Document:

EXHIBIT 10-28
	 

	 
		[Execution Copy]
	 

	 
		 
	 

	 
		 
	 

	 
		PP NUCLEAR NOTE
	 

	 
		 
	 

	 
			
				
				  $240,416,134.40
				

			 	
				
				  December 16, 2005
				

			 

 

	 
		FIRSTENERGY NUCLEAR GENERATION CORP., an
		Ohio corporation (the “Corporation”), for value received, hereby
		promises to pay to the order of PENNSYLVANIA POWER COMPANY, a Pennsylvania
		corporation, its successors and assigns (“Payee”), the principal
		amount of Two Hundred Forty Million Four Hundred Sixteen Thousand One Hundred
		Thirty-Four Dollars and Forty Cents, ($240,416,134.40) and to pay interest
		(calculated on the basis of a 365-day year and charged on the basis of the
		actual number of days elapsed) on the unpaid balance of such principal amount
		at a rate per annum of 5.39% from the due date thereof until the obligation of
		the Corporation with respect to the payment thereof shall be discharged.
		
	 

	 
		Interest on the outstanding principal amount
		of this Note shall be payable semi-annually in arrears, commencing on May 1,
		2006, and on the 1st day of each May and November thereafter (the
		“Interest Payment Dates”). The principal balance of this Note,
		together with all accrued and unpaid interest thereon, on shall be due and
		payable on November 1, 2025.
	 

	 
		Payments of principal and interest hereunder
		may be made either (a) in such coin or currency of the United States of America
		as at the time of payment shall be legal tender therein for the payment of
		public and private debts or (b) by way of the Corporation’s assumption of
		Payee’s liabilities and obligations under certain Pollution Control
		Revenue Bonds of the Payee as set forth and described in the Contribution
		Agreement referred to in Section 1 below.
	 

	 
		SECTION 1. The Note; Definitions. As used herein, the term “Note” refers to
		this unsecured promissory note of the Corporation, dated the date hereof, and
		originally issued, executed and delivered by the Corporation in the principal
		amount of Two Hundred Forty Million Four Hundred Sixteen Thousand One Hundred
		Thirty-Four Dollars and Forty Cents, ($240,416,134.40) pursuant to and subject
		to the terms of the Subscription and Capital Contribution Agreement, dated as
		of May 10, 2005, as supplemented pursuant to that certain Letter Agreement,
		dated as of December 16, 2005 (the “Contribution Agreement”), between
		the Corporation and Payee. Unless the context otherwise requires, the term
		“holder” is used herein to mean the person named as Payee herein.
		Capitalized terms used in this Note and not otherwise defined herein shall have
		the meanings set forth in the Contribution Agreement.
	 

	 
		SECTION 2. Prepayments. The
		Corporation may, at its option and subject to the giving of notice as provided
		herein, at any time prepay this Note, without penalty, in whole or in part upon
		payment of the principal amount thereof, together with interest on the
		principal amount so prepaid accrued to the prepayment date.
	 

	 
		SECTION 3. Amendments and Waivers. This Note may not be modified or amended, except upon
		the written consent of the holder of this Note, and no covenant, agreement or
		condition contained in this Note may be waived (either generally or in a
		particular instance and either retroactively or prospectively) without the
		written consent of the holder of this Note.
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		SECTION 4. Events of Default.
	 

	 
		(a) Each of the following shall constitute
		an “Event of Default” hereunder:
	 

	 
		(i) Failure by Corporation to pay the
		interest on, or principal of, this Note within thirty (30) days of the date
		due; or
	 

	 
		(ii) Filing by Corporation of a voluntary
		petition in bankruptcy or a voluntary petition or any answer seeking
		arrangement or readjustment of its debts or for any other relief under the
		Bankruptcy Reform Act of 1994, as amended (“Bankruptcy Code”), or
		under any other existing or future federal or state insolvency act or law, or
		any formal written consent to, approval of, or acquiescence in, any such
		petition or proceeding by Corporation, the application by Corporation for, or
		the appointment by consent or acquiescence of, a receiver or trustee of
		Corporation or for all or a substantial part of its property; the making by
		Corporation of an assignment for the benefit of creditors; or
	 

