Document:

ex10-1.htm

    
       

       

      Exhibit
10.1

       

      
        

        

      

       

      PURCHASE
AGREEMENT

       

       

      by
and among

       

       

      CUSTOM
ENERGY HOLDINGS, L.L.C.,

       

       

      GREAT
PLAINS ENERGY INCORPORATED

       

       

      (Solely
for the Purposes Set Forth Herein)

       

       

      and

       

       

      DIRECT
ENERGY SERVICES, LLC

       

       

      April
1, 2008

       

      

      
        

        

      

      

      
        

      

      

      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      

      

      TABLE
OF CONTENTS

       

       

       

      
        
          	 
      	
                   

                  Page

                
	
                   

                  ARTICLE
      I

                	 
      
	 
      	
                   

                  DEFINED
      TERMS

                	 
      
	 
      	
                  Section
      1.01

                	
                  Certain
      Definitions

                	
                  1

                
	 
      	
                  Section
      1.02

                	
                  Other
      Interpretive Provisions

                	
                  4

                
	
                   

                  ARTICLE
      II

                	 
      
	 
      	
                   

                  PURCHASE
      AND SALE

                	 
      
	 
      	
                  Section
      2.01

                	
                  Purchase
      and Sale of Membership Interests

                	
                  5

                
	 
      	
                  Section
      2.02

                	
                  Post
      Closing Adjustment

                	
                  6

                
	
                   

                  ARTICLE
      III

                	 
      
	 
      	
                   

                  CLOSING

                	 
      
	 
      	
                  Section
      3.01

                	
                  The
      Closing

                	
                  7

                
	 
      	
                  Section
      3.02

                	
                  Closing
      Deliveries

                	
                  7

                
	
                   

                  ARTICLE
      IV

                	 
      
	 
      	
                   

                  REPRESENTATIONS
      AND WARRANTIES OF THE PURCHASER

                	 
      
	 
      	
                  Section
      4.01

                	
                  Due
      Organization

                	
                  8

                
	 
      	
                  Section
      4.02

                	
                  Authority

                	
                  8

                
	 
      	
                  Section
      4.03

                	
                  Actions
      Authorized

                	
                  8

                
	 
      	
                  Section
      4.04

                	
                  Consents

                	
                  8

                
	 
      	
                  Section
      4.05

                	
                  Non-Contravention

                	
                  9

                
	 
      	
                  Section
      4.06

                	
                  Securities
      Law Matters; Purchaser Awareness

                	
                  9

                
	 
      	
                  Section
      4.07

                	
                  Accredited
      Purchaser

                	
                  10

                
	 
      	
                  Section
      4.08

                	
                  Experience

                	
                  10

                
	 
      	
                  Section
      4.09

                	
                  Investment
      Intent

                	
                  10

                
	 
      	
                  Section
      4.10

                	
                  Financing

                	
                  10

                
	 
      	
                  Section
      4.11

                	
                  Legal
      Proceedings; Orders

                	
                  10

                
	 
      	
                  Section
      4.12

                	
                  Brokers

                	
                  10

                
	 
      	
                  Section
      4.13

                	
                  Investigation

                	
                  10

                
	 
      	
                  Section
      4.14

                	
                  Disclaimer
      Regarding Projections

                	
                  11

                
	 
      	
                  Section
      4.15

                	
                  No
      Other Representations or Warranties

                	
                  11

                
	
                   

                  ARTICLE
      V

                	 
      
	 
      	
                   

                  REPRESENTATIONS
      AND WARRANTIES OF THE SELLER

                	 
      
	 
      	
                  Section
      5.01

                	
                  Subsidiary;
      Due Organization

                	
                  11

                
	 
      	
                  Section
      5.02

                	
                  Authority

                	
                  12

                
	 
      	
                  Section
      5.03

                	
                  Actions
      Authorized

                	
                  12

                
	 
      	
                  Section
      5.04

                	
                  Governmental
      Consents

                	
                  12

                
	 
      	
                  Section
      5.05

                	
                  Non-Contravention

                	
                  12

                

        

      

      

      
        
          
             

          

          
            i

            
              

            

          

          
             

          

        

      

       

      
        
          	 
      	
                  Section
      5.06

                	
                  Capitalization

                	
                  14

                
	 
      	
                  Section
      5.07

                	
                  Financial
      Statements

                	
                  14

                
	 
      	
                  Section
      5.08

                	
                  Absence
      of Changes

                	
                  15

                
	 
      	
                  Section
      5.09

                	
                  Title
      to Assets.

                	
                  16

                
	 
      	
                  Section
      5.10

                	
                  Real
      Property

                	
                  16

                
	 
      	
                  Section
      5.11

                	
                  Contracts

                	
                  17

                
	 
      	
                  Section
      5.12

                	
                  Taxes.

                	
                  18

                
	 
      	
                  Section
      5.13

                	
                  No
      Violation, Litigation or Regulatory Action

                	
                  20

                
	 
      	
                  Section
      5.14

                	
                  Legal
      Proceedings; Orders

                	
                  21

                
	 
      	
                  Section
      5.15

                	
                  Labor
      Matters

                	
                  21

                
	 
      	
                  Section
      5.16

                	
                  Employee
      Matters

                	
                  21

                
	 
      	
                  Section
      5.17

                	
                  Intellectual
      Property

                	
                  22

                
	 
      	
                  Section
      5.18

                	
                  Environmental
      Matters

                	
                  24

                
	 
      	
                  Section
      5.19

                	
                  Brokers

                	
                  24

                
	 
      	
                  Section
      5.20

                	
                  Insurance
      Coverage

                	
                  24

                
	 
      	
                  Section
      5.21

                	
                  Governmental
      Authorizations

                	
                  25

                
	 
      	
                  Section
      5.22

                	
                  Customers.

                	
                  25

                
	 
      	
                  Section
      5.23

                	
                  Risk
      Management Policy

                	
                  25

                
	 
      	
                  Section
      5.24

                	
                  Due
      Diligence Data

                	
                  25

                
	 
      	
                  Section
      5.25

                	
                  Power
      Purchase Contracts

                	
                  26

                
	 
      	
                  Section
      5.26

                	
                  Receivables
      Facility

                	
                  26

                
	 
      	
                  Section
      5.27

                	
                  No
      Other Representations or Warranties

                	
                  26

                
	
                   

                  ARTICLE
      VI

                	 
      
	 
      	
                   

                  COVENANTS

                	 
      
	 
      	
                  Section
      6.01

                	
                  Conduct
      of Business

                	
                  27

                
	 
      	
                  Section
      6.02

                	
                  Access
      and Investigation

                	
                  30

                
	 
      	
                  Section
      6.03

                	
                  No
      Solicitation

                	
                  31

                
	 
      	
                  Section
      6.04

                	
                  Confidentiality;
      Disclosure

                	
                  32

                
	 
      	
                  Section
      6.05

                	
                  Expenses

                	
                  32

                
	 
      	
                  Section
      6.06

                	
                  Regulatory
      Approvals and Related Matters

                	
                  32

                
	 
      	
                  Section
      6.07

                	
                  Registered
      Agent

                	
                  35

                
	 
      	
                  Section
      6.08

                	
                  Employees

                	
                  35

                
	 
      	
                  Section
      6.09

                	
                  Termination
      of Certain Agreements

                	
                  38

                
	 
      	
                  Section
      6.10

                	
                  Risk
      Management

                	
                  38

                
	 
      	
                  Section
      6.11

                	
                  Release
      of Letters of Credit and Guarantees

                	
                  39

                
	 
      	
                  Section
      6.12

                	
                  Allocation
      of Consideration

                	
                  41

                
	 
      	
                  Section
      6.13

                	
                  Repayment
      of Certain Indebtedness and Related Letters of Credit

                	
                  41

                
	 
      	
                  Section
      6.14

                	
                  Books
      and Records

                	
                  42

                
	 
      	
                  Section
      6.15

                	
                  Accounts
      Receivable

                	
                  42

                
	 
      	
                  Section
      6.16

                	
                  Transition
      Planning

                	
                  43

                
	 
      	
                  Section
      6.17

                	
                  Amendment
      of Company LLC Agreement

                	
                  43

                
	 
      	
                  Section
      6.18

                	
                  Amendment
      of Disclosure Letter

                	
                  43

                

        

      

      

       

      
        
          
             

          

          
            ii

            
              

            

          

          
             

          

        

      

      

      
        
          	
                   

                  ARTICLE
      VII

                	 
      
	 
      	
                   

                  CONDITIONS
      PRECEDENT

                	 
      
	 
      	
                  Section
      7.01

                	
                  Mutual
      Conditions

                	
                  43

                
	 
      	
                  Section
      7.02

                	
                  Conditions
      to the Purchaser's Obligations

                	
                  44

                
	 
      	
                  Section
      7.03

                	
                  Conditions
      to the Seller's Obligations

                	
                  45

                
	
                   

                  ARTICLE
      VIII

                	 
      
	 
      	
                   

                  TERMINATION

                	 
      
	 
      	
                  Section
      8.01

                	
                  Termination

                	
                  45

                
	 
      	
                  Section
      8.02

                	
                  Effect
      of Termination

                	
                  46

                
	
                   

                  ARTICLE
      IX

                	 
      
	 
      	
                   

                  TAX
      MATTERS

                	 
      
	 
      	
                  Section
      9.01

                	
                  Tax
      Indemnity

                	
                  47

                
	 
      	
                  Section
      9.02

                	
                  Tax
      Returns

                	
                  48

                
	 
      	
                  Section
      9.03

                	
                  Cooperation

                	
                  49

                
	 
      	
                  Section
      9.04

                	
                  Tax
      Sharing Agreements

                	
                  49

                
	 
      	
                  Section
      9.05

                	
                  Tax
      Contests

                	
                  49

                
	 
      	
                  Section
      9.06

                	
                  Miscellaneous

                	
                  50

                
	
                   

                  ARTICLE
      X

                	 
      
	 
      	
                   

                  NON-COMPETITION

                	 
      
	 
      	
                  Section
      10.01

                	
                  Restriction
      on Replication of the Business

                	
                  50

                
	
                   

                  ARTICLE
      XI

                	 
      
	 
      	
                   

                  INDEMNIFICATION

                	 
      
	 
      	
                  Section
      11.01

                	
                  Indemnification
      by the Seller

                	
                  50

                
	 
      	
                  Section
      11.02

                	
                  Indemnification
      by the Purchaser

                	
                  51

                
	 
      	
                  Section
      11.03

                	
                  Limitations
      on Indemnity

                	
                  52

                
	 
      	
                  Section
      11.04

                	
                  Procedures
      for Indemnification

                	
                  52

                
	 
      	
                  Section
      11.05

                	
                  Seller
      Action Litigation Procedures and Support

                	
                  53

                
	
                   

                  ARTICLE
      XII

                	 
      
	 
      	
                   

                  MISCELLANEOUS

                	 
      
	 
      	
                  Section
      12.01

                	
                  Binding
      Effect; Benefits

                	
                  55

                
	 
      	
                  Section
      12.02

                	
                  Amendments

                	
                  55

                
	 
      	
                  Section
      12.03

                	
                  Further
      Assurances

                	
                  56

                
	 
      	
                  Section
      12.04

                	
                  Assignability

                	
                  56

                
	 
      	
                  Section
      12.05

                	
                  Specific
      Performance

                	
                  56

                
	 
      	
                  Section
      12.06

                	
                  Governing
      Law; Jurisdiction

                	
                  56

                
	 
      	
                  Section
      12.07

                	
                  Entire
      Agreement; Counterparts

                	
                  56

                
	 
      	
                  Section
      12.08

                	
                  Severability

                	
                  57

                
	 
      	
                  Section
      12.09

                	
                  Waiver

                	
                  57

                
	 
      	
                  Section
      12.10

                	
                  Survival

                	
                  57

                
	 
      	
                  Section
      12.11

                	
                  Disclosure
      Letter

                	
                  57

                

        

      

       

      

      
        
          
             

          

          
            iii

            
              

            

          

          
             

          

        

      

      

      
        
          	 
      	
                  Section
      12.12

                	
                  Public
      Announcements

                	
                  58

                
	 
      	
                  Section
      12.13

                	
                  Notices

                	
                  58

                
	 
      	
                  Section
      12.14

                	
                  Construction

                	
                  59

                
	 
      	
                  Section
      12.15

                	
                  Headings

                	
                  59

                
	 
      	
                  Section
      12.16

                	
                  Seller
      Guarantee

                	
                  59

                
	 
      	
                  Section
      12.17

                	
                  Purchaser
      Guarantee

                	
                  62

                

        

      

       

      
        	
                Exhibit
      A

              	
                Purchaser
      Guarantee

              

      

      

      

      
        
          
          

        

        
          iv

          
            

          

        

        
          
          

        

      

       

      
        
          PURCHASE
AGREEMENT

           

          This
Purchase Agreement (this "Agreement") is made
and entered into as of April 1, 2008, by and among Custom Energy Holdings,
L.L.C., a Delaware limited liability company (the "Seller"), Great
Plains Energy Incorporated, a Missouri corporation (the "Parent") (solely and
exclusively for purposes of Section 6.04, 10.01 and 12.16),  and
Direct Energy Services, LLC, a Delaware limited liability company (the "Purchaser").

           

          WHEREAS,
the Seller directly owns 100% of the membership interests (the "Membership
Interests") of Strategic Energy, L.L.C., a Delaware limited liability
company (the "Company");

           

          WHEREAS,
the Company is engaged primarily in the business of providing competitive retail
electricity supply services, strategic planning, consulting and billing and
scheduling services in the natural gas and electricity markets (the "Business");
and

           

          WHEREAS,
the Purchaser desires to purchase, and the Seller desires to sell to the
Purchaser, all of the Membership Interests upon the terms and subject to the
conditions set forth herein.

           

          NOW,
THEREFORE, in consideration of the mutual promises, covenants, representations
and warranties contained herein, the Seller and the Purchaser hereby agree as
follows:

           

          ARTICLE I

          DEFINED
TERMS

           

          Section
1.01    Certain
Definitions.  As
used in this Agreement, each of the following terms has the meaning specified in
the Section set forth opposite such term:

           

          
            	
                    Term

                  	
                    Section

                  
	
                    2007
      Financial Statements

                  	
                    5.12(a)

                  
	
                    Accelerated
      Plans

                  	
                    6.08(e)

                  
	
                    Acquisition
      Transaction

                  	
                    6.03

                  
	
                    Affiliate

                  	
                    4.05(e)

                  
	
                    Agreement

                  	
                    Preamble

                  
	
                    Allocation
      Resolution Period

                  	
                    6.12(a)

                  
	
                    Antitrust
      Law

                  	
                    6.06(a)(i)

                  
	
                    Bankruptcy
      Action

                  	
                    11.01(d)

                  
	
                    Books
      and Records

                  	
                    6.14

                  
	
                    Business

                  	
                    Recitals

                  
	
                    Calculation

                  	
                    2.02(a)

                  
	
                    Closing

                  	
                    3.01

                  
	
                    Closing
      Balance Sheet

                  	
                    2.02(a)

                  
	
                    Closing
      Date

                  	
                    3.01

                  

          

          

          
            
               

            

            
              1

              
                

              

            

            
               

            

          

          

          
            	
                    Closing
      Working Capital

                  	
                    2.01(c)(i)

                  
	
                    Code

                  	
                    5.16(b)

                  
	
                    Company

                  	
                    Recitals

                  
	
                    Company
      Benefit Plan

                  	
                    5.16(a)

                  
	
                    Company
      LLC Agreement

                  	
                    3.02(c)

                  
	
                    Company
      Plan Payments

                  	
                    6.08(e)

                  
	
                    Confidentiality
      Agreement

                  	
                    6.04(a)

                  
	
                    Consideration

                  	
                    6.12(a)

                  
	
                    Continuing
      Employees

                  	
                    6.08(c)

                  
	
                    Continuing
      Plans

                  	
                    6.08(e)

                  
	
                    Contract

                  	
                    4.05(d)

                  
	
                    Contributed
      Funds

                  	
                    6.08(g)

                  
	
                    Control

                  	
                    4.05(e)

                  
	
                    Controlled

                  	
                    4.05(e)

                  
	
                    Deductible

                  	
                    ‎11.05(b)

                  
	
                    Effect

                  	
                    5.05(e)

                  
	
                    Encumbrance

                  	
                    5.01(d)

                  
	
                    Environmental
      Claim

                  	
                    5.18

                  
	
                    Environmental
      Laws

                  	
                    5.18

                  
	
                    ERISA

                  	
                    5.16(a)

                  
	
                    Estimated
      Working Capital

                  	
                    2.01(c)(ii)

                  
	
                    Exchange
      Act

                  	
                    4.05

                  
	
                    Excluded
      Tax Liability

                  	
                    9.01(a)

                  
	
                    Exon-Florio

                  	
                    4.04

                  
	
                    FERC
      Approval

                  	
                    6.06(a)(ii)

                  
	
                    Filing
      Party

                  	
                    9.02(b)

                  
	
                    Final
      Allocation

                  	
                    6.12(a)

                  
	
                    Financial
      Closing Date

                  	
                    2.01(c)(iii)

                  
	
                    Financial
      Statements

                  	
                    5.07(a)

                  
	
                    FTC/DOJ

                  	
                    6.06(a)(i)

                  
	
                    GAAP

                  	
                    5.07(b)

                  
	
                    Governmental
      Authorization

                  	
                    4.05(e)

                  
	
                    Governmental
      Body

                  	
                    1.02

                  
	
                    Great
      Plains Group

                  	
                    ‎11.01(a)

                  
	
                    Guarantees

                  	
                    6.11(b)

                  
	
                    HSR
      Act

                  	
                    6.06(a)(i)

                  
	
                    Indemnified
      Party

                  	
                    ‎11.04(a)

                  
	
                    Indemnifying
      Party

                  	
                    ‎11.04(a)

                  
	
                    Independent
      Accounting Firm

                  	
                    6.12(b)

                  
	
                    Intellectual
      Property

                  	
                    5.17(a)

                  
	
                    Interim
      Statements

                  	
                    5.07(a)

                  
	
                    Knowledge

                  	
                    1.02

                  
	
                    Latest
      Balance Sheet

                  	
                    5.07(a)

                  
	
                    Leases

                  	
                    5.10

                  
	
                    Legal
      Proceeding

                  	
                    4.11

                  

          

          
            
               

            

            
              2

              
                

              

            

            
               

            

          

          

          
            	
                    Letters
      of Credit

                  	
                    6.11(a)

                  
	
                    LLC
      Act

                  	
                    4.05

                  
	
                    Losses

                  	
                    ‎8.02

                  
	
                    Master
      Supply Contract

                  	
                    5.11(j)

                  
	
                    Material
      Adverse Effect

                  	
                    5.05(e)

                  
	
                    Materials
      of Environmental Concern

                  	
                    5.18

                  
	
                    Membership
      Interests

                  	
                    Recitals

                  
	
                    Outside
      Date

                  	
                    ‎8.01(b)

                  
	
                    Owned
      Intellectual Property

                  	
                    5.17(b)

                  
	
                    Parent

                  	
                    Preamble

                  
	
                    Permitted
      Encumbrances

                  	
                    5.09(b)

                  
	
                    Person

                  	
                    4.04

                  
	
                    Pre-Closing
      Period

                  	
                    6.01(a)

                  
	
                    Pre-Financial
      Closing Period

                  	
                    9.01(a)

                  
	
                    Preliminary
      Allocation

                  	
                    6.12(a)

                  
	
                    Purchase
      Price

                  	
                    2.01(b)

                  
	
                    Purchaser

                  	
                    Preamble

                  
	
                    Purchaser
      Benefit Plans

                  	
                    6.08(c)

                  
	
                    Purchaser's
      Disclosure Letter

                  	
                    1.02

                  
	
                    Receivables
      Facility

                  	
                    6.13

                  
	
                    Release

                  	
                    6.08(b)

                  
	
                    Required
      Regulatory Approvals

                  	
                    1.02

                  
	
                    Requirements
      of Law

                  	
                    1.02

                  
	
                    Revolver
      Facility

                  	
                    6.13

                  
	
                    Risk
      Management Policy

                  	
                    5.23

                  
	
                    RPA

                  	
                    5.26

                  
	
                    Section
      1060 Forms

                  	
                    6.12(c)

                  
	
                    Securities
      Act

                  	
                    4.05

                  
	
                    Seller

                  	
                    Preamble

                  
	
                    Seller
      Action

                  	
                    ‎11.05(a)

                  
	
                    Seller
      Guarantee

                  	
                    ‎12.16(a)(i)

                  
	
                    Seller
      Significant Contract

                  	
                    5.11

                  
	
                    Seller's
      Disclosure Letter

                  	
                    V

                  
	
                    Seller's
      Guaranteed Obligations

                  	
                    ‎12.16(a)(i)

                  
	
                    Senior
      Employees

                  	
                    6.08(a)

                  
	
                    Specified
      Employees

                  	
                    6.08(a)

                  
	
                    Straddle
      Period

                  	
                    9.01(a)

                  
	
                    Subsidiary

                  	
                    5.01(d)

                  
	
                    Target
      Working Capital

                  	
                    2.01(c)(iv)

                  
	
                    Tax

                  	
                    5.12(a)

                  
	
                    Tax
      Proceeding

                  	
                    ‎9.05(b)

                  
	
                    Tax
      Return

                  	
                    5.12(a)

                  
	
                    Terminating
      Employee Payments

                  	
                    6.08(b)

                  
	
                    Terminating
      Employees

                  	
                    6.08(a)

                  
	
                    Termination
      Payments

                  	
                    6.08(b)

                  

          

          
            
               

            

            
              3

              
                

              

            

            
               

            

          

          

          
            	
                    Third
      Party Consent

                  	
                    6.06(e)

                  
	
                    Transition
      Employee Payments

                  	
                    6.08(b)

                  
	
                    Transition
      Employees

                  	
                    6.08(a)

                  
	
                    Uncollectible

                  	
                    11.01(d)

                  
	
                    WARN
      Act

                  	
                    6.08(h)

                  
	
                    Working
      Capital

                  	
                    2.01(c)(v)

                  

          

          

          Section 1.02     Other
Interpretive Provisions.  Each definition used in
this Agreement includes the singular and the plural, and reference to the
neuter gender includes the
masculine and feminine where appropriate.  The definition ascribed to
any capitalized term herein shall govern all uses of such term, including uses
of such term prior to the appearance of the definition
thereof.  Reference to any Requirements of Law (as defined in this
‎Section 1.02) means such Requirements of
Law as are in effect as of the date of this Agreement.  Reference to
any dollar amount means such dollar amount in United States
currency.  The headings to the Articles and Sections are for convenience of reference
and will not affect the meaning or interpretation of this Agreement. Except as
otherwise stated, reference to Articles, Sections and Exhibits means the
Articles, Sections and Exhibits of this Agreement.  The Exhibit
and disclosure letters referred to throughout this Agreement,
including but not limited to the Seller's Disclosure Letter (as defined in
‎Article V), are hereby incorporated by
reference into, and will be deemed a part of, this Agreement. Unless the context
clearly indicates otherwise, the word "including" when used in this Agreement means
"including but not limited to" and the words "hereof", "herein" and "hereunder" and words of similar import when used
in this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement.  For purposes of this
Agreement:  (i) "Requirements of
Law" shall mean any applicable
supranational, foreign, federal, state, regional and local laws, statutes,
regulations, rules, codes, ordinances, tariffs, rate schedules, policies or
orders enacted, adopted,
issued or promulgated by any court or Governmental Body (as defined in this
‎Section 1.02) or common law or any
applicable consent decree or settlement agreement entered into with any
Governmental Body; (ii) "Governmental
Body" shall mean any foreign or domestic
federal, state, local, supranational or other governmental authority or
regulatory body or any foreign or domestic entity, authority, board, agency,
commission, arbitral
tribunal, ministry or similar body exercising executive, legislative, judicial,
regulatory or administrative authority or functions of or pertaining to
government, including any authority or other quasi-governmental entity
established to perform any of such functions, including the North
American Electric Reliability Corporation, any regional transmission
organizations or independent system operators; (iii) "Required Regulatory
Approvals" shall mean (a) the filings required
under the HSR Act (as defined in ‎Section 6.06(a)) or any other Antitrust
Law (as defined in ‎Section 6.06(a)), (b) the FERC Approval
(as defined in ‎Section 6.06(a)) and (c) the regulatory
approvals set forth on ‎Section 6.06(a) of the
Seller's Disclosure Letter; (iv) the term
"Knowledge" when referring to the knowledge of the
Seller or the Company shall mean the knowledge of the Seller or Company officers
listed on Section 1.02 of the Seller's Disclosure Letter (as defined in Article V) which the person has
acquired in the prudent exercise of his or her duties or, if such individuals
are not the persons primarily responsible for the area in question, would have
if they had made reasonable inquiry of the persons primarily responsible for the particular area in
question (it being understood that none of the listed individuals shall have any
individual or personal liability with respect to any matter
set

           

          
            
               

            

            
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          forth herein); (v) the term "Knowledge" when referring to the
knowledge of the Purchaser
shall mean the knowledge of the Purchaser officers listed on Section 1.02 of the
confidential disclosure letter that has been delivered by the Purchaser to the
Seller upon the execution of this Agreement (the "Purchaser's Disclosure
Letter") which the person has acquired in the
prudent exercise of his or her duties or, if such individuals are not the
persons primarily responsible for the area in question, would have if they had made
reasonable inquiry of the persons primarily responsible for the particular area
in question (it being understood that none of the listed individuals shall have
any individual or personal liability with respect to any matter set forth herein).

           

          ARTICLE II

          PURCHASE AND
SALE

           

          Section 2.01     Purchase and
Sale of Membership Interests

           

          (a)         Upon the terms and subject to the
conditions set forth in this Agreement, at the Closing (as defined in
‎Section 3.01), the Seller shall sell,
convey, assign, transfer
and deliver to the Purchaser, and the Purchaser shall purchase, acquire and
accept from the Seller, the Membership Interests.

