E.ON Group (i.e. the
companies consolidated in EON AG’s balance sheet);

 

7.2.4        Securities
and Exchange Commission or Public Utility Holding Company Act (PUHCA)
requirements prohibit the transactions hereunder.

 

If
a Termination Event occurs under Clause (7.2.2) of this section, the Loan
Amount outstanding together with interest will become due and payable
immediately.

 

If
a Termination Event occurs according to Clauses (7.2.1) or (7.2.3) or (7.2.4)
of this Section, Lender shall at its discretion grant Borrower a reasonable
grace period unless such grace period shall be detrimental to the Lender. If
the Termination Event is uncured at the expiration of such period, the Loan
Amount outstanding together with interest will become due and payable
immediately.

 

8.                                    Operational
Breakdown

 

8.1                                 The
Borrower is not liable for any damages incurred by the Lender and the Lender is
not liable for any damages incurred by the Borrower caused by Acts of God or
other circumstances incurred by one party for which the other party cannot be
held responsible (i.e. power outages, strikes, lock-outs, domestic and foreign
acts of government and the like).

 

4

 

9.                                      Notices

 

9.1                                 Each communication to be made in respect of this
Agreement shall be made in writing but, unless otherwise stated, may be made by
facsimile transmission or letter.

 

9.2                                 Communications to the Borrower shall be addressed
to: Kentucky Utilities Company, 220 W. Main St., Louisville, KY 40202, Attn:
Treasurer fax# (502) 627-4742 except for confirmations which should be sent to
the attention of Mimi Kelly.

 

9.3                                 Communications to the Lender shall be addressed
to: Fidelia Corporation, 919 N. Market Street, Suite 504, Wilmington,
Delaware 19801, fax# (302) 778-5014, Attn: President.

 

10.                               Assignment

 

10.1                           The Lender may at any time assign, novate or
otherwise transfer all or any part of its rights and obligations under this
Agreement to any affiliate of the Lender.

 

11.                               Severability

 

11.1                           If
any of the provisions of this Agreement becomes invalid, illegal or
unenforceable in any respect under any law, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired.

 

12.                               Counterparts

 

12.1                           This
Agreement may be executed in any number of counterparts that shall together
constitute one Agreement. Any party may enter into an Agreement by signing any
such counterpart.

 

5

 

13.                               Law

 

13.1         This
Agreement shall be governed by and construed for all purposes in accordance
with the laws of Delaware.

 

IN WITNESS whereof
the parties have executed this Agreement the day and year first above written.

 

 

	
  SIGNED
  by 

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
  for and on
  behalf of

  	
  )

  	
   

  	
   

  
	
   

  	
  Kentucky
  Utilities

  	
  )

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED
  by 

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
  Udo Koch,
  President

  	
  )

  	
   

  	
   

  
	
   

  	
  Fidelia
  Corporation

  	
  )

  	
   

  	
   

  
							

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]