	 
		(iii) Filing of any involuntary petition
		against Corporation in bankruptcy or seeking arrangement or readjustment of its
		debts or for any other relief under the Bankruptcy Code, or under any other
		existing or future federal or state insolvency act or law; or the involuntary
		appointment of a receiver or trustee of Corporation, or for all or a
		substantial part of the property of Corporation; and the continuance of any of
		such events for a period of ninety (90) days undismissed or undischarged;
		or
	 

	 
		(iv) In the event that Debtor shall fail to
		perform any term, covenant or agreement, in any material respect, under the
		Contribution Agreement or under this Note.
	 

	 
		(b) Upon the occurrence of an Event of
		Default, then, and in such event, Payee may declare this Note to be due and
		payable, whereupon the entire unpaid balance of principal, together with all
		accrued interest thereon, shall become immediately due and payable without
		presentment, demand, protest or other notice of any kind, all of which are
		hereby expressly waived, anything herein to the contrary
		notwithstanding.
	 

	 
		SECTION 5. Extension of Maturity. Should the principal of, or interest on, this Note
		become due and payable on other than a business day, the maturity thereof shall
		be extended to the next succeeding business day, and, in the case of principal,
		or an installment of principal, interest shall be payable thereon at the rate
		per annum herein specified during such extension. The term “business
		day” shall mean any day that is not a Saturday, Sunday or legal holiday in
		the State of Ohio.
	 

	 
		SECTION 6. Governing Law.
		This Note shall be governed by, and construed in accordance with, the laws of
		the State of Ohio without regard to its rules or principles relating to
		conflicts of laws.
	 

	 
		(signature page follows)
	 

	 
		 
	 

	 
		 
	 

	 
	 

	 

	 
		IN WITNESS WHEREOF, the Corporation
		has caused this Note to be executed on the date first set forth above.
	 

	 
		 
	 

	 
			
				
				   
				

			 	
				
				   
				

			 	
				
				  FIRSTENERGY NUCLEAR GENERATION
				  CORP.
				

			 
	
				
				

			 	
				
				   
				

			 	
				
				  By: 
				

			 	
				
				  
 /s/ Richard H. Marsh
				

			 
	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 	
				
				   
				

			 

 

	 
		  
	 

	 
		  
	 

	 
		Signature Page to PP Nuclear NoteEXHIBIT 10-29
 [Execution Copy]

 

TE NUCLEAR NOTE

 

	
                        $726,100,811.49
 	
                        December 16, 2005
 

FIRSTENERGY NUCLEAR GENERATION CORP., an Ohio corporation (the “Corporation”), for value received, hereby promises to pay to the order of THE TOLEDO EDISON COMPANY, an Ohio corporation, its successors and assigns (“Payee”), the principal amount of Seven Hundred Twenty-Six Million One Hundred Thousand Eight Hundred Eleven Dollars and Forty-Nine Cents, ($726,100,811.49) and to pay interest (calculated on the basis of a 365-day year and charged on the basis of the actual number of days elapsed) on the unpaid balance of such principal amount at a rate per annum of 4.38% from the due date thereof until the obligation of the Corporation with respect to the payment thereof shall be discharged. 

Interest on the outstanding principal amount of this Note shall be payable semi-annually in arrears, commencing on May 1, 2006, and on the 1st day of each May and November thereafter (the “Interest Payment Dates”).  The principal balance of this Note, together with all accrued and unpaid interest thereon, on  shall be due and payable on November 1, 2025.

Payments of principal and interest hereunder may be made either (a) in such coin or currency of the United States of America as at the time of payment shall be legal tender therein for the payment of public and private debts or (b) by way of the Corporation’s assumption of Payee’s liabilities and obligations under certain Pollution Control Revenue Bonds of the Payee as set forth and described in the Purchase Agreement referred to in Section 1 below.