           

          (b)         In consideration for the sale, transfer
and conveyance of the Membership Interests, upon the terms and subject to the conditions set forth in this
Agreement, the Purchaser shall pay to the Seller at the Closing an aggregate
amount in cash equal to $300,000,000 plus or minus the difference, if any,
between the Estimated Working Capital and the Target Working Capital (the "Purchase Price") by wire transfer of immediately
available funds at the time
of the Closing to such
account or accounts as the Seller specifies at least three business days before
the Closing
Date.

           

          (c)         For purposes of this
Agreement,

           

          (i)           "Closing Working
Capital" shall mean the Working Capital as of
11:59 p.m. (Eastern time) on the Financial Closing Date.

           

          (ii)            "Estimated Working
Capital" shall mean the Seller's good faith estimate of the Working
Capital as of the Financial Closing Date.

           

          (iii)           "Financial Closing
Date" shall mean the last business day of the
month immediately preceding the month in which the Closing
occurs.

           

          (iv)           "Target Working
Capital" shall mean $120,313,707.29, the details of which are more particularly described in Section
2.01(c)(v) of the Seller's Disclosure Letter.

           

          (v)            "Working Capital" shall mean, with respect to the Company
as of a specified date, the
current assets of the Company minus the current liabilities, each as calculated
in accordance with the policies and procedures set out in  Section
2.01(c)(v) of the Seller's Disclosure Letter

           

          
            
               

            

            
              5

              
                

              

            

            
               

            

          

          (but excluding the specified items set
out in Section 2.01(c)(v)
of the Seller's Disclosure Letter).  The Working Capital calculation shall
be prepared in accordance with GAAP applied on a basis consistent with past
practice and consistent with the Company's Financial Statements, but excluding
the specified items set out
in section 2.01(c)(v) of the Seller's Disclosure Letter.

           

          Section 2.02     Post Closing
Adjustment

           

          (a)         As promptly as reasonably practicable,
but no later than sixty (60) days immediately following Closing, the Purchaser
shall prepare and deliver to the Seller an unaudited balance sheet
of the Company (the "Closing Balance
Sheet") as of the Financial Closing Date,
together with a certificate, executed by the Purchaser's chief financial officer (or equivalent), setting forth
the Purchaser's calculation, including the components
thereof, of the Closing Working Capital (together, the "Calculation").

           

          (b)         The Purchaser shall provide
the Seller and its
accountants with such access to the applicable personnel, books, records,
information, materials, and data of the Company, as reasonably requested by the
Seller, for the purpose of the Seller verifying the calculations provided by the
Purchaser in the Closing Balance
Sheet.

           

          (c)         The Seller will notify the Purchaser in
writing if it has any objections (which must be made in good faith) to the
Calculation.  The Seller will be deemed to have accepted the
Calculation, and the Calculation will be deemed to be finalized, if the Seller
does not give the Purchaser notice of its objections within forty-five (45) days from the date of receipt of the
Calculation.  A notice of objection must contain a statement setting
forth in reasonable detail the basis of the Seller's objections and each amount in
dispute.  

           

          (d)         If the Seller makes good faith
objections to the Calculation within the period set forth in Section 2.02(c)
above, the Purchaser and the Seller will work expeditiously and in good faith to
resolve the matters in
dispute within a period of twenty (20) days after the date the Purchaser
receives notice of the Seller's objections.  If the
Purchaser and the Seller cannot resolve their dispute within such period, the
dispute will be submitted for determination to the firm of accountants
first set forth in Section 2.02(d) of the Purchaser's Disclosure Letter, or if such firm of
accountants is not available or willing to perform, to the firm of accountants
next set forth in Section 2.02(d) of the Purchaser's Disclosure Letter, or if neither such
firm of accountants is available or willing to act, to an independent firm of
chartered accountants or certified public accountants of international standing
or affiliation and qualified to make the determination (which is not at such time otherwise
retained by either the Seller or the Purchaser or any of their respective
Affiliates), mutually agreed to by the Seller and the Purchaser, each acting
reasonably.  The determination of the firm of accountants of the
matters in dispute will be final and
binding upon the parties and will not be subject to appeal.  The firm
of accountants will be deemed to be acting as experts and not as
arbitrators.  The procedure to be followed by the parties with respect
to the determination will be determined by the firm of
accountants in its sole discretion.  Each party will provide the firm
of accountants access to all relevant books and records and to the appropriate
personnel to assist it in the determination of the final Calculation.

           

          
            
               

            

            
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          (e)         The Seller and the Purchaser will each
bear the fees and expenses of their respective personnel or advisors in
preparing or reviewing the Calculation and, if applicable, their respective
costs in presenting their cases to the firm of
accountants.  The
costs and expenses of the firm of accountants will be borne equally by the
Seller and the Purchaser.

           

          (f)         Once the Closing Working Capital is
finally determined, either through agreement of the parties or pursuant to
Section 2.02(d), the Purchase Price shall be increased or decreased, on a
dollar-for-dollar basis, by the difference, if any, between the Closing Working
Capital and Estimated Working Capital, as follows:

           

          (i)           
 if the Closing Working
Capital is greater than the Estimated Working Capital, within five (5) business days of the date on
which it is finally determined, the Purchaser shall pay to the Seller an amount
equal to such difference; or

           

          (ii)           
 if the Closing Working
Capital is less than the Estimated Working Capital, within five (5) business
days of the date on which
it is finally determined, the Seller shall pay to the Purchaser an amount equal
to the Working Capital Adjustment.

           

          (iii)           Any payment due hereunder shall be paid
via wire transfer to the account(s) designated by the receiving
party.

           

          ARTICLE III

          CLOSING

           

          Section 3.01     The
Closing.  The
closing of the transactions contemplated by this Agreement (the "Closing") shall take
place at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, 4 Times
Square, New York, New York (or such other location as the Purchaser and the
Seller shall mutually agree to) on a date (the "Closing Date") to be
mutually agreed upon by the Seller and the Purchaser, which shall be no later
than the third business day after the satisfaction or waiver of the last to be
satisfied or waived of the conditions set forth in Article VII (other than
conditions that by their terms are to be satisfied as of the Closing), unless
otherwise agreed to by the parties; provided, that the Closing, unless otherwise
agreed to by the parties, shall not occur earlier than 45 days after the date
hereof.

           

          Section 3.02     Closing
Deliveries.  At
the Closing,

           

          (a)         the Purchaser shall deliver to the Seller an amount of cash equal
to the Purchase Price;

           

          (b)         the Seller shall deliver (or cause to be
delivered), a bill of sale evidencing the sale, transfer and conveyance of the
Membership Interests to the Purchaser;

           

          (c)         the Seller shall deliver a copy of the Company's Second Amended and Restated Limited
Liability Company Agreement ("Company LLC
Agreement") reflecting (A) the
Purchaser's interest in the Company in Exhibit A
to the Company LLC Agreement and
(B)

           

          
            
               

            

            
              7

              
                

              

            

            
               

            

          

          removal of any references to the Series
SEL Voting Interest in CE (or its holders) in the Company LLC Agreement;
and

           

          (d)         the Seller or the Purchaser, as
applicable, shall deliver such certificates or other documents, the
receipt of which is a
condition to the obligation
of the other parties to the
Agreement to consummate the transaction contemplated herein under Article
VII.

           

          ARTICLE IV

          REPRESENTATIONS AND
WARRANTIES OF THE PURCHASER

           

          The
Purchaser represents and warrants to the Seller as follows:

           

          Section 4.01     Due
Organization.  The Purchaser is a limited
liability company duly organized, validly existing and in good standing under
the laws of Delaware.  The Purchaser has all requisite limited
liability company power and authority to conduct its business in the manner
in which it is currently being conducted except to the extent the failure to
have such authority would not have an adverse effect on the
Purchaser's ability to perform its obligations
hereunder.

           

          Section 4.02   
 Authority.  The Purchaser has all
requisite limited liability company right, power and authority to enter into
this Agreement and to perform all of its obligations hereunder and to carry out
the transactions contemplated hereby.

           

          Section 4.03   
 Actions
Authorized.  The
Purchaser has taken all limited liability company actions necessary to authorize
it to enter into and to perform this Agreement and to consummate the
transactions contemplated hereby.  This Agreement has been duly
executed and delivered by the Purchaser and, assuming the due
authorization, execution and delivery of this Agreement by the Seller, this
Agreement constitutes a legal, valid and binding obligation of the Purchaser
enforceable in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting creditors' rights generally and by general
equitable principles (regardless of whether enforceability is considered in a
proceeding in equity or at law).

           

          Section 4.04     Consents.  Except (a) as would not
prevent or materially delay the performance by the Purchaser or the consummation
of the transactions contemplated by this Agreement, (b) as required under the
Required Regulatory Approvals, or (c) as required to comply with Section 721 of the Defense
Production Act of 1950 as amended by Section 5021 of the Omnibus Trade and
Competitiveness Act of 1988, and as amended by The Foreign Investment National
Security Act of 2007 ("Exon-Florio"), the Purchaser (including any
Affiliate thereof) is not or will not be required to make any filing with or
give any notice to, or to obtain any consent from, any Person in connection
with: (1) the execution, delivery or performance of this Agreement
by the Purchaser; or (2) the consummation of the transactions contemplated
herein. The term "Person" shall mean any individual, partnership,
corporation, limited
liability company, unincorporated organization, trust, joint venture, other
entity or Governmental Body.

           

          
            
               

            

            
              8

              
                

              

            

            
               

            

          

          Section 4.05   
 Non-Contravention.  Assuming compliance with
the applicable provisions of the Securities Act of 1933, as amended (the
"Securities Act"), the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), the Delaware Limited
Liability Company Act, as
amended (the "LLC Act"), and state securities or "blue sky" laws, neither (1) the execution and
delivery of this Agreement by the Purchaser, nor (2) the consummation of
the transactions
contemplated herein, will, directly or indirectly (with or without notice or
lapse of time):

           

          (a)         contravene, conflict with or result in a
violation of any of the provisions of the organizational documents of the
Purchaser;

           

          (b)         contravene, conflict with or result in a violation of
any Requirements of Law to which the Purchaser or any of its Affiliates (as
defined in this ‎Section 4.05) is subject, except as
would not prevent or materially delay the performance by the Purchaser or the
consummation of the transactions contemplated by this
Agreement;

           

          (c)         contravene, conflict with or result in a
violation, a material breach or a default of, cause forfeiture of any
rights under, any of the terms or requirements of any Governmental Authorization
(as defined in this ‎Section 4.05) that is held by the
Purchaser or any of its Affiliates, or that is otherwise applicable to the
business of the Purchaser
or any of its Affiliates, as currently conducted, except as would not prevent or
materially delay the performance by the Purchaser or the consummation of the
transactions contemplated by this Agreement; or

           

          (d)         contravene, conflict with or result in a violation or breach of,
or result in a default under, any provision of any currently effective and
legally binding written agreement, contract, subcontract, lease, instrument,
note, option, warranty, license and sublicense (each, a "Contract") by which the Purchaser or any of its
Affiliates is bound, except as would not prevent or materially delay the
performance by the Purchaser or the consummation of the transactions
contemplated by this Agreement.

           

          (e)         For the purposes of this
Agreement:  (i) "Affiliate" shall mean, with respect to any Person,
any other Person that, directly or indirectly, Controls (as defined in this
‎Section 4.05), is Controlled by, or is
under common Control with, such Person; (ii) "Control" shall mean the possession, direct or
indirect, of the power to direct or cause the direction of the
management and policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise, and "Controlled" has a correlative meaning; and (iii)
"Governmental
Authorization" shall mean any permit, license,
certificate, franchise, permission, variance, clearance, registration,
qualification or authorization issued, granted, given or otherwise made
available by or under the
authority of any Governmental Body or pursuant to any Requirements of
Law.

           

          Section 4.06     Securities
Law Matters; Purchaser Awareness.  The Purchaser acknowledges
receipt of advice from the Seller that (i) the Membership Interests have not
been registered under the
Securities Act or qualified under any state securities or "blue sky" or non-U.S. securities laws; (ii) there
is no public market for the Membership Interests and it is not anticipated that
there will be; and (iii) the Membership Interests must be held indefinitely and
the

           

          
            
               

            

            
              9

              
                

              

            

            
               

            

          

          Purchaser must continue to bear the
economic risk of the investment in the Membership Interests unless the
Membership Interests are subsequently registered under the Securities Act and
such applicable state or non-U.S. securities laws or an exemption from such
registration is available.

           

          Section 4.07   
 Accredited
Purchaser.  The
Purchaser is an "accredited investor" as such term is defined in Rule 501(a)
promulgated under the Securities Act.

           

          Section 4.08   
 Experience.  The Purchaser's knowledge and experience in financial
and business matters are such that they are capable of evaluating the merits and
risks of their investment in the Membership Interests.

           

          Section 4.09     Investment
Intent.  The
Purchaser is acquiring the Membership Interests solely for its own account for
investment and not with a present view to or for sale in connection with any
distribution thereof.

           

          Section 4.10   
 Financing.  The Purchaser has, as of
the date hereof (through cash on hand, available borrowings under an
existing credit facility or
other financing arrangements), and will have at Closing sufficient funds
available in cash to pay the Purchase Price in accordance with the terms hereof,
pay all related fees and expenses and effect all other transactions
contemplated hereby.

           

          Section 4.11   
 Legal
Proceedings; Orders.  No Governmental Body or
other Person has commenced any action, suit, litigation, arbitration or similar
proceeding involving any court or other Governmental Body ("Legal Proceeding") to which the Purchaser or any of its
Affiliates is a party or, to the Knowledge of the Purchaser, was so threatened
to become a party that would reasonably be expected to prevent or materially
delay the performance of
this Agreement by the Purchaser or the consummation of the transactions
contemplated by this Agreement.  There is no order, writ, injunction,
judgment or decree to which the Purchaser or any of its Affiliates, or any of
the material assets owned or used by the Purchaser or
any of its Affiliates, is subject, except as would not reasonably be expected to
prevent or materially delay the performance of this Agreement by the Purchaser
or the consummation of the transactions contemplated by this Agreement.

           

          Section 4.12   
 Brokers.  No broker, finder or
investment banker is entitled to any brokerage, finder's or other similar fee or commission in
connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of the Purchaser or any of its
Affiliates.

           

          Section 4.13     Investigation.  The Purchaser is
knowledgeable about the industry in which the Company operates and is
experienced in the acquisition and management of businesses.  The
Purchaser has been afforded
(i) access to the books, records, facilities and personnel of the Company and
its Subsidiary for purposes of conducting a due diligence investigation of the
Company and (ii) the opportunity to ask questions of the Company's management.

           

          
            
               

            

            
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          Section 4.14     Disclaimer
Regarding Projections.  In connection with the
Purchaser's investigation of the Company, the
Purchaser has received from the Seller and its Affiliates, agents and
representatives certain projections and other forecasts, including, but not
limited to, projected
financial statements, cash flow items and other data of the Company and certain
business plan information of the Company.  The Purchaser acknowledges
that there are uncertainties inherent in attempting to make such projections and
other forecasts and plans and accordingly is not
relying on them, that the Purchaser is familiar with such uncertainties, that
the Purchaser is taking full responsibility for making its own evaluation of the
adequacy and accuracy of all projections and other forecasts and plans so furnished to it. The
Purchaser acknowledges that except as specifically set forth in this Agreement
or the Seller's Disclosure Letter, neither the Seller
nor the Company has made any representation or warranty with respect
thereto.

           

          Section 4.15     No Other
Representations or Warranties.  Except for the
representations and warranties contained in this Article IV, neither the
Purchaser nor any other Person acting on behalf of the Purchaser makes any
representation or warranty, express or implied, regarding the
Purchaser.

           

          ARTICLE V

          REPRESENTATIONS AND
WARRANTIES OF THE SELLER

           

          The
Seller represents and warrants to the Purchaser as follows, except as set forth
in and subject to the exceptions and disclosures set forth in the confidential
disclosure letter and exhibits thereto that have been delivered by the Seller to
the Purchaser upon the execution of this Agreement (the "Seller's Disclosure
Letter"):

           

          Section 5.01     Subsidiary;
Due Organization

           

          (a)         As of the date hereof, the Company has
no Subsidiaries (as defined in ‎Section 5.01(d)) other than as set forth
on ‎Section 5.01 of the Seller's Disclosure Letter.  All of
the equity interests in the Company and its Subsidiary are owned as of the date
hereof, directly or indirectly, by the Seller, free and clear of all
Encumbrances (as defined in
‎Section 5.01(d)).  The Seller
has not agreed and is not obligated to make, nor is it bound by any Contract
under which it may become obligated to make, any future investment in or capital
contribution to any other Person.

           

          (b)         Each of the Seller, the Company and the
Company's Subsidiary is a limited liability
company duly organized, validly existing and in good standing under the laws of
the State of Delaware and has all requisite limited liability company power and
authority:  (A) to conduct its business in the manner in
which it is currently being conducted; (B) to own or lease and use its assets in
the manner in which its assets are currently owned or leased and used; and (C)
to perform its obligations under all Contracts by which it is bound and which are material to it,
including without limitation all Seller Significant Contracts (as defined in
Section 5.11).

           

          (c)         Neither the Company (except with respect
to its Subsidiary) nor its Subsidiary owns, directly or indirectly, any
equity or similar interest
in, or any interest

           

          
            
               

            

            
              11

              
                

              

            

            
               

            

          

          convertible into or exchangeable or
exercisable for any equity or similar interest in, any corporation, partnership,
limited liability company, joint venture or other business association or
entity.

           

          (d)         For purposes of this Agreement:  (i) a
"Subsidiary" of any Person shall mean any
partnership, corporation, limited liability company, unincorporated
organization, trust, joint venture or other entity of which such Person owns, directly or indirectly,
a majority of the stock, membership interests or other equity interests the
holders of which are generally entitled to vote for the election of the Board of
Directors, managers or other governing body of such entity; and (ii) "Encumbrance" shall mean any lien, pledge, charge,
mortgage, easement, encroachment, imperfection of title, title exception, title
defect, right of possession, lease, security interest, encumbrance, adverse claim, interference or
restriction on transfer (except for restrictions arising under applicable
securities laws).

           

          Section 5.02     Authority.  The Seller has all
requisite limited liability company right, power and authority to enter into
this Agreement and to
perform all of its obligations hereunder and to carry out the transactions
contemplated hereby.

           

          Section 5.03   
 Actions
Authorized.  The
Seller has taken all limited liability company actions necessary to authorize it
to enter into and to perform this Agreement and to consummate
the transactions contemplated hereby.  This Agreement has been duly
executed and delivered by the Seller and, assuming due authorization, execution
and delivery of this Agreement by the Purchaser, this Agreement constitutes a legal, valid and binding
obligation of the Seller enforceable in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally and by general equitable principles
(regardless of whether enforceability is considered in a proceeding in equity or
at law).

           

          Section 5.04     Governmental
Consents.  Except
(i) for such filings, notices and consents relating to business licenses or
operating permits required
in the ordinary course for the operation of the Business (other than state
licenses required for the retail sale of electricity), (ii) as required under
the Required Regulatory Approvals, (iii) as set forth in ‎Section 5.04 of the Seller's Disclosure Letter, the Seller
(including any Affiliate thereof) is not and will not be required to make any
filing with or give any notice to, or to obtain any consent from, any Government
Body in connection with: (1) the execution, delivery or performance of this Agreement by the Seller;
or (2) the consummation of the transactions contemplated herein (other than with
respect to the performance by the Purchaser of its obligations
hereunder).

           

          Section 5.05     Non-Contravention.  Assuming compliance with
the applicable provisions
of the Securities Act, the Exchange Act, the LLC Act and state securities or
"blue sky" laws, except as set forth in
‎Section 5.05 of the Seller's Disclosure Letter and except as set
forth in the exceptions to Section 5.04, neither (1) the execution and delivery of this
Agreement by the Seller, nor (2) the consummation of the transactions
contemplated herein, will, directly or indirectly (with or without notice or
lapse of time):

           

          
            
               

            

            
              12

              
                

              

            

            
               

            

          

          (a)         contravene, conflict with or result in a
violation of any of the
provisions of the operating agreement or similar organizational document of
either the Seller, the Company, the Parent or any of their respective
Subsidiaries;

           

          (b)         contravene, conflict with, result in a
violation of or require any notice under any Requirements of Law to which the
Seller, the Company, or any of their respective Subsidiaries, is
subject;

           

          (c)         contravene, conflict with, result in a
violation, a material breach or a default of, cause forfeiture of any material
rights under or require any
notice under, any of the terms or requirements of any Governmental Authorization
that is held by the Seller, the Company or any of their respective Subsidiaries,
or that otherwise relates to the business of the Company or any of their
respective Subsidiaries, as currently
conducted;

           

          (d)         contravene, conflict with, result in a
material violation or breach of, result in a default under, result in
acceleration of, create in any party the right to accelerate, terminate, modify
or cancel or require any notice under, any provision of any
Seller Significant Contract (as defined in Section 5.11);
or

           

          (e)         contravene, conflict with, result in a
material violation or breach of, result in a default under, result in
acceleration of, create in any party the right to accelerate, terminate, modify or
cancel or require any notice under, any provision of any Contract, other than
the Seller Significant Contracts, to which the Seller, the Company, or any of
their respective subsidiaries is a party or by which its assets are bound, unless such action would not,
individually or in the aggregate, result in a Material Adverse
Effect.

           

          For
the purposes of this Agreement, "Material Adverse
Effect" shall mean any event, condition, effect, change, development or
circumstance (each, an "Effect") that,
individually or when considered together with all other Effects, (A) would have
a material adverse effect on the business, assets, condition (financial or
otherwise) or results of operations of the Company and its Subsidiary taken as a
whole; provided, however, that, in no event shall any of the following, alone or
in combination, be deemed to constitute, nor shall any of the following be taken
into account in determining whether there has occurred, a Material Adverse
Effect:  (i) Effects resulting from factors generally affecting the
economy, financial markets, capital markets or markets for commodities used by
the Company or its Subsidiary (except to the extent that such Effects have had a
disproportionate effect on the Company and its Subsidiary as compared to other
Persons in the industry in which the Company
operates);  (ii)  Effects resulting from factors (including
changes in Requirements of Law that would impose fees, charges or other costs on
the Company or its customers relating to the products and services offered by
the Company) generally affecting any industry or any segment of any industry in
which the Company, its Subsidiary or their customers participate (except to the
extent that such Effects have had a disproportionate effect on the Company and
its Subsidiary as compared to other Persons in the industry in which the Company
operates); (iii) Effects resulting from the announcement, or pendency of the
transactions contemplated herein; (iv) Effects resulting from any action taken
by any of the parties outside the ordinary course of its business that is
required to be taken in order to comply with any provision of this Agreement,
including, to the extent

           

          
            
               

            

            
              13

              
                

              

            

            
               

            

          

          applicable,
Section 6.01; (v) Effects of any war, act of terrorism, civil unrest or similar
event; or (vi) Effects solely resulting from any action taken, or any omission
to act by the Purchaser or any of its Affiliates.

           

          Section 5.06     Capitalization.  The Seller owns all of the
authorized, issued and outstanding membership interests of the Company,
consisting of 10,000,000 units each of economic interests and voting
interests.  The Company owns all of the authorized, issued and outstanding membership
interests of its Subsidiary.  Other than the Seller's obligation to transfer its Membership
Interests to the Purchaser in accordance with this Agreement, there are no
authorized or outstanding subscriptions, options, warrants, calls, rights or other
agreements or commitments (contingent or otherwise) obligating the Seller or the
Company to issue, sell, deliver or transfer any equity interests in the Company
or its Subsidiary.  Other than this Agreement and except as
set forth on ‎Section 5.06 of the Seller's Disclosure Letter, there are no
agreements, options, warrants, calls, rights or commitments of any character
relating to the issuance, sale, purchase or redemption of, restricting the
transfer of, or the declaration of payments of distributions on, any equity
interests in the Company or its Subsidiary.  All equity interests in
the Company and its Subsidiary, including the Membership Interests, have been
duly authorized, validly issued and fully paid.  None of the
Membership Interests or the other equity interests in
the Company's Subsidiary will be (i) entitled or
subject to any preemptive right, right of participation, right of maintenance or
any similar right or (ii) subject to any right of first refusal in favor of any
Person.  Neither
the Seller nor the Company shall be under any obligation or be bound by any
Contract to repurchase, redeem or otherwise acquire any equity interests in the
Company or its Subsidiary.

           

          Section 5.07   
 Financial
Statements

           

          (a)         ‎Section 5.07(a)(i) of the Seller's Disclosure Letter consists of the
audited consolidated balance sheets and statements of income and cash flows of
the Company as of and for the years ended December 31, 2006 and December 31,
2007, including the accompanying notes and supporting schedules (collectively, the
"Financial
Statements").  The Company's audited consolidated balance sheet as
of December 31, 2007 is referred to herein as the "Latest
Balance Sheet".  Section 5.07(a)(ii) of the
Seller's Disclosure Letter consists of the
unaudited consolidated balance sheets and statements of income of the Company as
of and for the two-month period ended February 29, 2008, (collectively, the "Interim
Statements").

           

          (b)         Except as set forth in ‎Section 5.07(b) of the
Seller's Disclosure Letter, the Financial
Statements and Interim Statements have been based upon the information contained
in the Company's books and records, have been prepared
in accordance with U.S. generally accepted accounting principals in effect from time to time
("GAAP"), applied on a consistent basis
throughout the periods indicated, and present fairly in all material respects
the financial condition and results of operations of the Company and its Subsidiary (taken
as a whole) as of the times and for the periods referred to therein, except, in
the case of the Interim Statements, for quarterly and year-end adjustments and
for the absence of footnote disclosure.

           

          (c)         The Company and its Subsidiary have no liabilities
or obligations of any nature whatsoever (whether absolute, accrued, contingent
or otherwise and whether due or to

           

          
            
               

            

            
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          become due) which, individually or in
the aggregate, are material to the Company or the Company Subsidiary other than (i) as set forth in
‎Section 5.07(c) of the
Seller's Disclosure Letter; (ii) those
liabilities or obligations that are reflected or reserved against on the Latest
Balance Sheet (but only to the extent so reflected or reserved); and (iii)
liabilities or obligations incurred in the ordinary course of business
consistent with past practice since the date of the Latest Balance Sheet, none
of which has had or would have, either individually or in the aggregate, a
Material Adverse Effect.

           

          (d)         Except as set forth in Section 5.07(d)
of the Seller's Disclosure Letter, neither the Company
nor its Subsidiary has entered into any "off-balance sheet
arrangements" as such term is defined in Item
303(a)(4) of Regulation S-K promulgated by the Securities and Exchange
Commission.

           

          (e)         The Company and its Subsidiary have maintained a
system of internal accounting controls sufficient, in terms of Parent and its
Subsidiaries taken as a whole, to provide reasonable assurances with respect to
the Company and its Subsidiary that (i) all transactions are executed in accordance with
management's general or specific authorization,
(ii) all transactions are recorded as necessary to permit the preparation
of annual and interim financial statements in conformity with U.S. GAAP and to
maintain proper accountability for assets, (iii) access to assets
is permitted only in accordance with management's general or specific authorization, and
(iv) the recorded accountability for assets is compared with existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.  There is no significant deficiency or material weakness,
measured in terms of Parent and its Subsidiaries in the design or operation of
the Company's or its Subsidiary's internal control over financial
reporting that has
adversely affected or would be reasonably likely to adversely affect the
Company's or its Subsidiary's ability to record, process, summarize
and report financial information in any material respect, and the Seller does
not have Knowledge of any fraud, whether or not material, that involves
management or other employees who have a significant role in the
Company's or the Company Subsidiary's internal control over financial
reporting.  The Seller makes no representation under this Section
5.07(e) as to any period
following the Closing.

           

          (f)         The Company has established, maintains
and evaluates controls and procedures with respect to the Company and its
Subsidiary that are designed to ensure that material information relating to the
Companies is made known to
the Parent's chief executive officer and its chief
financial officer, and such controls and procedures are, to the Knowledge of the
Seller, effective to perform the functions for which they were
established.  The Seller makes no representation under this Section 5.07(f) as to any period
following the Closing.

           

          (g)         Except for letters of credit issued
pursuant to the RPA, a schedule of which is set forth in Section 5.07(g) of the
Seller's Disclosure Letter, there are, as of
the date hereof, no outstanding amounts under any Contracts listed in
Section 5.11(c) of the Seller's Disclosure Letter.

           

          Section 5.08     Absence of
Changes.  Except
as set forth in ‎Section 5.08 of the Seller's Disclosure Letter, since the date of
the Latest Balance Sheet and prior to the date of this Agreement, (a) the
Company and its Subsidiary have conducted their respective businesses in
all

           

          
            
               

            

            
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          material respects in the ordinary
course of business
consistent with past practice, (b) none of the Seller, the Company or the
Company's Subsidiary has taken, committed to
take or permitted to occur any of the events specified in Section 6.01(a) (other
than clauses (iii), (x), (xiii), (xiv) and (xx) thereof), and (c) there has
been no event, occurrence or development which has had or would reasonably be
likely to have a Material Adverse Effect.  Since the date of the
Latest Balance Sheet and prior to the date hereof, the Company has not
made any distributions on the outstanding
Membership Interests in the Company, except as set forth in ‎Section 5.08 of the Seller's Disclosure Letter.  From
January 1, 2008 to the date hereof, the Company and its Subsidiary have not made
or incurred capital expenditures in excess of $1,500,000 in the
aggregate or entered into any binding commitment or contract to make such
expenditures.

           

          Section 5.09     Title to
Assets.

           

          (a)         Except as set forth in ‎Section 5.09 of the Seller's Disclosure Letter, the Company and its
Subsidiary own, and have
good and valid title to, all material assets purported to be owned by them,
including all material assets reflected on the Latest Balance
Sheet.  Except as set forth in ‎Section 5.09 of the Seller's Disclosure Letter, all of such
assets are owned by the
Company or its Subsidiary free and clear of any Encumbrances other than
Permitted Encumbrances.  The Company and its Subsidiary are the
lessees of, and hold valid leasehold interests in, all material assets purported
to have been leased by them, including all material
assets reflected as leased on the Latest Balance Sheet.  Except as
would not be material to the Company and its Subsidiary as a whole, the assets
owned, licensed or leased by any of such Persons constitute all the
assets used in the business of such Persons
(including all books, records, computers and computer programs and data
processing systems), are in good condition (subject to normal wear and tear and
immaterial impairments of value and damage) and are generally suitable for the uses for which they are used
in the operation of the business of such Persons.

           

          (b)         For purposes of this Agreement,
"Permitted
Encumbrances" shall mean (A) liens or other
imperfections of title that
would not, individually or in the aggregate, materially detract from the value
of the property subject thereto or materially interfere with the ordinary
conduct of the business of the Seller and its Subsidiaries, (B) liens and
encumbrances for Taxes (as defined in
‎Section 5.12(a)), assessments or other
government charges not yet due or which are being contested in good faith, (C)
zoning, building or other similar government restrictions, (D) easements,
covenants, rights of way or other similar restrictions with respect to real property, (E) pledges or
deposits to secure obligations under workers' compensation laws or similar
legislation or to secure public or statutory obligations, (F) liens, pledges,
charges, mortgages, security interests or encumbrances arising under this Agreement, and (G) liens
pursuant to the facilities referenced in Sections 5.26 or
6.13.

           

          Section 5.10     Real
Property.  Neither the Company nor its
Subsidiary owns any real property.  ‎Section 5.10 of the Seller's Disclosure Letter contains a list of
all real property leased by or otherwise in the possession of the Company and
its Subsidiary.  The Seller has made available to the Purchaser a true
and complete copy of each lease or permit for the real property described in
‎Section 5.10 of the Seller's Disclosure Letter (the "Leases").  Except as set forth in
‎Section 5.10 of the Seller's Disclosure Letter, with respect to
each Lease, (i) such Lease
is legal, valid, binding and enforceable against the Company or its Subsidiary,
as applicable, except as

           

          
            
               

            

            
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          the enforceability thereof may be
limited by bankruptcy, insolvency, moratorium or other similar laws affecting
the enforceability of
creditors' rights in general or by general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law); and (ii) neither the Company nor its
Subsidiary or, to the Knowledge of the Seller, any of the other parties thereto, is in
breach or default under the terms of such Lease, and no event has occurred which
with notice or lapse of time would constitute a breach or default, or permit
termination, modification or acceleration, under such Lease; except, in the case of each of clause
(i) and clause (ii), where such failure to be legal, valid, binding and
enforceable, or such breach or default, would not have a Material Adverse
Effect.

           

          Section 5.11     Contracts.  ‎Section 5.11 of the Seller's Disclosure Letter sets forth a list of
each Contract that constitutes a Seller Significant Contract (as defined in this
‎Section 5.11) as of the date of this
Agreement.  Each of the following shall constitute a "Seller Significant
Contract":

           

          (a)         each Contract containing any non-compete
provision that restricts the Company or its Subsidiary from engaging or
competing in any line of business or in any geographic area, that contains
any standstill or non-solicitation obligations on the Company that are in effect
(or may hereafter come into effect) or that grants any exclusive arrangements or
"most favored nation" status to any
Person;

           

          (b)         each Contract relating to the issuance of
any equity securities of the Company or its Subsidiary;

           

          (c)         Contracts under which the Company or its
Subsidiary has borrowed any money from, established a line of credit with, or
issued any note, bond, debenture or other evidence of indebtedness to, any
Person or any other note, bond, debenture or other evidence of indebtedness
issued to any Person;

           

          (d)         Contracts of the Company or its
Subsidiary pursuant to which (i) any Person has directly or indirectly
guaranteed indebtedness,
liabilities or obligations of the Company or its Subsidiary or (ii) the Company
or its Subsidiary has directly or indirectly guaranteed indebtedness,
liabilities or obligations of any other Person;

           

          (e)          (i) Contracts containing license grants
to the Company or its
Subsidiary with respect to any Intellectual Property, other than commercially
available Intellectual Property, material to the business as currently conducted
by the Company and its Subsidiary and (ii) certain Contracts, as specified
in Section 5.11(e) of the
Seller's Disclosure Letter, pursuant to which
the Company or its Subsidiary obtain rights to use the following software:
Excelergy Hedge Direct, Excelergy Revenue Manager, nMarket, Endure, Sales Logix,
Trax, and Numara Footprints;

           

          (f)         outstanding agreements of guaranty,
surety or indemnification, direct or indirect, or performance bonds or letters
of credit issued or posted, by or on behalf of or obligating, as applicable, the
Company or its Subsidiary;

           

          
            
               

            

            
              17

              
                

              

            

            
               

            

          

          (g)         Contracts between the Company or its Subsidiary and any of the
Company's Affiliates;

           

          (h)         Contracts intended to benefit from or
eliminate the risk of fluctuations in the price of commodities, other than power
purchase or supply agreements;

           

          (i)         (1) each Contract entered into
pursuant to the Company's
channel partner program pursuant to which the Company enters into affiliation
agreements with various industry partners, to the extent that such agreements
involve annual payments in
excess of $500,000, (2)
each Contract entered into by the Company with one of its top twenty
channel partners, as measured by commissions paid during the 12-month period ended December 31, 2007, and
(3) each arrangement
pursuant to which the Company has advanced funds by way of loan to a channel
partner, and Section
5.11(i) of the Seller's Disclosure Letter sets forth the amount of each advance
by way of loan outstanding under each such Contract and
the repayment schedule for each such advance, as of the date reflected on
Section 5.11(i) of the Seller's Disclosure Letter;

           

          (j)         each Contract for the purchase of
electric power or ancillary services including all master contracts relating
thereto (each, a "Master
Supply Contract");

           

          (k)         as of the date of this Agreement, each Contract with
the 25 highest revenue producing customers of the Company based on invoices
rendered during the twelve-month period ending December 31, 2007;
and

           

          (l)         other than Contracts of the nature
addressed by Section 5.11(h), (i) and (j) or Section 5.16, each
Contract involving payments of $500,000 or more per annum to or by the Company
or its Subsidiary.

           

          Each
Seller Significant Contract is, to the Knowledge of the Seller, valid and
binding upon the other parties thereto and is in full force and effect in all
material respects.  Except as set forth in ‎Section
5.11 of the Seller's Disclosure Letter, as of the date of this
Agreement:  (i) neither the Company nor its Subsidiary has materially
violated or materially breached, or committed any material default under, any
Seller Significant Contract, except as would not have a Material Adverse Effect;
and (ii) to the Knowledge of the Seller, no other party to any Seller
Significant Contract has materially violated or materially breached, or
committed any material default under, any Seller Significant Contract, except as
would not have a Material Adverse Effect.

           

          Section 5.12   
 Taxes.

           

          (a)         The Company and its Subsidiary have (or
the Seller on behalf of the Company and its Subsidiary has) timely filed all Tax
Returns (as defined in this Section 5.12(a)) (taking into account any extensions of time within
which to file such Tax Returns) within the time and manner prescribed by law,
and all such Tax Returns were and continue to be complete and accurate in all
material respects.  The Company and its Subsidiary have (or
the Seller on behalf of the Company and
its Subsidiary has) paid all Taxes (as defined in this Section 5.12(a)) shown to
be due on such Tax Returns or otherwise due within the time and manner
prescribed by law, except Taxes being contested in good faith by appropriate proceedings and for
which

           

          
            
               

            

            
              18

              
                

              

            

            
               

            

          

          adequate reserves have been established
in accordance with GAAP on the Company's Financial Statements as of and for the
year ended December 31, 2007 (the "2007
Financial Statements") and which are described on Section
5.12(a) of the Seller's Disclosure Letter.  The
Company and its Subsidiary have (or the Seller on behalf of the Company and its
Subsidiary has) established an adequate reserve for the payment of all Taxes that are not due and
payable or are being contested in good faith through appropriate proceedings on
the 2007 Financial Statements.  For purposes of this Agreement: (i)
"Tax
Return" shall mean any return (including any
information return), report, statement, declaration or other document (including
any schedule or attachment thereto, and including any amendment thereof)
required to be filed with any Governmental Body or maintained pursuant to a Requirement of Law with
respect to Taxes (including any such item filed on a combined, unified,
consolidated or group basis); and (ii) "Tax" shall mean any federal, state,
provincial, local, or foreign tax imposed by any Governmental
Body, including any income, franchise, capital gains, gross receipts,
value-added, surtax, estimated, unemployment, excise, ad valorem, transfer,
stamp, sales, use, custom duty, withholding, payroll tax, parking,
employment, severance, occupation, premium,
windfall profits, environmental, capital stock, profits, margin, single
business, social security, disability, real property, personal property,
possessory interest, registration, production, worker's compensation, alternative or add-on minimum, amounts paid
under an agreement with a Governmental Body relating to or in lieu of Taxes,
estimated tax or other tax of any kind whatsoever, including any interest,
fines, penalty or addition thereto, whether disputed or not.

           

          (b)         Except as set forth in Section
5.12(b) of the Seller's Disclosure Letter, there are no
material audits, cases, investigations, actions, suits, examinations or
judicial, administrative or other proceedings or litigations currently pending
or in progress or
threatened in writing with respect to any Taxes of or that relate to the Company
or its Subsidiary.  Neither the Company nor its Subsidiary nor the
Seller on behalf of the Company or its Subsidiary has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with
respect to a Tax assessment or deficiency.

           

          (c)         There are no Tax liens upon any property
or assets of the Company or its Subsidiary, except liens for Taxes not yet
delinquent or Taxes being contested in good faith by appropriate proceedings (as listed on
Section 5.12(a) of the Seller's Disclosure Letter) and for which
adequate reserves have been established in accordance with GAAP on the 2007
Financial Statements.

           

          (d)         All Taxes required to be withheld,
collected or deposited by
or with respect to the Company or its Subsidiary have been timely withheld,
collected or deposited, as the case may be, and to the extent required by
applicable law, have been paid to the relevant Governmental Body within the time
and manner prescribed by the Requirement of Law, and
the Company and its Subsidiary have (or the Seller with respect to the Company
and its Subsidiary has) complied with all reporting, record keeping and other
administrative requirements imposed by a Requirement of Law with respect
thereto.

           

          (e)         Neither the Company nor its Subsidiary
is responsible for any material Taxes of any other Person and is not a party to,
is not bound by and has no obligation under any Tax sharing, Tax allocation or
Tax indemnity agreement or similar contract or
arrangement,

           

          
            
               

            

            
              19

              
                

              

            

            
               

            

          

          other than any amounts that are due
under a Seller Significant Contract to the extent (i) the primary purpose of
such agreement does not relate to Tax matters or an indemnity, sharing, or
allocation of Tax liability and (ii) the liability for Taxes under any such
Significant Contract is not material or such contract will be terminated as of
the Closing Date.

           

          (f)         Except as required by law, since
December 31, 2006, the Company and its Subsidiary have not and have not had on
their behalf (or the Seller
with respect to the business, property or operations of the Company and its
Subsidiary has not): (A) made or changed any material election concerning any
Taxes, (B) filed any amended Tax Return, (C) settled any material Tax claim
or assessment, (D) received or filed a
request for a ruling relating to Taxes issued by a Governmental Authority or
entered into any agreement with a Governmental Authority relating to Taxes, or
(E) surrendered any right to claim a refund of any Taxes, to the extent that any such action could
affect the Taxes of the Purchasers, Purchaser's Affiliates or the Company or its
Subsidiary for any period after the Closing Date.

           

          (g)         Each of the Company and its Subsidiary
is currently and has at all times since formation been treated as an entity that is
disregarded as a separate entity from its member pursuant to Treasury Regulation
Section 301.7701-3.

           

          (h)         The Company and its Subsidiary have not
and the Seller with respect to the Company and its Subsidiary has not
participated, within the
meaning of Treasury Regulation Section 1.6011-4(c), or been a "material advisor" or "promoter" (as those terms are or have been
defined in Sections 6111 and 6112 of the Code) in: (i) any "reportable transaction" within the meaning of Sections 6011, 6662A, and 6707A of the
Code; (ii) any "confidential corporate tax
shelter" within the meaning of Section 6111 of
the Code; or (iii) any "potentially abusive tax
shelter" within the meaning of Section 6112 of
the Code.

           

          (i)         None of the Company, its Subsidiary, and the Seller with
respect to the Company has (i) entered into any closing agreements, or other
contracts or agreements relating to Taxes with a Governmental Body, (ii) granted
any Person a power of attorney with respect to Tax matters, or (iii) has received a ruling or
similar legal determination from a Governmental Body with respect to Taxes, in
each case, that will be binding on the Company, its Subsidiary or the Purchaser
after the Closing Date.

           

          (j)         Section 5.12(j) of the
Seller's Disclosure Letter lists all of the
jurisdictions in which the Company, its Subsidiary (or the Seller with respect
to the Company) is required to pay Taxes.

           

          Section 5.13     No
Violation, Litigation or Regulatory Action.  Except as set forth in
‎Section 5.13 of the Seller's Disclosure Letter, each of the Company
and its Subsidiary (a) is in compliance in all material respects with all
applicable Requirements of Law; and (b) is in compliance in all material
respects with all rules, regulations and policies relating to consumer
protection or the products and services sold by the Company to its small
commercial customers and is in compliance in all material respects with all
requirements relating to notices or disclaimers thereunder.  Except as
set forth in ‎Section 5.13 of the Seller's Disclosure Letter, since January 1,
2005, neither the Company nor its Subsidiary has received any notice from or
been

           

          
            
               

            

            
              20

              
                

              

            

            
               

            

          

          charged by any Governmental Body or
other Person, regarding any violation of, or failure to comply with,
any material Requirements
of Law or threatening or intending to take action that would be materially
adverse to the Company.

           

          Section 5.14     Legal
Proceedings; Orders.  Except as set forth in
‎Section 5.14 of the Seller's Disclosure Letter, (i) there are no
pending Legal Proceedings
to which the Company or its Subsidiary is a party, or (ii) to the Knowledge of
the Seller, no Governmental Body or other Person has threatened to commence any
Legal Proceeding or investigations or reviews to which the Company or
its Subsidiary is a party or was so
threatened to become a party, in each case, that would have a Material Adverse
Effect.  Except as disclosed on Section 5.14 of the Seller's Disclosure Letter, there is no order,
writ, injunction, judgment or decree to which the Company or its Subsidiary, or any
of the material assets owned or used by any of such Persons, is subject, other
than orders that apply generally to participants in the industry in which the
Company participates.

           

          Section 5.15   
 Labor
Matters.  Except
as set forth in
‎Section 5.15 of the Seller's Disclosure Letter, (a) neither the
Company nor its Subsidiary is party to any collective bargaining agreements and
(b) (i) there is no labor strike, slowdown, work stoppage or lockout actually
pending or, to the Knowledge of the Seller, threatened with respect to
the employees of the Company and (ii) the Company has not received written
notice that any representation petition pertaining to any employee of the
Company has been filed with the National Labor Relations
Board.

           

          Section 5.16     Employee
Matters.

           

          (a)         ‎"Company
Benefit Plan" shall mean each "employee benefit plan" as defined in Section 3(3) of ERISA,
whether written or unwritten, regardless of whether such plan is subject to
ERISA, and any other
deferred compensation, bonus or other incentive compensation, stock purchase,
stock option or other equity compensation plan, policy, program, practice,
understanding or arrangement maintained, sponsored or contributed to by the
Company or the Parent, for the benefit of current or former
employees, officers or independent contractors of the Company or its Subsidiary, and each employment, retention, change
in control, severance or termination pay agreement to which the Company
or its
Subsidiary is a party.  Section 5.16(a) of the
Seller's Disclosure Letter sets forth a true
and complete list of each material Company Benefit Plan.  For purposes
of this Agreement, "ERISA" shall mean the Employee Retirement
Income Security Act of 1974
and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time.

           

          (b)         Neither the Company nor its Subsidiary
sponsors, maintains or contributes to (i) any "employee pension benefit plan" (as defined in Section 3(2) of ERISA)
that is subject to Title IV of ERISA or Section 412 of the U.S. Internal Revenue
Code of 1986, as amended and the regulations promulgated thereunder (the
"Code") or (ii) any "multiemployer plan" as defined in Section 3(37) of
ERISA.

           

          (c)         Each Company Benefit Plan that is not a
multiemployer plan and which is intended to be "qualified" within the meaning of section 401(a) of
the Code has received a letter

           

          
            
               

            

            
              21

              
                

              

            

            
               

            

          

          from the Internal Revenue Service that
it is so qualified and that the trusts maintained thereunder are exempt from
taxation under section 501(a) of the Code and to the Knowledge of the Seller no
condition exists that would reasonably be expected to adversely affect such
qualifications.

           

          (d)         Except as set forth in Section 5.16(d)
of the Seller's Disclosure Letter, no Company Benefit
Plan that is not a multiemployer plan provides medical, surgical,
hospitalization, death or similar benefits (whether or not insured) for employees or former
employees of the Company or
its Subsidiary for periods
extending beyond their retirement or other termination of service, other than
(i) coverage mandated by applicable Requirements of Law, (ii) death benefits
under any "pension plan," or (iii) benefits the full cost of
which is borne by the current or former employee (or such employee's beneficiary).

           

          (e)         There are no pending, threatened or
anticipated claims by or on behalf of any Company Benefit Plan that is not a
multiemployer plan, by any
employee or beneficiary covered under any such Company Benefit Plan, or
otherwise involving any such Company Benefit Plan (other than routine claims for
benefits).

           

          (f)         Except as disclosed in ‎Section 5.16(f) of the
Seller's Disclosure Letter, neither the execution of
this Agreement nor the consummation of the transactions contemplated by this
Agreement will, either alone or in combination with another event, (i) entitle
any current or former employee or officer of the Company or its Subsidiary to severance pay, unemployment
compensation or any other payment, except as expressly provided in this
Agreement, or (ii) accelerate the time of payment, vesting or funding, or
increase the amount of compensation due any such employee or officer under any Company Benefit Plan or
otherwise.  Except as disclosed in Section 5.16(f) of the
Seller's Disclosure Letter, no payment that is
owed or may become due to any current or former employee in connection with the
transactions contemplated hereby will be non-deductible to the Company or
subject to tax under Section 280G or Section 4999 of the
Code.

           

          (g)         All contributions or other amounts which
the Company was required to make to the Company Benefit Plans on or prior to the
Closing Date have been paid and all contributions or other amounts
which the Company was required to accrue on or prior to the Closing Date have
been accrued on the financial books and records of the Company in accordance
with GAAP.

           

          (h)         All of the Company Benefit Plans that
are not multiemployer plans
have been administered in all material respects in compliance with their terms
and applicable Requirements of Law.

           

          Section 5.17     Intellectual
Property.

           

          (a)         To the Knowledge of the Seller, the
Company or its Subsidiary owns or has the right to use all Intellectual Property (as
defined in this 0) used in the Business as currently
conducted by the Company and its Subsidiary.  For purposes of this
Agreement, "Intellectual
Property" shall mean all:  (i)
copyrightable works of authorship and copyrights, including, without limitation,
software programs (whether in source code, object code or
human

           

          
            
               

            

            
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          readable form) and related documentation
and registrations and
applications for any of the foregoing; (ii) inventions and discoveries, whether
or not patentable, patents, patent applications and industrial designs,
including, without limitation, any provisionals, divisionals, continuations,
continuations-in-part, renewals, reissues,
extensions and reexaminations for any of the foregoing, as applicable; (iii)
trademarks, service marks, trade names, Internet domain names and other similar
designations of source or origin, together with the goodwill of the business symbolized by any of the
foregoing and registrations and applications relating to any of the foregoing;
and (iv) trade secrets and other confidential ideas, know-how, concepts,
methods, processes, formulae, data, customer lists, mailing lists, business plans or other proprietary
information that gives a competitive advantage.  To the Knowledge of Seller,
all material Intellectual Property licensed by or on behalf of the Company or
its Subsidiary is being used by or on behalf of the Company or its Subsidiary in material compliance
with the applicable license agreement.

           

          (b)         To the Knowledge of the Seller, with
respect to any Intellectual Property owned by the Company or its Subsidiary
("Owned
Intellectual Property"), all such Intellectual Property is
owned exclusively by either the Company or its Subsidiary free and clear of any
Encumbrances other than Permitted Encumbrances.  Section 5.17(b) of
the Seller's Disclosure Letter sets forth all of the
Company's and its Subsidiary's registrations or applications for
registration for any material Owned Intellectual Property (as defined in this
Section 5.17(b)) with any Governmental Body or domain name
registrar.  Except as
indicated on Section
5.17(b) of the Seller's Disclosure Letter as being abandoned,
each such registration is, to the Knowledge of the Seller, valid and in full
force and each such application is, in good standing.

           

          (c)         There is no pending or, to the Knowledge
of the Seller, threatened
claim against the Company or its Subsidiary (i) alleging that the conduct of the
Business by the Company or its Subsidiary, in any material respect, infringes
upon, misappropriates or dilutes the Intellectual Property rights of any
Person, or (ii) challenging the
Company's or its Subsidiary's ownership or use of, or the validity,
enforceability or registrability of, any Owned Intellectual Property that is
material to the conduct of the Business.  To the Knowledge of the
Seller, there are no
judgments or settlements, currently in effect against the Company or its
Subsidiary with respect to Intellectual Property, that materially adversely
impact the Company's or its Subsidiary's ability to conduct the Business as
currently conducted by the Company and its
Subsidiary.

           

          (d)         Except as indicated on Section 5.17(d)
of the Seller's Disclosure Letter, (i) neither the
Company nor its Subsidiary has brought or threatened to bring, within the two
year period prior to the date hereof, a claim against any Person alleging infringement,
misappropriation or dilution of any material Owned Intellectual Property and
(ii) to the Knowledge of the Seller, no Person is currently infringing,
misappropriating or diluting any material Owned Intellectual
Property.