SECTION 1. The Note; Definitions.  As used herein, the term “Note” refers to this Secured Promissory Note of the Corporation, dated the date hereof, and originally issued, executed and delivered by the Corporation in the principal amount of Seven Hundred Twenty-Six Million One Hundred Thousand Eight Hundred Eleven Dollars and Forty-Nine Cents, ($726,100,811.49) pursuant to and subject to the terms of the Purchase and Sale Agreement dated as of May 18, 2005, as supplemented pursuant to that certain Letter Agreement, dated as of the date hereof (the “Purchase Agreement”), between the Corporation and Payee.  Unless the context otherwise requires, the term “holder” is used herein to mean the person named as Payee herein.  Capitalized terms used in this Note and not otherwise
defined herein shall have the meanings set forth in the Purchase Agreement.

SECTION 2. Security.  This Note is secured pursuant to the terms and provisions of a Security Agreement of even date herewith.

SECTION 3. Prepayments.  The Corporation may, at its option and subject to the giving of notice as provided herein, at any time prepay this Note, without penalty, in whole or in part upon payment of the principal amount thereof, together with interest on the principal amount so prepaid accrued to the prepayment date.

SECTION 4. Amendments and Waivers.  This Note may not be modified or amended, except upon the written consent of the holder of this Note, and no covenant, agreement or

 

 

condition contained in this Note may be waived (either generally or in a particular instance and either retroactively or prospectively) without the written consent of the holder of this Note.

SECTION 5. Events of Default.

(a) Each of the following shall constitute an “Event of Default” hereunder:

(i) Failure by Corporation to pay the interest on, or principal of, this Note within thirty (30) days of the date due; or

(ii) Filing by Corporation of a voluntary petition in bankruptcy or a voluntary petition or any answer seeking arrangement or readjustment of its debts or for any other relief under the Bankruptcy Reform Act of 1994, as amended (“Bankruptcy Code”), or under any other existing or future federal or state insolvency act or law, or any formal written consent to, approval of, or acquiescence in, any such petition or proceeding by Corporation, the application by Corporation for, or the appointment by consent or acquiescence of, a receiver or trustee of Corporation or for all or a substantial part of its property; the making by Corporation of an assignment for the benefit of creditors; or

(iii) Filing of any involuntary petition against Corporation in bankruptcy or seeking arrangement or readjustment of its debts or for any other relief under the Bankruptcy Code, or under any other existing or future federal or state insolvency act or law; or the involuntary appointment of a receiver or trustee of Corporation, or for all or a substantial part of the property of Corporation; and the continuance of any of such events for a period of ninety (90) days undismissed or undischarged; or

(iv) In the event that Debtor shall fail to perform any term, covenant or agreement, in any material respect, under the Purchase Agreement or the Security Agreement, each of even date herewith, between Corporation and Payee or under this Note.

(b) Upon the occurrence of an Event of Default, then, and in such event, Payee may declare this Note to be due and payable, whereupon the entire unpaid balance of principal, together with all accrued interest thereon, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything herein to the contrary notwithstanding.

SECTION 6. Extension of Maturity.  Should the principal of, or interest on, this Note become due and payable on other than a business day, the maturity thereof shall be extended to the next succeeding business day, and, in the case of principal, or an installment of principal, interest shall be payable thereon at the rate per annum herein specified during such extension.  The term “business day” shall mean any day that is not a Saturday, Sunday or legal holiday in the State of Ohio.

SECTION 7. Governing Law.  This Note shall be governed by, and construed in accordance with, the laws of the State of Ohio without regard to its rules or principles relating to conflicts of laws.

(signature page follows)

 

 

IN WITNESS WHEREOF, the Corporation has caused this Note to be executed on the date first set forth above.

 

	
                         
 	
                         
 	
                        FIRSTENERGY NUCLEAR 
 GENERATION CORP.
 
	
                          
 	
                         
 	
                        By: 
 	
                        
 /s/ Richard H. Marsh

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]