           

          (e)           The Company and its Subsidiary use
commercially reasonable efforts to protect the security and confidentiality of
electronic transactions executed through their computer systems, of their
material computer systems and their material confidential information and proprietary data.  To
the extent that the Company or its Subsidiary has established security and
privacy policies, the Company and its Subsidiary are in material compliance with
their

           

          
            
               

            

            
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          respective policies.  Neither
the Company nor its Subsidiary has (i) to the Knowledge of the Seller,
suffered a material security breach with respect to their data or systems, and
(ii) notified or, to the Knowledge of the Seller, been required by law to notify
consumers or employees of any material information security breach related to the personally
identifiable information of such consumers or employees, in each of 5.17(e)(i)
and (ii) within the twenty-four month period prior to the date
hereof.

           

          (f)         To the Knowledge of the Seller, the
Company will, immediately following the Closing, own or have the right
to use all material Intellectual Property which the Company owns or has the
right to use immediately
prior to the Closing.

           

          Section 5.18     Environmental
Matters.  Except
for matters which would not have a Material Adverse Effect and except as set forth in
‎Section 5.18 of the Seller's Disclosure Letter:  (a) the
Company and its Subsidiary are in compliance with all applicable Environmental
Laws (as defined in this ‎Section 5.18), (b) the Company and its
Subsidiary have not
received any written communication, from a governmental authority, the Company
or its Subsidiary or otherwise, that alleges non-compliance with Environmental
Laws, (c) there is no Environmental Claim (as defined in this ‎Section 5.18) pending or, to
the Seller's Knowledge, threatened against the
Company or its Subsidiary, and (d) the Company and its Subsidiary have not
assumed by contract or, to the Seller's Knowledge, by operation of law any
obligation or liability arising under Environmental
Laws.  For
purposes of this Agreement, (i) "Environmental
Laws" shall mean all federal, interstate,
state, provincial, local and foreign laws and regulations relating to pollution
or protection of human
health or the environment, including laws and regulations relating to emissions,
discharges, releases or threatened releases, treatment, storage, disposal, or
transport of Materials of Environmental Concern (as defined in this ‎Section 5.18); (ii)  "Environmental
Claim" shall mean any claim, action, cause of
action, or written notice by any Person alleging potential liability arising out
of, based on or resulting from (A) the presence, or release into
the environment, of any Material of Environmental Concern at any location or (B)
circumstances forming the basis of any violation, or alleged violation, of any
Environmental Law; and (iii) "Materials of Environmental
Concern" means all substances defined as
Hazardous Substances, Oils, Pollutants or Contaminants in the National Oil and
Hazardous Substances Pollution Contingency Plan, 40 C.F.R. § 300.5, toxic mold, asbestos, asbestos containing
materials, radon, polychlorinated biphenyls, urea formaldehyde, radioactive
materials, lead or any other substance which is prohibited, limited
or  regulated as hazardous or a pollutant or contaminant under any Environmental
Law.

           

          Section 5.19     Brokers.  No broker, finder or
investment banker (other than Merrill Lynch & Co., Inc., all fees of which
shall be paid by the Seller in connection with the transactions contemplated
hereby) is entitled to any
brokerage, finder's or other fee or commission in
connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of the Company or its
Subsidiary.

           

          Section 5.20     Insurance
Coverage.  Except
as set forth in
‎Section 5.20 of the Seller's Disclosure Letter, the insurance
policies maintained by or for the benefit of the Company or its Subsidiary
provide insurance in such amounts and against such risks as the management of
the Seller reasonably has determined to be prudent in accordance with
industry practices and as

           

          
            
               

            

            
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          is required by Requirements of
Law.  Except as would not have a Material Adverse Effect, (i) all such
insurance policies are in full force and effect and (ii) neither the Company nor
its Subsidiary is in
default with respect to its obligations under any of such insurance
policies.

           

          Section 5.21     Governmental
Authorizations.

           

          (a)         Each of the Company and its Subsidiary
is in compliance in all material respects with all Requirements of
Law.

           

          (b)          The Company has all required licenses and
certifications from public utility commissions and has registered and is in good
standing with all Regional Transmission Organizations and Independent System
Operators with which is it required to register.  The Company
and its Subsidiary have all Governmental
Authorizations that are material and necessary to the conduct of the business of
such Persons as presently conducted, and each such Governmental Authorization is
in full force and effect.  None of the Seller, the Company or the Company's Subsidiary has received any
communication as of the date hereof from any Governmental Body threatening to
revoke any such Governmental Authorization.  All applications,
reports, notices and other documents required to be filed by the Company or its Subsidiary with any
Governmental Body have been timely filed and are complete and correct in all
material respects as filed or as amended prior to the date
hereof.

           

          Section 5.22     Customers.

           

          (a)         Section 5.22(a) of the
Seller's Disclosure Letter sets forth a list, as of the date set
forth in such schedule, of the 100 highest revenue producing customers of the
Company based on invoices rendered during the twelve-month period ended December
31, 2007.  A copy of each such agreement (as amended) with each of the 25 highest revenue
producing customers listed in Section 5.22(a) of the Seller's Disclosure Letter has been made
available to the Purchaser.  To the Knowledge of Seller or the
Company, none of the 25 highest revenue producing customers listed on Section 5.22(a) of the
Seller's Disclosure Letter within the last
twelve months of the date hereof has threatened to cancel or otherwise terminate
the relationship of such Person with the Company other than in the ordinary
course of negotiation.

           

          Section 5.23     Risk
Management Policy.  Attached as Section 5.23(i)
to the Seller's Disclosure Letter is a true and
correct copy of the Company's Risk Management Policy dated February 2008, including the Counterparty Credit
Policy attached thereto (collectively, the "Risk Management
Policy").  The Company is in
compliance in all material respects with its Risk Management
Policy.  The Company is within the risk parameters that are
set forth in the Risk
Management Policy, as such policy was in effect at the date of entry into any
such transaction, including the exceptions allowed for in the Risk Management
Policy in the ordinary course.  Attached as Section 5.23(ii) to the
Seller's Disclosure Letter is a true and correct copy
of the Exposure Management Committee Report (dated March 20,
2008).  Set forth in such Exposure Management Committee Report are all
of the exceptions to the Company's Risk Management Policy granted or made
during the period covered
by such report.

           

          Section 5.24     Due
Diligence Data.

           

          
            
               

            

            
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          (a)         The documents attached to Section
5.24(a) of the Seller's Disclosure Letter providing data
relating to the Company accurately reflected, as of the date of its preparation,
in all material respects,
to the extent it reflected historical data, the terms and data of the applicable
underlying documents or facts.

           

          (b)         Section 5.24(b)(i) of the Seller's Disclosure Letter sets forth, in
connection with the channel partners identified on such schedule to whom the Company has
advanced payments by way of
loan, the amounts that the
Company presently expects to pay in commissions to such channel partners based
on existing contractual commitments of customers originated by each such channel
partner. Section 5.24(b)(ii) of the Seller's
Disclosure Letter sets forth, as of the date reflected on Section 5.24(b)(ii) of
the Seller's Disclosure Letter, any amounts advanced to channel
partners by way of prepayment of commissions.

           

          (c)         With respect to the Company's variable priced products, the volume
weighted average unit margin of products in backlog, net of commission as of
December 31, 2007, is set forth in Section 5.24(c) of the Seller's Disclosure Letter.

           

          Section 5.25     Power
Purchase Contracts.  The terms of each Contract for the purchase of
electric power or ancillary services and each transaction under each Master
Supply Contract has been accurately recorded in the Company's systems and records in all material
respects.

           

          Section 5.26     Receivables
Facility.  At or
prior to the Closing, the Company (together with its Subsidiary, as
applicable) is entitled to
terminate the Receivables Purchase Agreement, dated as of October 3, 2007 by and
among the Company's Subsidiary, as Seller, and the
Company, as Initial Servicer, and the Conduit Purchasers
party thereto and the Financial Institutions from time to time party thereto, as
LC Participants, and PNC Bank, National Association, as Administrator and as LC
Bank (the "RPA") and the other Transaction Documents
(as such term is defined in the RPA) upon 30 days notice.  As of the
date hereof, there is no "capital" (as such term is defined in the RPA)
outstanding under the RPA.

           

          Section 5.27     No Other
Representations or
Warranties.  Except for the
representations and warranties contained in this Article V, as supplemented by
the Seller's Disclosure Letter, neither the Seller
nor any other Person acting on behalf of the Seller makes any representation or
warranty, express or
implied, regarding the Company or its Subsidiary.  In entering into
this Agreement and acquiring the Membership Interests, the Company or its
Subsidiary from the Seller, the Purchaser expressly acknowledges and agrees that
it is not relying on any statement, representation or
warranty, including, but not limited to, those which may be contained in any
confidential information memorandum or similar materials containing information
regarding the Seller, the Company or the Company's Subsidiary or any of their businesses or in any
material provided to the Purchaser during the course of its due diligence
investigation of the Seller, the Company or the Company's Subsidiary, other than those
representations and warranties expressly set forth in this Agreement, as supplemented by the
Seller's Disclosure Letter.

           

          
            
               

            

            
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          ARTICLE VI

          COVENANTS

           

          Section 6.01     Conduct of
Business.

           

          (a)         From the date hereof until the Closing
(the "Pre-Closing
Period"), except as required to effectuate the
transactions contemplated by this Agreement or with the consent of the Purchaser
(which consent shall not be unreasonably withheld), the Seller shall cause the
Company and its Subsidiary to operate their businesses in the ordinary course of business in accordance
with past practices, and the Seller shall use commercially reasonable efforts to
preserve substantially intact the business organization of the Company and its
Subsidiary, to keep available the services of their current officers and employees and to
maintain their existing relationships and goodwill with customers, suppliers,
contractors, distributors, creditors, licensors, licensees, lessors, lessees,
employees and others having business dealings with them to the end that their goodwill and ongoing
businesses shall not be impaired in any material respect at the
Closing.  Additionally, during the Pre-Closing Period, the Seller
shall cause the Company and its Subsidiary to not, except (i) as set forth on
‎Section 6.01(a) of the Seller's Disclosure Letter or (ii) as required
to effectuate the transactions contemplated by this Agreement, do any of the
following, to the extent applicable, without the prior consent of the Purchaser
(which consent shall not be unreasonably withheld, conditioned or
delayed):

           

          (i)           
 grant to any employee any
increase in compensation or benefits, except (A) for payment and establishment
of bonuses and normal salary increases and payment of any performance-based
incentives upon achievement of performance goals as in effect immediately
prior to the date of this Agreement, (B) as may be required under Company
Benefit Plans or Contracts in effect as of the date hereof or (C) as may be
required by Requirements of Law;

           

          (ii)           
 enter into or amend any
employment, severance or
similar agreement or adopt any new or amend any existing Company Benefit Plan,
except as may be required by Requirements of Law or in connection with the
hiring or promotion of any employee whose annual base salary does not exceed
$100,000;

           

          (iii)          
  hire any new officer
or any employee whose annual base salary exceeds $100,000 unless such officer or
employee is a replacement for an existing officer or employee or terminate any
officer of the Company or its Subsidiary, unless such termination shall be for cause;

           

          (iv)        
   make any
material change in any method of accounting or accounting practice or policy
other than in accordance with GAAP with respect to the Company or its
Subsidiary;

           

          (v)          
 change any credit practices
or collection policies;

           

          
            
               

            

            
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          (vi)           amend its organizational documents,
including any operating agreement, or alter through merger, liquidation,
reorganization, restructuring or in any other fashion the corporate structure or
ownership of the Company or its Subsidiary;

           

          (vii)           purchase, redeem or otherwise acquire any of their
Membership Interests, or any rights, warrants or options to acquire any
Membership Interests, or make any distributions on the outstanding Membership
Interests in the Company, whether payable in cash, Membership
Interests, property or otherwise, other than for
distributions to cover Taxes incurred by or with respect to income of the
Company and its Subsidiary for the period commencing January 1, 2008, through
the Closing Date, consistent with past practice (but only to the extent such payments would be included in the calculation of
Closing Working
Capital);

           

          (viii)          authorize for issuance, issue, deliver,
sell or agree to commit to issue, sell or deliver (whether through the issuance
or granting of options, warrants, commitments, subscriptions, rights to purchase or
otherwise), pledge or otherwise encumber any of their Membership Interests, any
other voting securities or any securities convertible into, or any rights,
warrants or options to acquire any such Membership Interests, voting securities or convertible
securities or any other securities or any equity equivalents;

           

          (ix)           acquire any capital stock or other
equity interests of any business or any corporation, partnership, limited
liability company, unincorporated organization, trust, joint venture, association or
other business organization or division thereof, or acquire all or a substantial
portion of the assets, of any such entity;

           

          (x)           
 make or incur any capital
expenditures in excess of $500,000 individually or $1,000,000 in the aggregate, or, in either case,
enter into any binding commitment or contract to make such
expenditures;

           

          (xi)            waive or release any material right or
claim, or settle or compromise any pending or threatened suit, action or claim
relating to this Agreement
and the transactions contemplated hereby;

           

          (xii)           except for intercompany payments in the
ordinary course of business
made on or prior to the Financial Closing Date, pay, loan or advance any amount to, or
sell, transfer or lease any of their assets to, or enter into any agreement or
arrangement with the Seller or any of its Affiliates (other than the Company and
its Subsidiary);

           

          
            
               

            

            
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          (xiii)          
enter into or amend, modify,
supplement, terminate, assign or waive any Seller Significant
Contract or any Contract
under which funds have been
or would be advanced by the Company by way of a prepayment of
commissions, or enter into
any agreement that, if existing on the date of this Agreement, would be a Seller
Significant Contract, except as required by Requirements of Law; provided that this clause (xiii)
shall not (A) apply to Contracts of the type contemplated by Sections
5.11(d)(i), (f), (h) and (k) (but only to the extent that they relate
to additional forward purchases by existing portfolio customers in the ordinary course of business consistent with past
practice); or (B) prohibit the Company from
entering into any Contract of the type contemplated by Section 5.11(i) so long
as no monetary advances or prepaid fees are paid to the counterparty in
connection therewith;

           

          (xiv)          modify, amend, terminate or permit the
lapse of, in any material manner, any lease of, operating agreement or other
agreement relating to any real property material to the business of the Company
and its Subsidiary (except for the lapse or termination of any lease or agreement in
accordance with its terms in effect as of the date hereof);

           

          (xv)           permit any of their assets to become
subjected to any Encumbrance, other than Permitted Encumbrances, those
Encumbrances disclosed in ‎Section 5.09 of the Seller's Disclosure Letter, or those
Encumbrances existing prior to the date of this Agreement that is removed at or
prior to Closing or except as required by Requirements of
Law;

           

          (xvi)          sell, lease, license, mortgage or
otherwise dispose of any of their properties or assets which are material,
individually or in the aggregate, to the Company and its Subsidiary taken as a
whole;

           

          (xvii)         (A) incur or assume any liabilities,
obligations or indebtedness for borrowed money or guarantee any such
liabilities, obligations or
indebtedness that would otherwise remain outstanding following the Closing;
provided that the Company or its Subsidiary may incur, assume or guarantee any
long-term indebtedness for the purchase of fixed assets in an amount not in
excess of $100,000, or (B) make any loans, advances or
capital contributions to, or investments in, any other Person, other than to the
Company or its Subsidiary;

           

          (xviii)        fail to comply, in any material respect,
with the Risk Management Policy;

           

          (xix)         
(A) make or rescind any express or deemed election relating
to Taxes other than as mandated by law, (B) make a request for a Tax ruling,
enter into any agreement with a Governmental Body with respect to Tax matters or
provide a power of attorney regarding Tax matters, (C) settle or

           

          
            
               

            

            
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          compromise any Tax claim, controversy,
audit, litigation, proceeding, case, suit, or other controversy relating to
Taxes, to the extent the amount of such settlement is equal to or greater
than $100,000, (D) file any amendments to any
previously filed Tax
Returns, or (E) except as mandated by law, change any of its methods of
reporting income or deductions for Tax purposes from those employed in the
preparation of the most recently filed Tax Return that has been previously
delivered to the Purchaser on which such item of income or
deduction was previously reported, in each case, to the extent the actions
described in clauses (A) – (E) above could adversely affect the
Company or the Purchaser (or any Affiliates thereof) in any material respect
after the Closing Date;

           

          (xx)           take any action that would result in the
issuance of, or increase in the amount outstanding under, any Letters of Credit
(defined in Section 6.11(a)) or Guarantees (defined in Section 6.11(b)), in an
aggregate amount in excess of $1,000,000 other than in the ordinary
course of business; or

           

          (xxi)          commit or agree in writing or otherwise
to do any act restricted by this Section 6.01(a).

           

          (b)         Other than the right to consent or
withhold consent with respect to the foregoing matters, nothing contained herein shall give the
Purchaser any right to manage, control, direct or be involved in the management
of the Company, its Subsidiary or their business operations prior to the
Closing.

           

          (c)         During the Pre-Closing Period, (A) each
of the Seller and the
Purchaser shall promptly notify the other in writing after learning of any
event, condition, fact or circumstance that would make the timely satisfaction
of any of the conditions set forth in Article VII impossible or unlikely; and
(B) the Seller shall promptly notify the Purchaser in
writing after learning of any event, condition, fact or circumstance that would
cause any of the representations and warranties in Article V to be inaccurate or
would have a Material Adverse Effect.  Without limiting
the generality of the foregoing, each of
the Seller and the Purchaser shall promptly advise the other in writing of any
material Legal Proceeding or material claim threatened in writing, commenced or
asserted against or with respect to any of the Company, the Company's Subsidiary, the Purchaser or the
transactions contemplated herein.  No notification given to the
Purchaser or the Seller pursuant to this ‎Section 6.01(c) shall limit or otherwise
affect any of the representations, warranties, covenants or obligations of the Seller or the Purchaser,
respectively, contained in this Agreement.

           

          Section 6.02     Access and
Investigation.  During the Pre-Closing
Period, subject to applicable confidentiality protections and consistent with
Requirements of Law, the Seller shall (and shall cause the Company and
its Subsidiary to):  (a) provide the Purchaser and the
Purchaser's representatives with reasonable access
during normal business hours, upon reasonable notice to the General Counsel of
the Seller (which, unless
contrary notice is provided to the Purchaser,
shall be deemed to be the General Counsel of Parent), to the Company's and its

           

          
            
               

            

            
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          Subsidiary's assets and to all existing books,
records, Tax Returns, work papers and other documents and information relating
to the Company and its
Subsidiary, whether held by the Company, its Subsidiary, the Seller or the
Parent; and (b) provide or make available to the Purchaser and the
Purchaser's representatives such copies of the
existing books, records, Tax Returns, work papers and other documents and information
relating to the Company and its Subsidiary, whether held by the Company, its
Subsidiary, the Seller or the Parent, as the Purchaser may reasonably
request.  In addition, during the Pre-Closing Period, subject to
applicable confidentiality protections and
consistent with Requirements of Law, the Seller shall (and shall cause the
Company and its Subsidiary to) assist Purchaser in gaining a greater
understanding of its operations to facilitate a transition to integrated
management with the Purchaser's operations post Closing, including by
providing (w) ongoing updates with respect to the Company's commodity positions from and after
January 1, 2008 as a result of putting in place incremental retail and wholesale
Contracts; (x) reasonable
access to the Company's supply personnel, operational data and
pricing models; (y) risk reports, prepared on a daily and monthly basis, showing
the Company's net open position and daily profit and
loss change; and (z) monthly financial statements prepared on a basis consistent with the
Company's historical
practices.  Without limiting the generality of any of the foregoing,
during the Pre-Closing Period and subject to applicable confidentiality
protections and consistent with Requirements of Law, the Seller and the Purchaser shall
promptly provide the other party with copies of any notice, report or other
document filed with or sent to any Governmental Body on behalf of the Seller or
the Purchaser, as applicable, in connection with the transactions contemplated herein.  The
foregoing shall not require the Seller to permit any inspection, or to disclose
any information, that could reasonably be expected to result in (i) the
disclosure of any trade secrets of third parties or the violation of any
obligations of the Seller, the Company or the
Company's Subsidiary with respect to
confidentiality if the Seller shall have used reasonable efforts to obtain the
consent of such third party to such inspection or disclosure; (ii) the waiver of
any applicable attorney-client or work product privilege
so long as the Seller has taken reasonable steps to permit inspection of or to
disclose information described in this clause (ii) on a basis that does not
compromise the Seller's, the Company's or the Company's Subsidiary's privilege with respect thereto; or
(iii) the violation of any applicable Requirements of Law.  The
parties shall seek in good faith appropriate substitute disclosure arrangements
under circumstances in which the immediately preceding sentence
applies.  No
investigation by the Purchaser shall limit or otherwise affect any of the
representations, warranties, covenants or obligations of the Seller contained in
this Agreement.

           

          Section 6.03     No
Solicitation.  None of the Seller, the
Company or the Company's Subsidiary will, and each will ensure
that its respective representatives do not, directly or indirectly, solicit,
initiate, encourage (including by way of furnishing information or assistance)
or take any other action to facilitate, any submission of inquiries, proposals or offers from any
Person (other than the Purchaser or its representatives) relating to, and will
not participate in (other than with the Purchaser or its representatives) any
negotiations regarding, or furnish to any Person (other than the Purchaser or its representatives)
any information with respect to, or otherwise cooperate in any way with, or
assist or participate in, facilitate or encourage, any effort or attempt with
respect to any sale, disposition, lease or other transfer, directly or indirectly, of the Company or its
Subsidiary (except (i) for the transactions contemplated by this Agreement and
(ii) with respect to routine sales of assets in the ordinary

           

          
            
               

            

            
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          course of business consistent with past
practice) (an "Acquisition
Transaction").  If any such inquiries,
proposals or offers for an Acquisition Transaction are received by the Seller,
the Seller shall promptly inform the Purchaser in writing of all relevant details with respect to the
foregoing.

           

          Section 6.04     Confidentiality;
Disclosure.

           

          (a)         The parties hereto acknowledge that the
Purchaser and the Parent have previously entered into a confidentiality
agreement, dated as of November 30, 2007, as amended (the "Confidentiality
Agreement"), which shall continue in full force
and effect in accordance with its terms.

           

          (b)         After the date hereof, neither the
Seller, the Parent nor the Company shall, and, until Closing, the
Seller shall not permit the Company nor its Subsidiary to terminate, amend,
modify or waive any provision of any confidentiality or standstill agreement in
respect of the Company and its Subsidiary to which it is a party.  After the date hereof,
the Parent and the Company, jointly and severally, shall enforce to the fullest
extent permitted under applicable law, the provisions of any such agreement,
including without limitation, by taking reasonable steps to enforce
specifically the terms and provisions
thereof in any court having jurisdiction.  Immediately following the
date of execution of this Agreement, the Parent shall request that any Person in
receipt of confidential information shall either (i) promptly
redeliver to the Parent all such confidential
information (including but not limited to written and computer files) and any
other material containing or reflecting, or generated from, any information in
such confidential information (whether prepared by such Person, its representatives or otherwise) or
(ii) destroy all such confidential information (including but not limited to
written and computer files) and any other material containing or reflecting, or
generated from, any information in such confidential information (whether prepared by such Person,
its representatives or otherwise) and certify in writing to the Parent by an
authorized officer of such Person supervising such destruction as to such
destruction, in each case, to the extent provided for in the confidentiality or standstill
agreement.

           

          Section 6.05     Expenses.  All fees and expenses
incurred in connection with this Agreement and the transactions contemplated
herein shall be paid (or caused to be paid) by the party incurring such
expenses, whether or not such transactions are
consummated.

           

          Section 6.06     Regulatory
Approvals and Related Matters.

           

          (a)         In addition to and without limitation on
the other provisions of this ‎Section 6.06, each party shall use
reasonable best efforts to prepare and file, as promptly as practicable after
the date of this Agreement, all necessary notices, reports and other documents
required to be filed by such party with any Governmental Body with respect to the transactions
contemplated herein.  Without limiting the generality of the
foregoing, the parties shall, as promptly as practicable after the date of this
Agreement:

           

          (i)           prepare and file the notifications
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended (the "HSR
Act"),

           

          
            
               

            

            
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          and any other Antitrust Laws (as defined
in this ‎Section 6.06(a)).  The parties
shall use reasonable best efforts to respond as promptly as practicable
to:  (i) any inquiries or requests (including any "second request" for information) received from the
Federal Trade Commission or the U.S. Department of Justice ("FTC/DOJ"), or any other Governmental Body for
additional information or documentation; and (ii) any inquiries or requests
received from any state attorney general or other Governmental Body in
connection with antitrust
or related matters.  For purposes of this Agreement, "Antitrust
Law" shall mean the HSR Act and any other
Requirements of Law that are designed to prohibit, restrict or regulate actions having the purpose or effect
of monopolization or restraint of trade;

           

          (ii)         
  prepare and file an
application for the approval by the Federal Energy Regulatory Commission under
Section 203 of the Federal Power Act (the "FERC
Approval");

           

          (iii)          
 prepare and file a joint
voluntary notice in respect of the transactions contemplated hereby under
Exon-Florio; and

           

          (iv)         
  prepare and file
applications for all other regulatory approvals listed on ‎Section 6.06(a) of the
Seller's Disclosure Letter.

           

          (b)         The parties each shall promptly supply
each other with any information that may be required in order to effectuate any
filings or applications pursuant to ‎Section 6.06(a).  Except where
prohibited by applicable
Requirements of Law, and subject to the Confidentiality Agreement, each party
shall consult with the other parties prior to taking a position with respect to
any such filing, shall permit the other to review and discuss in advance, and
consider in good faith the views of the other in
connection with, any analyses, appearances, presentations, memoranda, briefs,
white papers, arguments, opinions and proposals before making or submitting any
of the foregoing to any Governmental Body by or on behalf of any party hereto in connection with
any investigations or proceedings in connection with this Agreement or the
transactions contemplated herein, coordinate with the other parties in preparing
and exchanging such information and promptly provide the other parties (and their counsel) with
copies of all filings, presentations or submissions (and a summary of any oral
presentations) made by such party with any Governmental Body in connection with
this Agreement or the transactions contemplated herein; provided that with respect to any such filing,
presentation or submission, each party need not supply the other parties (or
their counsel) with copies (or, in case of oral presentations, a summary) to the
extent that any Requirements of Law applicable to such party requires such party or its
Affiliates to restrict or prohibit access to any such properties or information
or to the extent required by any existing confidentiality or non-disclosure
agreement.  None of the parties shall independently participate in
any meeting, or engage in any substantive
conversation, with any Governmental Body in respect of any such filings,
investigation or other inquiry without previously informing each other party of
the meeting and, to the extent permitted by such Governmental Body, the opportunity to attend and/or
participate.

           

          
            
               

            

            
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          (c)         Each party will inform the other parties
promptly upon the receipt of:  (x) any comments from any officials of
any Governmental Body in connection with any filings made pursuant hereto, and
(y) any request by any
officials of any Governmental Body for amendments or supplements to any filings
made pursuant to, or information provided to comply in all material respects
with, any applicable Requirements of Law.  Whenever any event occurs
that is required to be set forth in an amendment or
supplement to any filing made pursuant to ‎Section 6.06(a), each party will
promptly inform the other parties of such occurrence and cooperate in filing
with the applicable Governmental Body such amendment or
supplement.

           

          (d)         Each party shall use reasonable best
efforts to take, or cause to be taken, all appropriate actions, do or cause
to be done all things necessary, proper or advisable, and execute and deliver
such documents and other papers, as may be required to carry out the provisions
of this Agreement, to satisfy the conditions to Closing and to consummate and make effective the
transactions contemplated herein and, without limiting the generality of the
foregoing, each party:  (i) shall prepare and make all filings (if
any) and give all notices (if any) required to be made, pre- or post-
Closing, whether triggered by actions of
the Purchaser or otherwise, and given by such party in connection with the
transactions contemplated herein; and (ii) shall use reasonable best efforts to
obtain each consent, clearance or approval (if any) required to be obtained (pursuant to any applicable
Requirements of Law or Contract, or otherwise) by such party in connection with
the transactions contemplated herein, including, but not limited
to:  (A) entering into negotiations with any applicable Governmental
Body; (B) providing information required
by law or governmental regulation; and (C) substantially complying with any
"second request" or other requests for information
pursuant to Antitrust Law.

           

          (e)         The Purchaser and Seller shall cooperate
with each other and use
their respective reasonable best efforts or cause their respective Affiliates to
use reasonable best efforts, with the other's cooperation, to negotiate and obtain
all waivers, permits, consents or sublicenses from any Person (other than from a
Governmental Body) and
provide any notices necessary or appropriate to consummate the transactions
contemplated herein (each, a "Third Party
Consent").  If the parties are unable
to obtain any such Third
Party Consent prior to the Closing, the Seller and the Purchaser shall continue
to use their reasonable best efforts and cause their respective Affiliates to
use their respective reasonable best efforts in cooperation with the other party
(i) to obtain such Third Party Consent or (ii)
cooperate in any arrangement acceptable to the Purchaser that is reasonable,
lawful and designed to provide such benefits to the Purchaser (including, but
not limited to the acquisition of a commercially reasonable substitute contract for any Contract that
has not been transferred with or to the Company).  Following the Closing, the
costs of obtaining any Third Party Consents that the parties were unable to
obtain prior to the Closing will be equally split between the Seller and the
Purchaser.

           

          (f)         Notwithstanding anything to the contrary
contained in this ‎Section 6.06 or elsewhere in this
Agreement, if any administrative or judicial action or proceeding is instituted
(or threatened to be instituted) challenging any transaction contemplated by this Agreement as
violative of any Antitrust Law, the parties shall use their reasonable best
efforts to:  (i) contest, resist or resolve any such proceeding or
action; and (ii) to have vacated, lifted, reversed or overturned any
injunction resulting from such proceeding
or action;  provided, however, that neither party shall be required to
enter into any divestiture agreement to comply with its

           

          
            
               

            

            
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          obligations hereunder, to the extent
that any divestiture is reasonably likely to have a Material Adverse Effect on the Business
or a material adverse effect on the business of the Purchaser and its
Affiliates.

           

          Section 6.07   
 Registered
Agent.  The
Purchaser has appointed CT Corporation System as its registered agent for
service of process on such
Person in the State of Delaware.

           

          Section 6.08     Employees.

           

          (a)         No later than the tenth business day
prior to the Closing (as estimated in good faith by the Purchaser), the
Purchaser shall identify in writing to the Seller which of the Company employees
listed on Section 6.08(a)
of the Seller's Disclosure Letter (the "Senior
Employees") it does not wish to employ following
Closing (the Senior Employees so identified, the "Terminating
Employees").  In addition, no later than
the tenth business day prior to the Closing (as estimated in good faith by the
Purchaser), the Purchaser shall identify in writing to the Seller which of the
Senior Employees it wishes
to employ for a limited
transition period (up to 180-days) immediately following Closing
(the Senior Employees so identified, the "Transition
Employees" and, together with the Terminating Employees, the
"Specified
Employees").

           

          (b)         Effective immediately prior to the
Closing, the Seller shall cause the Company to terminate the employment by the
Company of each Terminating
Employee.  In connection therewith, the Seller shall cause the Company
to pay to each such Terminating  Employee all amounts due to such
Terminating Employee pursuant to any change in control or employment agreements
between the Company and the Terminating Employee and any Company
Benefit Plan in which the Terminating Employee participates (including all
amounts that have become due or will become due under any such Company Benefit
Plan as a result of the pending Closing) ("Terminating
Employee Payments") and shall use its reasonable best
efforts, and shall cause the Company to use its reasonable best efforts, to
obtain (but without having
to pay any increased consideration) a full and final release of any and all
current and future claims of each such Terminating Employee against the Company
or any of its Affiliates (a "Release") in a form reasonably acceptable to the
Purchaser.  Effective no later than
180 days following the Closing, the
Purchaser shall cause the Company to terminate the employment by the Company of
each Transition Employee
and the Purchaser shall notify the Seller in writing
when such
terminations occur.  In connection therewith, the Purchaser
shall cause the Company to pay to each such Transition Employee all amounts due
to such Transition Employee pursuant to any change in control or employment
agreements between the Company and the Transition Employee as in effect immediately prior to the Closing
and any Company Benefit Plan in which the Transition Employee participates
immediately prior to Closing that have not otherwise been paid at Closing pursuant to Section 6.08(e) of this Agreement ("Transition
Employee
Payments" and, together with the Terminating
Employee Payments, the "Termination
Payments") and shall use its reasonable best efforts, and shall cause the
Company to use its reasonable best efforts, to obtain (but without having to pay any increased
consideration) a
Release from each such
Transition Employee in a
form reasonably acceptable to the Seller.

           

          (c)         Immediately following Closing, each Employee (other
than the Specified Employees) (the "Continuing
Employees") shall continue to be employed by the
Company.

           

          
            
               

            

            
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          Each Continuing Employee shall be given
credit for all purposes for
such person's service with the Company (or any other
employer to the extent credited by the Company) to the same extent recognized
under the Company Benefit Plans prior to the Closing Date for all purposes under
any employee benefit plans,
programs, policies or arrangements maintained by the Purchaser or its affiliates
("Purchaser
Benefit Plans") in which Continuing Employees
participate following the Closing Date, except to the extent that giving such service
credit would result in the duplication of benefits for the same
period.  The Purchaser shall, and shall cause its Affiliates to, (i)
waive all limitations as to preexisting conditions, exclusions and waiting
periods and service requirements with respect
to participation and coverage requirements applicable to the Continuing
Employees under any Purchaser Benefit Plan, other than limitations, waiting
periods or service requirements that are already in effect with respect to such persons and that have not
been satisfied as of the Closing under any Company Benefit Plan immediately
prior to the Closing and (ii) provide each Continuing Employee with credit for
any co-payments and deductibles paid prior to the Closing for the calendar year in which the Closing
occurs in satisfying any applicable deductible or out-of-pocket requirements
under any analogous Purchaser Benefit Plan.

           

          (d)         Notwithstanding anything to the contrary
in this Agreement, the Purchaser shall or shall cause the Company to provide each Continuing Employee (other than Senior Employees) whose employment terminates in a manner
entitling such Continuing Employee to severance benefits during the two year
period following the Closing with severance benefits at levels comparable to the terms of the
Company's severance plan applicable to such
Continuing Employee immediately prior to the Closing.

           

          (e)         Effective immediately preceding the
Closing, (i) the Seller shall cause the Company to terminate all of the Company
Benefit Plans sponsored by
the Company, other than (A) the Company Benefit Plans listed on Section
6.08(e)(i) of the
Seller's Disclosure Letter, and (B) unless otherwise agreed to by
the applicable Senior Employee, any change in control or employment
agreements between the
Company and any of the Transition Employees or Continuing Employees (together
with the plans listed on Section 6.08(e)(i) of the Seller's Disclosure Letter, the "Continuing
Plans"), and (ii) the Seller shall, or shall
cause the Company to accelerate the vesting of any outstanding awards or
benefits under the Company Benefit Plans (or portions thereof) listed on Section 6.08(e)(ii) of the
Seller's Disclosure Letter (the "Accelerated
Plans").  Immediately prior to
Closing, the Seller or its Affiliates shall, or shall cause the Company, to pay
all accelerated amounts and any other amounts then otherwise
payable under the
Accelerated Plans
(including all amounts that have become
due or will become due thereunder as a result of the Closing disregarding any Specified Employee's termination of
employment prior to the
Closing in accordance with
the provisions of Section 6.08(a)) ("Company Plan
Payments") to the extent such payment does not
result in an accelerated or additional tax under Section 409A of the Internal
Revenue Code.  To the extent any Company Plan Payment is not paid immediately prior to the
Closing, the Purchaser shall cause the Company to pay any such payments in accordance with the
terms of the applicable Company Benefit Plan (without regard to any forfeiture
provisions contained in the applicable Company Benefit Plan).

           

          
            
               

            

            
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          (f)         The Purchaser agrees to cause the Company
to assume and honor the obligations under the Parent Nonqualified Deferred Compensation Plan
with respect to any Senior Employee who continues employment with the Company as
of Closing pursuant to the
terms set forth in such plan and any existing election made by the Senior Employee in
accordance with the plan
(including, without limitation, existing elections relating to compensation
earned after the Closing).  The Purchaser shall
indemnify, defend and hold
harmless the Seller and its Affiliates from and against, and pay or reimburse
the Seller and its Affiliates for, any and all Losses relating to or arising
from any failure by the Company to honor its obligations set forth in this
Section 6.08(f) of the
Agreement.  Notwithstanding anything to the contrary, nothing
contained herein shall obligate the Purchaser or the Company to provide the
Continuing Employees or the Transition Employees the opportunity to make
additional deferral elections after the Closing.

           

          (g)         Prior to Closing, the Seller or its
Affiliates (other than the Company's Subsidiary) shall contribute to the
Company funds in an amount equal to the sum of (i) the aggregate amount of all Company Plan
Payments and all Termination Payments (without duplication), (ii) the amount accrued as of the Closing
Date on the financial statements of the Company in respect of the Parent Nonqualified Deferred
Compensation Plan, (iii) except as set forth in Section 6.08(g)
of the Seller's Disclosure Letter, amounts accrued, payable or that will become payable
as a result of the
transactions contemplated by this Agreement under any Company Benefit Plan
that relates to bonuses, incentive compensation or
deferred compensation (other than any Continuing Plan
and without duplication of amounts to be contributed under
Subsections (i) and (ii) above) and (iv) amounts payable by
the Company, if any,
pursuant to Section
6.01(a)(i) of the Seller's Disclosure Letter (collectively, the "Contributed
Funds"), in each case regardless of whether such payments are
to be made prior to or following Closing; provided, however, that contributions
in respect of amounts payable after Closing shall be made on an after-tax basis and, provided further, that
contributions in respect of Transition Employees shall not exceed amounts that
would have been contributed had such employee been designated as a Terminating
Employee.

           

          (h)         Except as provided in Section 6.08(a)
with respect to Transition
Employees, for a period of two years following the Closing Date, neither the
Purchaser, the Company, nor any of their respective Affiliates shall employ any
of the Specified Employees unless (i) the Purchaser or one of its
Affiliates notifies the
Seller when it intends to employ any Specified Employee and (ii) the Purchaser or one of its Affiliates
reimburses the Seller for any Termination Payments contributed to the Company by
the Seller in respect of such Specified Employee that would not have been paid to such Specified
Employee absent the employee's identification as a Specified
Employee.  The Seller shall be responsible for
providing or discharging any and all notifications, benefits and liabilities to
employees and governmental authorities required by the Worker Adjustment
and Retraining Notification Act of 1988 or any similar applicable state or
local law requiring notice to employees in the event of a closing or
layoff (the "WARN
Act") before the Closing.

           

          (i)         With effect from the Closing, the Seller
shall indemnify, defend and hold harmless the Purchaser and its Affiliates
(including the Company) from and against, and pay or reimburse the Purchaser and
such Affiliates for, any and all Losses as incurred (including
Losses

           

          
            
               

            

            
              37

              
                

              

            

            
               

            

          

          incurred indirectly by the Purchaser and
such Affiliates resulting from the failure of the Seller or its Affiliates to
contribute all or any of the Contributed Funds to the Company as required by
this Agreement) relating to
or arising from any Company Benefit Plan pursuant to which a Termination Payment
or a Company Plan Payment was required, to the extent that there are not
Contributed Funds (as
increased to reflect any tax benefits to be received by the
Purchaser) made available at the Closing to satisfy
the obligations relating to such Losses.  In addition, the Seller shall indemnify,
defend, and hold harmless the Purchaser and its Affiliates (including the
Company) from and against, and pay or reimburse the Purchaser and such Affiliates for, any and
all Losses as incurred relating to or arising from claims set forth on Section 6.08(i) of the Seller's
Disclosure Letter.

           

          (j)         With effect from the Closing, the
Purchaser shall indemnify, defend and hold harmless the Seller and its Affiliates from and
against, and pay or reimburse the Seller and its Affiliates for, any and all
Losses as incurred relating to or arising from the failure of the Purchaser to
cause the Company to use the Contributed Funds (as increased to reflect any tax benefits to be received by
the Purchaser) to satisfy
the Company's obligations under any Company Benefit
Plan pursuant to which a Termination Payment or a Company Plan Payment was
required or relating to or arising from any failure by the Company to honor its obligations under the
Continuing Plans.

           

          (k)         Nothing contained in this Agreement
shall give any third Person any right to enforce the provisions of this Section
6.08 or be construed as an amendment of any employee benefit
plan.

           

          Section 6.09   
 Termination
of Certain Agreements

           

          .  Except
as set forth on ‎Section
6.09 of the Seller's Disclosure Letter or in Section 6.08(e) of this Agreement,
all agreements between the Seller or any Affiliate of the Seller (other than the
Company and its Subsidiary), on the one hand, and the Company or the Subsidiary,
on the other hand, shall be terminated as of the Closing, and all obligations
and liabilities thereunder shall be satisfied on the Closing in accordance with
the terms of such agreements, other than any agreements relating to the
indemnification of current directors, managers, members and/or officers of the
Company or its Subsidiary; provided that the Company shall not pay amounts in
excess of $100,000 in the aggregate in connection with the termination of such
agreements and shall not write off any material assets in connection with the
terms of such agreements.

           

          Section 6.10   
 Risk
Management.

           

          (a)         During the Pre-Closing Period, the
Company will in all material respects continue to follow the Risk Management
Policy in respect of Seller Significant Contracts and any new Seller Significant Contracts
entered into after the date hereof.  In addition, the Company shall
use its reasonable efforts to keep the Purchaser apprised regarding material
developments with respect to a Seller Significant Contract that is subject
to the Risk Management Policy and
generally in respect of significant activities subject to the Risk Management
Policy; provided, however, that notwithstanding anything contained herein to the
contrary, the Purchaser shall not be entitled to direct or manage any decisions or activities of the
Company.

           

          
            
               

            

            
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          (b)         During the Pre-Closing Period, the
Company and its Subsidiary will use commercially reasonable efforts to maintain
in effect insurance policies for the benefit of the Company and its Subsidiary
consistent with those in
effect on the date hereof; provided that the Company and the Seller shall use
their commercially reasonable efforts in renewing any such policies to do so on
terms that will result in the Company receiving a reimbursement of its premium
attributable to any post-Closing period
following the termination of such policy.

           

          Section 6.11     Release of
Letters of Credit and Guarantees.

           

          (a)         Prior to the Closing, the Purchaser
shall obtain and deliver to the beneficiary of each Letter of Credit (as defined
in this ‎Section 6.11(a)) listed on Section
6.11(a) of the Seller's Disclosure Letter (as amended in
accordance with Section 6.11(c) below) a substitute letter of credit or other
form of security acceptable to the beneficiary to replace in all respects
such Letter of Credit, with
each substitute letter of credit (or other security) having a face amount of at
least the remaining amount under the Letter of Credit that it is intended to
replace.  Prior to the Closing, and subject to the terms set forth in
‎Section 6.11(d), the Purchaser shall use its
commercially reasonable efforts to obtain from the beneficiary of each Letter of
Credit listed on Section 6.11(a) of the Seller's Disclosure Letter and deliver to the
Seller a full and unconditional release of all of the obligations of the Seller and its
applicable Affiliates (other than the Company or its Subsidiary) with respect to
such Letter of Credit (which release shall be reasonably acceptable to the
Seller and may take the form of a return to the Seller of each such Letter of Credit marked
cancelled).  In the event the Purchaser has not, as of the Closing,
obtained and delivered releases with respect to each of the Letters of Credit
listed on Section 6.11(a) of the Seller's Disclosure Letter in accordance
with the preceding
sentence, (1) the Purchaser shall, subject to the terms set forth in
‎Section 6.11(d), use commercially
reasonable efforts to do so following the Closing and shall indemnify and hold
harmless each of the Seller and its Affiliates (other than the Company and its
Subsidiary) from and against any and all Losses incurred by the Seller or any of its Affiliates arising
out of or relating to such Letter(s) of Credit; (2) the Purchaser shall not
permit any of the Company or its Subsidiary or their Affiliates to (x) renew or
extend the term of, (y) increase the obligations under, or (z) transfer to another third party, any
written or oral contract, loan, agreement, commitment, franchise, indenture,
lease, purchase order, license, other binding understanding or arrangement or
other obligation for which the Seller or any of its Affiliates is or would reasonably be expected to
be liable under such Letters of Credit; and (3) Purchaser shall pay the Seller,
quarterly, a fee, consistent with current practice, of 0.475% of the principal
amount of the Letters of Credit outstanding from time to time.  Nothing contained
herein shall require the Seller to renew any Letter of Credit following the
Closing whether pursuant to an evergreen provision or otherwise. For the
purposes of this Agreement, "Letters of
Credit" shall mean, collectively, all letters
of credit issued in connection with the Business for which the Seller or any of
its Affiliates (other than the Company and its Subsidiary) is an
applicant.  The Letters of Credit, to the extent existing as of the date hereof, are
set forth in ‎Section 6.11(a) of the
Seller's Disclosure Letter.

           

          (b)         Prior to the Closing, the Purchaser
shall obtain and deliver to each beneficiary of a Guarantee (as defined in this
‎Section 6.11(b)) listed on Section
6.11(b) of the Seller's Disclosure Letter a substitute guarantee or other form of
security acceptable to the beneficiary to replace in all respects such Guarantee
(provided that the Purchaser shall not be

           

          
            
               

            

            
              39

              
                

              

            

            
               

            

          

          required to issue (or have issued on its
behalf) any performance guarantees), with each substitute guarantee (or other security) having
terms and conditions substantially similar to those contained in the Guarantee
that it is intended to replace.  Prior to the Closing, and subject to
the terms set forth in ‎Section 6.11(d), the Purchaser shall use
its commercially reasonable efforts to obtain from the beneficiary of each
Guarantee listed on Section 6.11(b) of the Seller's Disclosure Letter and deliver to the
Seller a full and unconditional release of all of the obligations of the Seller and its
applicable Affiliates (other than the Company or its Subsidiary) with respect to
such Guarantee (which release shall be reasonably acceptable to the
Seller).  In the event the Purchaser has not, as of the Closing,
delivered releases with respect to each of
the Guarantees listed on Section 6.11(b) of the Seller's Disclosure Letter in accordance with
the preceding sentence, (1) the Purchaser shall, subject to the terms set forth
in ‎Section 6.11(d), use commercially
reasonable efforts to do so following the Closing and, in any event, shall
indemnify and hold harmless each of the Seller and its
Affiliates  (other than the Company or its Subsidiary) from and
against any and all Losses incurred by the Seller or any of its
Affiliates arising out of or relating to such Guarantees, (2) the Purchaser
shall not permit any of the Company or its Subsidiary or their Affiliates to (x)
renew or extend the term of, (y) increase the obligations under, or (z) transfer to another third
party, any written or oral contract, loan, agreement, commitment, franchise,
indenture, lease, purchase order, license, other binding understanding or
arrangement or other obligation for which the Seller or any of its Affiliates is or would reasonably be
expected to be liable under such Guarantees, and (3) Purchaser shall pay the
Seller, quarterly, a fee, consistent with current practice, of 0.10% of the
amount of the obligations guaranteed.  To the extent that the
Seller or any of its Affiliates has
performance obligations under any Guarantee, the Purchaser shall use its
commercially reasonable efforts to (i) perform such obligations on behalf of the
Seller or its Affiliates if practicable, or (ii) otherwise take such
action as reasonably requested by the
Seller so as to put the Seller or its Affiliates in the same position as if the
Purchaser, and not the Seller or such Affiliates, had performed or was
performing such obligations.  For the purposes of this Agreement,
"Guarantees" shall mean, collectively, those
indemnities, performance bonds, surety bonds, performance guaranties, other
guaranty obligations, keepwells, net worth maintenance agreements, reimbursement
obligations, letters of
comfort and other similar arrangements to which the Seller or any of its
Affiliates (other than the Company and its Subsidiary) is a party or by which
any of them are bound in favor of, or for the benefit of, any of the Company or
its Subsidiary or the Business (other than
the Letters of Credit).  All Guarantees, to the extent existing as of
the date hereof, are set forth in ‎Section 6.11(b) of the
Seller's Disclosure Letter.

           

          (c)         The Seller agrees that, with respect to
Sections 6.11(a) and 6.11(b) of the Seller's Disclosure Letter, the Seller shall
have the continuing obligation until the Closing to supplement or amend
promptly such sections of
the Seller's Disclosure Letter with respect to any
Letters of Credit or Guarantees, as the case may be, which, if existing at the
date of this Agreement, would have been required to be set forth in Section
6.11(a) or 6.11(b), respectively, and to provide such supplements or
amendments to the Purchaser once per week.

           

          (d)         Notwithstanding anything contained in
this Agreement (including this ‎Section 6.11) to the contrary, in no
event shall the Purchaser be required to cause the Company or any Subsidiary
thereof to amend, modify or supplement the terms and conditions set forth in any
written or oral contract, agreement, commitment, franchise, indenture, lease, purchase
order,

           

          
            
               

            

            
              40

              
                

              

            

            
               

            

          

          license or other binding understanding
or arrangement that relates to any Letter of Credit or any
Guarantee.  Except as expressly set
forth in this Agreement, and notwithstanding anything contained in this
Agreement (including this
‎Section 6.11) to the contrary, none of
the Purchaser, the Seller, the Company or any of their respective Affiliates
shall be obligated to make any payments or otherwise pay any consideration to
any third party to obtain any applicable consent, waiver or approval.

           

          Section 6.12     Allocation
of Consideration.

           

          (a)         Within 45 business days after the
Closing Date, the Purchaser shall propose to the Seller an allocation of the
Purchase Price, including liabilities of the Company required to be taken into
account for United States
federal income tax purposes (together, the "Consideration"), among the assets of the Company
pursuant to Section 1060 of the Code (the "Preliminary
Allocation").  Within 20 business days
following the receipt of the Preliminary Allocation, the Seller shall provide to
the Purchaser either (i) a written notice evidencing the Purchaser's consent to the Preliminary
Allocation or (ii) a
written notice objecting to the Preliminary Allocation, such notice to contain
an explanation of the reasons for the Seller's objections.  Within 5
business days following receipt of the Seller's objections, if any, to the Preliminary
Allocation (the
"Allocation
Resolution Period"), the Seller and the Purchaser shall
negotiate in good faith to resolve any differences regarding the Preliminary
Allocation (as so resolved, the "Final
Allocation") for a period of 30 days after the
receipt of the Seller's objections.

           

          (b)         If the Seller and the Purchaser are
unable to resolve any differences with regard to the allocation of the Consideration with the Allocation
Resolution Period, then any disputed matters shall be finally and conclusively
determined in accordance with Section 1060 of the Code by an independent
nationally-recognized accounting firm (the "Independent
Accounting
Firm") chosen by the Seller and the
Purchaser.  Promptly, but not later than 15 business days after its
acceptance of appointment hereunder, the Independent Accounting Firm shall
determine only those
matters in dispute and shall render a written report as to the disputed matters
and the resulting allocation of the Consideration, and such report of the
Independent Accounting Firm shall be final, conclusive and binding upon the
Seller and the Purchaser and deemed to be the
Final Allocation.  The Independent Accounting Firm's fees and expenses incurred pursuant to
this Section 6.12(b) shall be borne equally by the Seller and the
Purchaser.

           

          (c)         The Purchaser and the Company shall (A)
be bound by the Final
Allocation for all income Tax purposes, (B) timely file all forms and Tax
Returns required to be filed in connection with the Final Allocation (including
IRS Form 8594 and any other forms or reports required to be filed pursuant to
Section 1060 of the Code or any comparable
Requirements of Law (the "Section 1060
Forms")), (C) prepare and file all Section
1060 Forms and Tax Returns in a manner consistent with the Final Allocation
and (D) take no position
inconsistent with the Final Allocation in any Section 1060 Form or Tax Return,
any audit or examination by, or any proceeding before, any taxing authority or
otherwise.

           

          Section 6.13     Repayment of
Certain Indebtedness and Related Letters of
Credit.  On or
before Closing, the Seller shall cause the Revolver Facility (as defined in this
Section 6.13(a)) to be repaid, satisfied and discharged in full and any and all
security interests related

           

          
            
               

            

            
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          thereto
to be released.  With regard to the Receivables Facility (as defined
in this Section 6.13(a)), the Seller shall use its reasonable best efforts to
have the Company coordinate with its lenders to obtain a waiver of the 30 day
advance notice provision therein and, thereby, facilitate a satisfaction and
discharge of such Receivables Facility immediately prior to the
Closing.  If the Company is able to obtain the cooperation of its
lenders, the Seller shall cause the Receivables Facility to be repaid, satisfied
and discharged in full and any and all security interests related thereto to be
released as of, or immediately prior to, the Closing.   If the
Company is not able to obtain the cooperation of its lenders, the Seller shall
cause the Company to have delivered to its lenders an irrevocable notice of
termination of the Receivables Facility immediately prior to
Closing.  Any outstanding Letters of Credit issued under the
Receivables Facility shall be replaced in accordance with Section 6.11 prior to
Closing.  To the extent such Letters of Credit are not replaced prior
to Closing, the Purchaser will provide, at Closing (or if termination of the
applicable facility is later, such termination date), cash, or if acceptable to
the lenders, a letter of credit, replacement guaranty or other credit support
reasonably acceptable to the lenders, sufficient to satisfy any deposit
requirements under the Receivables Facility, the amount of which shall be
adjustable based on the amount of deposit exposure that exists from time to time
and as provided in such facility.  For purposes of this Agreement,
"Revolver
Facility" shall mean the $50,000,000 Revolving Credit Facility Credit
Agreement dated as of October 3, 2007 by and among Strategic Energy, L.L.C., the
Lenders party thereto and PNC Bank, National Association, as Administrative
Agent and "Receivables
Facility" shall mean (A) the Receivables Purchase Agreement dated as of
October 3, 2007 by and among Strategic Receivables, LLC, as Seller, Strategic
Energy, L.L.C., as Initial Servicer, the Conduit Purchasers party thereto, the
Purchaser Agents party thereto, the LC Participants from time to time party
thereto, and PNC Bank, National Association, as Administrator and LC Bank, (B)
the Purchase and Sale Agreement dated as of October 3, 2007 by and among the
Originators from time to time a party thereto, Strategic Energy, L.L.C., as
Servicer, and Strategic Receivables, L.L.C., as Buyer and (C) the other
Transaction Documents (as such term is defined in the Receivables Purchase
Agreement).  Amounts outstanding, as of March 31, 2008, under the
Revolver Facility and the Receivables Facility, respectively, are set forth in
Section 6.13 of the Seller's Disclosure Letter.

           

          Section 6.14     Books and
Records.  The
Seller shall deliver all existing financial, customer, employee, engineering,
operating, accounting, tax, contract, environmental, safety, legal, marketing
and other data, files, computer tapes and discs, documents, instruments, notes,
papers, books and records that relate to the ownership or operation of the
Company and its Subsidiary (the "Books and
Records) in the
possession of the Seller or
any of its Affiliates as soon as possible after the Closing, but in any event no
later than fifteen days after the Closing, provided that the Seller may retain
copies of all consolidating and consolidated financial information and
all other accounting Books and Records
prepared or used in connection with (a) the preparation of financial statements
of the Seller or the Parent and (b) the preparation and filing of any tax
returns.

           

          Section 6.15     Accounts
Receivable.  The
Seller shall cause the
Company to continue to perform, in all material respects, its billing and
collections operations consistent with past practice and comply with, and
monitor adherence to, its procedures regarding its accounts receivable,
including enforcing its credit policy and collection
policy.

           

          
            
               

            

            
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          Section
6.16    
Transition
Planning.  During
the Pre-Closing Period, subject to applicable confidentiality protections and
consistent with Requirements of Law, the Seller and the Purchaser shall, and the
Seller shall cause the Company to, cooperate on transition
matters in order to facilitate the transition of the Company from the ownership
of the Seller to the ownership of the Purchaser, including to provide reasonable
access to their employees.

           

          Section 6.17     Amendment of
Company LLC
Agreement.  On or
prior to Closing, the Seller and the Purchaser shall, and the Seller shall cause
the Company to, cooperate to execute an amendment and restatement of the Company
LLC Agreement, which shall become effective upon Closing, to reflect
the Purchaser as the sole
member and the owner of record of all of the outstanding Membership Interests in
the Company and remove each reference to the Series SEL Voting Interest in CE
(or its holders) in the Company LLC Agreement.

           

          Section 6.18   
 Amendment
of Disclosure
Letter.  The
Seller agrees that, with respect to the representations and warranties of the
Seller contained in this Agreement, the Seller shall have the continuing
obligation until the Closing to supplement or amend the Seller's Disclosure
Letter with respect to any
matter hereafter arising or discovered which, if existing or known at the date
of this Agreement, would have been required to be set forth or described in the
Seller's Disclosure Letter; provided that, other than Sections 6.11(a)
and (b) of the Seller's Disclosure Letter,
the Seller's Disclosure Letter shall be deemed to include only that information
contained therein on the date hereof and shall be deemed to exclude all
information contained in any supplement or amendment
hereto.  The Seller shall deliver such supplemented
or amended Seller's Disclosure Letter to the Purchaser promptly after any
material supplement or amendment is required thereto, and no later than ten days
prior to the Closing.

           

          ARTICLE VII

          CONDITIONS
PRECEDENT

           

          Section 7.01     Mutual
Conditions.  The obligations of the Purchaser, on one
hand, and the Seller, on the other hand, to consummate the transactions
contemplated herein are subject to the reasonable satisfaction (or written
waiver, in whole or part, to the extent permitted by Requirements of Law, of the
Purchaser and the Seller) of the following conditions:

           

          (a)         The waiting period applicable to the
consummation of the transactions contemplated herein under the HSR Act shall
have expired or been terminated;

           

          (b)         The FERC Approval and the regulatory
approvals listed on ‎Section 6.06(a) of the
Seller's Disclosure Letter shall have been
obtained (but without the requirement for expiration of any applicable rehearing
or appeal periods);

           

          (c)         Any required notifications of state public utility commissions or
similar authorities as set
forth in ‎Section 7.01(c) of the
Seller's Disclosure Letter shall have
been made; and

           

          (d)         No temporary restraining order,
preliminary or permanent injunction or other order preventing the
consummation of the
transactions contemplated herein shall have been

           

          
            
               

            

            
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          issued by any court of competent
jurisdiction or other Governmental Body and remain in effect, and there shall
not be any Requirements of Law enacted or deemed applicable to the transactions
contemplated herein that
makes consummation thereof illegal.

           

          Section 7.02     Conditions
to the Purchaser's
Obligations.  The
obligations of the Purchaser to consummate the transactions contemplated herein
are subject to the reasonable satisfaction (or written waiver, in whole or part, to the extent
permitted by Requirements of Law, of the Purchaser) of the following
conditions:

           

          (a)         The representations and warranties of
the Seller contained in Article V of this Agreement shall be true and correct
(without giving effect to
any materiality qualification or standard contained in any such representation
or warranty) at and as of each of the date hereof and the Closing as if made at
and as of each such time (except to the extent expressly made as of another
date, in which case as of such other date), except
where the failure of such representations and warranties to be true and correct
would not, in the aggregate, result in a Material Adverse
Effect;

           

          (b)         All of the covenants and obligations in
this Agreement that the Seller is required to comply with or to
perform at or prior to the Closing shall have been complied with and performed
in all material respects;

           

          (c)         The Purchaser shall have received a
certificate executed by the Chief Executive Officer and Chief
Financial Officer of the
Seller, in their capacities as such, confirming that the conditions set forth in
‎Section 7.02(a) and ‎Section 7.02(b) have been
satisfied;

           

          (d)         Review and investigation of the
transactions contemplated by this Agreement under Exon-Florio shall have been terminated and either the
President of the United States or the Committee on Foreign Investment in the
United States (or other authority that may become authorized to so act), as the
case may be, shall have determined to take no action authorized thereunder;

           

          (e)         The FERC Approval and the regulatory
approvals listed on ‎Section 6.06(a) of the
Seller's Disclosure Letter shall have been
obtained and shall not, individually or in the aggregate, impose terms,
conditions, liabilities, obligations, commitments or sanctions upon the Company,
its Subsidiary or the Purchaser or any of its Affiliates that would
reasonably be expected to result in a Material Adverse
Effect;

           

          (f)         The amounts outstanding under the
indebtedness identified in Section 6.13 as being repaid at Closing shall have been repaid and the
Purchaser shall have received written proof of such
repayment;

           

          (g)         The Seller shall have delivered to the
Purchaser a certificate in accordance with the requirements of Treasury
Regulation Section 1.1445-3 that certifies that the Seller is a non-foreign
person for purposes of Section 1445 of the Code;
and

           

          (h)         No Material Adverse Effect shall have
occurred since the date of this Agreement and there shall exist no fact or
circumstance that would have, or would be reasonably

           

          
            
               

            

            
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          likely to have, a Material Adverse
Effect (including the discovery of, any deterioration in, or
any worsening of, any event, condition, effect, change, development or
circumstance existing or known as of the date of this Agreement, to the extent
of any such deterioration or worsening).

           

          Section 7.03     Conditions
to the
Seller's
Obligations

           

          .  The
obligations of the Seller to consummate the transactions contemplated herein are
subject to the reasonable satisfaction (or written waiver, in whole or part, to
the extent permitted by Requirements of Law, of the Seller) of the following
conditions:

           

          (a)         The representations and warranties of
the Purchaser contained in Article IV of this Agreement shall be true and
correct (without giving effect to any materiality qualification or standard
contained in any such representation or warranty) at and as of each of the
date hereof and the Closing as if made at and as of each such time (except to
the extent expressly made as of another date, in which case as of such other
date), except where the failure of such representations and warranties to be true and correct would not,
in the aggregate, prevent or materially delay the performance or consummation of
the transactions contemplated by this Agreement;

           

          (b)         All of the covenants and obligations in
this Agreement that the Purchaser is required to comply with or to perform at or
prior to the Closing shall have been complied with and performed in all material
respects;

           

          (c)         The Seller shall have received a
certificate executed by the Chief Executive Officer and Chief Operating Officer
of the Purchaser, in their
capacities as such, confirming that the conditions set forth in ‎Section 7.03(a) and ‎Section 7.03(b) have been
satisfied;
and

           

          (d)         The Guarantee Agreement set forth as
Exhibit A shall remain in full force and effect.

           

          ARTICLE VIII

          TERMINATION

           

          Section 8.01     Termination.  This Agreement may be terminated at any
time prior to the Closing
by:

           

          (a)         mutual written consent of the Seller and
the Purchaser;

           

          (b)         either the Seller or the Purchaser, upon
written notice given to such other party, if the Closing shall not have occurred
on or before the date which is the four month anniversary of the date hereof (the
"Outside
Date"); provided, however, that if the Seller or the Purchaser
determine that additional time is necessary to obtain any Required Regulatory Approvals or the termination of review and
determination contemplated by Section 7.02(d), the Outside Date may be extended by
the Seller or the Purchaser (provided such party is otherwise in compliance with
its obligations hereunder) from time to time by written notice to the other
party up to a date not beyond the six month anniversary of the date hereof, any of which dates
shall thereafter be deemed to be the Outside Date; and provided further, however, that the right to terminate this
Agreement under this ‎Section 8.01(b) shall not be available
to the Seller if the

           

          
            
               

            

            
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          Seller has failed, or to the Purchaser
if the Purchaser has failed, to perform in all material respects their/its
obligations (as applicable) under this Agreement and such failure has been the
cause of, or results in,
the failure of the Closing to occur on or before the Outside
Date;

           

          (c)         either the Seller or the Purchaser, if
any Governmental Body shall have issued an order, decree or ruling or taken any
other action (which order, decree, ruling or other action the parties hereto shall
use commercially reasonable efforts to lift), which permanently restrains,
enjoins or otherwise prohibits the consummation of the transactions contemplated
herein and such order, decree, ruling or other action shall have become final and
non-appealable;

           

          (d)         either the Seller (provided that the
Seller is not then in material breach of any representation, warranty, covenant
or other agreement contained herein) or the Purchaser (provided that the
Purchaser is not then in
material breach of any representation, warranty, covenant or other agreement
contained herein), at any time if there shall have been a material breach of any
of the representations, warranties, agreements or covenants set forth in this
Agreement on the part of the Purchaser or on the part of
the Seller, respectively (as applicable), which has rendered the satisfaction of
any conditions contained in Article VII hereof impossible and such violation or
breach has not been (i) waived by the party with the right to terminate or (ii) cured (if
susceptible to cure) within 10 days following the earlier of (x) the breaching
party's actual knowledge of such breach and
(y) the delivery of a written notice of such breach by the party with the right to
terminate to the breaching
party; and

           

          (e)         either the Seller (provided that the
Seller is not then in material breach of any representation, warranty, covenant
or other agreement contained herein) or the Purchaser (provided that the
Purchaser is not then in material breach of any representation, warranty,
covenant or other agreement contained herein), if any condition to the
obligation of such party set forth in Section 7.01 or 7.02 (in the case of the
Purchaser) or Section 7.01 or 7.03 (in the case of the Seller)
becomes incapable of satisfaction prior to the
Outside Date.

           

          Section 8.02 Effect of
Termination.  In
the event of termination of this Agreement pursuant to this Article VIII,
written notice thereof shall be given as promptly as practicable to the
Purchaser or the Seller, as
applicable, and this Agreement shall terminate and the transactions contemplated
hereby shall be abandoned, without further action by any of the parties
hereto.  If this Agreement is validly terminated pursuant to Section
8.01(d) by the Purchaser or by the Seller, the terminating
party shall be entitled to all rights and remedies available to it under law or
equity; provided, however, that in no event shall any party have any obligation
or liability arising under this Agreement (including with respect to the matters set forth in
Article XI) for any punitive, exemplary, special, indirect, incidental or
consequential Losses (as "Losses" are defined in this Section 8.02), including
without limitation, lost revenues or profits, arising out of or related to this Agreement, regardless of
whether or not such party has been advised of the possibility of such
Losses.  If this Agreement is terminated as provided herein the rights
and obligations of the parties under ‎Section 6.04, ‎Section 6.05 and this ‎Section 8.02 and ‎Article IX shall survive in accordance
with their respective terms.  For purposes of this Agreement,
"Losses" shall mean any loss, liability,
damages, cost or expense (including legal fees and expenses and any
amounts paid in settlement or as a result of any judgment or
order).

           

          
            
               

            

            
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          ARTICLE IX

          TAX
MATTERS

           

          

           

          Section 9.01     Tax
Indemnity.

           

          (a)         Notwithstanding any other provision in
this Agreement to the contrary, the Seller shall be liable for, will pay, will defend, and
will indemnify and hold the Purchaser Indemnified Parties harmless against any
and all (i) Taxes imposed on the Seller or Parent; (ii) Taxes imposed on or
payable with respect to either the Company, its Subsidiary or their respective businesses,
operations, property, or assets that relate to, arise out of or are attributable
to any Tax period (or portion thereof) ending on or prior to the Financial
Closing Date (the "Pre-Financial
Closing Period"), except to the extent such Taxes are
included in the calculation of Closing Working Capital; (iii) Taxes of a Person
other than the Company or its Subsidiary for which the Company may be liable (A)
under Section 1.1502-6 of
the Treasury Regulations (or any similar provision of state, local, or non- U.S.
Tax Law) as a result of being a member of or included in any group which files
or has filed a Tax Return on a consolidated, combined, group or unitary
basis for a taxable period ending on or before
the Closing Date, (B) as a transferee or (C) as a successor; (iv) except as
provided in Section 9.01(b), Taxes resulting from or attributable to the
transactions contemplated by this Agreement; (v) Losses relating to, arising out of, or resulting from the
breach of any covenants or agreements relating to Tax matters set forth in this
Agreement (determined without regard to any matters set forth in the Seller's
Disclosure Letter); and (vi) all reasonable costs and expenses relating to the review,
investigation, remediation, settlement, contest, adjudication and analysis of
any matter relating to the Taxes and Losses described in clauses (i)
– (iv) (collectively clauses (i)
– (vi), "Excluded Tax
Liability").  For purposes hereof, in
the case of any Tax period that begins before the Financial Closing Date and
ends after the Financial Closing Date (a "Straddle
Period"), the amount of Taxes allocable to the
portion of such period ending as of and including the Financial Closing Date
shall be computed in accordance with Section 9.01(c).

           

          (b)         Anything herein to the contrary
notwithstanding, each of the Purchaser and the Seller will be responsible for
one-half of any and all Transfer Taxes that may be imposed with respect to the
sale of the equity interest in the Company to the Purchaser pursuant to this
Agreement, regardless of the Person liable for such Transfer Taxes under applicable
Law.  The Seller and the Purchaser will use commercially reasonable
efforts to minimize the amount of such transfer Taxes and shall cooperate in
timely making all filings, returns, reports and forms as may be required to
comply with the provisions of such Tax
Laws.

           

          (c)         For purposes of Section 9.01, in the
case of Taxes that are payable with respect to a Straddle Period, the portion of
any such Tax that is allocable to the Pre-Financial Closing Period shall
be:

           

          (i)             
in the case of Taxes (other than Taxes imposed on the
Seller) that are either (x) based upon or related to income or receipts or (y)
imposed in connection with any sale or other transfer or assignment of property
(real or personal, tangible or intangible), deemed equal to the

           

          
            
               

            

            
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          amount which would be payable if the
taxable year ended on and included the Financial Closing Date;
and

           

          (ii)         
  in the case of Taxes
imposed on a periodic basis, or otherwise measured by the level of any item,
deemed to be the amount of such Taxes for the entire period (or, in the case of such
Taxes determined on an arrears basis, the amount of such Taxes for the
immediately preceding period), multiplied by a fraction the numerator of which
is the number of calendar days in the period ending on and including the Financial Closing Date and the
denominator of which is the number of calendar days in the entire
period.

           

          (d)         Except as otherwise provided, payment by
a party of any amount due under this Section 9.01 will be made within 10 days
following written notice
from the other party that payment of such amount is due.

           

          Section 9.02     Tax
Returns.

           

          (a)         The Company will (or will cause to be)
timely prepared and filed all Tax Returns of the Company and its Subsidiary for all tax periods that end on or prior
to the Closing Date and all
such Tax Returns shall be prepared in a manner consistent with past practice.
The Purchaser shall prepare and file or cause the Company to prepare and file
all other Tax Returns of or that include the Company and its Subsidiary in a timely manner. At least 15 days prior to
the Closing Date, the Seller shall provide written notice to the Purchaser of
any Tax Return that the Purchaser is required to file (or cause to be filed)
within 60 days of the Closing Date pursuant to this Section 9.02(a).

           

          (b)         With respect to any Tax Return required
to be filed (or caused to be filed) by (1) the Company pursuant to Section
9.02(a) on or prior to the Closing Date, or (2) the Purchaser pursuant to
Section 9.02(a) which includes a payment of Tax that is an Excluded Tax Liability (the party required to
file such Tax Return, the
"Filing
Party"), the Filing Party shall provide to the
other party a copy of such completed Tax Return or in the case of a
Consolidated Tax Return, a
pro forma Tax Return that includes the Company (prepared on a separate company
basis) and with respect to Tax Returns described in clause (2) herein a
statement certifying and setting forth the calculation of the amount of Tax
shown on any such Tax Return that is payable by
the Seller at least 60 days prior to the due date of such Tax Return. Such other
party shall have the right to review and comment on any such Tax Return and
statement prior to the filing of such Tax Return. To the extent there is any dispute between the
parties with respect to any such Tax Return the parties will use reasonable
efforts to settle such disputes for a period of 20 days after the other party
has notified the Filing Party in writing of its objections (such notification to contain sufficient
specificity so as to allow the Filing Party to understand the nature and basis
of such objection). To the extent any such disputes cannot be resolved such
disputed items shall be presented to the Independent Accounting Firm to settle such disputed items. The
decision of such Independent Accounting Firm shall be final and binding on the
parties except to the extent of a final determination by a Tax authority or
court that is contrary thereto. The cost of such Independent Accounting Firm shall be shared equally
by the Purchaser and the Seller.

           

          
            
               

            

            
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          (c)         Subject to Section 9.01, each party
shall pay or cause to be paid when due and payable in the manner prescribed by
applicable law all Taxes properly shown on a Tax Return that the other party is required to file (or
cause to be filed) pursuant to the terms of this Section 9.02.  In any
case where a party is required to pay an amount of Tax which includes an amount
that is allocable to the other party pursuant to Section 9.01, such party shall pay the amount of such Tax
to the other party no later than 10 days prior to the date when the other party
is required to pay such Tax.

           

          Section 9.03     Cooperation.  The Seller and the
Purchaser shall reasonably cooperate, and shall cause their respective Affiliates, officers,
employees, agents, auditors and representatives reasonably to cooperate, with
respect to all Tax matters relating to the Company including with respect to
preparing and filing all Tax Returns or conducting the defense of
any Tax Claim, including maintaining and
making available to each other (subject to Section 9.01, at the cost of the
requesting party) all records necessary in connection with Taxes and in
resolving all disputes and audits with respect to all taxable periods
relating to Taxes.

           

          Section 9.04     Tax Sharing
Agreements.  Any
Tax sharing or Tax allocation agreement entered into by the Company and any
power of attorney granted by the Seller or the Company prior to the Closing Date
with respect to Tax matters shall be terminated as of the Closing Date and will
have no further effect thereafter (whether the current year, a future year, or a
past year).

           

          Section 9.05   
 Tax
Contests.

           

          (a)         If any Tax authority asserts or proposes
to assess an amount of Tax that is an Excluded Tax Liability, then the party hereto first
receiving notice of such claim promptly will provide written notice thereof to
the other party hereto (such notice to include a copy of any correspondence,
report, or other material provided by the relevant Governmental Body and such notice to provide a
full and specific description of the matter in controversy, the tax years which
are in question, the amount of the assessment (proposed or otherwise) and any
other information or detail that is relevant to such claim); provided, however, that the failure of such party to give
such prompt notice will not relieve the other party of any of its obligations
under this Article
IX, except to the extent
that the other party is materially prejudiced thereby.

           

          (b)         The Seller will have the right to control, at its own
expense, any audit, examination, contest, litigation or other proceeding by or
against any Governmental Body relating to Taxes (a "Tax
Proceeding") that solely involves an Excluded Tax Liability. With
respect to a Tax Proceeding relating to a potential adjustment for which Seller
or one of its Affiliates on the one hand, and Purchaser or the Company on the
other hand, could be liable, (i) each party may participate in the Tax
Proceeding, and (ii) the Tax Proceeding shall be controlled by that party which
would bear the burden of the greater portion of the sum of the adjustment and
any corresponding adjustments that may reasonably be anticipated for future Tax periods to arise
from such Tax Proceeding. All other Tax Proceedings shall be controlled by
the Purchaser.

           

          (c)         None of the Seller, the Company and the Purchaser shall enter into any
compromise or agree to settle any claim pursuant to any Tax Proceeding which would
adversely

           

          
            
               

            

            
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          affect the other party without the
written consent of the other party, which consent may not be unreasonably
withheld, conditioned or delayed.

           

          Section 9.06   
 Miscellaneous.

           

          (a)         The Purchaser and the Seller agree
that for all income and
franchise Tax purposes, the Purchaser's acquisition of the interest in the
Company shall be treated as an acquisition by the Purchaser of the assets of the
Company and as an assumption by the Purchaser of the liabilities of the Company
and neither the Purchaser
nor the Seller (or any Affiliate thereof) shall take any position that is
contrary or inconsistent thereto.

           

          (b)         The parties agree that all payments made
pursuant to this Agreement shall be treated for Tax purposes as an
adjustment to the Purchase
Price.

           

          (c)         All covenants set forth in this Article
IX shall survive the Closing Date for a period of 6 months after the expiration
of all relevant statute of limitations.

           

          ARTICLE X

          NON-COMPETITION

           

          Section 10.01  Restriction
on Replication of the
Business.

           

          (a)         Parent, for itself and on behalf of its
Subsidiaries (collectively, the "Great Plains
Group" ), agrees that for a period of sixty
calendar months beginning at the Closing, no member of the Great Plains Group
will offer, or participate through ownership in offering competitive energy
supply services to retail customers within the continental United
States;  provided, that, the foregoing restriction shall not prohibit
any member of the Great Plains Group (now or
hereafter existing) from engaging in any business activity in the states of
Kansas or Missouri.

           

          (b)         The Seller, for itself and on behalf of
its Affiliates, acknowledges and agree that the restrictions set forth in
this Section 10.01 are
reasonably designed to protect the Purchaser's substantial investment and are
reasonable with respect to duration, geographical area and
scope.

           

          ARTICLE XI

          INDEMNIFICATION

           

          Section 11.01   Indemnification
by the Seller.  The Seller shall
indemnify, defend and hold
harmless the Purchaser and its Affiliates from and against, and pay or reimburse
the Purchaser and its Affiliates for, any and all Losses as incurred (including
Losses incurred indirectly by the Purchaser resulting from the failure of the Seller to contribute funds to
the Company as required by this Agreement), relating to or arising
from:

           

          (a)         the breach or inaccuracy of any of the
representations or warranties of the Seller, the Company or its Subsidiary
contained in this Agreement
(other than those contained
in

           

          
            
               

            

            
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          Section 5.12) or in any agreement or document
delivered pursuant hereto or in connection herewith, or arising out of the
consummation of the transactions contemplated hereby;

           

          (b)         the failure to comply with any covenants
or agreements of the
Seller, the Company or its Subsidiary contained in this Agreement, or in any
agreement or document delivered pursuant hereto or in connection herewith, or
arising out of the consummation of the transactions contemplated hereby, other
than with respect to matters subject to
indemnification pursuant to Section 6.08(which shall be governed by such
Section);

           

          (c)         any of the matters set forth on Section
5.14 of the Seller's Disclosure Letter or, to the extent that the Purchaser shall
have given notice of such
matters prior to the date which is the eighteenth month anniversary of the
Closing, that should have
been set forth in Section 5.14 of the Seller's Disclosure Letter in order to make the
representations and warranties in Section 5.14 in this Agreement true and correct;
and

           

          (d)         any funds advanced by the Company
pursuant to the Contracts required to be set forth in the Seller's Disclosure Letter pursuant to Section
5.11(i)(3) of this
Agreement becoming Uncollectible on or prior to the date that is eighteen (18) months after the
date of this Agreement.  For the purposes of this clause (d), (1)
advanced funds shall be deemed "Uncollectible" if (A) the Person obligated to repay
such advanced funds to the
Company has taken any Bankruptcy Action (as defined below), or (B) the advanced
funds are more than 90 days past due, and (2) the term "Bankruptcy
Action" means, with respect to any
Person: (A) an admission in
writing by such Person of its inability to pay its debts generally or a general
assignment by such Person for the benefit of creditors; or (B) the filing of any
petition by such Person seeking to adjudicate it bankrupt or insolvent, or seeking for itself any
liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief, or composition of such Person or its debts under any applicable law
relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking, consenting to, or
acquiescing in the entry of an order for relief or the appointment of a
receiver, trustee, custodian or other similar official for such Person or for
any substantial part of its property or the filing of an answer or other
pleading admitting or failing to contest
the allegations of a petition filed against it in any proceeding of the
foregoing nature; it being understood that the Purchaser will (1) cause the
Company to use its reasonable efforts to collect such funds in accordance with its normal collection practices, including exercising any rights to
offset commissions which the Person obligated to repay such advanced funds to
the Company may be due from time to time in accordance with its agreements with
the Company, and (2)
reimburse the Seller for any amounts paid to the Purchaser hereunder to the
extent that the Company is able to collect from such Person or offset against
commissions due.

           

          Section 11.02  Indemnification
by the Purchaser

           

          .  The
Purchaser shall indemnify, defend and hold harmless the Seller from any against,
and pay or reimburse the Seller for, any and all Losses as incurred, relating to
or arising from:

           

          (a)         the breach or inaccuracy of any of the
representations or warranties of the Purchaser contained in this Agreement or in any agreement or
document delivered pursuant hereto or in connection herewith, or arising out of
the consummation of the transactions contemplated hereby; or

           

          
            
               

            

            
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          (b)         the failure to comply with any covenants
or agreements of the Purchaser contained in this Agreement or in any
agreement or document delivered pursuant hereto or in connection herewith, or
arising out of the consummation of the transactions contemplated hereby, other
than with respect to matters subject to
indemnification
pursuant to Section
6.08 (which shall be governed by such
Section).

           

          Section 11.03   Limitations
on Indemnity.

           

          (a)         The Seller shall not be liable under
Section 11.01 with respect to the matters set forth in clause (a) thereof,
unless and until the aggregate amount of Losses with respect to such matters
exceeds $2,500,000, at which time the Seller shall be liable for Losses in
excess of $2,500,000, and the Seller's aggregate maximum liability under
Section 11.01 with respect to the matters set forth in clause (a)
thereof, will never exceed
50% of the Purchase Price.  The limitations contained in this Section
11.03(a) shall not limit the liability of the Seller with respect to its
indemnification obligations in respect of any Losses resulting from a breach or
inaccuracy of the representations and warranties
set forth in Sections 5.01, 5.02, 5.03, 5.06 and 5.12, or any Losses relating to
Taxes, regardless of whether such Losses are subject to indemnification pursuant
to Section 9.01.

           

          (b)         The Purchaser shall not be liable
under Section 11.02 with
respect to the matters set forth in clause (a) thereof, unless and until the
aggregate amount of Losses with respect to such matters exceeds $2,500,000, at
which time the Purchaser shall be liable for Losses in excess of
$2,500,000, and the Purchaser's aggregate maximum liability under
Section 11.02 with respect to the matters set forth in clause (b) thereof, will
never exceed 50% of the Purchase Price.  The limitations contained in this
Section 11.03(b) shall not limit the liability of the Purchaser with respect to its
indemnification obligations in respect of any Losses resulting from a breach or
inaccuracy of the representations and warranties set forth in Sections 4.01,
4.02 and 4.03.

           

          Section 11.04   Procedures
for Indemnification.

           

          (a)         In the event that any claim is asserted
against any party hereto, or any party hereto is made a party defendant in any
action or proceeding, and such claim, action or proceeding involves a matter
which is the subject of this indemnification, then such party (an "Indemnified
Party") shall give prompt written notice to
the other party hereto (the "Indemnifying
Party") of such claim, action or proceeding,
and such Indemnifying Party
shall have the right to join in the defense of said claim, action or proceeding
at such Indemnifying Party's own cost and expense
and, if the Indemnifying
Party agrees in writing to be bound by and to promptly pay the full amount of
any final judgment from
which no further appeal may be taken (subject to the provisions of Section
11.03, to the extent applicable), then at the option of the Indemnifying
Party, such Indemnifying Party may take over the defense of such claim, action
or proceeding with counsel reasonably satisfactory to the
Indemnified Party, except that, in such case, the Indemnified Party shall have
the right to join in the defense of said claim, action or proceeding at its own
cost and expense.  The Indemnified Party may not settle any
proceeding without the consent of the
Indemnifying Party, not to be unreasonably withheld.

           

          
            
               

            

            
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          (b)         Any indemnity payments shall be deemed
to be an adjustment of the Purchase Price.

           

          (c)         The provisions of this Section 11.04
shall not apply to matters governed by Section 11.05.

           

          Section 11.05   Seller
Action Litigation Procedures and Support.

           

          (a)         Following the Closing Date, Seller and
the Purchaser (on behalf of the Company and their respective Subsidiaries) shall
promptly notify and confer with each other with respect to any and all matters subject to
indemnification pursuant to Section 11.01(c) (each, a "Seller
Action").

           

          (b)         Except as set forth in this Section
11.05, Seller shall not be required to indemnify the Purchaser in connection
with any claim for indemnification arising out of or relating to any Seller
Action unless and until the
aggregate amount of all such claims by the Purchaser for Seller Actions exceeds
$7,500,000 (the "Deductible"), in which event the Purchaser shall be
entitled to recover such Losses arising out of or relating to such matters, but
only to the extent that the aggregate amount of such Losses exceeds the
Deductible.

           

          (c)         For any Seller Action, if any, that
Seller reasonably determines may result in liability exceeding the Deductible
(after taking into account
any other Seller Actions), Seller shall have the right, at its option, to assume
the defense of any such Seller Action with its own legal counsel reasonably
satisfactory to the Purchaser, provided that the Seller agrees in writing to be
bound by and to promptly pay the full amount of
any final judgment from which no further appeal may be taken (subject to the provisions of Section
11.03(a)). In addition,
once the Deductible has been exhausted by payment (and/or based upon outstanding
judgments will be
exhausted), Seller shall
have the sole and exclusive authority and control over the investigation,
commencement, prosecution, defense, management, conduct, appeal, and other
rights in connection with all matters whatsoever (including, as applicable,
litigation strategy and
choice of legal counsel and other professionals) in connection with such Seller
Action.  If the Seller elects to assume the defense of such Seller
Action as aforesaid, then:

           

          (i)            
 in connection with the
management, defense and disposition of such Seller Action, each of the
Purchaser, the Company and their respective Subsidiaries shall use their
reasonable best efforts to cooperate as reasonably requested by Seller and make
readily available to and afford to Seller, its employees, authorized legal counsel, accountants, and
other designated representatives reasonable access to their officers, directors,
employees, accountants, financial advisors, legal counsel, agents, properties
and Books and Records, subject to appropriate and reasonable confidentiality agreements (provided that the terms of any such agreement
do not restrict actions to
be taken in connection with the defense of any Seller Action), to the extent reasonably related to
such Seller Action.  Without limiting the generality of the foregoing, each of the Purchaser,
the Company and their respective Subsidiaries shall use their reasonable
best

           

          
            
               

            

            
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          efforts to make available their
officers, directors, employees, accountants, financial advisors, legal counsel
and agents for fact finding, consultation and interviews, and as
witnesses to the extent that any such Person may reasonably be required in
connection with any Seller Action.  Access to such Persons shall be
granted for reasonable periods of time during normal business hours or
as otherwise mutually
agreed.  The provision of access and other services pursuant to this
Section 11.05(c)(i) shall be at no additional cost or expense of the Seller,
other than for reasonable out-of-pocket expense.  To the extent requested, the
Seller shall provide its
reasonable cooperation to the Purchaser in connection with any efforts by the
Purchaser to seek a confidentiality order with regard to any information that it
deems to be confidential.

           

          (ii)           
 none of the Purchaser, the
Company or their Subsidiaries shall admit any liability with
respect to such Seller Action;

           

          (iii)          
 Seller may, without consent
of the Purchaser, the Company or their respective Subsidiaries, compromise or
settle such Seller Action or consent to entry of judgment with respect
thereto that requires
solely money damages paid by the Seller, and which includes as an unconditional
term thereof the release by the claimant or the plaintiff of the Purchaser, the
Company, or their Subsidiaries, as appropriate, from all liability in
connection with such Seller Action.  Any
other disposition by Seller of such Seller Action shall be subject to the
consent of the Purchaser, which consent shall not be unreasonably withheld or
delayed;

           

          (iv)           notwithstanding anything to the contrary
contained in this Agreement, Seller shall not be required
to pay or otherwise indemnify the Purchaser against any attorneys' fees incurred by the Purchaser in
connection with such Seller Action following the Seller's election to assume the defense
thereof, unless (A) the Seller fails to defend diligently the
action or proceeding within twenty days after receiving notice of such
failure from the Purchaser; (B) the Purchaser reasonably shall have concluded
(upon advice of its legal counsel) that there may be one or more legal
defenses available to the
Purchaser that are not available to the Seller; or (C) the Purchaser reasonably
shall have concluded (upon advice of its legal counsel) that, with respect to
such Seller Action, the Purchaser and the Seller may have different,
conflicting, or adverse legal positions or
interests.

           

          (d)         If the Seller elects not to assume the
defense of any Seller Action prior to such claims exceeding the Deductible, then
the Purchaser shall proceed diligently to defend such Seller Action with the
assistance of legal counsel
reasonably satisfactory to the Seller, provided, however, that the Purchaser
shall not settle, adjust or compromise such Seller Action, or admit any
liability with respect to such Seller Action, without the prior written consent
of the Seller, such consent not to be
unreasonably withheld or delayed.  In any event, the Purchaser shall
use

           

          
            
               

            

            
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          its reasonable best efforts to have its
counsel keep the Seller apprised of material developments and, to the extent
requested by Seller, to consult and reasonably cooperate with any
counsel of Seller.

           

          (e)         Following the Closing, the Purchaser
shall use its reasonable best efforts to cause the Company to retain all records
reasonably necessary to defend the Seller Actions.

           

          (f)         In the event of any good faith dispute as to whether any matter
is a Seller Action, Seller may, but shall not be obligated to, commence
investigation, prosecution, management, conduct, appeal or defense of such
matter pending resolution of such dispute.  In the event that the
Seller so commences and it is determined
that such matter is not a Seller Action, the Seller shall have the right to
cease the investigation, prosecution, management, conduct, appeal or defense of
such matter and the Seller and Purchaser shall cooperate to transfer the control thereof to the
Purchaser or the Company, as applicable.  In such event, the Purchaser
or the Company, as applicable, shall promptly reimburse the Seller for all
reasonable out-of-pocket costs, fees and other expenses incurred to such
date in connection with the investigation,
prosecution, management, conduct, appeal or defense of such
matter.

           

          (g)         The Purchaser shall, and shall cause the
Company to, cooperate with the Seller (if so requested by the Seller)
with respect to any Seller
Action for which the Seller
will be defending, in
having the Seller (or one of its Affiliates) substituted as the named party, the
costs of obtaining such substitution to be borne by the
Seller.  Absent a substitution, the Company shall cooperate and assist
as is reasonably needed (to
the extent requested) in satisfying any procedural requirements in connection
with any such Seller Action which is being defended by the Seller, including by
filing papers on the Seller's behalf.

           

          (h)         None of the Purchaser, the
Company or their respective
Subsidiaries shall intentionally take any action or omit to take any action for
the purpose of interfering with or adversely affecting the rights and powers of
the Seller pursuant to this Section 11.05.

           

          ARTICLE XII

          MISCELLANEOUS

           

          Section 12.01   Binding
Effect; Benefits.  This Agreement shall be
binding upon, and shall be enforceable by and inure solely to the benefit of,
the parties and their respective successors and permitted
assigns.  Nothing in this Agreement, express or implied,
is intended to or shall
confer upon any Person (other than the parties and their respective successors
and permitted assigns) any rights, claims or benefits whatsoever, and this
Agreement does not create or establish any third party beneficiary hereto,
except as set forth in ‎Section 6.09 and ‎Section 6.11 of this
Agreement.

           

          Section 12.02  Amendments.  This Agreement may not be
modified, amended, altered or supplemented except upon the execution and
delivery of a written agreement executed by the Purchaser and the
Seller.

           

          
            
               

            

            
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          Section 12.03   Further
Assurances.  Subject to the terms and
conditions of this Agreement, the Seller and the Purchaser will each use their
reasonable best efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary or desirable under applicable laws and
regulations to consummate the transactions contemplated by this
Agreement.

           

          Section 12.04  Assignability.  Neither this Agreement nor
any party's rights or obligations hereunder may be assigned or delegated by such
party without the prior
written consent of the other parties, and any attempted assignment or delegation
of this Agreement or any of such rights or obligations by any party without the
prior written consent of the other parties shall be void and of no effect;
provided that either the Seller or the
Purchaser may assign or transfer this Agreement to one or more Affiliates, but
such assignment shall not, without the express written consent of the other
party, release the assignor from its obligations hereunder.

           

          Section 12.05   Specific
Performance.  The
parties hereto agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached.  It is
accordingly agreed that the
parties shall be entitled to an injunction or injunctions to prevent breaches of
this Agreement and to enforce specifically the terms and provisions hereof in
any court of the United States or any state having jurisdiction, this being
in addition to any other remedy to which
they may be entitled at law or in equity.

           

          Section 12.06   Governing
Law; Jurisdiction.  THIS AGREEMENT SHALL BE
GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE,
WITHOUT REGARD TO THE CONFLICTS OF LAW PRINCIPLES
THEREOF.  ANY ACTION OR PROCEEDING AGAINST ANY PARTY RELATING IN ANY
WAY TO THIS AGREEMENT MAY BE BROUGHT AND ENFORCED EXCLUSIVELY IN THE STATE
COURTS OF THE STATE OF DELAWARE, AND THE PARTIES IRREVOCABLY SUBMIT TO THE
JURISDICTION OF SUCH COURTS IN RESPECT OF ANY SUCH ACTION
OR PROCEEDING; PROVIDED, THAT SUCH ACTION OR PROCEEDING MAY BE BROUGHT AND
ENFORCED IN THE U.S. DISTRICT COURT FOR THE DISTRICT OF DELAWARE ONLY IF NO
STATE COURT OF THE STATE OF DELAWARE HAS JURISDICTION OF SUCH ACTION OR PROCEEDING, AND THE PARTIES
IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE U.S. DISTRICT COURT FOR THE
DISTRICT OF DELAWARE IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATED TO THIS AGREE­MENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

           

          Section 12.07   Entire
Agreement; Counterparts.  This Agreement and the
exhibits and disclosure letters referred to herein constitute the entire
agreement and supersede all
prior agreements and understandings, both written and oral, between the parties
with respect to the subject matter hereof and thereof; provided, however, that
the Confidentiality Agreement shall not be superseded and shall remain in
full force and effect in accordance with its
terms.  This Agreement may be executed by facsimile and in
counterparts, each of which shall be deemed to

           

          
            
               

            

            
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          be an original and shall be binding on
the party who executed the same, but all of which together shall
constitute one and the same
instrument.

           

          Section 12.08   Severability.  If any provision of this
Agreement shall be held to be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired
thereby.  If for any reason any term or provision containing a
restriction set forth herein is held to cover an area or to be for a length of
time which is unreasonable, or in any other way is construed to be too broad or
to any extent invalid, such term or provision shall not be
determined to be null, void and of no effect, but to the extent the same is or
would be valid or enforceable under applicable law, any court of competent
jurisdiction shall construe and interpret or reform this Agreement to provide for a restriction having
the maximum enforceable area, time period and other provisions (not greater than
those contained herein) as shall be valid and enforceable under applicable
laws.

           

          Section 12.09   Waiver.  At any time prior to the
Closing, the parties hereto
may (i) extend the time for the performance of any of the obligations or other
acts of the other parties hereto, (ii) waive any inaccuracies in the
representations and warranties of the other parties contained herein or in any
document delivered pursuant hereto and (iii)
waive compliance with any of the agreements or conditions contained
herein.  Any agreement on the part of a party hereto to any such
extension or waiver shall be valid only if set forth in a written instrument
signed on behalf of such
party.  Except as otherwise expressly provided herein, no failure on
the part of any party to exercise, and no delay in exercising, any right, power
or remedy hereunder, or otherwise available in respect hereof at law or in
equity, shall operate as a waiver thereof, nor shall
any single or partial exercise of such right, power or remedy by such party
preclude any other or further exercise thereof, or the exercise of any other
right, power or remedy.

           

          Section 12.10   Survival.  All of the
representations and
warranties contained in this Agreement or in any certificate delivered pursuant
to this Agreement shall survive beyond the Closing.  Notwithstanding
the preceding sentence, neither party may make or assert any claim under any
representation or warranty of the other party contained
herein later than eighteen months after the Closing, except that the
representations in Sections 4.12, 5.12, 5.18 and 5.19 shall survive until six
months after the statute of limitations with respect to the matters addressed therein has expired (including
all waivers or extensions thereof), the representations in Sections 4.01, 4.02,
4.03, 5.01, 5.02, 5.03 and 5.06 shall survive indefinitely; and provided that
any claims made or asserted by a party within the applicable time period prescribed above shall
survive such expiration until such claim is finally resolved and all obligations
with respect thereto are fully satisfied.  All statements contained in
any certificate delivered by or on behalf of any party hereto in connection with this Agreement or the
consummation of the transactions contemplated hereunder shall constitute and
have the same force and effect as the representations and warranties of such
party as set forth herein as if it had been incorporated into this Agreement as a representation,
warranty and agreement by such party.  Each covenant and agreement
herein shall survive until the date that is one year after the last date that a
Person is required to take any action or refrain from taking any action
under such section.

           

          Section 12.11   Disclosure
Letter.  Matters
disclosed by the Seller in the Seller's Disclosure Letter or by the Purchaser's
Disclosure letter, as the case may be, in one section of

           

          
            
               

            

            
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          such letter will be deemed to be
disclosed with respect to
each other section of such letter, to the extent that the significance and
magnitude of the matter disclosed and its relationship to the particular
provision of this Agreement corresponding to such other section of the letter is
reasonably apparent to the recipient of such
letter.  Inclusion of any matter or item in any such letter does not
imply that such matter or item would, under the provisions of this Agreement,
have to be included in any
section of such letter or that such matter or term is otherwise
material.  In addition, matters disclosed in any such letter are not
necessarily limited to matters required by this Agreement to be disclosed in
such letter, and any such additional matters are set forth for
informational purposes only and do not necessarily include other matters of a
similar nature.

           

          Section 12.12   Public
Announcements.  Prior to the Closing Date,
each of the Seller and the Purchaser will, prior to any issuance by it or any of its Affiliates of any
description of the transactions contemplated by this Agreement in any press
release or other public statements, use reasonable efforts to consult with the
other and provide the other with the opportunity to review and comment upon any such description, and
shall not issue any such press release or make any such public statement prior
to such consultation, except as may be required by applicable law, regulation,
court order or by obligations pursuant to any listing agreement with any national securities
exchange.  The Seller and the Purchaser shall use reasonable efforts
to agree on the description of the transactions contemplated by this Agreement
contained in the initial press releases to be issued by the parties with
respect to their execution and delivery of
this Agreement.

           

          Section 12.13   Notices.  Unless otherwise specified
herein, all notices, consents, approvals, reports, designations, requests,
waivers, elections and other communications authorized or required to be
given pursuant to this
Agreement shall be in writing and shall be given or made (and shall be deemed to
have been duly given or made upon receipt) by facsimile transmission (receipt
confirmed) or by a courier guaranteeing overnight delivery, sent to a
party and its legal counsel at the addresses
set forth below for such party and its legal counsel hereto or such other
addresses as such party may specify by notice to the other party, with a copy of
such communication being sent via email to the email addresses set forth below for such party and its
legal counsel hereto or such other addresses as such party may specify by notice
to the other party.

           

          if
to the Seller:

           

          Custom
Energy Holdings, L.L.C.

          c/o
Great Plains Energy Incorporated

          1201
Walnut Street

          Kansas
City, MO 64106

          Attn:  Mark
G. English, General Counsel

          Facsimile:  (816)
556-2418

          Email:  Mark.English@kcpl.com

           

          with
a copy (which shall not constitute notice) to:

          
            
               

            

            
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          Skadden,
Arps, Slate, Meagher & Flom LLP

          4
Times Square

          New
York, NY  10036

          Attn:  David
J. Friedman

          Facsimile:  (917)
777-2218

          Email:  david.friedman@skadden.com

           

          if
to the Purchaser:

           

          Direct
Energy Services, LLC

          263
Tresser Boulevard

          8th
Floor

          Stamford,
CT 06901

          Attn:  General
Counsel

          Facsimile:  (416)
250-2977

           

          with
copies (which shall not constitute notice) to:

           

          Direct
Energy Marketing Ltd

          25
Sheppard Ave. West

          Toronto

          Ontario
M2N 656

          Attn:
General Counsel

          Facsimile:
(416) 590-3450

          

           

          Section 12.14  Construction.  The parties hereto agree
that any rule of construction to the effect that ambiguities are to be resolved against the drafting
party shall not be applied in the construction or interpretation of this
Agreement.

           

          Section 12.15  Headings.  The headings contained in
this Agreement are for convenience of reference only, shall not be deemed to be
a part of this Agreement
and shall not be referred to in connection with the construction or
interpretation of this Agreement.

           

          Section 12.16   Seller
Guarantee.

           

          (a)         To induce the Purchaser to enter into
this Agreement, the Parent (as primary obligor and not as surety only) irrevocably, absolutely and
unconditionally:

           

          (i)           
 guarantees to the Purchaser,
on the terms and subject to the conditions of this Section 12.16 (this
"Seller
Guarantee"), the prompt performance of all obligations of the
Seller hereunder, including all sums and liabilities which now are or at any
other time shall be due, owing or incurred by the Seller to the Purchaser in
respect of the Seller's obligations under this Agreement
(collectively, the
"Seller's Guaranteed
Obligations") strictly in accordance with their
terms and regardless of any Requirements

           

          
            
               

            

            
              59

              
                

              

            

            
               

            

          

          of Law affecting any such terms or the
rights of the Purchaser with respect thereto; and

           

          (ii)           undertakes that if any amount guaranteed
by this Section 12.16 is
not recoverable on the basis of a guarantee for any reason it will (as a
separate and independent stipulation) pay the Purchaser on demand whatever
amount or amounts shall equal what it would have been liable to pay but for such
irrecoverability and shall indemnify the
Purchaser against all Losses suffered or incurred by the Purchaser in connection
with such irrecoverability.

           

          (b)         The Parent hereby waives any requirement
that the Purchaser exhaust any right or take any action against,
or provide notice to,
the Seller or any other
person or entity before proceeding hereunder.

           

          (c)         This is a continuing guarantee and the
Parent's undertakings under this Agreement
shall remain in full force and effect until final performance in full of its
obligations under this
Agreement notwithstanding any intermediate payment or performance or the
invalidity or unenforceability in whole or in part of any of the
Seller's Guaranteed Obligations or any other
event.

           

          (d)         This Seller Guarantee and the undertakings contained in this Section
12.16 shall be discharged
by the full performance by the Parent of its obligations under this Agreement,
but otherwise shall not be discharged or affected by any act, omission, matter
or thing that, but for this provision, might operate to release or otherwise
exonerate the Parent from those obligations in whole or in part
including:

           

          (i)          
  the granting of time,
or any waiver or other indulgence (including any extension, renewal, acceptance,
forbearance or release in respect of any of the Seller's Guaranteed
Obligations);

           

          (ii)          
  the taking, variation,
compromise, renewal or release of or refusal or neglect to perform or enforce
any rights, remedies or securities against the Seller or any other
Person;

           

          (iii)         
  any modification,
variation or addition to
the terms of any of the Seller's Guaranteed Obligations or of any other
document or security;

           

          (iv)           any irregularity, defect or informality
in the terms of any of the Seller's Guaranteed Obligations or any other
document or security or any legal limitation, disability, incapacity
or want of authority of any Person;

           

          (v)           
any transfer or assignment of any
rights or obligations by any party, whether or not they relate to the
Seller's Guaranteed
Obligations;

           

          (vi)           any corporate reorganization,
reconstruction,
amalgamation, dissolution, liquidation, merger, acquisition of or by or other
alteration in

           

          
            
               

            

            
              60

              
                

              

            

            
               

            

          

          the corporate existence or structure of
any party, or the non-existence of the Seller; or

           

          (vii)           any composition or similar arrangement
by any party or any other
Person.

           

          (e)         Where any discharge (whether in respect
of any of the Seller's Guaranteed Obligations or otherwise)
is made in whole or in part or any arrangement is made on the faith of any
payment, security or other disposition which is avoided or must be restored for any reason, the
liability of the Parent under this Agreement shall continue as if the discharge
or arrangement had not been made.

           

          (f)         This Seller Guarantee is in addition to
and is not in any way prejudiced by any other security now or in the future held by or on behalf of
the Purchaser.

           

          (g)         The Parent shall not by virtue of any
payment or performance by it under the terms of this Agreement (except to the extent such rights would
have been available to the Seller had it paid or performed directly):

           

          (i)            
 be subrogated to any rights,
security or monies held, received or receivable by the Purchaser or be entitled
to assert against any Person owing any obligation to the Purchaser in connection
with this Agreement any right of contribution or indemnity in respect of any payment
made or monies received on account of the Parent's liability under this Agreement;
or

           

          (ii)           
 receive, claim or have the
benefit of any payment, distribution or security from or on account of any
Person owing any obligation
to the Purchaser in connection with this Agreement, or exercise any right of
set-off against such Person, and the Parent shall hold in trust for, and
immediately on demand pay or transfer to, the Purchaser any payment or
distribution or benefit of security received by it contrary to this
Section 12.16.

           

          (h)         The Parent represents and warrants to
the Purchaser as follows:

           

          (i)          
  The Parent is a
company incorporated under the laws of the State of Missouri and possesses the
capacity to sue and be sued in its own name and has the power to carry on its
business and to own its property and other assets.

           

          (ii)           
 The Parent has power to
execute, deliver and perform its obligations under this Agreement and to carry
out the transactions contemplated hereby, and all necessary corporate, shareholder and other
action will have been taken to authorize the execution, delivery and performance
of the same.

           

          
            
               

            

            
              61

              
                

              

            

            
               

            

          

          (iii)           
The obligations of the Parent
under this Agreement constitute its legal, valid and binding obligations and are
in full force and effect in
accordance with their terms.

           

          (iv)         
  The execution,
delivery and performance by the Parent of this Agreement does not and will
not:  (x) contravene any Requirements of Law of any court or
Governmental Body having jurisdiction over the Parent; (y) conflict with, or result in any
breach of any of the terms of, or constitute a default under, any agreement or
other instrument to which the Parent is a party or any license or other
authorization to which the Parent is subject or by which the Parent or any of its property is bound; or
(z) contravene or conflict with the provisions of the Parent's organizational
documents.

           

          Section 12.17   Purchaser
Guarantee.  The
guarantee of Purchaser's obligation by Centrica plc is set forth in the
Guarantee Agreement
attached hereto as Exhibit A.

           

          
            
               

            

            
              62

              
                

              

            

            
               

            

          

          IN
WITNESS WHEREOF, each of the Seller and the Purchaser have executed this
Agreement as of the date first above written.

           

          
            	 
      	
                    CUSTOM
      ENERGY HOLDINGS, L.L.C.

                  
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	
                    By:

                  	
                    /s/ Michael J.
      Chesser

                  	 
      
	 
      	 
      	
                    Name:

                  	
                    Michael
      J. Chesser

                  
	 
      	 
      	
                    Title:

                  	
                    Chairman,
      President and Chief

                  
	 
      	 
      	 
      	
                    Executive
      Officer

                  
	 
      	 
      	 
      	 
      
	 	 
	 
      	
                    DIRECT
      ENERGY SERVICES, LLC

                  
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	
                    By:

                  	
                    /s/ Maura J.
      Clark

                  	 
      
	 
      	 
      	
                    Name:

                  	
                    Maura
      J. Clark

                  
	 
      	 
      	
                    Title:

                  	
                    President,
      Direct Energy Business

                  
	 
      	 
      	 
      	 
      
	 	 
	 
      	
                    GREAT
      PLAINS ENERGY INCORPORATED, solely and exclusively for purposes of
      Sections 6.04, 10.01 and 12.16

                  
	 
      	 
      	 
      	 
      
	 	 	 	 
	 
      	
                    By:

                  	
                    /s/ Michael J.
      Chesser

                  	 
      
	 
      	 
      	
                    Name:

                  	
                    Michael
      J. Chesser

                  
	 
      	 
      	
                    Title:

                  	
                    Chairman
      of the Board and

                  
	 
      	 
      	 
      	
                    Chief
      Executive Officer

                  

          

          

          

          
            
               

            

            
              63

              
                

              

            

            
               

            

          

          Exhibit
A

          Guarantee
of Centrica plc

          

          
            
               

            

            
              64

              
                

              

            

            
               

            

          

          

          PURCHASER
GUARANTEE

           

          THIS
GUARANTEE (this “Guarantee”) is made and given as of April 1st, 2008 by Centrica
plc, a public limited company organized under the laws of England and Wales
(“Guarantor”), in favor of Custom Energy Holdings, L.L.C., a Delaware limited
liability company (“Seller”).

           

          R
E C I T A L S

           

          A.         Pursuant
to the Purchase Agreement (the “Purchase Agreement”), dated as of April 1st,
2008, by and among the Seller, Great Plains Energy Incorporated (solely for the
purposes set forth therein) and Direct Energy Services, LLC (the “Purchaser”),
the Seller has agreed to sell the Seller’s ownership of one hundred percent
(100%) of the membership interests in Strategic Energy, L.L.C., a Delaware
limited liability company (the “Company”), to the Purchaser.

           

          B.         The
Guarantor owns, indirectly, 100% of the membership interests of the
Purchaser.

           

          C.         In
order to induce the Seller to enter into the Purchase Agreement, the Guarantor
has agreed to guarantee the Purchaser’s obligations under the Purchase
Agreement, as more fully set forth below.

           

          D.         Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed to
such terms in the Purchase Agreement.

           

          NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which consideration is hereby
acknowledged, the Guarantor does hereby covenant and agree with the Seller for
the benefit of the Seller as follows:

           

          1.         Guarantee
of Obligations. To induce the Purchaser to enter into the Purchase Agreement,
the Guarantor (as primary obligor and not as surety only) irrevocably,
absolutely and unconditionally:

           

          (a)           guarantees
to the Seller, on the terms and subject to the conditions of this Guarantee, the
prompt performance of all obligations of the Purchaser under the Purchase
Agreement, including all sums and liabilities which now are or at any other time
shall be due, owing or incurred by the Purchaser to the Seller in respect of the
Purchaser's obligations under the Purchase Agreement (collectively, the
"Purchaser’s Guaranteed Obligations") strictly in accordance with their terms
and regardless of any Requirements of Law affecting any such terms or the rights
of the Seller with respect thereto; and

           

          (b)           undertakes
that if any amount guaranteed by this Guarantee is not recoverable on the basis
of a guarantee for any reason it will (as a separate and independent
stipulation) pay the Seller on demand whatever amount or amounts shall equal
what it would

           

          
            
               

            

            
              65

              
                

              

            

            
               

            

          

          have
been liable to pay but for such irrecoverability and shall indemnify the Seller
against all Losses suffered or incurred by the Seller in connection with such
irrecoverability.

           

          2.         Nature of
Guarantee.

           

          (a)           The
Guarantor hereby waives any requirement that the Seller exhaust any right or
take any action against, or provide any notice to, the Purchaser or any other
person or entity before proceeding hereunder.

           

          (b)           This
is a continuing guarantee and the Guarantor’s undertakings under this Guarantee
shall remain in full force and effect until final performance in full of its
obligations under this Guarantee notwithstanding any intermediate payment or
performance or the invalidity or unenforceability in whole or in part of any of
the Purchaser’s Guaranteed Obligations or any other event.

           

          (c)           This
Guarantee is in addition to and is not in any way prejudiced by any other
security now or in the future held by or on behalf of the Seller.

           

          (d)           The
Guarantor shall not by virtue of any payment or performance by it under the
terms of this Guarantee (except to the extent such rights would have been
available to the Purchaser had it paid or performed directly):

           

          (i)           be
subrogated to any rights, security or monies held, received or receivable by the
Seller or be entitled to assert against any Person owing any obligation to the
Seller in connection with the Purchase Agreement any right of contribution or
indemnity in respect of any payment made or monies received on account of the
Guarantor’s liability under this Guarantee; or

           

          (ii)           receive,
claim or have the benefit of any payment, distribution or security from or on
account of any Person owing any obligation to the Seller in connection with the
Purchase Agreement, or exercise any right of set-off against such Person, and
the Guarantor shall hold in trust for, and immediately on demand pay or transfer
to, the Seller any payment or distribution or benefit of security received by it
contrary to this Guarantee.

           

          3.         Discharge of
Guarantee.

           

          (a)           This
Guarantee and any undertakings contained herein shall be discharged by the full
performance by the Guarantor of its obligations under this Guarantee, but
otherwise shall not be discharged or affected by any act, omission, matter or
thing that, but for this provision, might operate to release or otherwise
exonerate the Guarantor from those obligations in whole or in part
including:

           

          
            
               

            

            
              66

              
                

              

            

            
               

            

          

          (i)           the
granting of time, or any waiver or other indulgence (including any extension,
renewal, acceptance, forbearance or release in respect of any of the Purchaser’s
Guaranteed Obligations);

           

          (ii)           the
taking, variation, compromise, renewal or release of or refusal or neglect to
perform or enforce any rights, remedies or securities against the Purchaser or
any other Person;

           

          (iii)           any
modification, variation or addition to the terms of any of the Purchaser’s
Guaranteed Obligations or of any other document or security;

           

          (iv)           any
irregularity, defect or informality in the terms of any of the Purchaser’s
Guaranteed Obligations or any other document or security or any legal
limitation, disability, incapacity or want of authority of any
Person;

           

          (v)           any
transfer or assignment of any rights or obligations by any party, whether or not
they relate to the Purchaser’s Guaranteed Obligations;

           

          (vi)           any
corporate reorganization, reconstruction, amalgamation, dissolution,
liquidation, merger, acquisition of or by or other alteration in the corporate
existence or structure of any party, or the non-existence of the Purchaser;
or

           

          (vii)           any
composition or similar arrangement by any party or any other
Person.

           

          (b)           Where
any discharge (whether in respect of any of the Purchaser’s Guaranteed
Obligations or otherwise) is made in whole or in part or any arrangement is made
on the faith of any payment, security or other disposition which is avoided or
must be restored for any reason, the liability of the Guarantor under this
Agreement shall continue as if the discharge or arrangement had not been
made.

           

          4.         Representations, Warranties
and Covenants of Guarantor.  The Guarantor hereby represents
and warrants to the Seller, that, as of the date hereof and at all times during
the effectiveness of this Guarantee:

           

          (a)           The
Guarantor is a public limited company organized under the laws of England and
Wales and possesses the capacity to sue and be sued in its own name and has the
power to carry on its business and to own its property and other
assets.

           

          (b)           The
Guarantor has power to execute, deliver and perform its obligations under this
Guarantee and to carry out the transactions contemplated hereby, and all
necessary corporate, shareholder and other action will have been taken to
authorize the execution, delivery and performance of the same.

           

          
            
               

            

            
              67

              
                

              

            

            
               

            

          

          (c)           The
obligations of the Guarantor under this Guarantee constitute its legal, valid
and binding obligations and are in full force and effect in accordance with
their terms.

           

          (d)           The
execution, delivery and performance by the Guarantor of this Guarantee does not
and will not:  (x) contravene any Requirements of Law of any court or
Governmental Body having jurisdiction over the Guarantor; (y) conflict with, or
result in any breach of any of the terms of, or constitute a default under, any
agreement or other instrument to which the Guarantor is a party or any license
or other authorization to which the Guarantor is subject or by which the
Guarantor or any of its property is bound; or (z) contravene or conflict with
the provisions of the Guarantor’s organizational documents.

           

          5.         Registered
Agent.  The Guarantor has appointed CT Corporation System (and
any successor thereto) as its registered agent for service of process on such
Person in the State of Delaware.  The Purchaser will not change such
appointment while this Guarantee is in effect without the consent of the
Seller.

           

          6.         Amendments;
Waivers.  Neither this Guarantee nor any provision hereof may
be amended, modified, waived, discharged (except by performance of the
Purchaser’s Guaranteed Obligations) or terminated except by an instrument in
writing duly signed by or on behalf of the Seller and the
Guarantor.  No failure or delay on the part of the Seller in
exercising any right, power or remedy may be, or may be deemed to be, a waiver
thereof; nor may any single or partial exercise of any right, power or remedy
preclude any other or further exercise thereof or exercise of any other right,
power or remedy hereunder.

           

          7.         Notices.  All
notices, demands or other communications required or desirable to be given
pursuant to the provisions of this Guarantee shall be in writing and shall be
deemed to be properly served if delivered in accordance with the terms of the
Purchase Agreement.  For purposes of notices, demands or other
communications the address of the parties shall be:

           

          
            	
                    Guarantor:

                  	
                    Centrica
      plc

                  
	 
      	
                    Millstream

                  
	 
      	
                    Maidenhead
      Road

                  
	 
      	
                    Windsor

                  
	 
      	
                    Berkshire
      SL4 5GD

                  
	 
      	
                    United
      Kingdom

                  
	 
      	
                    Attn:
      Group General Counsel and Company Secretary

                  
	 
      	
                    Facsimile:
      01753 494602

                  
	 
      	 
      
	
                    Seller:

                  	
                    Custom
      Energy Holdings, L.L.C.

                  
	 
      	
                    c/o
      Great Plains Energy Incorporated

                  
	 
      	
                    1201
      Walnut Street

                  
	 
      	
                    Kansas
      City, Missouri 64106

                  
	 
      	
                    Attn:
      Mark G. English, General Counsel

                  
	 
      	
                    Facsimile:
      (816) 556-2418

                  

          

          
            
               

            

            
              68

              
                

              

            

            
               

            

          

          8.         Further
Assurances.  The Guarantor agrees, at its sole cost and
expense, to do such further acts and things, and to execute and deliver such
additional agreements, documents and instruments as the Seller may at any time
reasonably request in connection with the administration or enforcement of this
Guarantee or in order to better assure and confirm unto the Seller their rights,
powers and remedies hereunder.

           

          9.         Governing Law and
Jurisdiction.  This Guarantee shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware,
without regard to the conflicts of laws principles thereof.  Any
action or proceeding against any party relating in any way to this Guarantee may
be brought and enforced exclusively in the state courts of the State of
Delaware, and the parties irrevocably submit to the jurisdiction of such courts
in respect of any such action or proceeding; provided, that such action or
proceeding may be brought and enforced in the U.S. District Court for the
District of Delaware only if no state court of the State of Delaware has
jurisdiction of such action or proceeding, and the parties irrevocably submit to
the jurisdiction of the U.S. District Court for the District of Delaware in
respect of any such action or proceeding.  Each party hereby
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or related to this Guarantee or the transactions contemplated
hereby.

           

          10.         Survival; Construction;
Successors and Assigns.  All covenants, agreements,
representations and warranties made herein shall survive until the Purchaser’s
Guaranteed Obligations are satisfied in full.  Anything herein to the
contrary notwithstanding, this Guarantee and all obligations and liabilities
hereunder or in respect hereof shall terminate and be discharged automatically
and without further act or deed upon satisfaction in full of the Purchaser’s
Guaranteed Obligations.  Whenever in this Guarantee any of the parties
hereto is referred to, such reference shall be deemed to include the permitted
successors and permitted assigns of such party; provided, however, that neither
the Guarantor nor the Seller may assign this Guarantee or any of their
respective rights, duties, obligations or responsibilities
hereunder.

           

          11.         Remedies
Cumulative.  No right, power or remedy herein conferred upon or
reserved to the Seller is intended to be exclusive of any other rights, power or
remedy, and each and every right, power and remedy of the Seller pursuant to
this Guarantee or the Purchase Agreement, or now or hereafter existing at law or
in equity or by statute or otherwise shall, to the extent permitted by law, be
cumulative and concurrent and shall be in addition to every other right, power
or remedy pursuant to this Guarantee, or now or hereafter existing at law or in
equity or by statute or otherwise, and the exercise or beginning of the exercise
by the Seller of any one or more of such rights, powers or remedies shall not
preclude the simultaneous or later exercise by the Seller of any or all such
other rights, powers or remedies.

           

          12.         Headings.  Section
headings used herein are for convenience of reference only and are not to affect
the construction of, or to be taken into consideration in interpreting, this
Guarantee.

           

          SIGNATURE
PAGE FOLLOWS

           

          

          
            
               

            

            
              69

              
                

              

            

            
               

            

          

          IN
WITNESS WHEREOF, the undersigned has caused this Guarantee to be executed as of
the date first above written.

           

          
            	 
      	
                    CENTRICA
      plc

                  
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      	 
      
	 
      	 
      	
                    Name:

                  	 
      
	 
      	 
      	
                    Title:

                  	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                    By:

                  	 
      	 
      
	 
      	 
      	
                    Name:

                  	 
      
	 
      	 
      	
                    Title:

                  	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

          

          

          

          70amend.htm

    EXHIBIT 10.2

    

    EXHIBIT
"A"

    

    "Borrowing
Base" shall mean (i) 75% (or such lesser percentage as shall be
determined by Lender from time to time) of the Eligible Accounts plus (ii) the
lesser of (a) 45% (or such lesser percentage as shall be determined by Lender
from time to time) of the Eligible Inventory or (b) $2,000,000; provided,
however, if no Borrowing Base Certificate has been delivered as and when
required by Section 5.1 (g) hereof, the Borrowing Base shall be deemed to be
zero until the Borrowing Base Certificate has been delivered with respect to the
Borrowing Base as of the end of the immediately preceding month.

    

    "Eligible
Accounts" shall mean the gross outstanding balance (less all fees and
other amounts which are unearned, and less all sale, excise taxes or similar
taxes) of those Accounts of the Borrowers which are satisfactory to the Lender
and with respect to which, the Lender has a valid and perfected first priority
and only security interest, there is no violation of the negative, affirmative
or collateral covenants or other provisions of this Agreement or any other Loan
Document and which the Lender deems to be Eligible Accounts based on such
credit, collateral and other considerations as the Lender may deem appropriate.
All returns, deductions, discounts, claims, disputes, credits and allowances of
any nature (whether issued, granted, owing, claimed or outstanding) shall be
deducted from Eligible Accounts.

    

                     1.
Without limiting the Lender's discretion, as set forth above, an Account of any
of the Borrowers can only be an Eligible Account if:

    

                          (a)           such
Account (i) arises from the actual and bona fide sale and
delivery of finished goods Inventory in the ordinary course of business which
sale and delivery is completed in accordance with the terms and provisions
contained in any documents related thereto, (ii) is not evidenced by or payable
pursuant to invoices or similar documentation issued by, or calling for payment
to, any other Person and (iii) does not arise from or in connection with any
sales of Inventory to an Affiliate or any Subsidiary or related Person of a
Borrower;

    

                          (b)           such
Account is not unpaid more than sixty (60) days after date of original
invoice;

    

                          (c)           such
Account does not arise from sales on consignment, guaranteed sale, sale and
return, sale on approval, or other terms under which payment by the Account
Debtor may be conditional or contingent;

    

                          (d)           either
(i) the chief executive office of the Account Debtor with respect to such
Accounts is located in the United States of America, including Puerto Rico (the
"US Requirement"), and such Account is subject to receivables or credit
insurance issued by an insurer pursuant to duly documented written insurance
policies in which the Lender is named as a loss payee and on terms and in an
amount and from an insurer acceptable to the Lender or (ii) the US Requirement
is not satisfied and such account is guaranteed or insured by EXIM Bank pursuant
to documentation acceptable to the Lender in which EXIM Bank has agreed to pay
such guarantee or insurance proceeds to Lender or the Lockbox Account; provided,
however, any portion of such Account which is not so guaranteed or insured shall
not be deemed an Eligible Account, (iii) the Account is backed by a letter of
credit issued by Lender, or (iv) the Account Debtor in respect of such Account
is identified on Exhibit C;

    

                          (e)           such
Account does not consist of progress billings, bill and hold invoices or
retainage invoices;

    

                          (f)           the
Account Debtor with respect to such Account has not asserted a counterclaim,
defense or dispute and does not have, and does not engage in transactions which
may give rise to, any right of setoff against such Account, and is not a
supplier to or creditor of the Borrower or any of its Subsidiaries;

    

                          (g)           there
are no facts, events or occurrences which would impair the validity,
enforceability or collectability of such Account or reduce the amount payable or
delay payment thereunder;

    

                          (h)           the
Account Debtor with respect to such Account is not any foreign government, the
United States of America, any State, political subdivision, department, agency
or instrumentality of any of the foregoing;

    

                          (i)      the
Account does not arise out of or in connection with any contract for services or
involving projects entered into by any Borrower that requires a bond, guaranty
or other similar surety as credit support;

    

                          (j)      such
Account is owed by any Account Debtor which is not insolvent, is not the subject
of a bankruptcy, insolvency, arrangement, reorganization, receivership or
similar proceeding and is not negotiating a compromise of its debts or calling a
meeting for such purpose and has not filed a petition or other application for
relief or had filed against it a petition or other application for relief under
any law relating to bankruptcy, insolvency, reorganization or relief of debtors,
has not failed or suspended business operations or had or suffered a receiver or
a trustee to be appointed for all or a significant portion of its assets or
affairs;

    

                          (k)           such
Account is owed by an Account Debtor deemed creditworthy at all times by the
Lender, as determined by the Lender;

    

                          (l)      such
Account is not evidenced by an instrument or chattel paper (as defined in the
UCC);

    

                          (m)           the
Account Debtor, any insurer with respect to such Account and EXIM Bank, if a
guarantor or insurer with respect to such Account, has been notified in writing
to send all payments on such Account and any guarantee or insurance in respect
of such Account to the Lockbox Account and such notice has not been revoked;
and

    

                          (n)           the
Account is owing in U.S. Dollars.

    

    2. Specifically excluded from the
definition of an Eligible Account are the

    following:

    

                          (a)           Contra
accounts;

                          (b)           All
foreign accounts not supported by an acceptable letter of credit;

    

    (c)           US
Government receivables not specifically assigned;

    

                          (d)           All
inter company accounts;

    

                          (e)           Any
account specifically disqualified by Lender;

    

                          (f)           Rebills;

    

                          (g)           Accounts
generated by consigned inventory;

    

                          (h)           Progress
and service contract receivables;

    

                          (i)      Disputed
accounts;

    

                          (j)      Unassigned
credits greater than thirty (30) days old;

    

                          (k)           Concentrations
greater than fifteen percent (15%) of the eligible accounts;

    

                          (l)      Accounts
that have twenty percent (20%) of the receivables disqualified, the total
receivable is ineligible (cross aged accounts);

    

                           (m)
All instruments and chattel as defined under the Uniform Commercial Code;
and

    

                          (n)           Those
accounts that are subject to insolvency, bankruptcy or other reorganization
proceedings.

    

    Criteria
for Eligible Accounts may be established and revised from time to time by the
Lender and the Lender reserves the right to create, from time to time,
additional categories of ineligible Accounts. Any Accounts which are not
Eligible Accounts shall nevertheless be part of the Collateral. Lender will
endeavor to provide Parent with ten days' notice of any material revision of the
criteria for Eligible Accounts; provided, however, the failure to provide such
notice will not prevent the revision from being effective or make Lender liable
as a result of or in respect of such revision or such failure.

    

    "Eligible
Inventory" shall mean all Inventory in which Lender has a first priority
and only perfected security interest and which is satisfactory to Lender
consisting of raw materials, finished goods [and packaging material] owned by
the Borrowers exclusive of work in process, private label goods held in
inventory for over ninety (90) days, Inventory which can only be sold to a
Governmental Authority or which a Borrower does not have good and marketable
title to, and less reserves determined in accordance with GAAP and less
Inventory which incorporates patents, trademarks or intellectual property of
Persons other than the Borrowers provided to or used by or licensed to a
Borrower pursuant to a license or other agreement or arrangement unless
Borrowers provide Lender with a waiver and consent from each third party
licensor, or owner or Person with rights to such patents, trademarks or
intellectual property, satisfactory to Lender. Eligible Inventory shall be
valued at the lower of book value (based on a [FIFO/LIFO] valuation) and fair
market value.

    

    Eligible
Inventory shall be reduced by and the definition of an Eligible Inventory is
specifically excluded from the following:

    

    (a)           all
Inventory not present in the United States of America;

    

                          (b)           all
Inventory returned or rejected by Borrower's customers (other than goods that
are undamaged and resalable in the normal course of business) and Inventory to
be returned to Borrower's suppliers;

    

                          (c)           Inventory
which is not in good condition or fails to meet standards for sale or use
imposed by governmental agencies, departments or divisions having regulatory
authority over such Inventory;

    

                          (d)           Inventory
which is not useable or saleable at prices approximating their cost in the
ordinary course of such Borrower's business (including without duplication the
amount of any reserves for obsolescence, unsalability or decline in
value);

    

                          (e)           the
amount of such other reserves against Inventory as the Lender deems necessary in
the exercise of its business judgment, including, without limitation, reserves
for discontinued, slow-moving and obsolete Inventory, market value declines,
bill and hold (deferred shipment), shrinkage and any applicable customs,
freight, duties and taxes;

    

                          (f)           Work
in progress;

    

                          (g)           All
inventory subject to reserves;

    

                          (h)           All
packaging and private label products;

    

                          (i)      Bill
and hold inventory;

    

                          (j)      Products
that are salable only to a government unit, agency or authority;

    

                          (k)           Consignments;

    

                          (1)           Slow
moving - all product that is 180 days or older;

    

                          (m)           All
products that are warehoused (consigned) to locations that are not company owned
and/or not subject to a Lender security interest; and

    

                          (n)           Total
eligible inventory remains capped at $2,000,000.00.

    

    Criteria
for Eligible Inventory may be established and revised from time to time by the
Lender and the Lender reserves the right to create, from time to time,
additional categories of ineligible Inventory. Any Inventory which is not
Eligible Inventory shall nevertheless be part of the Collateral. Lender will
endeavor to provide Parent with ten (10) days' notice of any material revision
of the criteria for Eligible Inventory; provided, however, the failure to
provide such notice will not prevent the revision from being effective or make
Lender liable as a result of or in respect of such revision or
failure.

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